By Lawrence G. McMillan
Our publication schedule is altered for August, since our office is going to be closed at the end of August for three days. We are going to publish this newsletter on the first and third Thursdays in August. Regular publication dates will resume in September. The weekly Hotline updates will continue to be issued as usual.
As the selling in the stock market has accelerated over the past week, some oversold conditions have begun to appear. The feature article discusses when, or even if, these should lead one to buy “the market.” The bottom line is that one must wait for confirmed buy signals, even of the oversold kind, before stocks can be bought.
Our market opinion is on page 6. All of the intermediate-term indicators are negative, so we are bearish from that standpoint. Oversold conditions could propel sharp buy short-lived rallies.
The volatility article that begins on page 12 discusses a) how little $VIX has risen given the market drop, and b) the pending $VIX “spike peak” buy signal. The recommendation for that signal is on page 7.
On page 9, there are several recommendations: a volatility trade in RPTP, a Wheat mini-futures trade, and a recommendation in FXI .■
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