Year: 2018

Day 1 of a potential new rally attempt is all that you can make of yesterdays massive move up. The trend of the market is still down. While yesterday was the first ever +1,000 point up move in the Dow Jones Industrial average, it was no where near the top percentage single days gains of the past 90 years. In fact, according to research from Investors Business Daily, the 9 biggest moves have all happened

The stock market has officially fallen into correction mode today with the Dow, S&P 500 & Nasdaq all down around 1.50% and with all 3 indexes having undercut their recent lows. Our Current Market Outlook has changed to “Market in a Correction” and our light is now “red”. As noted in our recent posts, the markets internals were already weak and the young uptrend was under growing selling pressure. That selling pressure followed thru on Friday

Throughout our careers we have heard it said that “the market climbs a wall of worry“. Historically when the markets are in an uptrend, the institutions and media sound the alarms of possible threats which keeps the small investors (the public) nervous and largely out of the market. That certainly was the case in 2017 and part of 2018. We think the narrative may have changed as of October 4th. The motto may now be “the market

Remain defensive but be prepared to act decisively this week and especially in the week ahead. Complete your watch list of great companies that exhibit super fundamentals with solid technical support, and plan your investment steps now during this calm before the storm of activity. Your action plan should also include defensive steps to take in the event that the news is NOT good. While the “news” seems scary currently, in time, this situation will

The fledgling market rally that started over two weeks ago, and was confirmed by a “follow through” day last Wednesday in response to the election, is hanging on by a thread. In our (11/07/18) post we wrote… The key risks for a failure of a F.T. (follow through) day come in the first 3 days after a new signal. If the stock market can advance or just sit tight for the next 3 days and NOT experience Distribution

The votes are in and apparently the winner is “gridlock”. What a difference a week makes! Today, on day #7 of a new attempted rally, the stock market experienced a “follow-through” day and confirmed a new uptrend based on the price and volume sequence we discussed previously. It is important to remember that while every major bull market of the past 100 years has started with a follow-through day, not every follow-through day leads to

Happy Reformation day! On this the 501st anniversary of Martin Luther’s bold act, and the eve of All Saints Day, the markets are making their first real attempt at a new rally. The sequence to determine when a bottom is in (mentioned in our last bulletin) may be starting to play out. Monday’s internal technical action sported a ray of hope with two minor “positive non-confirmations”; a contraction in the number of stocks hitting 52

The stock market dove deeper into correction territory today as a good EPS release from bellwether Boeing wasn’t enough to cause the market to takeoff.  Our Current Market Outlook remains “Market in a Correction” and our light is “red”. A hallmark of a weak market is one that opens up nicely but then reverses during the day and closes down sharply. That technical pattern has been on full display lately. That is an institutional distribution characteristic. As

The stock market has officially fallen into correction mode today. As of 3pm the Dow is down nearly 600 points and the S&P 500 & Nasdaq are both down around 2.50% – 3.00%. Our Current Market Outlook has changed to “Market in a Correction” and our light is now “red”. As noted in our post on (10/04/18), the markets  internals were already weakening last week and the uptrend was under growing selling pressure. That selling pressure

Mr. Market spoke today and it wasn’t just sweet nothings in investors ears. The NASDAQ experienced its 9th day of high volume professional selling (Distribution) in just the last 25 trading days and sliced through 2 key price support areas by the close. The S&P500 closed down under just 1 key price support area, and on lower trading volume than the previous day. (A slight positive non-confirmation) However, other technical indicators, which began flashing early warning signs