July 19, 2017

The market remains imperious as it keeps driving higher despite the negative news flow, all of which just mortars more bricks into the wall of the worry that this market likes to climb. Yesterday the bumbling ineptitude of the Republican-led Congress was on fully display, as another major policy initiative, namely healthcare reform, was shelved again. The market sold off early in the day... [more]

July 16, 2017

The NASDAQ Composite Index shrugged off any ideas of resistance at the prior declining tops trendline and instead flashed a nice trendline breakout on Thursday. As I pointed out on Wednesday, the declining tops trendline could just as easily provide a point of reference for just such a breakout as it could overhead resistance. Low volume accompanied Friday’s continuation... [more]

July 12, 2017

Those who love to ride rollercoasters will find much to like about this market, but the unwary might have been shaken out by yesterday’s big sudden intraday sell-off. This occurred after news of Donald Trump Jr. releasing the email chain he exchanged with a Russian attorney with no ties to the Russian Government was released. Once the news algos, algos that are allegedly programmed to read... [more]

July 9, 2017

On Wednesday I wrote that if we see the NASDAQ Composite Index peel away from its 50-day moving average on the downside then the S&P 500 Index would likely retest its 50-day moving average. That is what we saw on Thursday, with the S&P closing just below the 50-day line on higher selling volume. Friday’s jobs number came in at a seasonally adjusted... [more]

July 5, 2017

Monday was supposed to be a quiet, short, pre-holiday session for the market, but investors were instead treated to an unexpectedly unusual and unique fireworks show. The 3½ hour trading session started out with a big upside gap thanks to a sizable overnight move in the futures that gained momentum in pre-market trade leading right into the opening bell. For this market, it was just another... [more]

July 2, 2017

The NASDAQ Composite Index’s attempt to hold a bounce off the 50-day moving average failed quickly on Thursday, even before the opening bell. The NASDA 100 futures were already down overnight, presaging another brutal sell-off in the big-stock NASDAQ and tech names. The more important sign of the failure was the fact that a number of undercut & rally long set-ups that... [more]

June 28, 2017

The strong action we saw in many stocks on our watch list on Friday saw little to no follow-through on Monday. I tweeted early Monday that I didn’t like the reversals I was seeing after small gap-up openings in a number of stocks, including those that I was holding long myself. This caused me to take a cautious stance as I moved into cash and threw out my usual hedge in the ProShares Ultra... [more]

June 25, 2017

This remains a “Market in LUie Land” as the recoveries in techs and other names that were beaten to a pulp on June 9th continue.  All of these recoveries are occurring as L-shaped “bear flags” morph into U-shape “LUie” formations in defiance of conventional technical analysis. If this were all new to me I might be amazed at the sight of these LUie-type moves. But I myself... [more]

June 21, 2017

The market has taken on this random flavor where it seems to be moving in one direction and then suddenly shifts in not quite the blink of an eye. The most glaring example of this was the action two Fridays ago, on June 9th when the tech sector was beaming higher early in the day before reversing course in a brutal sell-off. Since then, the indexes have been attempting to stabilize... [more]

June 18, 2017

Coming in Thursday morning, holding cash or short positions was the place to be as the indexes gapped down sharply at the open. Based on the gap-down open, the indexes looked set to split wide open. But in its typical Ugly Duckling style, the market belied expectations and turned off the lows for a less than disastrous outcome by the close. The NASDAQ Composite Index found... [more]