Pivotal Day for Market
Good Morning, Today will be a pivotal day for the market. Should it be able to shrug off Apple’s earning, the month end upward price bias could kick in. Historically going back to 1993, this end of the month bias has been very strong when markets have been oversold. Today we’re at extreme oversold conditions […]
Twelve of Thirteen Sectors Oversold After Market Selloff
The stock market’s recent selloff has been broad based and all sectors except utilities are now oversold according to PowerRatings. Most major market indexes are also oversold, with the exception of the NASDAQ 100. PowerRatings are based on the relative strength or weakness of particular stocks or ETFs. The higher the rating, the greater the one […]
Two Main Themes of 2014
Good Morning, There have been two main themes I have been mentioning since the beginning of this year: 1. There were too many people bullish coming into the year. As I mentioned in the first commentary of 2014, in 31 years in the industry I had not seen a year enter where bullishness was so […]
Leveraged Dow ETFs Oversold
The Dow Jones Industrial Average has been leading the market higher and lower over the past several weeks. After selling off for three days last week, ETFs that track the Dow are now oversold. ProShares Ultra Dow30 (NYSE: DDM) and ProShares UltraPro Dow30 (NYSE: UDOW) will both start trading on Monday with PowerRatings of 10. […]
How is ConnorsRSI Different than Traditional Indicators?
ConnorsRSI provides valuable information in that it quantifies: how overbought or oversold prices are; the duration of the recent trend; and the magnitude of the most recent price change. Combining these factors into a single indicator helps identify the best trading opportunities since ConnorsRSI is designed to be more responsive to the current market action. […]
Popularity of Monster Worldwide Uncovers a Buy Signal
One of the lists users can find at the PowerRatings web site is a list of the most requested stocks. These are the stocks users have looked up the most often. PowerRatings users tend to be real traders and the stocks they find interesting are often not among the most popular stocks that many individual […]
Panic Needs to Precede Bottom
Good Morning, The US markets are now oversold with the ConnorsRSI reading on SPY at 20, and DIA reaching fairly rare air with a reading under 10. There is still very little fear in place in spite of the fact that the majority of days this year have been down. Ideally, I’d like to see […]
If They Don’t Go Down On Bad News…
The US markets remain in neutral territory today. What is encouraging is the way the market is shrugging off a number of earnings misses, especially from technology leaders. There’s an old saying “if they don’t go down on bad news, they’re likely going higher”. Another couple of days of missed earnings followed by higher market […]
Spanish Stocks Oversold Despite Good Economic News
Economic conditions in Spain have improved enough for the country to sell €10 billion in bonds. The country actually received bids for €40 billion worth of bonds, prompting government officials to note that “funding conditions for Spain have normalized.” The Spanish economy returned to growth in the third quarter of 2013 and the 0.3% increase […]
Great Environment for Trend Following…
The US markets are in neutral territory today while many of the country fund ETFs under their 200 day ma continue to fall. This continues to be a great environment for long/short Trend following of ETFs. This environment has been going on now since October and has been providing a low risk/high reward scenario for […]
NFLX Oversold Heading Into Earnings Report
Netflix (NASDAQ: NFLX) will announce its earnings after the close today. The stock is oversold with a PowerRatings of 8. NFLX is a volatile stock with a 100-day volatility that is almost four times greater than the volatility of PowerShares QQQ (NASDAQ: QQQ) and the earnings report could be a catalyst for a large move. […]
Market Moderately Oversold Heading into Tuesday Trading
Good Morning, The market is moderately oversold with SPY and QQQ showing ConnorsRSI readings just under 30. The world markets continue to behave in typical bull market/bear market fashion with those countries above their 200 day trending higher with small pullbacks while those below the 200 day such as TUR, EWS, EWA, EWW, and EWM […]