Where Is The Stock Market Going Next Week?

Where Is The Stock Market Going Next Week?The billion dollar question is always this, where is the stock market going next week?  We can see that the market is trying to make it 6 straight weeks up since that absolutely horrible start in January.  With one day to go, it is anyone’s guess if we will make it.  If we get to see a near 1% gain tomorrow, then we will have our sixth straight week.  I am guessing that we are not going to get that gain tomorrow.  That leaves us to the question of where is the stock market going next week if this is the case?

It is amazing to think about what can happen when you have the market close higher for the 5th straight week.  There have been numerous studies about consecutive day closes that show some weird correlations.  They have found that when the market closes up 5 straight days, you will have a negative .11% return over the next week.  It gets even worse as you go higher for consecutive days.  When you get up to 7 straight days, you have an average loss of .40% over the next week.  What does this mean for us and more importantly the stock market?  It helps us use statistics to forecast a very probable outcome for this market over the next 5 trading days.  Where is the stock market going next week?  It is going to go lower, but by how much?

I can hear everyone telling me that the market could easily be higher tomorrow AND next week.  You are absolutely correct, but if that comes to fruition, you will be looking at an even greater down week the following 5 trading days.  In other words, the longer we go with up weeks, the worst the correction in terms of losses.  This market is not going to go up forever folks and that is what we all need to realize.  Take a look at my latest article on a very lucrative short position I took out this week on two different stocks.  These stocks are an example of how to play individual stocks or the entire market if we see them getting too hot.

If you are looking for a good stock to buy for next week, you will want to brave the energy market and jump on a few of those bad boys.  I am seeing a great down trend over the last week that should allow us a small gain over the next 6 trading days.  The chart looks absolutely horrible for the last week and that is exactly what you should look for in order to take advantage of it.  I personally like VLO as a strong buy going forward.  I wrote an article about this stock you will want to read in order to see what I am talking about.  It has some really good potential which could equate to some very large gains.

As for my teams in the National Championship Stock Market Game, we are currently sitting in 1st, 2nd, and 3rd after a very nerve wracking 2 months of trading.  The tournament is running until May 2nd and then the winner is crowned.  I am very proud of my students and the trade research they are doing.  They are battling for a free trip to Washington D.C. along with 9 other schools that crack the top 10 at the end of the competition.  There are over 4,000 teams competing in this, and it is something I feel all students should partake in.  If you ever have a chance to help out some organizations with donations, I highly suggest this program.  But back to answering the question of where is the stock market going next week.

I am advising my teams to find some dogs that are looking to crash because they are running out of cash.  I find it can be easier to short sell a bad company than trying to buy a company whose stock is going through the roof.  It seems that everyone is always buying the appreciating stocks will they won’t short sell the bad ones.  They seem to avoid them like the plague.  This is very weird for me to thing about.  If the regular stock investor hears of a stock going up, he buys it and makes some cash.  If they hear of a stock dropping and looking at bankruptcy, they stay away from it instead of shorting it.  Why not try to make some cash on the downside just like they did on the upside?  Who knows why, but it is something I teach my students.  If you truly want to maximize your profits, you need to understand how to short the stock market just as much as you understand how to go long in the stock market.  In other words, don’t be afraid to short some bad companies just as you would buy the good companies.  Keep an eye out for my updates regarding are journey towards our school’s first national championship.  :)

Where Is The Stock Market Going Next Week?

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