October 17, 2018

I wrote over the weekend that the fat part of the short-selling game was likely over with, at least for the near-term. Thus, there was no point in pressing the short side coming into the new trading week. Given that the indexes and many busted formerly leading stocks became wildly oversold by the time last Friday’s closing bell sounded, we have been treated to a normal, natural oversold reaction... [more]

October 14, 2018

The velocity with which the market and leading stocks have fallen this past week has been quite astounding. It is reminiscent of the action in early February, which featured the Dow Jones Industrials Index’s first-ever 1,000-point downside close. These days, however, a drop like that is only about 5%, nothing in comparison to the May 6, 2010 Flash Crash that saw the Dow decline... [more]

October 10, 2018

The indexes certainly appeared as if they might be in position for some kind of reaction rally as of last Friday’s close. But, despite the oversold condition of the indexes and many leading stocks, oversold simply became more oversold. Most of these price breaks are something to behold, to be sure. Leading stocks in most cases haven’t even been able to hold undercut & rally moves... [more]

October 7, 2018

The weakness in bonds earlier this past week combined with numerous divergences as discussed in Wednesday’s report came to fruition on Thursday as the indexes broke hard to the downside. The instigator was alleged to be spiking interest rates. The 10-Year Treasury Yield ($TNX) moved to its highest levels since the financial crisis of ten years ago, pegging at 3.225% on Friday.   ... [more]

October 3, 2018

This has been a most interesting week for the market, with cross-currents aplenty. On Monday we were treated to a massive upside gap-up open after the U.S. and Canada had agreed to terms that would create the so-called U.S.-Mexico-Canada-Agreement, or USMCA for those with a fetish for acronyms. By the close, most of those gains evaporated, and the NASDAQ Composite Index posted an... [more]

September 30, 2018

Wednesday’s reversal on higher volume had a bearish tinge to it, no doubt, but the market is very much like a cheap drunk. It rarely remembers what it did the prior night, and just carries on as it pleases no matter what faux-predictive technical evidence its behavior provided the prior day. The S&P 500 Index was the cheapest drunk of the bunch on Wednesday with its... [more]

September 26, 2018

News over the weekend that the Chinese had cancelled the upcoming round of trade talks with the U.S. set up an interesting market permutation on Monday morning. NASDAQ futures took the brunt of the selling overnight on Sunday, and it looked like big-stock NASDAQ stocks would suffer the most that day once things got up and running. Meanwhile, the Dow Jones Industrials Index opened... [more]

September 23, 2018

The Dow Jones Industrials Index finally caught up to the rest of the indexes by posting its own all-time high on Thursday, exceeding the prior highs of late January. The S&P 500 also logged another all-time high, but NYSE volume was lighter on the day. On Friday, the Dow made another all-time high but churned and stalled in a narrow price range on heavy quadruple-witching... [more]

September 19, 2018

The week has so far had an odd feel to it, as I intimated in yesterday’s video report, and this was reinforced by this morning’s stark divergence between the Dow Jones Industrials and the NASDAQ Composite Indexes. This was preceded by yesterday’s big rally following the imposition of tariffs on an additional $200 billion worth of Chinese goods and services.... [more]

September 16, 2018

The market was pushing back up toward its prior highs after finding inspiration in a Tuesday Wall Street Journal report that the U.S. was inviting the Chinese to a fresh round of trade talks. This of course had the effect of turning the market on a dime Tuesday morning when it was selling off in earnest. The indexes then slogged their way back up toward their prior highs over the next two... [more]