Buy Small Caps for the Next Three Weeks
In my previous post, Underwhelming Rally but Don’t Count Out the Bulls, I was concerned about another “few percent” pullback given last Friday’s weak beneath the surface rally. So far, this week has been all red and it looks like stocks are getting closer to the low where the Santa Claus rally will begin. While the odds favor one more decline below Wednesday’s low over the coming few days, it’s anything but a slam dunk. I have been pounding the […]
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Date: December 10, 2015
Don’t Count the Bulls Out to Begin 2015
Welcome to 2015! Wishing you and your family a very Happy, Healthy, Safe and Peaceful New Year! Stocks finished 2014 with a whimper rather than a bang as the lack of liquidity allowed sellers to move prices sharply lower on Wednesday. The last two days of December have become somewhat of a headwind lately, but that weakness is supposed to be reversed next week. As bullish as I was over the past few weeks on the small cap Russell 2000, […]
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Date: January 1, 2015
Homestretch
This is it. Three more trading days and 2014 will be in the books as they say. Just 8 trading days ago, the bears were beating their chests yet again about how the bull market ended or the stock market was in 10%+ correction or a whole host of other nonsense. I wrote it right at the October bottom and I did the same thing 8 days ago; the bull market is old yet alive and weakness should be bought […]
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Date: December 28, 2014
Santa Claus Rally Just Around Corner
Big picture. Late October through mid January is the strongest seasonal period to invest in stocks. That’s fact. Over a similar but slightly different period, the semiconductors are the strongest group to invest in. Just since the October bottom, they are up 27% and I am very glad we own them in our sector program. They made up for some crummy positions we have held during the same time. Early December shows some slightly negative seasonal headwinds, like we are […]
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Date: December 10, 2014
Dow 18,000 Next as Twitter, Investors, Advisors and Media Root for Bears
Small Caps Play Catch Up in BIG Way When we last left off, the major stock market indices were all playing nicely together except for the small cap Russell 2000 which had seen a full fledged 10% correction, but was beginning to bounce. The performance of that one index was a key ingredient to the bears’ negative stance on the market. At that time, here and on the blog, I dismissed the Russell’s warning and went so far as to […]
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Date: July 7, 2014
Russell Trying to Join Party
Over the past few months I have often warned about the caution signs being given by the major stock market indices not all being in sync together. With 32 months passing since the last 10%+ correction, the bearish camp is hoping that age alone will befall this market. History suggests otherwise. Historically, major index non confirmation or divergence is typically a sign of a market about to correct or in the most extreme cases, the end of a bull market. […]
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Date: June 12, 2014
Bear Trap and Dow 17,000
A week ago today, the major indices saw a solid red day that had the pundits talking correction and investors running for cover. One day later, however, the bulls closed the door on the bears, trapping them in some bad selling decisions. From there, the bulls had control right into the Memorial Day holiday and that should spill over early this week. The Dow has already hit an all time high and the S&P 500 should be soon to follow. […]
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Date: May 27, 2014
Major Indices Not Singing a Good Tune
2014 may be young, but so far, it’s exhibiting a very different character than 2013 with the rate of ascent completely flat lining and the high flying leaders hit very hard. In other words, the year has been digesting as I wrote about in the 2014 Fearless Forecast. Don’t get me wrong, just because I forecast this type of action doesn’t mean it has been an easy year to make money. It hasn’t. And I don’t think that changes just […]
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Date: April 25, 2014
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
