Tags: Richard Ross | stock market | initial public offerings | shares

Strategist Richard Ross: Raft of IPOs May Signal Stock Market Top

By    |   Thursday, 27 March 2014 10:23 AM

More than 40 companies already have gone public this year, raising $8.5 billion. Does this indicate the stock market is ready to fall?

Perhaps, says Richard Ross, global technical strategist at Auerbach Grayson. "All of those IPOs are a sign for a potential top here," he told CNBC/Yahoo Finance. "It's just part of a growing litany of bearish evidence here for the Dow."

Another negative sign is that while the Standard & Poor's 500 Index hit a record high last Friday, the Dow Jones Industrial Average hasn't climbed to a new all-time peak since Dec. 31, he said.

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"The Dow has failed to confirm and that's troublesome," Ross said. He thinks the index is likely to slide back to its recent 200-day moving average around 15,654. The Dow closed Wednesday at 16,268.99.

"I would not be a buyer of the broader market here," Ross said. "In fact, I would be a seller and, if I were an aggressive trader, a short-seller. . . . I think that the potential for downside is at its highest level in months."

Some investors are worried that the conflict between the West and Russia over Ukraine will hurt stocks.

"Investors around the world have been waiting to see what kind of reaction the United States and the EU would really take regarding Russia’s annexation of Crimea beyond sanctions," Frederic Dickson, chief investment strategist at D.A. Davidson, told Bloomberg.

"Any hints of escalation in terms of rhetoric or action would probably trigger investors to stand back and take recent profits."

Editor's Note: 18.79% Annual Returns ... for Life?

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StreetTalk
More than 40 companies already have gone public this year, raising $8.5 billion. Does this indicate the stock market is ready to fall?.
Richard Ross,stock market,initial public offerings,shares
271
2014-23-27
Thursday, 27 March 2014 10:23 AM
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