Above the 40 (August 3, 2017) – The S&P 500 Makes Another Bearish Divergence With A Fresh Twist

AT40 = 49.5% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 55.6% of stocks are trading above their respective 200DMAs VIX = 10.4 (volatility index) Short-term Trading Call: cautiously bullish Commentary Here we go again. Last week, the S&P 500 slipped but did not fall off the edge. In my … Read more

Above the 40 (June 23, 2017) – The S&P 500 Watches the NASDAQ Position for A Recovery

AT40 = 54.2% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 56.6% of stocks are trading above their respective 200DMAs VIX = 10.0 (volatility index) Short-term Trading Call: cautiously bullish Commentary Last week, the NASDAQ snatched the baton from the S&P 500 (SPY) and now looks poised to resume its … Read more

From One Market Pullback to the Next, Strong Stocks Persist

Before the sell-off from Trump Turmoil, there was the sell-off ahead of the Easter weekend that looked weighty enough to deliver an extended breakdown below the 50-day moving average (DMA) for the S&P 500 (SPY). Buyers came storming back after that weekend. Out of curiosity, I used SwingTradeBot.com to identify the strongest stocks of the … Read more

Above the 40 (May 5, 2017) – The S&P 500 Again Skirts Past A Bearish Divergence

AT40 = 54.4% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 59.4% of stocks are trading above their respective 200DMAs VIX = 10.6 (volatility index) Short-term Trading Call: bullish Commentary Two hallmarks of this current stock market have been the 1) consistent weakness of sellers and 2) the persistent ability … Read more

Above the 40 (May 2, 2017) – Tech Stocks Snatch Center Stage As the Rest of the Market Awaits the Fed

AT40 = 58.3% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 61.1% of stocks are trading above their respective 200DMAs VIX = 10.6 (volatility index) Short-term Trading Call: bullish Commentary At the end of April, I noted how the stock market headed into May trading with a mix of alerts. … 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

Above the 40 (April 13, 2017) – The S&P 500 Suffers A Convincing End to Bullish Divergence

AT40 = 38.2% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 57.2% of stocks are trading above their respective 200DMAs VIX = 16.0 (volatility index) Short-term Trading Call: cautiously bullish (notable caveats explained below) Commentary The 50-day moving average (DMA) is no longer golden. It figures that on a day … Read more

Above the 40 (March 7, 2017) – A Growing Undertow for the Stock Market

AT40 = 48.9% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 63.5% of stocks are trading above their respective 200DMAs VIX = 11.5 (volatility index) Short-term Trading Call: neutral Commentary Market weakness continued to grow today even as the major indices barely notched losses on the day. AT40 (T2108), the … Read more

QSR Picks Popeyes And Leaves El Pollo Loco As the Last Chicken Standing

So it was true after all. Restaurant Brands (QSR) was indeed drooling over the secret recipes of Popeyes Louisiana Kitchen (PLKI). Today, PLKI soared 19.1% to $78.73/share and a $1.6B market cap, just short of the $79 ($1.8B market cap) that QSR promised to pay for acquiring PLKI. When I discussed the merits of a … Read more

Above the Forty (AT40 – February 3, 2017): The S&P 500 Bids to End Bearish Divergence

AT40 Status: 60.3% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 Status: 68.4% of stocks are trading above their respective 200DMAs VIX Status: 11.0 (volatility index) Short-term Trading Call: neutral Commentary Nothing says “strong sentiment” like a stock market that actually rallies on a strong U.S. jobs report: the fear of … Read more