I'm going to say that you need elements of both, although you're going to want a much bigger helping of relative strength. Too much diversification can be extremely unhealthy, there needs to be a balance. Let me give you a quote about diversification from one of... READ MORE
Market Recap for Thursday, June 6, 2019 It was another solid day on Wall Street as the recent bounce continued. Unfortunately, it was also another day where investors/traders were seeking some safety. It's like ordering pizza, but adding a diet coke to watch your weight. The Dow... READ MORE
Market Recap for Wednesday, June 5, 2019 The good news is that the U.S. stock market advanced on Wednesday and that both the Dow Jones (+0.82%) and S&P 500 (+0.82%) were able to clear their respective declining 20 day EMAs. Another piece of good news... READ MORE
Market Recap for Tuesday, June 4, 2019 A big turnaround occurred on Tuesday as many beaten-down stocks and industries from the May drubbing led a market rally. The NASDAQ and Russell 2000 led the rally with gains of 2.65% and 2.62%, respectively, but it was a wide-participation advance... READ MORE
Market Recap for Monday, June 3, 2019 I've had lots of positives for software stocks the past few years, but yesterday we saw a rare short-term breakdown that will test the mettle of traders. The Dow Jones U.S. Software Index ($DJUSSW, -3.17%) joined internet stocks ($DJUSNS,... READ MORE
Market Recap for Friday, May 31, 2019 The U.S. stock market was in no mood for any negative surprises, yet it received one when President Trump slapped a 5% tariff on all products from Mexico (effective June 10th) to try to control illegal immigration. While it may seem as... READ MORE
Market Recap for Thursday, May 30, 2019 Dollar General (DG, +7.16%) and Dollar Tree (DLTR, +3.14%) provided a lift to consumer discretionary stocks (XLY, +0.65%) after releasing their latest quarterly results, but PVH Corp (PVH, -14.87%) tumbled, further compromising an already-weak clothing & accessories group ($DJUSCF,... READ MORE
Market Recap for Wednesday, May 29, 2019 Trade and growth concerns, along with slumping crude oil prices ($WTIC), were mostly responsible for another bad day on Wall Street. There was across-the-board selling as all of our major indices fell from 0.69% (S&P 500) to 0.94% (Russell... READ MORE
Market Recap for Tuesday, May 28, 2019 U.S. stocks jumped at the open, but then ran into sellers throughout the session. After gapping down at the open on Thursday, it's been difficult for the S&P 500 to clear the low 2840s and yesterday's... READ MORE
Market Recap for Friday, May 24, 2019 Before I summarize Friday's numbers, let me first say that the S&P 500 closed near a two-month low while the Volatility Index ($VIX) has been falling as well. I find this to be a very bullish development as nervousness... READ MORE
There are no perfect signals that scream "GET OUT" of equities, but there are warning signs.....so long as you know where to find them. Most market participants believe in the random walk theory, which suggests that changes in stock prices have the same distribution and are independent... READ MORE
Market Recap for Thursday, May 23, 2019 Energy (XLE, -3.35%) has been a relative laggard for the past 8 years, mostly due to a rising U.S. Dollar Index ($USD). The group took another big blow yesterday as crude oil prices ($WTIC, -5.71%) tumbled and had its worst... READ MORE
Market Recap for Wednesday, May 22, 2019 Our major indices finished with losses on Wednesday, despite strength in defensive sectors. The S&P 500 and Dow Jones held up best, falling just 0.28% and 0.39%, respectively. The primary reason is that more defensive stocks are represented on... READ MORE
Market Recap for Tuesday, May 21, 2019 The U.S. stock market rebounded on Tuesday after a 90 day temporary license was granted by the U.S. Department of Commerce to Huawei, a Chinese multinational telecommunications equipment company. Technology stocks (XLK, +1.23%) were a primary beneficiary of this action... READ MORE
Market Recap for Monday, May 20, 2019 Monday marked another rough May trading day, especially for the NASDAQ, which dropped 1.46%. The other major indices fell, but to a much lesser extent. Technology (XLK, -1.74%) and communication services (XLC, -1.65%) were hardest hit as weakness in semiconductors... READ MORE
Market Recap for Friday, May 17, 2019 Friday offered up a mixed bag. Our major indices were either higher or near the flat line with an hour left in the trading day. Then more discussion surfaced that US-China trade talks had stalled. That sent U.S. equities spiraling lower, especially... READ MORE
Market Recap for Thursday, May 16, 2019 Cisco Systems, Inc. (CSCO, +6.66%) reported its latest quarterly results after the bell on Wednesday, beating both revenue and EPS estimates, and provided a solid outlook. It was just what the telecom equipment group ($DJUSCT, +4.53%) needed after trending lower for... READ MORE
Market Recap for Wednesday, May 15, 2019 Falling treasury yields put a lid on many industries within financials (XLF, -0.37%), while renewed strength in the U.S. Dollar Index ($USD) kept pressure on materials (XLB, -0.26%). Other than those two sectors, it was primarily a very bullish day.... READ MORE
Market Recap for Tuesday, May 14, 2019 We've seen little economic or earnings news of late and that's beginning to show in the randomness of the huge S&P 500 moves based on President Trump's tweets regarding US-China trade. Sometimes it's... READ MORE
Market Recap for Monday, May 13, 2019 It was a very rough day on Wall Street yesterday. Mondays are historically the worst day of the week, but I doubt too many market participants were expecting the blood bath that we saw. Aggressive areas of the market were hit hardest, including... READ MORE
Market Recap for Friday, May 10, 2019 After another morning of very weak action in U.S. stocks, we saw another afternoon recovery on Friday as all of our major indices finished in positive territory. It certainly felt good, but the truth of the matter is that nothing has been... READ MORE
It was a brutal week, especially given the surging U.S. equity prices throughout 2019 thus far. The benchmark S&P 500 fell 2.18%, but intraweek losses were far steeper. There was a significant reversal on Friday as the Volatility Index ($VIX) appeared to confirm a near-term top... READ MORE
Market Recap for Thursday, May 9, 2019 Here's my takeaway from yesterday's action. We had a solid recovery off of earlier intraday lows, but the downtrend remains firmly in place and we need to respect that. Volatility ($VIX) is important to watch because spikes in this... READ MORE
Market Recap for Wednesday, May 8, 2019 It was a much quieter day on Wall Street and it showed across our major indices and sectors. We finished with bifurcated action as the Dow Jones managed to finish with a minor 2 point gain. The other major indices ended with losses,... READ MORE
Market Recap for Tuesday, May 7, 2019 It was a wicked day on Wall Street. It felt more like December 2018 than May 2019. Volatility surged for a second consecutive day and sellers swamped buyers. Volume accelerated as it generally does during market selloffs and a bit of panic was... READ MORE
Market Recap for Monday, May 6, 2019 The session got off to a very rough start as global market were hit hard following word that US-China trade talks were off the tracks once again. President Trump warned of steeper tariffs and Chinese officials said they were considering abandoning talks altogether.... READ MORE
Market Recap for Friday, May 3, 2019 April nonfarm payrolls were much stronger than expected, jumping to 263,000 and well ahead of the 180,000 consensus estimate. The unemployment rate fell to 3.6%, the lowest its seen in 50 years. The bond market wasn't impressed, however,... READ MORE
Market Recap for Thursday, May 2, 2019 Energy (XLE, -1.74%) took yet another tumble on Thursday, which dampened an otherwise decent recovery from intraday morning lows in our major indices. The Dow Jones was the big loser, dropping 0.46%, while the small cap Russell 2000 index rebounded nicely,... READ MORE
Market Recap for Wednesday, May 1, 2019 Fed Chair Jerome Powell ruined the bull market party on Wednesday afternoon, effectively suggesting that the Fed would not be lowering rates in response to low inflation data of late. The bond market has been screaming for a rate cut, not a hike,... READ MORE
Market Recap for Tuesday, April 30, 2019 Alphabet (GOOGL, -7.50%) set the stage for a rough day on the NASDAQ (-0.81%) as the internet giant posted quarterly results that didn't impress Wall Street. The small cap Russell 2000 lost 0.45%, losing ground vs. the benchmark... READ MORE
Market Recap for Monday, April 29, 2019 A bull market is comprised of a number of things, but two are wide participation and rotation of strength. We've been seeing both. Yesterday, it was financials (XLF, +1.01%) and communication services (XLC, +0.91%) that led the S&... READ MORE
Market Recap for Friday, April 26, 2019 When was the last time I suggested Ford Motor Co (F, +10.74%) was a catalyst for any bull market advance? Ummm, probably never. But F was exactly that on Friday as much better than expected earnings lifted the stock and the automobile... READ MORE
Okay, let's start with the short-term reason. Throughout much of this bull market, the month of May has been kind to semiconductors ($DJUSSC). In fact, the DJUSSC has advanced in each of the last 7 years during May. Check out this seasonal pattern: Not only have semiconductors moved... READ MORE
Market Recap for Thursday, April 25, 2019 Strong earnings from Microsoft (MSFT, +3.31%) and Facebook (FB, +5.85%) lifted the NASDAQ to gains on Thursday, while broader market bearishness carried the other major indices to losses. 3M Co (MMM, -12.95%) was a disaster on the Dow Jones, which... READ MORE
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Market Recap for Tuesday, April 23, 2019 The small cap Russell 2000 led our major indices higher, gaining 1.61%, but the day clearly belonged to the NASDAQ, which not only climbed 1.32%, but broke to new all-time intraday and closing highs. The NASDAQ pierced the 8109.69 level... READ MORE
Market Recap for Monday, April 22, 2019 I'm sure you've noticed it at the pump lately. Gas prices are rising. Yesterday, crude oil prices ($WTIC, +2.31%) jumped to their highest level of 2019 and closed above $65 per barrel for the first time since breaking... READ MORE
Market Recap for Thursday, April 18, 2019 Railroads ($DJUSRR, +2.37%) were led higher by Union Pacific's (UNP, +4.36%) strong quarterly earnings report and outlook. The DJUSRR has been a leader among industrials (XLI, +1.15%) for more than three years and that trend is easily continuing... READ MORE
Market Recap for Wednesday, April 17, 2019 We saw mixed trading on Wednesday with the benchmark S&P 500 falling 0.23% to end the session at 2900, still roughly 1.5% beneath the all-time high set in 2018. Technology (XLK, +0.56%) and consumer staples (XLP, +0.50)... READ MORE
Market Recap for Tuesday, April 16, 2019 It was just another day of boring gains. But that's what happens during bull market advances. The Volatility Index ($VIX, -1.14%) drifts lower and stock prices edge higher. Remember when the VIX topped out with a close above 36 on... READ MORE