May 13, 2018

Friday was an uneventful day for the indexes after they posted higher highs on Thursday. The NASDAQ Composite Index held in a tight range as volume declined, which looks constructive as an orderly one-day consolidation after five-straight days of upside since clearing its 50-dma. The index is now extended from the 50-dma and looking, at least for now, like it has its eyes set on... [more]

May 9, 2018

The 50-day moving average has been the parallel bar around which the major indexes are spinning, but today we saw oil stocks help to power the S&P 500 Index through its 50-dma. As I indicated in last night’s video report, this would be constructive as the S&P now joins the NASDAQ Composite Index, which regained its 50-dma last week.   ... [more]

May 6, 2018

News that iconic value investor Warren Buffett bought 75 million more shares of Apple (AAPL) sent the stock and the market pushing higher on Friday. This came on the heels of a big shakeout and reversal as the S&P 500 Index broke below its 200-dma, bringing on the consternation of market pundits who... [more]

May 2, 2018

The market has remained in the chop zone, with much of the action being dictated by the outcomes of big-stock earnings reports. On Monday, things looked to be starting out with a bang on the back of a strong earnings report from McDonald’s (MCD). But, as I tweeted early in the day, the gap-up rally looked like it could... [more]

April 28, 2018

The market looked primed for a big upside romp Friday morning after big-stock NASDAQ names (AMZN), Intel (INTC), and Microsoft (MSFT) all reported strong earnings and gapped up sharply in after-hours trading on Thursday. As the pundits on cable financial TV lauded the exploits... [more]

April 25, 2018

Things got ugly yesterday after stocks broke further to the downside on heavy volume. As I noted in my video report last night, the culprit this time came in the form of cautious comments from Caterpillar (CAT) and 3M Company (MMM) after both companies reported earnings before the bell. While MMM gapped down sharply at the bell, CAT ripped to the upside on a big... [more]

April 22, 2018

In my Wednesday report I noted the low-volume floater rallies we were seeing in big-stock NASDAQ names. As I pointed out, it made the market vulnerable to a pullback. We did indeed end the week with two days of downside distribution in the major market indexes, all of which dropped below their 50-dmas. The NASDAQ Composite Index broke decisively below its 50-dma on Friday,... [more]

April 18, 2018

The market found the necessary inspiration to abandon its sluggishness in a strong earnings report from (Netflix (NFLX) Monday after the close. This led to a strong gap-up open yesterday that sent the major market indexes back up through their 50-dmas. Big-stock NASDAQ names, moving in sympathy to NFLX, put the NASDAQ... [more]

April 15, 2018

The NASDAQ Composite Index got as far as its 50-dma on Friday at the open on another gap move to start the day, but reversed to close down on lighter volume. Note that the index also broke below the lower trendline of the ascending wedge that I noted in a tweet on Thursday. Resistance at the 50-dma is logical, and the fact that it came on light volume amid a lot of nervousness... [more]

April 11, 2018

I generally find follow-through days to be somewhat useless when it comes to determining the future direction of the general market. In a market like this, where news instability can create sharp and sudden swings in either direction, it’s difficult to tell whether a follow-through is real or just a function of a volatility twitch. Ultimately, the action of individual stocks tells the full story,... [more]