Sector Leadership Remains Very Strong
This is going to be a quick update as I am standing at the gate in Hartford waiting for my delayed flight to board. It’s never a good sign when early morning flights are late. I am heading down to the east coast of Florida for a quick trip to visit clients and maybe even hit a few golf balls in between meetings if my back holds up. Let’s get the theme out of the way early. The short-term still […]
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Date: February 27, 2017
Short-Term Iffy But Long-Term Remains Strong
Following up from Friday’s post, stocks remain overbought and certainly stretched to the upside although the same can certainly be said all month. They are much in need of a break or at least a quick pause to refresh. However, sometimes strong momentum overpowers everything as we have seen from time to time. I closed last week by saying that the bull market is absolutely not over in my opinion. That prevented the usual emails. Look no further than two […]
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Date: February 21, 2017
Trump Top Ticking Stock Market?
As I write the next issue of Street$marts, there is a lot of Donald Trump included. Not so much from a political standpoint, but more how he is impacting the stock market and economy. It’s really been amazing that every single meeting I have with clients and prospects, the Trump question is the first one asked. As you know, when it comes to investing, I have a strong contrarian side to me. As the late Joe Granville once said, “if […]
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Date: February 17, 2017
Sector Leadership Immunizes Stock Market from Bear Market
On Friday, I wrote about the Russell 2000 and what a potential breakout could mean for the stock market. At the open today, this index hit a fresh all-time high. Before breaking out the balloons and party streamers, let’s see if it can close at new highs and not give back too much over the coming days. With the Dow closing above 20,000 for five straight days I will have a new target very shortly that looks to be several […]
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Date: February 13, 2017
Small Caps Getting Ready to Lead While Worries about Trump Persist
Yesterday, I wrote about the major stock market indices and how the Russell 2000 was finally waking up. Below is an old chart which I first offered in early January. You can see that the small caps have been in a tight trading range all year and are now trying to break out to the upside. With so many studies pointing lower, this is one index which could counter some of the negativity and give the market a little push […]
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Date: February 10, 2017
Bears Still Struggling to Make Progress
Happy snow day to those of you in the northeast! For several weeks, there have been all kinds of studies which indicate that the risk/reward for stocks is skewed to the downside over the coming weeks and few months. The same can be said of some daily studies. When I say skewed, I mean favors a typical and normal pullback of 2-5%. Yet each time the bulls look tired, they somehow prevent the bears from making any progress. In the […]
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Date: February 9, 2017
Bulls Win Big on Friday But Still Not Ready
Very nice day for the bulls on Friday as the monthly jobs report was really the Goldilocks scenario. Not too strong and not too weak. The U.S. saw decent growth with some mild revisions lower but almost no wage inflation which caused expectations for a March rate hike by the Fed to decline to roughly 20%. I would not hang my hat on the Fed staying put in March. There are many data points between now and then and I […]
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Date: February 6, 2017
Dow 20,000 Already Forgotten
Last week, the Dow hit my longstanding target of 20,000, first given on CNBC’s Squawk Box in 2010 just after I forecast that the Fed’s balance sheet would hit a staggering $5 trillion. If we see 5 consecutive closes above 20,000, the next upside target will be created. Since Dow 20K, it’s been even more Donald Trump and politics on the financial channels. I think the Q4 GDP report is now totally forgotten. Market sentiment had become a little frothy […]
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Date: January 30, 2017
Dow Breaking Out & Q4 GDP Miss the Last
After hitting yet another one of my upside targets, 20,000, the Dow has yet to pause. Five straight closes above 20,000 will open up new upside targets before the bull market ends. As you can see below, the Dow has been consolidating sideways since early December. That’s often referred to as a flat top or box. When prices finally exceed the flat top, they oftentimes see a spurt in the same direction. Although momentum is on the side of the […]
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Date: January 27, 2017
Bulls Wake Up and Attack
No sooner did the ink dry on Monday’s piece than the market quickly tossed aside my thinking for a bit more of a pullback before racing to new highs. Since December 13, four out five of the major stock market indices have been digesting post-election gains and pulling back in a very orderly fashion. Only the NASDAQ 100 has really moved meaningfully higher. After a morning of selling on Monday, the bull pushed stocks higher into the close. On Tuesday, […]
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Date: January 25, 2017
