June 27, 2021

The S&P 500 and NASDAQ Composite Indexes both ended the week in new-high price territory, with relatively smooth trends since the mid-May lows. Most of the tech/growth names that have led the rally since then look similar to the NASDAQ Composite chart, below. They have moved sharply higher off their lows of two, three or more weeks ago and up the right sides... Read More

June 23, 2021

The underlying tone of the market hasn’t significantly changed from where it was at the end of last week despite the snapback seen in the major market indexes this week. Beaten-down stuff stocks, financials, homebuilders and the like were all deeply oversold by the end of last week, and the fact was that the short-selling party in these names had started several days before. So, it was therefore... Read More

June 20, 2021

It wasn’t as if we needed more evidence of the hot mess that this market is and continues to be, but we certainly got it over the past two days since the “hawkish” Fed policy announcement on Wednesday. That evening, futures sold off sharply and things were looking bleak ahead of Thursday’s open. But once the bell rang, the machines snapped to attention and the buying frenzy in big-stock... Read More

June 16, 2021

Today’s action after the Fed meeting nicely encapsulated the hot mess that this market has become. The Fed apparently had nothing encouraging to say to the markets today when they released their latest policy announcement. In classic Orwellian fashion, Fed Chairman Jay Powell did try to strike a positive tone with, “The Fed is making progress toward its inflation goals.” Translation:... Read More

June 13, 2021

CPI inflation came in at a 13-year annualized high of 5% on Thursday morning, but as I discussed might occur, the market rallied on the belief that inflation will now begin to cool down. This view was also aided by the fact that 1/3rd of the CPI gain was due to rising used car and truck prices. Stuff stocks, homebuilders, and financials were slammed while buyers piled into NASDAQ... Read More

June 9, 2021

All eyes will allegedly be on the latest Consumer Price Index report slated to be released tomorrow morning, exactly one hour before the opening bell. Expectations are for a hot 0.4% to 0.5% monthly number which, for those able to multiply, figures out to 4.8 to 6% annualized inflation. How the government calculates inflation, however, has been a sleight-of-hand trick since the Reagan years... Read More

June 6, 2021

The Fed announced on Wednesday evening that it would begin selling the corporate bonds and bond ETFs it bought last year to allegedly keep the corporate bond market functioning. That was taken as a sign that the Fed was doing just a little bit more than thinking about thinking about tapering, and high-PE NASDAQ names were pummeled in response, sending the NASDAQ Composite Index gapping below its... Read More

June 2, 2021

This week has so far seen the market stall and churn, with perhaps the best strategy being long oil stocks after buying them last week as they all mostly gapped higher yesterday on a positive OPEC report. Most of the patterns weren’t screaming buy at that time, however. The only way to play the move yesterday would have been to buy them Friday or jump on them early in the day yesterday... Read More

May 30, 2021

The venerable investment firm Goldman Sachs (GS), which others may pejoratively refer to as being actually more of a bankster, released small-lot trading data this week indicating that retail investors had come flying back into the market. Previously, this smart money area of the market (yes, I’m being facetious) was nowhere to be found, and their absence perhaps... Read More

May 26, 2021

This market strikes me as the proverbial hot mess. Inflation hopes and fears have dominated the headlines, resulting in some choppy rotation among individual stocks and groups seen as benefiting or not benefiting from inflation. This has meanwhile done little to change the fact that the NASDAQ Composite Index remains in a wide sideways range extending back to February without... Read More