A Curious Break in the Trading Action – The Market Breadth

A Curious Break in the Trading Action - The Market Breadth

Stock Market Commentary A curious break in the trading action unfolded as financial markets wrestled with two “disappointing” inflation reports. Both the CPI (consumer price index) and wholesale inflation (the producer price index or PPI) came in slightly higher than “expected” (headline and core). The data just tell me expectations are unrealistic or at best … Read more

Beyond Believable, Beyond Meat

Is Beyond Meat THE Speculative Trade for the New Year

Sometimes it pays to be stubborn. In December, I asked whether Beyond Meat (BYND) would be the speculative trade of the new year. I presented a simple thesis that managed to work out. However, the path from A to B was totally unexpected, and I broke rules along the way. In response to earnings, BYND … Read more

Has the Builder Seasonal Trade Topped Out? – Housing Market Review

Has the Builder Seasonal Trade Topped Out - Housing Market Review

Housing Market Intro and Summary In recent months, the housing market experienced several impacts from declining mortgage rates. An accelerating improvement in consumer and builder sentiment point the path toward a strong spring selling season despite on-going issues of affordability and inventory availability (in the existing home market). While housing starts pulled back from November’s … Read more

Little Time to Rest for the Oversold Bounce – The Market Breadth

little time to rest (Credit: animal-tigers-running-wallpaper-3 by Farmington Strength on Flickr)

Stock Market Commentary Downtrends are over. Bullish breakouts abound. Sellers got one chance last week to try to keep the cork in the bottle of the oversold bounce, but they failed. The stock market insisted on pushing right through. With little time to rest, the S&P 500 and the NASDAQ ended the week with major … Read more

Bulls Explode Out of Oversold Trading Conditions – The Market Breadth

bulls explode out of oversold trading conditions

The bear market intrusion to the oversold period gave way to an explosion of bullish trading action this week. The maximum drawdown of October for the S&P 500 (SPY) was 4.0% well above the average for the month. This extreme move provided the perfect setup for the sharpness of the current oversold bounce. The rubber … Read more

Alexandria Real Estate Equities: The Wrong Kind of Overcrowded

overcrowded (Credit: Fernando Stankuns, crowded train station on Flickr - https://www.flickr.com/photos/82289802@N00/3976488849)

Alexandria Real Estate (ARE), a real estate investment trust (REIT) specializing in life science buildings, gets much love from analysts. According to Factset, ARE is currently one of the most loved companies in the S&P 500 (SPY). ARE is just one of two stocks whose analyst coverage consists 100% of buy ratings. This high “occupancy … Read more

Jackson Hole Redux: Stock Indices Are Back Where They Started – The Market Breadth

Jackson Hole redux (Credit: Welcome to Jackson Hole Sign by Latham Jenkins on Flickr)

Stock Market Commentary The annual Jackson Hole confab of central bankers starts this coming Thursday. Almost like technical poetry, the S&P 500 and the NASDAQ are back to the highs directly preceding Jackson Hole 2022. Depending on your perspective, this Jackson Hole redux either represents a bullish confirmation of the market’s resilience after 18 months … Read more

Overbought Conditions Slip Into An Apple Topping – The Market Breadth

apple topping (Credit: https://commons.wikimedia.org/wiki/File:2021-11-26_18_02_07_An_apple_pie_with_one_slice_removed_in_the_Dulles_section_of_Sterling,_Loudoun_County,_Virginia.jpg Famartin https://creativecommons.org/licenses/by-sa/4.0 CC BY-SA 4.0, via Wikimedia Commons

Stock Market Commentary A week ago, buyers did their best to push against topping stock indices by restarting overbought conditions. That overbought period lasted just 3 days as a Fitch downgrade of U.S. Treasury debt freshly cooled the summer of loving stocks. The resulting selling confirmed topping conditions and greased the skids of the stock … Read more

Buyers Push Against Topping Indices, Restart Overbought Conditions – The Market Breadth

push (Credit: Uphill Push by the_alien_experience on Flickr)

Stock Market Commentary The stock market delivered a gift on Friday as I scrambled to de-risk following the Bank of Japan’s drama on monetary policy. I braced for selling into bearish pressure and instead was pleasantly greeted by a broad push higher for stocks from the open. After the dust settled on the day, I … Read more

Bulls Fade Fast from the Overbought Frontier – The Market Breadth

fade (Credit: Hercules Wrestling the Bull by carfull...from Wyoming on Flickr)

Stock Market Commentary: The summer of loving stocks is facing its first real test. In the middle of the week, the rally finally failed at the threshold of overbought market breadth. The stock market closed the week with market breadth confirming the end of the primary rally and the start of an important test of … Read more