I was looking for the NASDAQ Composite Index to test of its 200-day line as I wrote over the weekend, and that’s precisely what we saw on Monday. After breaking below the line early in the day, the index was able to hold support on a shakeout at the 200-day line and then rally to post an undercut & rally (U&R) move through the two prior December lows. That set off... Read More

The market found a reason to pause on Thursday as the S&P 500 Index found support at its 50-day moving average. Given that many of our short-sale target names, primarily the Ponzi-Stocks, were quite oversold by Thursday morning, the bounce was logical in my view. However, it lacks vigor as even a weak jobs number on Friday, with the Bureau of Labor Statistics reporting 199,000... Read More

The New Year has been marked by a stark divergence between lower-PE stocks, where buyers have swarmed, and higher PE and PE-expansion names in the tech/growth area that have taken heat over the past three days. This is consistent with my view that higher interest rates will put pressure on these richly-valued stocks. In particular, what I refer to as Ponzi-Stocks are most vulnerable as... Read More

A low-volume market melt-up during the holidays where participation is light and there are no eager sellers to be found always provides its own brand of entertainment ahead of the New Year’s Eve festivities. The lack of volume also brings up the possibility of a natural air pocket developing when participation levels return to normal, at which point sellers may decide to frolic into the... Read More