What a Pullback Looks Like
Stocks have gone essentially nowhere for a month. Bulls, like myself, view this as a healthy period of digestion or consolidation before the next leg of the rally begins. Bears argue that stocks have peaked and they are headed much lower. As I have mentioned for months and months, I don’t think the bull is over or close to that point. There have been too many strong indications of more upside that typically do not occur as a bear market […]
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Date: September 1, 2016
Beneath the Surface
Listening to the media, you would think that absolutely nothing has gone on in the stock market this month. While it’s true that the Dow, S&P 500 and NASDAQ 100 have gone nowhere, the other two major indices, S&P 400 and Russell 2000 have seen some gains. Nothing to write home about, but the bulls should take it! Additionally, and very quietly, high yield (junk) bonds, perhaps my favorite canary in the coal mine broke out again on Monday, further […]
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Date: August 30, 2016
Stay Long & Strong
Similar to August 2nd when coiled up stocks broke to the downside and wiped out more than two weeks of gains, the S&P 500 did essentially the same thing on Wednesday. While it was only a .50% decline, the media turned it into a big deal; it’s not. Could stocks weaken more? Yes. Should we be concerned? No. I won’t be surprised if this pullback is the largest since the BREXIT bottom, but keep in mind that we haven’t even […]
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Date: August 25, 2016
Don’t Fall Asleep
Heading into the new week, we have more of the same. Stocks are trading in an historically tight range. The longer this continues, the greater the move when the range ends. As I always mention, many times you will see the market move out of one side of the range and fake out the masses and then immediately head to the other side of the range like stocks did on August 2. Very interestingly, smart money is gearing up for […]
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Date: August 22, 2016
Will the Island Top Kill the Bull???
It’s been a little longer in between updates as I was traveling in Florida for a board meeting as well as seeing some clients and visiting relatives. My 98 year old grandmother says “hello”. I feel like I need a break from eating after so many fantastic meals not to mention great conversation all around. Also, there really hasn’t been much to say. I like when the markets are calm and quiet when I am on the road. Makes life […]
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Date: August 18, 2016
Clown Parade Continues
On Twitter and www.investfortomorrowblog.com I have been fairly aggressive in calling out the so called “masters of the universe” in their widespread and uniform calls for a stock market collapse… for months. To me, it’s like a parade of clowns who have continued to lose credibility. Being early is the same as being wrong. And as I often like to say, it’s okay to be wrong, but it’s not okay to stay wrong. That’s coming from someone who has made […]
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Date: August 11, 2016
Is THIS the Week When the Sky Falls?
Roughly one month ago, after an historic lift off post BREXIT, stocks had become overbought which is a technical term for a little too far too fast. Most pundits in the media were calling for a pullback before they would buy. As I have discussed for longer than I have been writing this blog, the masses seldom get what they want or predict. When stocks bottom, the first rally is usually very powerful as it catches the majority off guard. […]
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Date: August 8, 2016
Hillary’s Impact on Stocks
Since the historic breadth thrust in stocks after the BREXIT, the market has certainly quieted down. I have written about the “coil” for two weeks and nothing has really changed. There is a big move coming sooner than later! I am keenly watching leadership for signs that a fresh leg higher towards Dow 20K has started. Turning to the presidential election hysteria, it’s certainly been anything but quiet! BRUTAL is the first word that comes to mind. My opinion regarding […]
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Date: August 4, 2016
Careful Getting too Negative
Last week, I wrote about stocks being “coiled” up and ready for a big move. I also warned that many times, we see a fake in the opposite direction of the trend that shakes weak investors out, only to see a reversal from there. Today, the major stock market indices are finally seeing the bout of weakness which has been forecast by the pundits for weeks. Remember, being early is also being wrong. For now, we are seeing stocks break […]
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Date: August 2, 2016
What’s SUPPOSED to Happen versus What ACTUALLY Happens
Earlier this week, I mentioned that stocks were coiled up and looking for a big move. Since then, only the NASDAQ 100 has done anything and that was really just on Apple’s earnings beat. Overall, it’s been a very quiet week without any volatility at all. That’s likely to change sooner than later, but unlikely to be today. As I have mentioned over and over, the post-BREXIT thrust, pullbacks are likely to be shallow as the masses were caught off […]
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Date: July 29, 2016
