A Tale of Two Markets
A tale of two markets today. Momentum is overbought; yield and many high quality strong dividend companies are oversold. In 1999, long momentum/short quality played out for over a year before correcting in a bubble burst in 2000. Right now there is no bubble but when indexes like QQQ and IWM go weeks staying overbought, […]
Media Feeds in the Negativity and Prices Continue to Rise
The market remains in a typical bull market, quietly rising on a wall of worry. Markets like this over the decades have lasted quite a while as the media feeds in the negativity and prices continue to rise. The euphoric stage has yet to hit and until it does, the path of least resistance will […]
Should Be a Quiet Day
The market is fairly neutral heading into the final day of a very good month. Yesterday held in well and you can expect to see low volume today ahead of the holiday weekend. If you are looking for oversold markets look abroad. The ETFs of some do offer some possibilities but overall unless something out […]
News Will Likely Predominate Trading Today
The market is overbought with all three major indices closing at high 2 and 4 period RSI readings. Trading volume is usually light the two-days before the Labor Day holiday weekend and any type of economic or geopolitical news could provide an exaggerated move. This morning there’s a lot of focus coming from Ukraine and […]
Month-End Upward Bias In Full Force
The month-end upward bias I mentioned on Monday has been in full force the past two days. My only concern at this point is that yesterday saw unusual behavior with IWM rising significantly while SPLV (the S&P 500 Low Volatility ETF) dropped for the day. As we have discussed before, SPLV is made up of […]
Expect Continued Upward Buying Pressure
The month-end upward bias is now in effect. Since in 1990’s prices have historically risen in the final week of the month, especially when the market is above its 200 day ma so expect continued upward buying pressure here. For today’s official Daily Battle Plan set-ups click here.
One of the Very Few Things that Can Pause This
The bull market continues. One of the very few things that can pause this is a perceived shift in policy from Yellen. Otherwise the money will continue to flow into equities. For today’s official Daily Battle Plan set-ups click here.
Long Opportunities Today in Country Fund ETFs in Europe and Asia.
Even though the US is very much overbought, much of the rest of the world is neutral/slightly oversold. If you’re looking for long opportunities, they exist today in country fund ETFs in Europe and Asia. For today’s official Daily Battle Plan set-ups click here.
Focus Must Remain on the Opportunities to the Long Side
A pause/pullback is now due on a short-term basis. Much of the world is looking at the latest update this week from the Fed. Any indication of tightening is not factored in and a sharp pull-off will ensue. Outside of that though, the bull market continues and focus must remain on the opportunities to the […]
Within a Day or So of a Pause/Pullback.
20% of the S&P 500 stocks have 2-period RSI readings above 95 and whenever that happens it starts getting into short-term unsustainable levels. We’re within a day or so of a pause/pullback. For a free trial to the Daily Battle Plan, click here!
Pullbacks Should Again be Viewed as Buying Opportunities
News from Ukraine is leading to the futures showing a healthy upside move in pre-market trading. The VIX spike on Friday showed the level of fear that was out there. Rallies always follow fear subsiding. The bull market behavior we’ve seen for the past week or so is reminiscent of what we saw earlier in […]
Many Overbought Country Fund ETFs this Morning
It’s back to “risk-off” as the world markets are rallying and volatility across the board is declining. There are many overbought country fund ETFs this morning and most will be even more overbought on the opening. Longer-term this is good; shorter term all are within a few days of a short-term pullback (US included). For […]