Time for the Bulls to Step Up
Stocks have now seen back to back down days with pre-market activity pointing to red this morning. The themes have been the same with the small cap Russell 2000 leading the way lower since it peaked on March 15. Remember that the other major indices saw their highs last week. Today should be an interesting day. With a lower open anticipated, I would be a buyer of things that have been hit harder of late, even if only for a […]
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Date: April 21, 2021
How Do You Eat an Elephant?
We begin the new week with 7 yards of fresh mulch still sitting in my driveway, down from the 8 that was dumped on Saturday. It’s a big pile. How do you eat an elephant? One bite at a time. How do you spread all that mulch? One wheelbarrow at a time. As I tell my kids when they complain about helping, that’s why we had you guys, to be put to work. For the past few weeks, stocks have […]
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Date: April 19, 2021
Two Small Cracks in the Pavement
The bulls just won’t give up. It’s been super impressive with some of the most powerful momentum I have ever seen. But, it’s not unprecedented. When I look more closely I can find a few small cracks in the pavement which I will review today. As you know, I start my analysis with the major stock market indices. They are mostly in gear to the upside. However, the Russell 2000 which is for small companies is lagging behind. Below on […]
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Date: April 16, 2021
Big Market Day – Hard to Find New Buys
It’s such a big day today. First, we have one of the highest profile IPOs of all-time coming out today on the NASDAQ in Coinbase, the cryptocurrency supermarket. All I hear are people just gushing about the company and saying that no one should worry about its Dotcom’esque valuation. One analyst is calling for $600 while a pundit was in the four figures. Good thing we don’t have epic greed and euphoria! Q1 earnings season also kicks off today with […]
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Date: April 14, 2021
Bulls Large and In Charge as Inflation Runs HOT
Friday was yet another win for the bulls although the market’s internals were nothing to celebrate. They weren’t negative, but they were less than inspiring. This has been an on again, off again thing, but I won’t start to worry unless it becomes consistent. When I look at the indices the Dow Industrials and S&P 500 are behaving the best, followed by the NASDAQ 100 and S&P 400. The Russell 2000 (small caps) is lagging and looking like it wants […]
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Date: April 12, 2021
Tech Back In Vogue as Earnings Season Set to Begin
Stocks and the financial markets continue to behave well. While we remain in the world of epic greed and euphoria it is still balanced off by a solid market foundation and upward momentum. Eventually one will fade which will lead to an outsized move in one direction. My strong sense is that it will be the latter and a 10%+ correction will ensue down the road. Although April is only a week old we have seen a reversion back to […]
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Date: April 7, 2021
Amazing April Begins
After a long holiday weekend, the first week of April begins with the bulls looking to build on the across the board strength from last Thursday. Small concern was definitely starting to creep in last week as participation in the rally was waning. Thursday was only one single day, but participation was a whole lot better. We will see what happens today as the bulls look for another big open to fresh, all-time highs. I do love writing, fresh, all-time […]
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Date: April 5, 2021
Schatz Chosen to Serve on Federal Reserve Bank of Connecticut’s Board
FOR IMMEDIATE RELEASE: April 1, 2021 In a surprise move to many, Paul Schatz, Founder and President of Heritage Capital LLC in Woodbridge, CT has been chosen to serve as a Director-At-Large for the Federal Reserve Bank of Connecticut located in New Haven, CT. It was only three short months ago when Schatz was offered a position on President Trump’s Council on Capital Markets, a role Schatz politely declined. “Look, I was so beyond flattered that President Trump and his […]
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Date: April 1, 2021
Epic Greed & Euphoria Lead to a Hedge Fund Blow Up
The new week begins with the Dow Industrials and S&P 500 at all-time highs. The S&P 400 and Russell 2000 should follow suit over the next few weeks. I am going to reserve judgement on the NASDAQ 100 for the time being as it remains at a critical short-term juncture. As I mentioned in yesterday’s email, we saw some “curious” behavior during the final hour of trading on Friday as the stock market went from sleepy to surging. It certainly […]
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Date: March 29, 2021
Nice Reversal But…
We saw a semi-impressive turnaround on Thursday led by the small and mid caps stocks. Interestingly, bond yields did not fall hard which is why leadership continued to come from the cyclical areas like financials, energy, materials and industrials, those same sectors I have been touting all year. I do like potential lows to be hammered in on Thursday instead of Friday, but the bulls should get a move on sooner than later. Negative seasonal trends begin to mitigate, but […]
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Date: March 26, 2021
