February 22, 2017

The Dow Jones Industrials Index continued its monotonous ascent with its ninth-straight up day in a row. Volume was slightly lighter as sellers have remained reluctant to come into this market while every pullback is bought into. Meanwhile, the S&P 500 Index, not shown, held fairly tight today as volume declined. There remains a steady drumbeat of pundits... [more]

February 19, 2017

I consider myself a fairly open-minded person. I understand that the market hasn’t had a 1% move in many days, and I understand that the Volatility Index ($VIX) is “dangerously” low while the hoi polloi remain “dangerously” ebullient. In the face of such ominous-sounding punditry, I am psychologically and methodologically prepared to deal with such a market pullback. After all, I am told... [more]

February 15, 2017

The market began the week with an instructive demonstration of why paying attention to the pundits’ worries about excessively bullish sentiment, a low VIX, and the number of days the market has gone without a 1% pullback won’t make you money. Anyone reacting and jumping ship on the basis of things that go bump in the night would have missed some nice moves and trading opportunities in a number... [more]

February 12, 2017

It seems one can’t really look anywhere these days without seeing an article or a pundit decrying the fact that the market “hasn’t had a 1% correction in 87 days,” that the Volatility Index (a.k.a. “the VIX”), or that bullish sentiment has reached extremes. Currently, the Investor’s Intelligence survey shows that 62.7% of investment advisers are bullish vs. a scant 16.7% of whom are... [more]

February 8, 2017

While the major indexes pushed to all-time highs over the prior two days, odd divergences were beginning to crop up yesterday. The first was breadth, which, despite all three of the major market indexes finishing positive on the day, came in at roughly 1.5 to 1 negative on both the NYSE and NADAQ Exchanges. The second divergence was the fact that both of the broader NYSE Composite... [more]

February 5, 2017

Friday’s jobs number came in at a “blistering” 227,000 jobs vs. estimates of 177,000, sending the market blasting back to the upside. The Dow Jones Industrials Index regained the magical 20,000 level and the NASDAQ Composite logged a new all-time closing high. Despite the strong index action on Friday, the action among individual stocks has been mixed.... [more]

February 1, 2017

The week got off to an interesting start with futures selling off overnight on Sunday, leading to a sharp downside break on Monday. In the process the Dow Jones Industrials Index dropped just over 200 points on an intraday basis Monday, but rallied into the close to end the day down 122 points. On Tuesday the selling continued, and a number of big-stock leaders re-tested... [more]

January 29, 2017

To paraphrase Forrest Gump, bullish action is as bullish action does. And so far that seems to be the case. The S&P 500 Index holds in a two-day bull flag with volume drying up nicely on Friday following Wednesday’s gap-up breakout to new highs.   ... [more]

January 25, 2017

We can now mark this date as an historic one for the market, at least for those who have a fetish for big, round numbers. The Dow Jones Industrials Index opened this morning at 19,994.48 and then within an instant was trading above the “magical” 20,000 price level. By the time I was able to click my mouse to capture a screen shot of the event it was already above 20,012.   ... [more]

January 22, 2017

Friday was the first options expiration day of 2017, but you wouldn’t know it from the action of the NASDAQ Composite Index, which held tight at its 10-day moving average on lighter volume. Friday was also Inauguration Day, and, as the pundits have been telling us, the day to sell the inauguration after buying the election. That didn’t really play out on Friday as the... [more]