Odd Day on Thursday Gives Warning
Thursday was an interesting day in the stock market. All of the major indices were up nicely in the morning. And while the S&P 500 and NASDAQ 100 continued making new highs into the afternoon, the S&P 400, Russell 200 and Dow Industrials did not with the first two seeing real weakness during the afternoon. Additionally, even though the NYSE A/D Line and high yield bonds also scored new all-time highs as you can see below, the former went from […]
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Date: May 26, 2017
Canaries in the Coal Mine Part III – My Two Favorites
Updating the two, and perhaps, most important charts from last week, we can first see the New York Stock Exchange Advance/Decline Line which measures participation in rallies and declines. Before a bear market hits, you will almost always see this line peak well before price does. In other words, the troops were dying in a battle but the officers survived until the bitter end. In today’s case, this indicator still very powerfully supports the bulls. Finally, high yield bonds are […]
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Date: October 26, 2016
Big Correction Coming?
Stocks continue to trade very heavy, but we should be on guard for a strong bounce at any time here. I think the top is in for a while so bounces are now selling opps and a better buy point should be seen after Labor Day. To reiterate what I have said for a while, this pullback should not be the beginning of a new bear market, just another healthy cleanse in an aging bull market. Here is the segment […]
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Date: August 20, 2013
Canaries Still Breathing Okay
I haven’t done a canaries in the coal mine update in a while, but with the major market indices hitting fresh highs last week, it’s time to check if any are dead. Remember, canaries in the coal mine are only useful at bull market peaks and bear market troughs. In other words, they are very helpful at spotting beginnings and endings of bull markets, but not much in between. They are so important because they usually give ample warning that […]
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Date: August 13, 2013
With Trepidation, Onwards and Upwards
Here is the segment from this morning’s (May 8)Â Squawk Box with a really good discussion on the stock market, economy, employment numbers and the Fed. http://video.cnbc.com/gallery/?video=3000166972&play=1 Many of the small cracks I saw in the markets a month ago have repaired themselves with sideways action instead an outright correction. The canaries of liquidity, high yield bonds, small cap stocks and the New York Stock Exchange advance/decline line are all seeing all time highs. The Dow Jones Transportation Index has played […]
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Date: May 8, 2013
