April 11, 2021

Major market indexes continue to melt higher as the NASDAQ Composite and S&P 500 Indexes pushed to higher highs on light volume. The action strikes me as a classic melt-up type of move as the indexes have risen on a continuous stream of light volume over the past 6-7 days. In the process the S&P posted an all-time high on Friday as the NASDAQ now comes within... Read More

April 7, 2021

Money has spent the week so far piling back into big-stock NASDAQ and other tech/growth names, a move that began in late last week. The infamous S&P Five, Apple (AAPL), Amazon.com (AMZN), Facebook (FB), Alphabet (GOOG), and Microsoft (MSFT) have all found favor as of late, with FB, GOOG, and MSFT breaking out... Read More

April 4, 2021

The S&P 500 cleared the 4,000 level on Thursday for the first time in history, while the NASDAQ Composite regained its 50-day moving average after gapping up and holding in a tight range all day. The NASDAQ’s move was fueled by broad strength in semiconductors following Micron Technology’s (MU)... Read More

March 31, 2021

A new trading week brought more twists and more turns, as revelations that the heavy liquidation of certain stocks, including media names like ViacomCBS (VIAC) and Discovery (DISCA), along with the likes of Tencent Music Holdings (TME) and Farfetch Ltd. (FTCH), were the result of the forced de-leveraging of a hedge fund, Archegos... Read More

March 28, 2021

The twists and turns in this market get stranger by the day. On Friday, the market looked like it was headed for a big reversal as it approached the last hour of the trading session. Ten minutes ahead of the final hour the indexes broke to lower intraday lows and then suddenly reversed course, streaking to fresh highs in in a wild late-day surge. After getting short-term oversold on Thursday... Read More

March 24, 2021

I’ve written in recent reports that one primary scenario to watch out for is this idea of a second-wave of base- and breakout-failures among current leading stocks and groups – essentially a Second-Wave Short-Sale Theory. Generally, such failures will begin with a break below the 10-day and 20-day moving averages combined with a test of or a move below a prior base breakout point. This... Read More

March 21, 2021

Interest rates continue to dominate the market story, and the rally we saw on Wednesday quickly evaporated on Thursday when rates pushed higher again. The 10-Year Treasury Yield hit an intraday high of 1.754% on Thursday. It then leveled off on Friday to end the week at 1.725%, its highest level since January 2020. There is much talk of the 1.75% level as the “breaking point” for stocks.... Read More

March 17, 2021

Market interest rates continued to rise ahead of today’s Fed policy announcement, and investors were eager to find out where the Fed stands, exactly, on this particular issue. I’ve pointed out the fact that Fed Heads on the speaking circuit over the past couple of weeks have soft-pedaled interest rate concerns, citing it as an “expression of confidence in the economy.” So far that has not... Read More

March 14, 2021

The divergence in the tech-heavy NASDAQ Composite and its NYSE counterparts, the S&P 500 and Dow Indexes, remains in force. The S&P and the Dow both ended the week at or near all-time closing highs while the NASDAQ remains below its 50-day moving average. Volume was light on Friday as the NYSE-based indexes rallied while the NASDAQ sold... Read More

March 10, 2021

The stark divergence in the NASDAQ Composite as it heads lower while the S&P 500 rallies back up to its February highs and the Dow makes new highs continues to develop as money sloshes from one side of the tub to the other. In the old days, this type of divergence was usually a harbinger of big trouble coming down the pike, and something... Read More