February 10, 2019

Things started to get a little sloppy over the past two trading days as the indexes gapped down on Thursday after comment from Chief Trump Economic Adviser Larry Kudlow intimated that the U.S. and China were still far apart on coming to a trade agreement by the March 1st deadline. The pullback, however, was logical given the position of the S&P 500 and NASDAQ... Read More

February 6, 2019

The Dow Jones Industrials Index has survived several tests of the 200-dma on pullbacks over the past week, but the Dow has been the only index to make it through its 200-dma. The other major and not-so-major market indexes have slowly trundled up closer to their 200-dmas, but no further. Meanwhile, the stocks that have been leading this market have continued to melt higher, with... Read More

February 3, 2019

The market logged another fascinating week as the market rally that started on dovish comments from Fed Chairman Jerome Powell persists. A signal-boost transmitted by the dovish utterings of the Fed policy statement on Wednesday set things alight again, pushing the Dow Jones Industrials Index right through its 200-dma. The week didn’t get off to the best of starts, however,... Read More

January 30, 2019

The market got off to a raucous start this morning thanks to what were perceived as favorable earnings reports from Boeing (BA) and Apple (AAPL), both of which are major components of the Dow Jones Industrials Index. This was why... Read More

January 27, 2019

QE and the flow of free money has been the life-blood of this market since 2009. That basic equation has not changed in my view. Sure, the Fed has stopped buying bonds, and has been raising interest rates, albeit begrudgingly, since 2016. But the prospect of a significant reversal of QE that continues to drain the liquidity swamp, so to speak, is what has rattled this market most of all, as it raises... Read More

January 23, 2019

The market has taken on a bit of an absurd flavor to it as it seems to primarily respond to news headlines, regardless of the substance and accuracy of those headlines. Last Thursday we saw an indifferent market day turn into a big rally almost instantly after the Wall Street Journal reported that U.S. Treasury Secretary Steven Mnuchin was considering lifting tariffs on China. The WSJ... Read More

January 20, 2019

The cautionary action I was seeing on Wednesday as the NASDAQ Composite Index churned and stalled just above its 50-dma while the S&P 500 Index churned and stalled as it hit resistance at its own 50-dma was not confirmed on Thursday, as I blogged early that morning. At the time, the NASDAQ had held the test of the 50-dma in a constructive pullback while the... Read More

January 16, 2019

As the NASDAQ Composite Index cleared its 50-dma yesterday, a state of bullish complacency seemed to settle over this current market rally off the Christmas Eve lows. The action looked quite bullish given that it came after more weak economic news out of China, comments from U.S. Trade Rep Robert Lighthizer that no progress had been made in the recent low-level U.S.-China trade... Read More

January 13, 2019

The indexes have spent the past two days consolidating their recent gains. This is consistent with the NASDAQ Composite Index at least pausing as it runs into a logical line of resistance at its 50-dma. Whether this sets up a general market move higher or whether we see a deeper pullback and retest of the Christmas Eve lows is still an open question yet to be answered. However,... Read More

January 9, 2019

The market has kept things rather simple as it continues to follow through on last Friday’s follow-through day. This has been accomplished by the simple fact that there aren’t that many fresh set-ups or even breakouts to choose from if one wants to go aggressively long this market. But the handful of set-ups that have been available have been effective, so far. The NASDAQ Composite... Read More