Back to Normal Bull Market Behavior
The market is back to behaving as it normally does in a bull market. Today’s it’s become moderately overbought so we’re probably within a day or two of a pause/pullback but compared to the past 6 weeks it’s good to see so many sectors and asset classes moving as they are. For a free trial […]
No Large Edges Either Way Today
Back to neutral today but the market behaved very orderly yesterday. Normally I wouldn’t point this out but because the behavior over the past month has been different than over the past year, it is important that the movement (the leaders and the traditionally low-volatility, safer companies) act as they traditionally do in a bull […]
My Only Concern
Normal follow-through behavior yesterday with prices rising, especially in the growth stocks, along with volatility (VIX) declining, My only concern is that the larger, better, dividend paying, low volatility companies didn’t participate. They have been hit hard over the month so it was good to see them rally so strongly on Friday. Yesterday (especially many […]
Ideally Prices Rally this Week
On Friday morning I mentioned that “for the first time in a while we saw upward movement yesterday into the traditional risk-on instruments such as the utility stocks (XLU) and treasuries. Normally this is not a big deal because it’s normal behavior but because it has not occurred recently, it may be a sign that […]
World Events Have Center Stage
For the first time in a while we saw upward movement yesterday into the traditional risk-on instruments such as the utility stocks (XLU) and treasuries. Normally this is not a big deal because it’s normal behavior but because it has not occurred recently, it may be a sign that markets are beginning to move as […]
Consider Tracking SPLV
Yesterday had the shaping of something much worse and it was good to see the market close just above even. I would have liked to see the gains hold but at least they were able to reverse the market from morning lows. The buying came into the consumer defensive stocks (many had healthy gains) and […]
There are Two Things that Concern Me
Yesterday I wrote “Pretty much textbook behavior yesterday (Monday) and the key will be a follow-through today. A reversal back down will not be a good sign”. Well the reversal back down did occur and it’s not a good sign. There are two things that concern me: 1. The sell-off is hitting the safer larger […]
The Key will be a Follow-Through Today
Pretty much textbook behavior yesterday and the key will be a follow-through today. A reversal back down will not be a good sign. A continued follow-through higher will signal that last week’s pullbacks was simply that; a pullback For a free trial to the Daily Battle Plan, click here!
This Scenario Could Lead to a Strong Rally Through the Week
The market is even more oversold now but the good news is that they were buying the defensive quality companies into the close on Friday. The concern of a global liquidity crunch was lessened when seeing that money was actually being put to work in the larger higher quality names which had been hit hard […]
Stay Prudent; Contain the Risk
With the DOW now down for the year, the psychology (the sentiment) of the market has quickly shifted. For the past two days I pointed out the recent deterioration in so many of the stocks and yesterday saw a complete breakdown of nearly all stocks. Today’s oversold readings are at yearly extremes and they come […]
The Market Looking More and More Like the Summer of 2007
Yesterday I mentioned the major indexes do not fully reflect the underlying deterioration that has occurred in the market place and yesterday saw further internal deterioration. The internals are now very oversold and with the market trading more than a ½% lower a few hours before the open, things are going to become even more […]
This is Going to Make the Next Three Days Quite Interesting
The major indexes do not fully reflect the underlying deterioration that has occurred in the market place. Nearly 20% of the S&P 500 stocks come into the day with 2-period RSI readings under 5. This type of reading usually occurs after the indexes have been hit hard; not after small pullbacks. What we will see […]