State of the Markets
The Battle For Control Is On
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Executive Summary:
From my seat, the key to the action on the chart of the S&P 500 here is the battle for the 50-day moving average. To review, the bulls were able to make a stop at the 3225 zone on a closing basis. This was important because it kept the pullb…
Markets Like The Stimulus Talk
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Executive Summary:
Although September has lived up to the historical script as being a weak month for stock prices, the mood on Wall Street appears to be improving a bit to start the week. From my seat, the more upbeat view on the stock market can be tied directly…
Looking For Clues To Next Move
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Executive Summary:
After the bulls were able to produce a "good overbought" condition that lasted two full months on the back of the reopening trade and an improving economy, the bears finally found a way to get up off the mat and push the market into an oversold …
Coloring Outside The Lines
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Executive Summary:
In last week's technical review, I opined that (a) there were clear lines in the sand on the charts of the major indices, (b) any movement in between those lines could be viewed as "noise," and (c) a break above or below the key support/resistan…
The Correction Continues
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Executive Summary:
Stocks find themselves in a negative state again this morning as the headlines are all bad. There are new fears about an economic shutdown in the UK, concerns about the startling rise in new COVID cases, the global banking scandal, and worries a…
Fundamentals Supportive But Watching Support Zones Closely
Before we get to our weekly review of market fundamentals, I thought it would be a good idea to check in on the state of the current pullback happening in the stock market.
Now in its 11th day, the current pullback in stocks continues to look like a typical, garden-variety correct…
More Art Than Science
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Executive Summary:
As I have mentioned a time or two, "early warning" or mean reversion work tends to be more art than science. The main problem is that strong trends will reach an "extreme" overbought/sold reading and then stay there for some time. As such, it is…
The Lines In The Sand Are Clear
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Executive Summary:
The good news is the bulls have been able to hold the line at key support levels (think 50-day moving averages) across the board on the major stock market indices. The bad news is the recent rebound hasn't reversed the trend or moved the bulls c…
