An Overbought Stock Market Stretching for a Fresh Rally – Above the 40 (November 27, 2020)

Stock Market Statistics AT40 = 79.6% of stocks are trading above their respective 40-day moving averages (DMAs) (Day #10 overbought) AT200 = 76.0% of stocks are trading above their respective 200DMAs (near 3-year high and holding breakout above post financial crisis downtrend) VIX = 20.8 Short-term Trading Call: neutral Stock Market Commentary Instead of Monday, … Read more

Overbought Trading Resumes With Fresh Momentum for the Reopen Trade – Above the 40 (November 13, 2020)

Stock Market Statistics AT40 = 74.4% of stocks are trading above their respective 40-day moving averages (DMAs) (Day #1 overbought, 3 of last 4 days ooverbought) AT200 = 68.1%% of stocks are trading above their respective 200DMAs (near 3-year high and holding breakout above post financial crisis downtrend) VIX = 23.1 Short-term Trading Call: neutral … Read more

Bearish Indices and Bullish Reopen Stocks Create Abrupt Rotation – Above the 40 (November 9, 2020)

AT200 (T2107) surged 10 percentage points to close near a 3-year high and a breakout above the post financial crisis downtrend.

Stock Market Statistics AT40 = 67.8% of stocks are trading above their respective 40-day moving averages (DMAs) (high of 75.1%) AT200 = 63.6% of stocks are trading above their respective 200DMAs (near 3-year high and breakout above post financial crisis downtrend) VIX = 25.8 (as low as 22.4) Short-term Trading Call: neutral Stock Market Commentary … Read more

Soliton Stock Tries Bottoming Ahead of Key Industry Event

Soliton Stock While the general stock market sold off in September, medical device company Soliton (SOLY) finally came alive. So far, the momentum continues into this month with Soliton’s stock closing at a 2 1/2 month high. SOLY is forming a potential bottom with a higher low and two higher highs including a breakout above … Read more

Oversold Stock Market Conditions End With An Immediate Challenge – Above the 40 (September 25, 2020)

Stock Market Statistics AT40 = 23.3% of stocks are trading above their respective 40-day moving averages (DMAs) (ended 2-day oversold period)AT200 = 38.6% of stocks are trading above their respective 200DMAsVIX = 26.4Short-term Trading Call: cautiously bullish Stock Market Commentary The oversold period lasted just two days, a typical length of time for oversold periods. … Read more

An Oversold Stock Market With Plenty of Downside Risk – Above the 40 (September 23, 2020)

Stock Market Statistics AT40 = 19.6% of stocks are trading above their respective 40-day moving averages (DMAs) (oversold)AT200 = 36.2% of stocks are trading above their respective 200DMAsVIX = 28.6Short-term Trading Call: cautiously bullish Stock Market Commentary On Monday I switched to a neutral short-term trading call to get mentally ready for a major change … Read more

Soliton: How to Trade A Secondary Stock Offering

Last week, I anticipated that Soliton would announce a secondary offering of stock following the release of a successful trial of its cellulite treatment. Soliton (SOLY) delivered with after hours news of a secondary stock offering in the form of an SEC filing. So now what? The Trade Rules At the time of writing, traders … Read more

Bottoming U.S. Dollar Ends Bargain Shopping in Mexican peso, South African rand

The U.S. dollar index (DXY) continues to pivot around its 200-day moving average (DMA). Last week, the U.S. dollar bounced before retesting the lows from March. The U.S. dollar now looks ready to challenge its 200DMA as resistance; it will likely complete another cycle by rallying at least to the previous highs above the 200DMA. … Read more

Support for Another Round of Overbought Conditions in the Stock Market – Above the 40 (June 13, 2020)

Stock Market Statistics AT40 = 74.1% of stocks are trading above their respective 40-day moving averages (DMAs) (first overbought day, 17 of last 19 trading days overbought)AT200 = 22.6% of stocks are trading above their respective 200DMAs VIX = 36.1 (down 11.5%)Short-term Trading Call: cautiously bullish Stock Market Commentary In the last Above the 40 … Read more

Airline Stocks: Trading Ideas After the End of Parabolic Moves

The U.S. Global Jets ETF (JETS) lost 7.5% but held on to support at bottom of its upper Bollinger Band channel.

Airline stocks were on a tear during a week of panic buying and catch-up trades. From worst to first, in less than a month airline stocks went from setting fresh multi-year lows to 3+ month highs on the heels of parabolic moves. The U.S. Global Jets ETF (JETS) summarizes the contours of the moves. From … Read more