You Can See the Rotation Occurring
With multiple events happening at the same time, you can see the rotation occurring. The long momentum stocks/short emerging markets trade has been a good one for many hedge funds and that has come to end, at least for the short-term. As they exit the momentum stocks (think biotech,) and cover their short emerging markets […]
Small Caps Oversold on Seven High Probability Trading Strategies
This week’s stock market selloff has been following a pattern indicating the pullback is most likely a dip in the long-term uptrend. In an orderly market, small caps lead the way higher or lower followed by mid caps and then large caps. After yesterday’s decline, ETFs that track small caps and mid cap indexes are […]
Month End Buying Kicked In
Yesterday I mentioned the market was slightly oversold and due for a bounce. The traditional month end bias of institutional buying kicked in and unless something out of the ordinary triggers the path of least resistance remains higher. For a free trial to the Daily Battle Plan, click here!
Market Condition Little Changed After Yesterday’s Gains
Stock market averages posted small gains in yesterday’s trading but there were no significant breakouts or breakdowns among ETFs that track the major averages. For the most part, the highest volume ETFs ended the day with the same PowerRatings they had at the open. Gold miners, small cap stocks and the health care sector remain […]
Hedge Fund Rebalancing Sell-off
The word is that yesterday’s substantial sell-off in the higher volatility, high momentum stocks were hedge funds re-balancing their portfolios volatility. Because VIX has moved from 11-12 all the way up to as high as 16 yesterday, the avg. fund has taken on too much intended risk/volatility and the adjustment brings then in-line with where […]
ETF Buy List Grows as Stock Market Declines
Major stock market indexes were down slightly yesterday. Among the day’s biggest losers were small caps, especially biotechs and other tech stocks. iShares Russell 2000 (NYSE: IWM) fell 1.14% and PowerShares QQQ (NASDAQ: QQQ) was down 0.88%. The decline pushed a number of ETFs into an oversold condition and heading into Tuesday’s trading, twelve ETFs […]
End-of-Month Upward Bias Expected
Today the market is slightly oversold. The week is entering the traditional end of the month upward bias so unless something out of the ordinary occurs, there will be buying coming in during the week. For a free trial to the Daily Battle Plan, click here!
Questions from Congress About Drug Prices Lead to PowerRatings Signals
Gilead Sciences (NASDAQ: GILD) recently began offering a new hepatitis drug. Experts note that GILD’s drug helps about 90% of patients who take the drug and has few side effects. Older drugs only helped about half of the patients and had a number of side effects. While GILD’s drug offers medical benefits, the price tag […]
Bull Market Shrugs Off Bad News
It was very good to see the market move higher yesterday while shorter-term bond positions got unwound. Such resiliency is what we saw in 2013. Either the Fed is playing a role in this or all the cash that has been printed for five years is still coming into play (or it’s a combination of […]
Gold Oversold on PowerRatings and Seven High-Probability Trading Strategies
SPDR Gold Shares (NYSE: GLD) has fallen more than 4.3% from its 2014 highs and has closed lower for four straight days. The ETF now meets the setup rules for all seven buy strategies identified in the book High Probability ETF Trading: 7 Professional Strategies to Improve Your ETF Trading. Gold miner ETFs are also […]
Fed Announcement Pushes Real Estate ETFs to Oversold Condition
Traders reacted quickly after the Federal Reserve announced there would be no significant policy changes in the next few months. Selling was broad-based with major stock market indexes falling 1.3% or more. Bonds also sold off with iShares 20+ Year Treasury Bond (NYSE: TLT) falling 1.1% from its morning high. SPDR Gold Shares (NYSE: GLD) […]
Volatility Indexes Moved Lower Ahead of Fed
It’s not often you see the volatility indexes move lower a few hours ahead of a Fed Announcement but that’s exactly what happened yesterday. That, along with bond prices dropping and the market having a two day run, was basically an all-in bet that Yellen would continue to reward investors on any announcement or speech […]