Project Calm from the Feds Bounces Stocks Away from Oversold – The Market Breadth

calm

Stock Market Commentary: The Feds delivered on Sunday as Janet Yellen promised. The FDIC, the Treasury, and the Federal Reserve joined forces to offer emergency financial backing and reassurances for the banking system, a kind of “Project Calm” to project calm. The Federal Reserve even came up with a new acronym that looks like a … Read more

Uptrend Survives Increased Mortgage Rate Risks – Housing Market Review

survives (Credit: norfolkdistrict on Flickr)

Housing Market Intro and Summary In my last Housing Market Review, I described a housing market that shows signs of stabilization. That stabilization continues despite a strong rebound in mortgage rates. Mortgage rates now look like a renewed risk to the housing market. However, the uptrend in most of the stocks of home builders are … Read more

Picture-Perfect Support for the Bulls – The Market Breadth

picture-perfect support (Credit: KGA Team 6th Grade)

Stock Market Commentary: Put all the headlines aside. Last week was all about the technicals. Picture-perfect support unfolded for the major indices and stopped bearish momentum dead in its tracks. Suddenly, the stock market went from the verge of confirming a short-term top from early February to looking ready to make a run at challenging … Read more

A Bullish Bear Market – The Market Breadth

bullish bear (Credit: ell brown on Flickr)

Stock Market Commentary: This stock market is one bullish bear market. A bear market perhaps cannot get more bullish than the current market. Since the October lows, the various indices have shown a general upside bias. As much time that I have spent the last several weeks looking for excuses to get bearish, the market … Read more

A Quick End to the Inflation Trade

quick end

My idea for a trade on the U.S. CPI (Consumer Price Index) report seemed like a great idea last month. Up to that point, the market experienced sharp swings based on the directional gap between the actual inflation readings and expected inflation. I used the Cleveland Federal Reserve’s “nowcasting” to generate an approximate trading model. … Read more

Yet Another Jobs Report Takes the Shine Off A Post-Fed High – The Market Breadth

shine off (Credit: christophercjensen on Flickr)

Stock Market Commentary: On cue, the stock market groaned at fresh signs of economic strength, this time from another strong jobs report. The recession Wall Street wants is on hold yet again. The bullish intent that charged out of the wake of the Federal Reserve’s last statement on monetary policy made a sharp u-turn. The … Read more

And the Churn Goes On – The Market Breadth

churn (Credit: Fish schooling! by Madhava Enros on Flickr)

Stock Market Commentary: Mid-week, fresh drama in crypto looked like the next pivot point for the stock market. Instead, the bout of selling turned into a forgettable speedbump. Buyers returned with force in Bitcoin (BTC/USD), and the major stock indices recovered from major technical breakdowns and tests. In recent weeks, the stock market has bounced … Read more

New Crypto Drama Escorts Abrupt End of Bullish Run for Stocks – The Market Breadth

abrupt end (Credit: Crash by JessicaSarahS on Flickr)

Stock Market Commentary: The last bullish run in the stock market came to an abrupt end. The day started on a positive note, but trading went awry after a mix of relatively unsurprising economic news releases and Fedspeak. News that the Justice Department would announce an international enforcement action against a cryptocurrency entity seemed to … Read more

A Second Chance for the Path of Least Resistance – The Market Breadth

second chance (Credit: Escape from the light by Stig Nygaard from Flickr)

Stock Market Commentary: Revisions to the report on GDP (gross domestic product) typically do not generate reactions in the financial markets, especially the third revision. So I completely look past the third revision to Q3 GDP when I concluded the path of least resistance offered a reprieve. The revision revealed economic conditions were even better … Read more

Santa Rally Denied: The Fed Stays Naughty – The Market Breadth

fed stays naughty (Credit: you're a mean one, mr. grinch... by Wicked Little Cake Company on Flickr)

Stock Market Commentary: A week ago, I cautioned that “the tenuous positioning is further weakened by a breakout of volatility and significant deterioration in the market breadth indicators.” The November CPI report showed the slightest surprise possible and faked out the stock market on the way to another hawkish statement from the Federal Reserve on … Read more