Bitcoin: A False $12K Breakout Creates the Pause That Refreshes

Trees do not grow to the sky – even cryptocurrency trees with Bitcoin leaves. The old adage describes a core rule of the physics of price momentum. Whether buying or selling, traders and investors eventually exhaust themselves – whether existing resources are too low to maintain buying pressure or motivated sellers finally run out of … Read more

Stocks Wind Back Up – Above the 40 (July 31, 2020)

Stock Market Statistics AT40 = 51.5% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 35.6% of stocks are trading above their respective 200DMAs VIX = 24.5Short-term Trading Call: neutral Stock Market Commentary Major League Baseball (MLB) may be forced to wind back down, but stocks look like they are winding … Read more

Bitcoin: One More Bet On A Continued U.S. Dollar Breakdown

Bitcoin (BTC/USD) is surging through a long overdue breakout of the $10,000 level.

The U.S. Dollar Index Breaks Down The U.S. dollar broke down last week. The weekly chart below shows the U.S. dollar index (DXY) closed last week at a near 2-year low. Numerous anti-dollar bets are gaining fast thanks to the U.S. dollar’s breakdown. The cryptocurrency Bitcoin (BTC/USD) is joining the party. Bitcoin joins the anti-dollar … Read more

Stocks Unwind Ahead of Key Stimulus Decisions and Earnings – Above the 40 (July 24, 2020)

Stock Market Statistics AT40 = 53.8% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 33.5% of stocks are trading above their respective 200DMAs VIX = 25.8Short-term Trading Call: neutral Stock Market Commentary AT40 (T2108), the percentage of stocks trading above their respective 40-day moving averages (DMAs), barely budged all week … Read more

The Top 1 Percent Even Rules the Stock Market: Divergences with Elites

Sam Ro is a managing editor at Yahoo Finance. Ro’s tweet with data from FactSet and Goldman Sachs (GS) shows how just 5 stocks – Facebook (FB), Amazon.com (AMZN), Apple (AAPL), Microsoft (MSFT), and Alphabet (GOOG) – dominate the S&P 500 (SPY). The top 1 percent seem to be the only story worth telling given … Read more

Canadian Dollar: GDP and COVID-19 Advantage over the U.S. Dollar

The Bank of Canada (BoC) released its latest Monetary Policy Report on July 15, 2020. Neither the report nor the press conference contained any surprises. The BoC did not change interest rates, kept the crank turning on its Quantitative Easing (QE) program, and promised to “hold the policy interest rate at the effective lower bound … Read more

Stock Market Transitions to Key Breakouts and Setups At Support – Above the 40 (July 17, 2020)

Stock Market Statistics AT40 = 56.1% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 32.5% of stocks are trading above their respective 200DMAs VIX = 25.7Short-term Trading Call: neutral Stock Market Commentary Last week started with a growl and ended quietly. The stock market quickly transitioned from confirming a bearish … Read more

Nutanix: A Stock and Company Ready for a Takeover

The weekly chart for Nutanix (NTNX) shows an on-going downtrend since the June, 2018 all-time high.

Nutanix (NTNX) is an IT infrastructure company that helps its customers “modernize their datacenters and run applications at any scale, on-prem and in the cloud.” The stock peaked in June, 2018 after a 13-month, 310% run-up from an all-time low. The March, 2020 stock market crash briefly took NTNX to a new all-time low. Even … Read more

Housing Sentiment Completes V-Shaped Recovery, Stocks Following

The Housing Market Index (HMI) soared to 72 in July. The 14-point move completed a V-shaped recovery in the sentiment of home builders. Unlike the reaction to the surprisingly strong June HMI, the reaction to July’s surprise was definitely positive. The Message in Home Builder Sentiment The National Association of Home Builders (NAHB) explained the … Read more

Stock Market Snaps Out of Bearish Divergence – Above the 40 (July 15, 2020)

Stock Market Statistics AT40 = 58.8% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 30.8% of stocks are trading above their respective 200DMAs VIX = 27.8Short-term Trading Call: neutral Stock Market Commentary I anticipated a shallow sell-off for a downward resolution to the bearish divergence in the stock market. However, … Read more