Can A Bullish Divergence Create A Bottom for Stocks? – The Market Breadth

Can A Bullish Divergence Create A Bottom for Stocks – The Market Breadth (Credit: UnknownNet Photography on Flickr - https://www.flickr.com/photos/110548908@N06/24936496357)

Stock Market Commentary Last week was an intense week of trading. The ever-escalating conflict in the Middle East disturbed markets. However, the initial negative reaction in futures market was mostly erased by the time of the market open on Thursday. The indices even managed to gain ground before getting faded. Thus, the market still fundamentally … Read more

Suddenly, the VIX Looks Like It Matters Again – The Market Breadth

surprise (Credit: Surprise!!! 4/365 by Benson Kua from Flickr)

Stock Market Commentary While I watch the tense trading unfold in NVDA, the VIX, the volatility index, has suddenly returned to my radar as an indicator of interest. Thursday’s stock market setback came with a surging VIX that closed at a new high of the year. The regular programming of the volatility faders actually failed … Read more

All Hail NVIDIA and A New Market Call – The Market Breadth

All Hail NVIDIA

Stock Market Commentary There is a deepening irony in my on-going bearishness on the stock market. The sector most visibly responsible for the anti-bearish animal spirits leaning against poor market breadth is the same sector I remain unapologetically bullish about: Artificial Intelligence (AI). The ironic contrast was in full display last week as the bullish … Read more

More Red Flags After the Stock Market Moves in Chunks – The Market Breadth

More Red Flags After the Stock Market Moves in Chunks

Stock Market Commentary I hate to be one of THOSE bears, but this current wild stock market has turned me into the classic broken record of bearishness. Last week’s red flags consisted of mind-boggling price changes in certain stocks both up and down. Stocks should not move in big chunks at a time, sometimes for … Read more

A BE READY Kind of Day in the Stock Market – The Market Breadth

A Be Ready Kind of Day in the Stock Market

Stock Market Commentary Right after the stock market tempted me to flip from bearish to neutral, January’s CPI (consumer price index) turned brought the bears rushing back to the scene. Inflation’s fizzle turned to sizzle, and the technical picture of the stock market almost flipped on its head. The charts say it all – the … Read more

A Sharp Contrast Between Two Truths of the Stock Market – The Market Breadth

A Sharp Contrast Between Two Truths of the Stock Market – The Market Breadth

Stock Market Commentary Instead of climbing a wall of worry, the market is climbing a wall of frustration (I stole that from a friend of mine). No matter what economic indicators bears stare at to declare impending doom, the jobs market just keeps coming in hot month-after-month. While a widening swath of stocks are breaking … Read more

Stock Bulls Taunt Suddenly Hesitant Bears – The Market Breadth

Stock Bulls Taunt Suddenly Hesitant Bears

Stock Market Commentary A decisive end to the extended overbought period signaled the arrival of bearish conditions last week. Bears boldly sold for one more day before a “stock bulls taunt” forced suddenly hesitant bears into a partial retreat. A sharp market divergence is now taking hold. While the major indices rallied off support and … Read more

The Fed Further Stretched Overbought Conditions – The Market Breadth

stretch (credit: Lynn Friedman on Flickr)

Stock Market Commentary For traders like myself who follow market cycles from extreme fear to extreme euphoria, last week’s trading action was astonishing. The stock market was already well overbought and stretched going into Wednesday’s Federal Reserve meeting. Yet, buyers STILL managed to go into extreme stretch mode. The Federal Reserve essentially declared the death … Read more

First Strike Against the Stock Market Rally – The Market Breadth

first strike against the rally

Stock Market Commentary The rally out of the stock market’s last oversold period finally suffered its first strike today as a strong open fizzled into some important fades. The S&P 500 and the NASDAQ tapped highs of the year only to fail into marginally negative closes. Most importantly, market breadth perfectly tapped the threshold for … Read more

Retail Turns A Corner for Black Friday – The Market Breadth

Retail Turns A Corner for Black Friday

Stock Market Commentary The stock market continued its inflation celebration last week with a surge on Monday. The buying momentum abated from there as the holiday-shortened week rolled into Thanksgiving and then Black Friday. Even though NVIDIA (NVDA) stole the earnings spotlight for the week, the U.S.’s most storied day of shopping set the stage … Read more