Leading Off...This is how the Market will Trap You...

Published: April 22, 2014, 2:11 a.m.

b'Tim Reazor
\\nChief Investment\\xa0Strategist
\\nNorAm Asset Management
\\nSuccess in the markets only comes with well-defined risk control procedures and knowing where potential traps might be. \\xa0This market could be setting you up for a mighty big fall. \\xa0Netflix has reported a well-received quarter and this morning\\u2019s Leading Indicators Report didn\\u2019t trip us up. \\xa0You still have to be very cautious.
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\\nThere are nine economic reports being released in the next four days that will move the markets up or down. \\xa0Add in earnings reports from the likes of Apple, Facebook, Amazon and Under Armor and this week promises less certainty and more volatility.
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\\nThe trap has been set\\u2026. You\\u2019ve been lulled\\u2026.
\\nUntil we clear the $1,867-price level on the S&P 500 and finally clear the $3,570 \\u2013 $3,600 price range on the Nasdaq the market is prone to violent selloffs. \\xa0 The market will lull you into a false sense of security. \\xa0It will rise on low volume to the key levels I just mentioned and sell off violently and wipe out any newfound gains.
\\nCan you see this coming? \\xa0You bet; watch how bonds act everyday this week. \\xa0 They will signal whether this move is real or not. \\xa0 If bonds break decidedly lower then the move higher in stocks is real. \\xa0If bonds hang around old highs or rally then beware\\u2026 it\\u2019s a trap!
\\nSo how do you play this\\u2026 stay nimble and look for the strongest markets. \\xa0Right now one of the best markets is found in oil. \\xa0Crude is setting up beautifully around the $104-price level. \\xa0 If crude continues its current pattern look for crude to shoot up to $106 and then $111. \\xa0The easiest way to participate in this move is using an ETF based on crude. \\xa0USO is a fine choice. \\xa0Look for USO to move up ton $39-$42 depending upon how steep the climb in crude becomes.
\\nIf you\\u2019d like to hear my expanded thoughts on the markets, stocks and commodities you can listen to my radio show or watch my weekly video. \\xa0Here are the links \\u2013
\\nhttp://www.thewallstreetshuffle.com/
\\nhttp://noramassetmanagement.com/wp-content/uploads/2014/04/Meet-Now-4-18-14-9.36-PM.mp4
\\nIf you have any questions or would like help setting up a successful investing strategy please email me \\u2013 Tim.Reazor@NorAmAsset.com
\\nBest Regards,
\\nTim
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\\nThe information presented is for educational and entertainment purposes only.\\xa0 Opinions and information expressed are based\\xa0upon information considered reliable.\\xa0 However, factors are constantly changing and should not be relied upon. You need to do and verify your own research. \\xa0
\\nMoreover, no reader or listener should assume that any information or discussion presented serves as personalized investment advice from NorAm Asset Management, Inc. or from any other investment professional, and is not an offer of solicitation for the sale or purchase of any specific securities, investments, or investment strategies.\\xa0You need to have your own, individual investment advice suitable for your personal situation.
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\\nInvestments involve risk and unless otherwise stated are not guaranteed.
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