September 3, 2017

The stampede into stocks over the past four days has been nothing short of ballistic. In my Wednesday report I discussed the resurgence in the bio-tech sector, led by sharp upside moves in the biggest of the big-stock bio-techs, Amgen (AMGN), Biogen Idec (BIIB), Celgene (CELG), and Gilead... [more]

August 30, 2017

The market got blindsided Monday after the close when North Korea decided to launch another missile, this time over Japan. That sent the after-hours futures careening to the downside, leading to a sharp gap-down open yesterday morning. But the whole affair ended up as a big shakeout with the market closing up on the day. The context for the intraday bounce, however, came from the Dow... [more]

August 27, 2017

The NASDAQ Composite and S&P 500 Indexes have both spent the past four days somersaulting around their 50-day moving averages without getting anywhere. This comes on the heels of this past Tuesday’s big gap-up move that was also a logical reaction rally after the undercut of the prior week’s lows, as discussed in my Wednesday, mid-week report. The... [more]

August 23, 2017

The market staged an undercut & rally move yesterday that was quite logical within the context of the index chart positions. Both the NASDAQ Composite and S&P 500 Indexes were sitting just below their lows of the prior week (August 14-18), which put them in position for a possible U&R attempt, as I tweeted Monday evening. That is precisely what... [more]

August 20, 2017

Wednesday’s churning action turned out to be the turning point for the market after the reflex relief rally we saw earlier in the week. As I discussed in detail in Wednesday’s report, the relief rally was a simple function of the phenomenon of alibied selling. The initial NoKo news the prior week was served up as the justification for the selling. Once the rhetoric cooled off over last... [more]

August 16, 2017

The market seemed to be anticipating the softening of war-rhetoric emanating from North Korea by pulling a big futures led jack to the upside on Monday morning. As I wrote over the weekend, because of the NoKo news selling alibi, the market was susceptible to precisely this type of sudden upside relief rally. This sent the NASDAQ Composite and S&P 500 Indexes... [more]

August 13, 2017

The NASDAQ Composite Index blew through its 50-day moving average on Thursday on heavy selling volume to cap off a three-day decline that began on Tuesday. That’s when President Trump uttered his now famous “fire and fury” threat to North Korea’s belligerent and bellicose leader. Thursday’s sell-off was attributed to additional comments by the President that day when... [more]

August 9, 2017

I suppose I could say that my caution as expressed in recent reports was finally rewarded yesterday as the market reversed to the downside, quashing the Dow Jones Industrial Index’s attempt to post twelve straight up days. The break occurred after President Trump uttered a stern, if not an outright saber-rattling, warning to North Korea, promising, “fire and fury” and a veritable... [more]

August 6, 2017

Earnings roulette season is in full swing, and has come with its share of big winners and equally big losers. On Friday, we saw the #1 stock in the #1 stock group, Applied Optoelectronics (AAOI) blow up in spectacular fashion with a 30% gap-down move. After posting a 50% or so rally over the prior month as it briefly flirted... [more]

August 2, 2017

Your first clue that things aren’t exactly right is the failure of leading names to hold constructive pullbacks to logical areas of support. Since we seek to buy stocks on such pullbacks and then keep risk to a bare minimum by then using that same area or line of support as our selling guide, these failures to hold support will quickly and naturally force us out of any new positions we take. This... [more]