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 […]
Economic News will Dominate the Rest of the Week
The rest of the week will be dominated by economic news with the Federal Open Market Committee meeting, the first look at Q2 GDP, and the monthly employment situation report all coming over the next four days. Today the market is neutral. It was good to see yesterday’s intraday recovery and with volatility picking up […]
Would Be Best to See this Pullback Last a Few Days
In spite of Friday’s pullback, the market is barely oversold (in fact QQQ is neutral). With volatility rising it would be best to see this pullback last a few days in order to continue to lessen the excessive bullishness that’s out there. For a free trial to the Daily Battle Plan, click here!
We’d Expect to See a Short-Term Pullback
No change from yesterday. The market has now gone a week since a pullback or being oversold so we’d expect to see a short term pullback within a day or so. For a free trial to the Daily Battle Plan, click here!
Many Momentum Stocks have begun their Ascent Again
The market remains slightly overbought today. Volatility has moved back down and many of the momentum stocks which rose to silly levels in February and then crashed have begun their ascent again (a few like SFUN and POWR rose over 10% yesterday). Overall though nothing has changed and any pullbacks should continue to be viewed […]
Volatility is Beginning to Move Back Down
The market is slightly overbought today. Volatility is beginning to move back down and any pullbacks should continue to be viewed as short-term buying opportunities. For a free trial to the Daily Battle Plan, click here!
Every Pullback/Bear Market Starts the Same Way
There’s been an obvious change in the market’s behavior over the past week with volatility finally showing some life. Here’s the reality; every pullback/bear market starts the same way; it starts with volatility rising. But not every rise in volatility leads to a pullback/bear market. From a historical VIX level, volatility is still extremely low. […]