March 26, 2017

After undercutting their prior February and March lows on Wednesday, setting up a logical undercut & rally situation, the indexes continued to move higher into Friday morning. This was associated with a large number of similar types of undercut & rally moves in individual stocks, something I discussed in detail in my mid-week report of that day. That Friday morning rally ended within... [more]

March 22, 2017

The Icarus Rally finally felt the effects of getting too close to the sun yesterday with all the major indexes melting down over 1% across the board. For those keeping count, this was the first time in 110 days that we’ve seen a market pullback of 1% or more, and heavy selling volume didn’t disappoint in this regard. Last week’s breakdown in financials was likely a harbinger of this... [more]

March 19, 2017

Financial stocks have been a bulwark of the market rally that began after the election. The Fed’s indication of more rate hikes to come caused many market pundits to begin forecasting three more rate hikes this year and then another 3-4 next year, financials don’t seem to agree. While the Fed’s actions and words on Wednesday seemed to indicate a hawkish stance, the financials don’t... [more]

March 15, 2017

The 91% probability of the Fed raising rates today went to 100% as this elite group of “anointed” individuals deemed fit to wield their omniscience over the U.S. monetary policy raised rates by a quarter point. This sent the indexes into their usual gyrations, but mostly to the upside. By the time the dust had settled, the S&P 500 Index had completed a little trendline... [more]

March 12, 2017

The market has slipped into a choppy, sloppy affair as the indexes sway back and forth. Meanwhile, the action in individual stocks continues to present investors with little in the way of meaningfully profitable set-ups, although there is the occasional upside surge among some of the names on my long watch list, as we will see later in this report. The S&P 500 Index acts... [more]

March 8, 2017

The indexes have spent the past few days chopping around without making any progress beyond last Wednesday’s big gap-up move to new highs. The Dow Jones Industrials Index was in a steady downside drip as it met up with its 10-day moving average yesterday with volume declining. This looked like a constructive pullback but it all changed character today as the Dow broke lower... [more]

March 5, 2017

Wednesday’s big gap-up move seemed to run out of gas on Thursday, as the Dow Jones Industrials Index pulled in about ½ of a percent on lighter volume. Within the context of where the Dow is trading currently, 100 points isn’t much on the chart. So far the Dow has been able to hold above the intraday lows of Wednesday’s gap-up price range with volume declining.   ... [more]

March 1, 2017

The Trump Train rolled through Dow 21,000 this morning, but nobody was passing out hats or coffee mugs, even though it cleared 21,100 just for good measure. The rally was notable for coming on the heels of President Trump’s first address (a.k.a. speech) to Congress. While the rally was attributed to Trump’s speech, this struck me as a bit odd since there was nothing truly new in the speech. For... [more]

February 26, 2017

When I got up on Friday morning and saw the NASDAQ futures down 30 or so, I tried to remember the last time I had seen the futures down that much. These days it has been a rare occurrence in a market that seems to have forgotten how to sell off. In a sense you could see the Friday morning sell-off coming on the basis of Thursday’s action. That was the day where we saw a number of leaders... [more]

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]