Another Market Leader, Green Mountain Coffee Roasters, Stumbles
Green Mountain Coffee Roasters (NASDAQ: GMCR) gained more than 65% in the first weeks of 2014, adding to gains of more than 80% in 2013. GMCR is up more than 2,300% since bottoming in 2008. This market leader has now pulled back and is set up as a potential buy with a PowerRatings of 9. […]
New All Time Highs on the Back of Yellen?
The market is again in neutral territory. The upward month-end bias in stock prices remains in force along with the expected happy message from Janet Yellen on Thursday so prices will likely trade higher into her testimony. As long as she stays on course, there is a higher than average probability that new all times […]
Market Leader Micron Technology Oversold
Micron Technology (NYSE: MU) has been among the leaders in the bull market that began in 2009 with a gain of more than 1,400% since bottoming in the bear market. In 2013, MU was once again among the biggest gainers in the S&P 500 with a gain of more than 250%. In the first weeks […]
Month-End Bias in Full Force
The market has moved from neutral territory into short-term slightly overbought territory. The upward month-end bias in stock prices I mentioned yesterday want into full force and it’s a very good sign to see that strategy continuing to work. A larger one-day pullback today in the US will place the indices into a buying zone. […]
US Steel Falls to Oversold on Downgrade
US Steel (NYSE: X) fell 3.36% yesterday after being downgraded to “hold” from “buy” by analysts at Keybanc. This was the second big down day for X in less than a week. The stock fell 7.03% last Wednesday after the Commerce Department announced it would not impose tariffs on steel from South Korea. Tariffs would […]
2 Things to Monitor Monday
Good Morning. The market is in neutral territory but it has two things going for it right now. 1. The upward month-end bias in stock prices kicks in beginning now. 2. The overbought markets are the emerging markets including Brazil and India. These markets have been the leaders to the downside and if this is […]
Dow is The Weakest Major Market Index
Stock prices have become overbought on many indicators but PowerRatings is neutral on most stocks and ETFs tracking major market indexes. Most stocks and ETFs have PowerRatings of 4 to 7 indicating they are neutral. DIAMONDS Trust (NYSE: DIA) is the ETF that is closest to offering a potential buy signal. The current PowerRatings of […]
Recent Behavior Creates Breathing Room
The market behaved the past two days exactly as bull markets behave with a pullback immediately followed by a rally. There’s also now more breathing room between prices and the 200 day which further tells us that this bull market remains in place. Should the market pullback again today it will put itself into the […]
Weak Economic Data in China Leads to Stock Market Pullback in South Korea
Weakness in China’s economy could lead to a slowdown in South Korea. Moody’s Investor Service warned investors on Thursday that the largest risks to the South Korean economy are slow growth in China and high levels of household debt in Korea. Neither problem appears to be a major concern in the short-term but South Korean […]
Expected Pullback has Finally Arrived
The expected pullback has finally arrived and the market is now in neutral territory. A normal bull market pullback will last 1-4 days and unless we see anything out of the ordinary this one will likely be within that range. For a free trial to the Daily Battle Plan, click here! Today’s Potential Opportunities on […]
Early Signs of a Global Decoupling
There are early signs of a global decoupling occurring again with Latin America (ILF, EWZ) again pulling back, DIA now in neutral territory and IWM with a ConnorsRSI reading above 90. Right now this is normal; what isn’t normal is the extreme overbought readings in many US sectors combined with volatility being driven down to […]
Few Buying Opportunities in Overbought Stock Market
After eight consecutive up closes in SPDR S&P 500 (NYSE: SPY), the stock market is generally overbought. However, few stocks have followed the index to extremes. Using PowerRatings, only 27 (5.4%) of the individual stocks in the S&P 500 index are overbought. None are oversold. Stocks in other indexes are also mostly neutral. Only twelve […]