November 4, 2018

The market remains in the fourth day of a nascent rally attempt off the lows of this past Monday. Friday’s action put an end to what was a three-day upside streak for the indexes, as an early-morning gap-up move reversed and sent all the major indexes into the red. The NASDAQ Composite Index stalled and reversed at its 20-dema on higher and heavy selling volume.   ... [more]

October 31, 2018

Lower lows on Monday kept an ominous Halloween glow hanging over the market. But once again the market’s tendency to act like a cheap drunk who remembers nothing about what they did and with whom the night before took effect. A small gap-up open blossomed into a rally early yesterday, but the market then began to waver again, looking like a replay of Monday’s ugly action was in store. But... [more]

October 28, 2018

Things got a little crazy over the past two days as the market once again acted like a cheap drunk on Thursday morning, gapping up sharply as it completely forgot about Wednesday’s ugly, bearish sell-off to lower lows. That move looked quite strong, with the NASDAQ 100 Index up 3.35% on higher volume, despite fading a bit into the close. That set the stage for an after-hours... [more]

October 24, 2018

The descending triangle we were seeing in the largest and narrowest market indexes as of Monday night, as discussed in my video report that evening, came to ugly fruition yesterday. The market gapped down sharply at the open, sending both the 30-stock Dow Jones Industrials and the NASDAQ 100 Index below their 200-dmas. As the Dow streaked over 500 points lower,... [more]

October 21, 2018

The NASDAQ Composite Index is the weakest-performing of the major large-cap indexes by virtue of its -10.56% peak-to-trough decline that hit a near-term low last week. This contrasts with the peak-to-trough declines of over -7.83% and -7.61% in the S&P 500 and Dow Jones Industrials Indexes, respectively. After a natural reaction rally early... [more]

October 17, 2018

I wrote over the weekend that the fat part of the short-selling game was likely over with, at least for the near-term. Thus, there was no point in pressing the short side coming into the new trading week. Given that the indexes and many busted formerly leading stocks became wildly oversold by the time last Friday’s closing bell sounded, we have been treated to a normal, natural oversold reaction... [more]

October 14, 2018

The velocity with which the market and leading stocks have fallen this past week has been quite astounding. It is reminiscent of the action in early February, which featured the Dow Jones Industrials Index’s first-ever 1,000-point downside close. These days, however, a drop like that is only about 5%, nothing in comparison to the May 6, 2010 Flash Crash that saw the Dow decline... [more]

October 10, 2018

The indexes certainly appeared as if they might be in position for some kind of reaction rally as of last Friday’s close. But, despite the oversold condition of the indexes and many leading stocks, oversold simply became more oversold. Most of these price breaks are something to behold, to be sure. Leading stocks in most cases haven’t even been able to hold undercut & rally moves... [more]

October 7, 2018

The weakness in bonds earlier this past week combined with numerous divergences as discussed in Wednesday’s report came to fruition on Thursday as the indexes broke hard to the downside. The instigator was alleged to be spiking interest rates. The 10-Year Treasury Yield ($TNX) moved to its highest levels since the financial crisis of ten years ago, pegging at 3.225% on Friday.   ... [more]

October 3, 2018

This has been a most interesting week for the market, with cross-currents aplenty. On Monday we were treated to a massive upside gap-up open after the U.S. and Canada had agreed to terms that would create the so-called U.S.-Mexico-Canada-Agreement, or USMCA for those with a fetish for acronyms. By the close, most of those gains evaporated, and the NASDAQ Composite Index posted an... [more]