Tag: stock market correction

Stock Market Due for a Proper Correction in 2022

In a recent interview with FOX61, Paul Schatz, President of Heritage Capital shares the 2022 financial markets forecast and headwinds to prepare for. Listen to what he says you can do to make sure your finances stay stable in the current environment.    Last year we witnessed the Standard and Poor’s 500 (S&P 500) rise by a spectacular 27% despite worries over COVID, inflation, and rising interest rates. Those high-net-worth investors pursuing high-net-worth investing strategies were suitably rewarded for sticking […]   Read More
Date: February 7, 2022

Sentiment Percolating

Starting in the middle of November 2019, stock market sentiment went from bullish to giddy and then greedy before all was said and done. It had done that before in early 2017, 2018, mid-2011 and clearly during the Dotcom Bubble in 1999 and 2000. Sentiment alone is not a reason for markets to turn although we usually see that ingredient at extremes. Sentiment is also not a perfect timing tool. Remember the old adage that markets can stay irrational longer […]   Read More
Date: June 1, 2020

More Good News as the Trading Range Breaks Higher

As I mentioned in Friday’ post, not much happened last week after Monday’s sharply higher open. Stocks essentially treaded water and bullishly digested the gains. You could also say that has been the case since mid-April in the major indices with the exception of the NASDAQ 100 which is in a world of its own. Below is the Dow Industrials and you can see the trading range I have been discussing bound by the two horizontal blue lines. A few comments […]   Read More
Date: May 26, 2020

Trading Range Continues. Bonds Thumped. Bulls to Win Today.

As I have been writing about, until proven otherwise which would mean I am wrong, the major stock indices with the exception of the NASDAQ 100 hit a ceiling last week and appear to be in a trading range bound by Dow 25,000 and roughly 22,000. On the S&P 500 that amounts to 2930 and 2630. The NASDAQ 100 is trading like it’s 1999 and all is very well in the world. The longer the range continues, the more significant […]   Read More
Date: May 7, 2020

Warren Buffet Hangover as Bulls Prepare

The bears had a nice close to last week and to begin the new month. I posted a number of studies regarding May and the next 6 months on Friday. The overall theme is that the longer we look out into the future, the more positive the studies. The shorter we look, at least as of last week, the less positive they get. However, in the really short-term, if today is down, which would be the third straight down day, […]   Read More
Date: May 4, 2020

May Begins With a Number of Studies as the Bulls Get Knocked a Bit

On Friday, the stock market technically begins the sometimes “dreaded” sell in May and go away period which last until October 31. This seasonal trend has a questionable track record the more recent you look. However, in years where January through April has been down already, its record has merit. I will touch more on this in the upcoming issue of Street$marts due out shortly. The first trading day of May has an enviably bullish track record, not so much […]   Read More
Date: May 1, 2020

Bulls Seizing the Moment – Junk Bonds Not

On Monday I wrote about the Lines in the Sand that were drawn for both bull and bear.  On Tuesday we saw the bulls celebrate with a breach to the upside that could not hold until the close. Today, the bulls are testing the upward bounds again, likely with very different results by the time the day ends. What’s been eating at me lately is high yield bonds as you can see below. They were behaving “fine” until the Fed […]   Read More
Date: April 29, 2020

Bulls & Bears Draw Lines in the Sand

Stocks ended last week with a three day rally that looks to be built upon this morning. The major indices continue to trade in the range I outlined several weeks ago as the likely first bounce. What I did not envision was stocks getting into that range and then essentially going sideways. Historically, that has bullish implications. The first chart below is the S&P 500 on a daily basis so you can see the first bounce range of between 1/2 […]   Read More
Date: April 27, 2020

Airlines Stocks Look Awful While Stock Market Risk Clearly Defined

Yesterday, I wrote about my anger and disgust regarding the airline  bailout. That won’t change anytime soon. Today, I want to look at the group and how they have been trading. Below you can see a chart of the airlines as represented by the JETS ETF. Besides declining 65% from high to low since the market’s peak, notice how little green is on the chart. Green days mean the closing price is that much higher than the opening price. Red […]   Read More
Date: April 24, 2020

Angry & Disgusted

Last week, the government announced a deal with the 10 major airlines in the U.S. for outright grants as well as low interest, long-term loans. The government gets very little in return. As you know, I have been imploring the government to do the unfathomable, the unthinkable since early March. Whatever number they had in mind for workers and small business, it wasn’t enough. I also had the utmost confidence that Treasury Secretary, Steve Mnuchin, and Fed Chair, Jay Powell, […]   Read More
Date: April 23, 2020