April 6, 2014

“Notice that the stiffest tree is most easily cracked, while the bamboo or willow survives by bending with the wind.” — Bruce Lee Friday’s Nasdaq downdraft got everyone’s attention, given its being the second-worst day in 22 months. Moreover, volume was the second-heaviest for a downday in nine months. The Naz has shed... [more]

March 30, 2014

“Nearly all men can stand adversity, but if you want to test a man’s character, let him trade.” — Old Trader Last week’s report noted that “…while the averages have not shown undue wear, the leading stocks tell a different story. Many are breaking down. A generous cash position is advised... [more]

March 23, 2014

“Drawdowns are a fact of trading, and how a trader deals with drawdowns will determine the end game.” —Peter Brandt The averages have seen some distribution, but not enough to cause concern. The Nasdaq Composite has seen two of them as marked on the below chart, Friday being excused due to it being the quarterly... [more]

February 24, 2014

“It’s not what we look at, it’s what we see” –Anonymous Shares pause to form an abbreviated congestion area atop a Nasdaq advance of eight-straight days. Volume was reduced for most of last week, a good thing. ... [more]

February 19, 2014

“A good trader merely takes advantage of recognizable patterns that do occur and stays out of trouble the rest of the time.” –Linda Raschke After eight days in a row of Nasdaq up, it is logical to expect some softness. As noted on the Twitter feed at the time, the fourth day... [more]

January 26, 2014

“Many of life’s failures are people who did not realize how close they were to success when they gave up.” –Thomas A. Edison In the wake of the averages’ 2% drubbing of Friday, we would use care about jumping to any conclusions. The following is what is objectively known: 1)    The averages... [more]

January 13, 2013

 “Just win, baby.” – Al Davis Shares continue higher. Leading growth stocks generally act well. The backdrop is quite positive, as low interest rates and low inflation combine with an expanding economy. ... [more]

December 30, 2013

“Many an opportunity has been lost waiting for one last rally or decline.” – Robert Prechter   Courtesy of buying in the wake of the recent Federal Reserve decision to commence the taper, shares are overdone short-term. While this is never a reason to refrain from initiating new commitments,... [more]

December 17, 2013

“Those who are the best at losing will get all the money in the end.” — Professional currency trader   The Nasdaq Composite has gone over a year without more than a 6.7% pullback. In a bull market, such occurrences are rare. The longer the averages go without a pullback, the more likely there is to be one. For... [more]

November 25, 2013

“When the least-probable scenario plays out, there’s a very powerful reason why.” — Linda Raschke Shares started out last week with three-straight down days before gaining their composure and rising on Thursday and Friday. Nasdaq volume was below average all five days. ... [more]