As the Growth Tantrum Calms, the Stock Market Extends Bullish Signals – Above the 40 (April 1, 2021)

Stock Market Commentary All March long the stock market wrestled with inflation fears. After the S&P 500 (SPY) successfully rallied away from its 50-day moving average (DMA) (red line in the chart below) in early March, I recognized signs that the stock market’s churn was a sign of digestion of these fears. Yet, so-called growth … Read more

Buyers Follow Through On Latest Bullish Signals Despite Targeted Carnage – Above the 40 (March 26, 2021)

Stock Market Commentary Many stocks rebounded sharply from intraday lows on Thursday. The flurry left behind key bullish signals. Buyers did not disappoint on Friday. They delivered strong follow through on the latest bullish signals even as sections of the market suffered targeted carnage. Indeed, the ability to ignore the targeted carnage was itself another … Read more

Sharp Rebound in Stocks Flashed Signs of Refreshed Bullishness – Above the 40 (March 25, 2021)

AT40 (T2108) sharply rebounded off a 5-month intraday low.

Stock Market Commentary After today’s open, the rolling interruption to the reopen trade started to look like the beginning of a real pullback. Sellers got about 90 minutes to enjoy the pressure before buyers took control. The back and forth between selling pressure and buying relief has taken a toll on a swath of the … Read more

A Rolling Interruption for the Stock Market’s Reopen Trade – Above the 40 (March 23, 2021)

Stock Market Commentary After writing the last Above the 40 post, I thought the market would soon force me off the fence and onto the bullish side of the pasture. Even with post-Fed churn in play, the market looked like it was digesting inflation fears pretty well. Instead, a rolling interruption for the stock market’s … Read more

A Great Stock Market Divergence – Above the 40 (March 12, 2021)

Stock Market Commentary A great stock market divergence clarified itself last week. Growth stocks, especially the expensive and/or speculative kind, took a back seat to industrial and consumer names and other stocks primed to benefit most from the global economies reopening on a fresh wave of liquidity. This divergence renders a generalized view of the … Read more

A Buy Triggers On the 20% Correction in EWZ, the Brazil ETF

The iShares MSCI Brazil ETF (EWZ) hit its last peak on January 14, 2021 at $38.61. I was too busy trading around last week’s bearish action to notice that EWZ twice hit and bounced off the 20% correction point of $30.88. With my short-term trading call flipped to neutral, I was more keen to see … Read more

Rising Mortgage Rates, Record High Lumber Prices Weigh On Home Builders

Mortgage rates are on the rise following record high lumber prices. Together, these measures are starting to weigh on the stocks of home builders. 30-Year Mortgage Rate The 30-Year fixed rate mortgage average in the United States hit 2.97% on Thursday, February 25th. Not only is this rate a 6-month high, but also the rise … Read more

A New Low in Volatility Brought Fresh Promise to Overbought Stock Market – Above the 40 (February 12, 2021)

Stock Market Commentary After sweeping away bearish signals, the stock market moved right into overbought territory last week. The week started with a small gap up to all-time highs, and the stock market never looked back. More importantly, the volatility index (VIX) hit a new low since the stock market broke down almost a year … Read more

Stock Market Almost Overbought After Sweeping Away Bearish Signals – Above the 40 (February 5, 2020)

In a major display of buying power, AT40 (T2108) surged from 41% to 69% in just a week's time.

Stock Market Commentary Sellers beat a hasty retreat from the stock market as another bearish signal enjoyed a fleeting existence. The last bearish period lasted about three days. The previous bearish period barely survived a day. The stock market’s ability to quickly wipe away bearish signals is impressive. The buying force over the last week … Read more

Stock Market Battle Royale: Regime Change Or A Big, Bad Bubble? – Above the 40 (January 26, 2021)

Stock Market Commentary After the stock market ended its last overbought period, I hesitated to drop my short-term trading call back to bearish. Three days later and the market has yet to snap back into overbought trading conditions. As the major indices levitate, my favorite breadth indicator, AT40 (T2108), the percentage of stocks trading above … Read more