July 10, 2018

Stocks remain in the driver’s seat, with Friday’s wide-range bar and good close of particular note. Volume has been well below average on this rally, part of which may be due to caution ahead of earnings season. Leadership in the Nasdaq is coming together gradually as patterns are repaired and in some cases completely rebuilt following the 5% June reaction. Within the list, technology... [more]

July 2, 2018

Stocks are in the second week of a well-deserved 5% reaction for the Nasdaq Composite. Most leading stocks, though lower, are in good shape, with about 44 of them trading within 10% of their 52-week high. The fact that there is some semblance of order to many growth-stock charts leads one to expect continued outperformance by this sector once the averages find their sea legs. With... [more]

June 24, 2018

The speculative sentiment peaked early last week and led to a few days of selling, with the biggest damage occurring in tertiary names, recent new issues in particular. Proceedings had gotten frothy in titles like Scholar Rock Holdings (SRRK), Iqiyi (IQ), Dropbox (DBX), Carbon Black (CBLK), Zuora (ZUO), Huya (HUYA), Puxin (NEW), et al. From last week’s report: “Should... [more]

June 18, 2018

Stocks have shown next to no kinks in their armor over the past few weeks. Most of the true leaders have already broken out, and it becomes challenging to find those yet to be exploited. The list below reflects a slimmer menu of pattern setups. ... [more]

June 13, 2018

Stocks remain in the catbird seat, with Nasdaq trading volume picking up slightly. Leadership continues in the growth sector and Nasdaq/small-cap realm as participants favor groups with lesser trade-tariff risk. Retail has now joined consumer discretionary and technology as the outperforming broad sectors. Breadth has expanded notably over... [more]

May 21, 2018

The following was written Sunday, May 20. Stocks give a good account of themselves overall as participants contend with a rising-rate environment. Leadership has been very good, with volume the obvious sore spot in the averages, especially New York Stock Exchange volume. Nasdaq activity has been better, but even this leaves something to be desired given the existence of just one major accumulation... [more]

February 13, 2018

The following was written Tuesday evening, Feb. 13: Position traders will wait for one of a few things to occur before initiating new positions in the growth sector: 1) An O’Neil follow-through day (FTD), Since Tuesday was Day 3 after the low close of 2/8 in the Nasdaq and S&P, the next day in which price rises a substantial amount on volume > the prior day’s... [more]

January 29, 2018

Trend, breadth, and leadership are all positive and the accumulation window remains open for institutions. According to a wire service, the market has gone 18 months without a 5% reaction, the longest in history. Heady stuff, indeed. As noted last time, “…more fundamentally sound growth names have been building and breaking out of bases than at any time in recent memory. This is the... [more]

January 18, 2018

Historically, there has been an average of two particularly auspicious times to acquire stock each year. The current period, which began the day after the new year, is considered such a time. Critically, more fundamentally sound growth names have been building and breaking out of bases than at any time in recent memory. This is the key factor that differentiates this period from any other... [more]

October 19, 2014

“Learn as much as you can. Read and listen to experts, but keep a degree of healthy skepticism about everything.” — Dr. Alexander Elder   We had been on the lookout for a selling climax, a day in which market participants capitulate by throwing in the towel en masse. Preferably, such a session will begin with a panic-driven... [more]