Market Breadth Firms to Start the Year – The Market Breadth

AT50 (MMFI) set a new low for 2024 before firming to start the year.

Stock Market Commentary The new year of 2025 got off to a rocky start with the weight of the last Federal Reserve decision on monetary policy pushing fresh losses across the indices. I assumed this price action signaled the market’s readiness to cash in on the capital gains that it did not want to register … Read more

Early Santa Rally Fails to Fade Fed Fallout – The Market Breadth

Early Santa Rally Fails to Fade Fed Fallout – The Market Breadth (Credit: Matti Mattila on Flickr: https://www.flickr.com/photos/65448940@N00/3054240654)

Stock Market Commentary Investopedia defines the Santa Rally very precisely: “A Santa Claus rally refers to the sustained increases found in the stock market during the last five trading days of December through the first two trading days of January.” Based on this definition, Santa is failing…and just as the stock market risks a January … Read more

A Defiant Fed, Unrelenting Bulls – The Market Breadth

A Defiant Fed, Unrelenting Bulls – The Market Breadth

Stock Market Commentary The Federal Reserve took the stage right after the U.S. presidential election. The Federal Reserve and Fed Chair Jerome Powell delivered as expected. The unrelenting bulls had no reason to stop the momentum from the post-election rally. Powell stuck to the Fed’s script and unrelenting bulls kept charging. The uneventful meeting had … Read more

Another Bear Teaser With Bearish Engulfing Tops – The Market Breadth

Another Bear Teaser With Bearish Engulfing Tops – The Market Breadth (Credit: Dr-Chomp, https://www.flickr.com/photos/14797480@N08/27444404625)

Stock Market Commentary Bearish engulfing patterns flag potential tops at the end of uptrends. They represent the potential exhaustion of buying power as price first opens above the previous day’s high and then closes below the previous day’s close. Thus, the latest round of bearish engulfing patterns in major indices and major stocks should be … Read more

All-Time Highs Defy October’s Warnings – The Market Breadth

All-Time Highs Defy October’s Warnings – The Market Breadth (Credit: zoe kahana, https://www.flickr.com/photos/25093808@N00/225536122)

Stock Market Commentary October is the third of the stock market’s three most dangerous months. October, 2024 started with a convergence of bad news tailor-made to fulfill October’s seasonal destiny: intensifying war and geo-political tensions, two intense hurricanes, the looming contentiousness of the U.S. presidential election, another failure from the overbought threshold (bearish according to … Read more

Recalibration Time for Bulls and Bears – The Market Breadth

Recalibration Time for Bulls and Bears - The Market Breadth

Stock Market Commentary In announcing the official end of monetary tightening, Federal Reserve Chair Jerome Powell mentioned some form of the word “recalibration” nine times from his introductory statement to the Q&A portion of the press conference. Specifically, “….it’s a process of recalibrating our policy stance away from where we had it a year ago, … Read more

A Return to the Giddy Anticipation of Rate Cuts – Market Breadth

A Return to the Giddy Anticipation of Rate Cuts - Market Breadth (Credit: Reuters)

Stock Market Commentary The stock market poetically swung from the depths of despair with a seasonal September drawdown to a sharp rebound in giddy anticipation of rate cuts from the Federal Reserve on Wednesday. The highly anticipated meeting has the potential to set the market’s tone for the remainder of the year. If Chair Jerome … Read more

Bulls Hold Firm Against Calamity At the Edge of Critical Trendlines – The Market Breadth

Bulls Hold Firm Against Calamity At the Edge of Critical Trendlines – The Market Breadth (credit Sydney Oats - https://www.flickr.com/photos/57768042@N00/3402464379)

Stock Market Commentary Last week started with a calamity and ended with a restless calm. Critical trendlines held as support as buyers and bulls ground their way to a near full reversal of Monday’s loss. Ironically, the market even found relief in a “better than expected” weekly unemployment claims report. Claims fell 17,000 from the … Read more

Did Retail Save the Market from An NVDA Hangover? – The Market Breadth

The SPDR SP Retail ETF (XRT) bounced away from 50DMA support and provided relief from an NVDA hangover.

Stock Market Commentary A plunge in market breadth on Wednesday made me expect a more bearish take on the markets for my next blog post. A sharp rebound led by strong earnings from various retail companies, quickly changed the narrative from a continued NVDA hangover to a bullish divergence and then a bullish setup. Friday’s … Read more

A Cramer Bottom for Starbucks?

A Cramer Bottom for Starbucks

When Jim Cramer gets exorcised about something, I sit up and pay attention. As a student of market extremes, Cramer’s extremes offer their own special trading signals. At the onset of the pandemic, I wrote about “Cramer in turmoil” as a demonstration of how quickly financial narratives can change in response to market extremes, revealing … Read more