August 16, 2017

The market seemed to be anticipating the softening of war-rhetoric emanating from North Korea by pulling a big futures led jack to the upside on Monday morning. As I wrote over the weekend, because of the NoKo news selling alibi, the market was susceptible to precisely this type of sudden upside relief rally. This sent the NASDAQ Composite and S&P 500 Indexes... [more]

August 13, 2017

The NASDAQ Composite Index blew through its 50-day moving average on Thursday on heavy selling volume to cap off a three-day decline that began on Tuesday. That’s when President Trump uttered his now famous “fire and fury” threat to North Korea’s belligerent and bellicose leader. Thursday’s sell-off was attributed to additional comments by the President that day when... [more]

August 9, 2017

I suppose I could say that my caution as expressed in recent reports was finally rewarded yesterday as the market reversed to the downside, quashing the Dow Jones Industrial Index’s attempt to post twelve straight up days. The break occurred after President Trump uttered a stern, if not an outright saber-rattling, warning to North Korea, promising, “fire and fury” and a veritable... [more]

August 6, 2017

Earnings roulette season is in full swing, and has come with its share of big winners and equally big losers. On Friday, we saw the #1 stock in the #1 stock group, Applied Optoelectronics (AAOI) blow up in spectacular fashion with a 30% gap-down move. After posting a 50% or so rally over the prior month as it briefly flirted... [more]

August 2, 2017

Your first clue that things aren’t exactly right is the failure of leading names to hold constructive pullbacks to logical areas of support. Since we seek to buy stocks on such pullbacks and then keep risk to a bare minimum by then using that same area or line of support as our selling guide, these failures to hold support will quickly and naturally force us out of any new positions we take. This... [more]

July 30, 2017

The market once again did what it loves to do when things start looking just a bit too rosy on the long side: the old “yanking of the rug.” On Thursday, it pulled the rug out from underneath investors after a brisk opening move to the upside led by a post-earnings gap-up move in Facebook (FB). But that move in FB topped... [more]

July 26, 2017

The Fed had no surprises for the market today, keeping rates steady and then issuing the usual central-planning hubris about “stimulus,” “accommodation,” and “guiding economies toward optimal levels of inflation and full employment.” I always feel that they should add in the line from that well-known TV commercial, “So easy even a cave-man (or woman) can do it!” Following... [more]

July 23, 2017

After posting nine straight up days the NASDAQ Composite Index finally took a day off, pulling back slightly on Friday as volume declined on an options expiration day. So far, the action remains constructive, with no signs of distress. A lot of leading stocks are extended, sure, but that in and of itself is not a sign of an impending, major correction.   ... [more]

July 19, 2017

The market remains imperious as it keeps driving higher despite the negative news flow, all of which just mortars more bricks into the wall of the worry that this market likes to climb. Yesterday the bumbling ineptitude of the Republican-led Congress was on fully display, as another major policy initiative, namely healthcare reform, was shelved again. The market sold off early in the day... [more]

July 16, 2017

The NASDAQ Composite Index shrugged off any ideas of resistance at the prior declining tops trendline and instead flashed a nice trendline breakout on Thursday. As I pointed out on Wednesday, the declining tops trendline could just as easily provide a point of reference for just such a breakout as it could overhead resistance. Low volume accompanied Friday’s continuation... [more]