ShotSpotter Gets Back to Business With Solid Earnings Results

Gun-fire detection company ShotSpotter (SSTI) is lagging the recovery in the general stock market. Even with a 28.3% post-earnings surge on Friday, the stock still trades below its April high. Yet, those earnings suggest that ShotSpotter is on track and successfully navigating its business through the COVID-19 pandemic. Earnings Results ShotSpotter has a lumpy business … Read more

Stock Market Hits Overbought with A Bullish Divergence – Above the 40 (August 7, 2020)

Stock Market Statistics AT40 = 72.2% of stocks are trading above their respective 40-day moving averages (DMAs) (1st day overbought)AT200 = 42.3% of stocks are trading above their respective 200DMAs VIX = 22.2Short-term Trading Call: cautiously bullish Stock Market Commentary The last overbought period ended in June. The volatility index (VIX) did not drop much … Read more

Nikola: Hitching A Sustainable Trade to Ride Through the Hype

Nikola (NKLA) finally showed some signs of life a day again with a 22% pre-earnings pop after two months of persistent selling.

Zero-emissions truck company Nikola (NKLA) has been a short-seller’s dream for almost two months given the pressure from sellers and a rapidly expanding float. As a pre-revenue company with no product in the market and a multi-billion dollar market cap, Nikola naturally attracts a lot of scrutiny. I finally got interested in the company and … Read more

Bitcoin: A False $12K Breakout Creates the Pause That Refreshes

Trees do not grow to the sky – even cryptocurrency trees with Bitcoin leaves. The old adage describes a core rule of the physics of price momentum. Whether buying or selling, traders and investors eventually exhaust themselves – whether existing resources are too low to maintain buying pressure or motivated sellers finally run out of … Read more

Stocks Wind Back Up – Above the 40 (July 31, 2020)

Stock Market Statistics AT40 = 51.5% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 35.6% of stocks are trading above their respective 200DMAs VIX = 24.5Short-term Trading Call: neutral Stock Market Commentary Major League Baseball (MLB) may be forced to wind back down, but stocks look like they are winding … Read more

How to Invest in the Soaring Rate of U.S. Homeownership

Accelerating Homeownership Rates The coronavirus pandemic has accelerated many trends that were underway going into 2020. Rising homeownership rates in the U.S. hopped onto the trend. Source: U.S. Census Bureau, Homeownership Rate for the United States [RSAHORUSQ156S], retrieved from FRED, Federal Reserve Bank of St. Louis; July 29, 2020. The above (adjustable) graph shows the … Read more

Bitcoin: One More Bet On A Continued U.S. Dollar Breakdown

Bitcoin (BTC/USD) is surging through a long overdue breakout of the $10,000 level.

The U.S. Dollar Index Breaks Down The U.S. dollar broke down last week. The weekly chart below shows the U.S. dollar index (DXY) closed last week at a near 2-year low. Numerous anti-dollar bets are gaining fast thanks to the U.S. dollar’s breakdown. The cryptocurrency Bitcoin (BTC/USD) is joining the party. Bitcoin joins the anti-dollar … Read more

Housing Divergence: Full Recoveries, Uneven Earnings, Lagging Consumers – Housing Market Review (July, 2020)

Housing Market Intro and Summary The housing downturn ended almost as quickly as it began. V-shaped recoveries are evident across a spectrum of data, especially in home builder sentiment and new home sales. Home builders continue to describe extremely strong demand that, in many cases, goes beyond the release of buying power pent-up by the … Read more

Stocks Unwind Ahead of Key Stimulus Decisions and Earnings – Above the 40 (July 24, 2020)

Stock Market Statistics AT40 = 53.8% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 33.5% of stocks are trading above their respective 200DMAs VIX = 25.8Short-term Trading Call: neutral Stock Market Commentary AT40 (T2108), the percentage of stocks trading above their respective 40-day moving averages (DMAs), barely budged all week … Read more

The Top 1 Percent Even Rules the Stock Market: Divergences with Elites

Sam Ro is a managing editor at Yahoo Finance. Ro’s tweet with data from FactSet and Goldman Sachs (GS) shows how just 5 stocks – Facebook (FB), Amazon.com (AMZN), Apple (AAPL), Microsoft (MSFT), and Alphabet (GOOG) – dominate the S&P 500 (SPY). The top 1 percent seem to be the only story worth telling given … Read more