June 14, 2017

Things got quite oversold Monday morning as the indexes opened lower amidst continued heavy selling in the tech sector. I tweeted early in the day that an oversold bounce was becoming more likely. At the time, this was showing up on the 5-minute “620” intraday charts in the form of MACD “stretch & cross” types of moves. That’s the first thing I look for when things start to... [more]

June 11, 2017

Friday will go down as one of the strangest market days I’ve seen in a long time, if not ever. Around mid-day the NASDAQ Composite Index broke hard to the downside as leading stocks got pummeled. At the same time, the NASDAQ advance/decline numbers were still roughly 2 to 1 positive. Meanwhile, the Dow Jones Industrials and the S&P 500 Index... [more]

June 7, 2017

The indexes are holding tight and near their highs as they consolidated last week’s gains. The NASDAQ Composite Index did get hit with a distribution day yesterday, as did the other major market indexes. But it is so far holding up in a tight three-day flag formation after posting new all-time highs last Friday. From the point of view of the indexes, things look okay. Of... [more]

June 4, 2017

The indexes blasted to new highs on Thursday, ahead of Friday’s Bureau of Labor Statistics’ jobs report. After a strong ADP jobs report that was released on Thursday morning, investors were anticipating a similarly strong number coming out of the BLS. That, however, was not the case, as a tepid 138,000 new non-farm payrolls were created in May (either in fact or by simple statistical sleight-of-hand)... [more]

May 31, 2017

The market’s story is best told by a chart of the NASDAQ 100 Index, which has been streaking higher as it left its much broader parent, the NASDAQ Composite Index, behind. From my perspective, the narrowness of the rally in the big-stock NASDAQ names relative to the rest of the market is a cautionary sign unless we begin to see things broaden out, which... [more]

May 28, 2017

Skittish investors spent the morning on Friday clearing out ahead of the long Memorial Day Weekend. Once they got out of Dodge, as they say, the market then stabilized and drifted slightly higher, enabling the NASDAQ Composite Index to post a new closing high on Friday. Volume came in lighter, giving the action the look of constructive consolidation following Thursday’s... [more]

May 24, 2017

The major indexes took four days to recover last Wednesday’s steep one-day losses, something that is not unusual for this Ugly Duckling market. One of the major factors that has enabled the market to maintain its paces has been the ability of certain groups to step up and provide support to the rally at critical points along the way. In many ways, this sort of rotational action is healthy and... [more]

May 21, 2017

This has been a wild week, but from my perspective as a swing-trader it was a good one. The trick was, of course, avoiding the big sell-off on Wednesday where many leading stocks were hit hard, and I mean hard. When this happens and you are long a stock experiencing this type of downside pressure, the urge to pull the rip cord and bail out becomes strongest right at the lows. Despite... [more]

May 17, 2017

Things became quite extended to the upside going into yesterday’s close as many of our favored long names have been jacking higher. But as is often the case in this market, just when things look about as good as they can get the market likes to pull the rug out on investors. That’s what happened this morning as the indexes gapped down at the open and just kept moving lower all day, save... [more]

May 14, 2017

The market looked like it was headed for a spin-out on Thursday as the Dow quickly broke 140 points to the downside early in the day. But as has been the case with intraday sell-offs over the past couple of weeks, the indexes rallied to recover most of their losses by the close. In the midst of all the intraday gyrations, the NASDAQ Composite Index remains in what can only... [more]