February 16, 2020

The zombie-rally continues as a steady hail of negative news bullets regarding the spreading COVID-19 (formerly known as coronavirus) fails to deter its march to new highs. The NASDAQ Composite Index posted another record close on Friday as volume receded. Nobody seemed all that interested in clearing out of the market ahead of the long three-day weekend.   ... Read More

February 12, 2020

As the market keeps extending its rally, I remain wary of a meaningful pullback, but so far, the market has continued to zombie-walk its way to new highs. The trend is persistent enough to also bring up the possibility of a parabolic sort of resolution, that is a blow-off move higher. I characterize the current rally as a zombie-walk because of the uneven action on the way. High-volume stalling... Read More

February 9, 2020

The market wedged four days of sharp upside in between two Friday sell-offs by selling off at the end of the week. The NASDAQ Composite Index, the leading major market index, is following up Wednesday’s higher-volume stall and churn with a small roll off the peak on Friday on lighter volume. From here, I would not be surprised to see at least a test of the 10-dma/20-dema confluence.   ... Read More

February 5, 2020

Had I blogged near the close on Friday that members should scoop up stocks with both hands as the bell approached, I likely would have been written off as a nut job. And as I wrote over the weekend, Friday’s big volume outside reversal on the NASDAQ Composite Index looked like a train I wasn’t willing to stand in front of. While it would have certainly sounded crazy at... Read More

February 2, 2020

More craziness marked the final two trading days of the week, but the essential message remained the same: This market is coming down. The clues were there, most notably in how important groups like the semiconductors and financials started to break down over a week ago. Nevertheless, extreme intraday volatility made the market a tough nut to crack on Thursday before things finally resolved... Read More

January 29, 2020

The market has packed at least one week’s worth of craziness into just three days, kicking the week off with a sharp gap-down break on Monday. The selling was blamed on the convenient alibi currently known as the coronavirus, but the indexes never went much further below the opening gap-down lows. The market then decided, in its usual bi-polar manner, that the coronavirus wasn’t that... Read More

January 26, 2020

The market caught a base case of the coronavirus on Friday on a big outside reversal day to the downside for the NASDAQ Composite Index on heavy and higher volume. The S&P 500 also posted an outside reversal to the downside while the Dow held up only marginally better.   ... Read More

January 22, 2020

You can’t keep a good trend down. That’s the motto of this market, as a one-day sell-off yesterday, good for a distribution day, was met with a sharp rally this morning. However, today’s bid for yet more new highs was turned back as the NASDAQ Composite Index stalled and closed below its opening gap-up levels on lighter but above-average volume.   ... Read More

January 19, 2020

New highs for the Big Three market indexes remain the order of the day. The second full trading week of the New Year ended with the NASDAQ Composite Index, shown below, the S&P 500 and the Dow at all-time highs. Volume was higher, so from an index point of view the rally remains more than intact.   ... Read More

January 15, 2020

As the indexes and leading stocks get further extended, the likelihood of a pullback intuitively increases. Given how far things have come since the early-October lows, a reasonable excuse can easily trigger some selling as we saw yesterday. Then, it was reported that the U.S. would not be rolling back previously imposed tariffs on China now that the Phase One deal was in the books. A rally... Read More