How A Bear Finds A Sector Full of Ugly Stocks – The Market Breadth

ugly stocks (Credit: "Jenn's Ugly Face" by lorenabuena is licensed under CC BY-NC-ND 2.0. To view a copy of this license, visit https://creativecommons.org/licenses/by-nd-nc/2.0/jp/?ref=openverse.)

Small caps were hit particularly hard in today’s follow-through to tech stocks pushing against technical limits. The iShares Russell 2000 ETF (IWM) went from a breakout above its 50-day moving average (DMA) despite a surge in interest rates and oil prices to a sharp 50DMA breakdown along with a further spike in interest rates and … Read more

Inflation-Friendly Retail Stocks Are Still Outperforming

Stock Market Commentary: Inflation is everywhere in the global economy, and inflation will hang around for some time to come. The inflation problem is so bad that the Federal Reserve does not think inflation will return to its 2% target for another three years. While economists and pundits debate about how long inflation will last, … Read more

Above the 40 (June 11, 2018) – A Scramble to Catch Up As Stock Market Flips Overbought

AT40 = 71.1% of stocks are trading above their respective 40-day moving averages (DMAs) (first overbought day) AT200 = 57.9% of stocks are trading above their respective 200DMAs (a 4-month high) VIX = 12.4 Short-term Trading Call: bullish Commentary After 92 trading days, the stock market is finally overbought again. The last overbought period ended … Read more

The Recent Market’s Strongest Stocks: Utilities, REITs…and Homebuilders?!?!

Sellers once again lost their advantage as the S&P 500 (SPY) came roaring right back from its ugliest close since the U.S. Presidential election. The bullishness on the day was on full display with the number of new all-time highs well out-pacing new all-time lows by 181 to 79. While the S&P 500 (SPY) still … Read more

Sifting Through the Rubble of Retail High-Flyers for Potential Trades – Long and Short

(This is an excerpt from an article I originally published on Seeking Alpha on August 6, 2012. Click here to read the entire piece.) The HOLDRS Retail ETF (RTH) made new all-time highs in late July, and the SPDR S&P Retail ETF (XRT) has remained in a trading range since failing a retest of its … Read more

Chart Review – These Giants Are Falling

Near the end of the last oversold period toward the end of June, I identified three stocks that I claimed had to hold support to maintain a bullish outlook for the stock market for various reasons: Proctor & Gamble (PG), Clorox (CLX), and Oracle (ORCL). I titled that piece “Chart Review: These Giants Must Not … Read more

Chart Review: These Giants Must Not Fall – PG, CLX, and ORCL

On June 20, famed money manager Doug Kass tweeted a stock market warning: “once again the strength in consumer non durables (pg pep cl clx k gis etc) are a market warning sign.” So what happens when these stocks start to break down along with so many others? Is their weakness suddenly a harbinger of … Read more