September 30, 2018

Wednesday’s reversal on higher volume had a bearish tinge to it, no doubt, but the market is very much like a cheap drunk. It rarely remembers what it did the prior night, and just carries on as it pleases no matter what faux-predictive technical evidence its behavior provided the prior day. The S&P 500 Index was the cheapest drunk of the bunch on Wednesday with its... [more]

September 26, 2018

News over the weekend that the Chinese had cancelled the upcoming round of trade talks with the U.S. set up an interesting market permutation on Monday morning. NASDAQ futures took the brunt of the selling overnight on Sunday, and it looked like big-stock NASDAQ stocks would suffer the most that day once things got up and running. Meanwhile, the Dow Jones Industrials Index opened... [more]

September 23, 2018

The Dow Jones Industrials Index finally caught up to the rest of the indexes by posting its own all-time high on Thursday, exceeding the prior highs of late January. The S&P 500 also logged another all-time high, but NYSE volume was lighter on the day. On Friday, the Dow made another all-time high but churned and stalled in a narrow price range on heavy quadruple-witching... [more]

September 19, 2018

The week has so far had an odd feel to it, as I intimated in yesterday’s video report, and this was reinforced by this morning’s stark divergence between the Dow Jones Industrials and the NASDAQ Composite Indexes. This was preceded by yesterday’s big rally following the imposition of tariffs on an additional $200 billion worth of Chinese goods and services.... [more]

September 16, 2018

The market was pushing back up toward its prior highs after finding inspiration in a Tuesday Wall Street Journal report that the U.S. was inviting the Chinese to a fresh round of trade talks. This of course had the effect of turning the market on a dime Tuesday morning when it was selling off in earnest. The indexes then slogged their way back up toward their prior highs over the next two... [more]

September 12, 2018

After starting the month off with four-straight down days, the major indexes found logical support and rallied on Monday and Tuesday. They even shook off a gap-down open yesterday on news that China was asking the World Trade Organization for permission to sanction the U.S. $7 billion for alleged trade violations. The NASDAQ Composite Index bounced off the top of its late-July... [more]

September 9, 2018

Investors must now figure into their market assessment and strategy a new factor that can drive significant and often random price movements. That would be the arrival schedule for the Trump Train, which can blindside the market whenever the President decides to pile on the rhetoric regarding his current Trade War. On Friday, a strong jobs number sent the futures careening to the downside... [more]

September 5, 2018

The market’s glorious end to the summer of 2018 has run into some selling here in early September. As I noted in a tweet yesterday, none of the new set-ups I thought I was seeing over the weekend were showing any traction. In some cases, the stocks were getting outright blasted. Applied Optoelectronics (AAOI), was one... [more]

September 2, 2018

The market got blindsided by the Trump Train on Thursday when late in the day a headline crossed indicating that the President was going to move ahead with tariffs on an additional $200 billion of Chinese goods and services this coming week. The market took a small hit in the last hour or so of the trading day but did not come entirely unglued. Ahead of the three-day Labor Day Weekend, a... [more]

August 28, 2018

The indexes have charged higher as they at least act like the recent breakouts to new highs in the S&P 500 and NASDAQ Composite Indexes may be the beginning of new upside legs in what pundits are calling the longest bull market in history. While that may be true, it’s not as if there haven’t been enough serious downside breaks in the rally to offer some... [more]