Pink & Blue Are Not Just for Baby Stuff
In yesterday’s post I mentioned that during most stock market declines, it seems like everyone turns to charts and technical indicators as their economic and fundamental indicators fail. They quote their own “key” numbers and speaking from 30 years of experience, if it’s obvious, it’s obviously wrong. In other words, when so many pundits turn to the same charts, the market does its best to punish the most people. I want to spend a few minutes explaining the most basic […]
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Date: October 17, 2018
Was It “A” Bottom or “THE” Bottom? Don’t Get Comfortable Just Yet!
As you know, I had been calling for a mid to upper single digit decline in stocks since late September. That pullback has certainly come to fruition this month with the major stocks market indices down between 7% and 10%. Last Thursday brought short-term panic readings in some indicators and that served to mitigate more weakness, at least for now. Usually when these conditions occur, the bulk of the price damage has been done for the time being and at […]
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Date: October 17, 2018
Just Like the Crash of 1987, an Interest Rate Driven Decline in Stocks
When I woke up today, I wasn’t planning on doing this update. My original plan was to begin a new Street$marts and talk about stock market crashes and the panic I saw in the market over the past two days as well as address some emails I received. This was going to be just one of the articles written. As I got going, it got longer and longer and longer with all of the charts and I ran out of […]
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Date: October 12, 2018
Crash Sequence Unfolding?
As you know from my emails, quarterly report and most blogs, I have been forecasting a stock market pullback for the past few weeks. Even when the Dow Jones Industrials finally achieved my late Q1 forecast of new all-time highs across the board on September 21, I was very concerned about a crumbling market foundation that would lead to a mid to upper single digit decline in October. I couldn’t have been any clearer when I discussed my forecast on […]
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Date: October 11, 2018
Bulls Need a Stand
After some early weakness on Monday, the bulls put up a little fight before succumbing to selling into lunch. From there, they did have enough energy to bring stocks back to breakeven. Given the semi-holiday, that was semi-impressive. The bulls now have a little momentum and are supposed to run to the upside for at least a day or so. The S&P 400 and Russell 2000 have declined sufficiently to reach their long-term trend or the average price of the […]
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Date: October 9, 2018
Bulls Fail Again
My continued theme of a stock market pullback continues. The weakness is unfolding as expected. Small and mid cap indices have been hit the worst, but now the NASDAQ 100 is joining in. The rotation into the Dow and S&P 500 remains, but they are also down as well. Semis, discretionary and transports have rolled over and now the banks are in jeopardy of following suit. Energy, industrials and healthcare are sectors where investors are trying to hide and that […]
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Date: October 8, 2018
The Bulls Better Step Up, and Fast!
For most of Thursday, the bears growled loudly with the largest losses being seen since the Q1 correction. But rallies and bull moves do not die easily. The bull fight and fight and fight until they finally throw in the towel and the market sees what I termed the “gap of recognition”. It is a sharply lower opening that continues lower throughout the day. The bull never recover the gap until after the decline ends and the next rally begins. […]
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Date: October 5, 2018
Haves & Have Nots
As you know my theme over the past month has been about this “split” market developing and persisting. By “split”, I am referring to the number of stocks making new highs as well as new lows. The numbers keep climbing. Price hasn’t wavered although recently, the masses and media caught on to the fact that the Russell 2000 has been under pressure while the Dow Industrials have soared higher. That’s unhealthy behavior. What you see above is pretty egregious. Almost […]
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Date: October 3, 2018
Q4 is Here But Market Still Biding Time
I cannot believe Q4 begins today. That’s just crazy. My grandmother continues to be right when she told me years ago that the older you get, the quicker time flies by. That woman who has always been my favorite family member never gave me bad advice and always listened to me. Even the night before she passed in her sleep at the young age of 98, she told me to only buy investments that go up. I should leave the […]
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Date: October 1, 2018
Bears Taking the Ball
Monday saw the not so unusual weakness we have seen lately. However, Tuesday did not see what has become the typical bounce back since the stock market last bottomed in Q1. While I don’t want to assign too much emphasis on one single trading day, especially when it’s in my best interest, perhaps the market’s character is beginning to change. I continue to look for a bull market pullback in the mid to upper single digits. So far, price, the […]
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Date: September 28, 2018
