November 12, 2017

The market pulled another one of its “pull the rug out” type of moves on Thursday, something that is not uncommon in this market. A big futures-led gap-down open took the Dow Jones Industrials Index down around 250 points, or a little over 1%. In a market that seldom pulls back 1%, this counts as a bear market of sorts. In the process, leading stocks start to look ugly... [more]

November 8, 2017

The market has a bit of a bifurcated flavor here as we see short-sale opportunities crop up in certain individual stocks. But, the primary index trend remains to the upside, and the long side of this market is still driven by the theme of “stocks are the new bonds.” The other strong theme here is the idea of buying stocks after earnings if an opportunistic set-up arises, and there have been... [more]

November 5, 2017

A strong earnings report from Apple (AAPL) provided the fuel for another new all-time high for the NASDAQ Composite Index, its 63rd of the year and the most since 1980. But the broader action still had some of the sloppiness that I alluded to in my last report, as declining stocks on the NASDAQ... [more]

November 1, 2017

A heavy news docket heralded the start of a new month, starting with today’s Fed policy announcement. Included in the mix is, of course, the big-stock earnings reports from the likes Facebook (FB), while tomorrow the Republican-led government is expected to divulge the details of its “massive, wonderful, beautiful” tax plan. We will also find out who the next Fed chairman... [more]

October 29, 2017

The narrow leadership provided by the Dow Jones Industrials Index did what narrow leadership often does in this market, which is to simply pass the baton off to another group of narrow leadership. With Friday’s post-earnings gap-up moves in four of the biggest of the big-stock NASDAQ names on Friday, (AMZN),... [more]

October 25, 2017

The Dow Jones Industrials Index has now outpaced the S&P 500 by 10% over the past 12 months, with the near-term parabolic move continuing through yesterday. Where we had previously seen big-stock NASDAQ names provide narrow leadership in this market, the burden of lighting up the nation’s quote screens has fallen on the thirty stocks that make up the Dow. International... [more]

October 22, 2017

In Wednesday’s report, I mentioned the seemingly humorous notion of using a “Down on Big Volume” screen as a long idea generator. While my comment may have come off as a joke, it was, to be frank, at least half-honest. Not only that, but it was also prophetic, because the very next day, Thursday, the market gapped down hard at the open and leaders across the board were getting hit with heavy... [more]

October 18, 2017

This is probably the oddest market environment I’ve seen in my 26 years of market experience. 1999 was of course a very odd environment, but it was one where consistent, parabolic upside in the indexes was matched by similarly consistent, parabolic movement to the upside in growth stocks. Today we see a similar relentlessness in the way the indexes continue to grind higher, but it is a grind,... [more]

October 15, 2017

The NASDAQ Composite Index ended the week with another new all-time closing high on Friday. Volume was lightest seen since Monday, however, and the index closed below where it opened, resulting in a narrow-range churning day. With the index posting only two down days over the past three weeks, the odds of a pullback increase. Adding some weight to this argument would be Thursday’s... [more]

October 11, 2017

Until Monday, I had forgotten what the color red on my quote screen looked like. That was the first day I’ve seen all the major market indexes that I track down for the day in some time, at least to my memory. Let’s be frank, the situation has reached a point where we can always expect that the moon will orbit the earth, the birds will fly south for the winter, the sun will rise in the east,... [more]