Follow-Through Trades: Another Bounce from “Oversold Enough”

The Follow-Through Intro Stocks and Indices Covered S&P 500 (SPY) Nasdaq (COMPQX) iShares Trust Russell 2000 Index ETF (IWM) volatility index (VIX) AGNC Investment Corp (AGNC) Allegheny Technologies Incorporated (ATI) Applied Materials (AMAT) Australian dollar vs Japanese yen (AUD/JPY) Best Buy (BBY) BHP Group Limited (BHP) Corning Incorporated (GLW) DoorDash (DASH) Financial Select Sector SPDR … Read more

A Rare Stumble for the Stock Market As Oversold Conditions Loom – Above the 40 (June 18, 2021)

Stock Market Commentary The Federal Reserve seemed to change the rules of the game. To-date, easy money policies and stubborn dovishness in the face of rising inflation was a formula for higher asset prices, reflation and inflation-friendly trades, and even rising fears of an over-heating economy. Last week, Federal Reserve Chair Jay Powell shifted the … Read more

Fakeout in Market Breadth Breakout and A Currency Warning – Above the 40 (June 17, 2021)

Stock Market Commentary The drag I described in the wake of the Federal Reserve’s pronouncements on monetary policy eroded the stock market a lot more than I thought. Market breadth printed a major fakeout with my favorite indicator plunging in the wake of deep selling in inflation-related trades from commodities to industrials to financials. The … Read more

The Follow Through Premiere: A Video Narration for the Latest Stock Charts

The Follow Through Intro Stocks and Indices Covered S&P 500 (SPY) Nasdaq (COMPQX) iShares Trust Russell 2000 Index ETF (IWM) volatility index (VIX) Martin Marietta Materials (MLM) Kohls Corporation (KSS) Match Group (MTCH) Square (SQ) Whirlpool Corporation (WHR) Celsius Holdings (CELH) Churchill Capital Corp IV (CCIV) Docusign (DOCU) Schlumberger (SLB) Zoom Video Communications, Inc. (ZM) … Read more

No Deal for a Confirmation of the Market Breadth Breakout – Above the 40 (June 4, 2021)

Stock Market Commentary I fully anticipated follow-through to the breakout of market breadth that started trading last week. Instead, trading on the major indices wavered going into a mini pullback on Thursday. As a result, Friday’s rally following the May jobs report failed to generate a confirmation of the market breadth breakout. With job creation … Read more

Stock Market Rebounded from the Brink of A Real Sell-Off – Above the 40 (May 14, 2021)

Stock Market Commentary Last week featured yet another episode of momentary panic proceeded by a virtual “all clear” signal. In the middle of the week, the S&P 500 (SPY) broke down just as the stock market hit extremes. Subsequently, buyers stepped into the breach. As a result, the very next day, the stock market rebounded … Read more

Stock Buyers Snapped Back But Failed to Crack An Important Downtrend – Above the 40 (April 23, 2021)

Stock Market Commentary The week began with two straight days of selling for the stock market. Almost everything was in place for a real pullback. Although the S&P 500 (SPY) was less than 2% off its all-time high, my favorite measure of breadth in the stock market, AT40 (T2108), the percentage of stocks trading above … 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

High-Tech Stocks Break Down In Fallout from Fierce Bear-Bull Battle – Above the 40 (March 5, 2021)

Stock Market Commentary The stock market continued its streak of trickiness. Buyers and sellers played a fierce bear-bull battle starting with one of the biggest fake-out one-day rallies since last September 2nd’s near parabolic run-up. Fresh money flowed into funds to start the month of March to for gains of 2.4% on the S&P 500 … Read more