I like to keep an eye on what's going on in the world around us. That means also monitoring what's happening in markets that are maybe not directly of interest when it comes to trading or investing. For stock markets around the world I like to... READ MORE
PLUNGE IN BOND YIELDS CAUSES YIELD CURVE TO INVERT ... Weak economic numbers from the eurozone and the U.S. on Friday pushed bond yields here and in Europe sharply lower and caused heavy profit-taking in global stocks. The 10-Year German bond yield fell into negative territory (below zero) for the... READ MORE
Last week certain indicators had me looking for a short-term market top, and on Wednesday it looked as if it had arrived. But no. On Thursday the market moved to new rally highs on volume that wasn't too little or too much, so I thought that looked like... READ MORE
Following an unabated up move over the last several days, the markets finally took a breather on the last trading day of the week. After the session on Friday, the NIFTY has displayed visible signs of consolidation creeping in to the markets, which had become steeply overbought on the daily... READ MORE
* Bigger Downtrends or Simply Resting? * Bank ETFs Fail at 200-day SMAs. * Small-cap Indexes Fail near Retracements. * Oil Nears Potential Reversal Zone. * Focus on the True Leaders. * S&P 500 Maintains Uptrend. * Index Breadth Table Remains Bullish. * Sector Breadth Table is More Mixed. * Staples, Utilities, REITs and Tech. * Bonds Extend... READ MORE
Market Recap for Thursday, March 21, 2019 Technology stocks (XLK, +2.51%) carried Wall Street higher on Thursday as computer hardware ($DJUSCR, +3.56%), semiconductors ($DJUSSC, +3.13%), and software ($DJUSSW, +2.20%) all surged to fresh 2019 highs. Apple, Inc. (AAPL, +3.68%), which has regained its title of... READ MORE
Market Recap for Wednesday, March 20, 2019 Yesterday was all about the Fed and what it might say. It was essentially a foregone conclusion that there'd be no rate hike, so traders were on edge anticipating what might change in the Fed's policy statement. Stock traders... READ MORE
The Russell 2000 iShares (IWM) is not only lagging the S&P 500 SPDR (SPY) and the Nasdaq 100 ETF (QQQ) in March, but it is also under selling pressure and down month-to-date. Typically, I am not concerned with relative weakness in small-caps when they are simple up less... READ MORE
The list of pre-defined groups in the RRG-menu has been expanded with the universe covering Indian sectors against the Nifty 500 index as the benchmark. Very recently also the universe of individual stocks making up the Sensex 30 index was added. With the Nifty 50 group already on the list,... READ MORE
The Price Momentum Oscillator (PMO) has topped underneath the signal line, something I consider especially bearish in the short term. Our short-term indicators have presented another "attention flag" divergence, which could be pointing to a more lasting decline. Today, the Dollar broke down dramatically on the heels of... READ MORE
The Dow Jones Transportation Average, since its creation, has been considered a sensitive leading indicator of business conditions. The legendary ‘Dow Theory’ was created as a trend confirmation indicator of the Industrial Average to the Transportation Average. When they are both in-gear, upward or downward, the major trend is confirmed.... READ MORE
There are often smaller patterns within larger patterns and traders can get a jump on a bigger breakout by acting on the smaller pattern first. For example, a cup-with-handle is a bullish continuation pattern that typically forms over a few months. A falling flag is also a bullish continuation pattern,... READ MORE
Market Recap for Tuesday, March 19, 2019 The U.S. stock market finished the day in bifurcated fashion as the NASDAQ (+0.12%) clung to a relatively minor gain, while the aggressive small cap Russell 2000 index lost 0.57%. The Dow Jones and S&P 500 barely finished... READ MORE
Advance Auto Parts (AAP) hit a new high in November and then moved into a corrective phase. Keep in mind that a correction can involve a decline or a consolidation, or even a combination of the two. AAP fell back towards the rising 200-day SMA in December and then stalled... READ MORE
I am a retired money manager and want to share some thoughts on that profession and investors in general. Portfolio management is as much about managing emotions as it is about correlations, standard deviations and Sharpe ratios. Over the decades much has been written about the “math” of portfolio management... READ MORE
* Deflation Index Leading the Market Higher * Inflation/Deflation Ratio Starting to Break in a Deflationary Direction * Several Deflation-Sensitive Industry Groups Looking Stronger Deflation Index Leading the Market Higher Last week, I wrote about the possibility of an upside price move in the bond market. So far, most areas remain below... READ MORE
Market Recap for Monday, March 18, 2019 U.S. stocks moved modestly higher on Monday, extending Friday breakouts on both the S&P 500 (+0.37%) and NASDAQ (+0.34%). The Russell 2000 gained 0.67% to lead the action. Crude oil prices ($WTIC, +1.47%) topped $59 per... READ MORE
The IT Pack remains firmly placed in the leading quadrant of the Relative Rotation Graph (RRG) as bench-marked against the broader CNX500 index. However, the IT index has relatively under-performed the front-line NIFTY over the past couple of days. With the NIFTY likely to take a breather and consolidate over... READ MORE
Market Recap for Friday, March 15, 2019 It was another solid day for the bulls to close out last week. It was also quad-witching options expiration Friday, which typically results in much-heavier-than-usual volume. Volume was certainly heavy on Friday. Leadership was found in the aggressive NASDAQ, which jumped 0.76%... READ MORE
Amazon is lagging the Nasdaq 100 ETF (QQQ) and the broader market over the last two months because it has yet to clear its January high and remains below the 200-day SMA. This is part of the reason the Invesco Momentum ETF (SPMO) is underperforming the Invesco Minimum Volatility ETF... READ MORE
In a sense, it already has. Well, maybe not 16 straight years, but play along. I've done a lot of historical stock market research over the years and several patterns really stand out. But one in particular always keeps me on edge as a short-term trader. The week... READ MORE
This Relative Rotation Graph shows the rotation for asset classes over the past 9 weeks. The main observation is that fixed income related asset classes are all inside weakening and heading, rapidly, towards lagging. SPY (stocks) is close to returning into the leading quadrant. The strongest rotation at the moment,... READ MORE
Anyone recognize these two phones? A good old indestructible Nokia candy bar was the first phone for many of us. I had a few Nokia cellphones over the years and they always worked great, back in the day. And, we all remember the Nokia ring tone, which was the most... READ MORE
Over the past week, the market performed in striking contrast to what had been expected. For nearly 15 weeks, the markets were consolidating near their 50-Week MA and, last week, were showing signs of further impending consolidation. In spite of this, the markets ended up putting up a very strong... READ MORE
Editor's Note: This article was originally published in John Murphy's Market Message on Friday, March 15th at 2:58pm ET. Just a week after slipping below their 200-day averages, the Nasdaq Composite Index in Chart 1 and the S&P 500 in Chart 2 appear... READ MORE
I have a chart at the bottom of this article that will explain my moving out of the bear market camp. Yes, it is delayed, but, as I explained before the December crash, I'd rather miss a bottom and rally than be hanging on for dear life during... READ MORE
At the end of last week I was looking forward to some more selling to extend the decline that had started from the March 4 top. But no. Price rebounded off last Friday's low, eventually setting a new high for the rally off the December lows. However, on... READ MORE
The S&P is pretty much at the same level it was back in October of last year. However, it still remains well below its all-time high of 2939, which was also achieved in October of last year. Yet there are a number of stocks at their all-time highs,... READ MORE
NASDAQ AND S&P 500 HAVE CLEARED THEIR NOVEMBER HIGH... Just a week after slipping below their 200-day averages, the Nasdaq Composite Index in Chart 1 and the S&P 500 in Chart 2 appear to be ending the week above their November highs. That's the... READ MORE
Anytime I hear a successful, well-respected figure mention the importance of routines, my ears perk up. I firmly believe that routines (and the discipline to stick to them) are the secret to success, from investing to sports to business to music – you name it. When I hear that same opinion... READ MORE
* 20-day Holds above 200-day for S&P 500 * Weekly RSI Holds above 50. * Large-caps Lead Index Breadth. * Tech, Utilities and REITs Lead Sector Breadth. * The Dreaded Shakeout (VRTX). * Consider Position Sizing (SCWX). * Consider Profit Targets (PYPL). * ChartList Updates. ... 20-day Holds above 200-day ... The S&P 500 sneezed last... READ MORE
Market Recap for Thursday, March 14, 2019 Thursday was a day of rest and bifurcated action. The Dow Jones gained ground, albeit a rather miniscule 7 points, but the other major indices fell. The Russell 2000, NASDAQ and S&P 500 dropped 0.40%, 0.16%, and 0.09%... READ MORE
The Relative Rotation Graph shows the FAANG stocks against $NDX on a daily basis. The strong move of GOOG is evident and tracks the recent break of resistance. Out of these five stocks, four are at the right-hand side of the graph, indicating a relative uptrend against the Nasdaq 100... READ MORE
Market Recap for Wednesday, March 13, 2019 It was another strong day on Wall Street. All 11 sectors moved higher for the second time this week. Industrials (XLI, +0.88%) represent the only sector to have posted a daily loss this week. The other 10 sectors have shown gains all... READ MORE
MindTree Limited's stock price ended with gains of Rs. 23.20 (+2.84%) in Wednesday's session on March 14, 2019. This price move appears very important from the technical perspective, as it has thrown up several signals that point towards MINDTREE.IN inching higher over the... READ MORE
We have a new signal to add to the DecisionPoint Scoreboards, as the OEX triggered a Long-Term BUY signal on Monday. All of the large-cap Scoreboard indexes are now on Trend Model BUY signals in three timeframes. Additionally, we acquired two new BUY signals on Oil and Bonds, which I&... READ MORE
Diodes (DIOD), a semiconductor stock, is returning to the trend mean and this could provide a bullish setup to take part in the long-term uptrend. The chart below shows DIOD with a breakout and surge to new highs in February. Note that the stock also recorded new highs in autumn... READ MORE
Market Recap for Tuesday, March 12, 2019 Boeing (BA, -6.15%) was once again a major drag on the Dow Jones as that index ended the session in negative territory (-0.38%), while our other indices were positive. The NASDAQ (+0.44%) was the best performing index as 10 of... READ MORE
I’ll never forget the first time I did a simulated engine cutout at altitude. I was up in the air with my instructor, preparing to do some maneuvers, when he unexpectedly reached over and pulled out the throttle. The plane lurched forward, rapidly losing altitude, while my instructor turned... READ MORE
* Adjusted vs. Unadjusted Prices * Bonds Reflect the Fine Current Balance Between Inflationary and Deflationary Forces Adjusted vs. Unadjusted Prices Chart 1 shows that the iShares 20-year Trust ETF, the TLT, has been in a trading range since late 2014. Currently, the price is above its 12-month MA and the long-term... READ MORE