One Door Closes Another Opens
On Wednesday, to no one’s surprise, Janet Yellen & Co. ended the Fed’s 5+ year experiment of purchasing assets in the treasury and mortgage backed securities market, also known as quantitative easing (QE) or money printing. I won’t rehash all of the reasons why I continue to believe this is a misguided strategy, but it is. Before the ink was even dry on the statement, the Bank of Japan completely caught the markets off guard last night with another ramp […]
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Date: October 31, 2014
Ending a Big Week
As I first laid out last week and then again on Monday, this week was expected to be a big one for the bulls. In real time, I wrote about the likelihood for a low that was then confirmed, making me very happy to have called it as it was happening. (In this business, you get to celebrate so little before the market turns on you!) The only question I had and still have is, “was that THE bottom or […]
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Date: October 24, 2014
Key Sectors Sending Up Bearish Warning Signs
Last week, in Major Indices Issue Warning, I discussed how the strength in the Dow and S&P 500 were masking weakness in the other major indices and how a warning sign was given. Today, I go a step further and dive into the key sectors of the stock market. We begin this section with the S&P 400, Russell 2000 and NASDAQ 100 all showing relative weakness, a clear red flag. Below is the first key stock market sector and also […]
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Date: May 9, 2014
Stocks Remain in Pullback Mode
With the major indices down 4-8% I am once again getting questions whether the bull market has ended and a multi-year decline is unfolding. I don’t think so.The New York Stock Exchange Cumulative Advance/Decline line recently scored an all time high. When bull markets end, we typically see this indicator peak months, quarters or even years before the Dow and S&P 500. The same can be said of the high yield bond sector. Bear markets are usually associated with restrictive […]
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Date: April 14, 2014
