Follow-Through Trades: Strong Start to September for Stocks

The Follow-Through: Strong Start for Stocks The month of September enjoyed a strong start as last week’s fairy dust from J-Pow continued to work its magic. Short-term market breadth with AT50, the percentage of stocks trading above their 50-day moving averages (DMAs), also continuing higher while leaving behind the longer-term breadth indicator in AT200, the … Read more

J-Pow Sprinkles Just Enough Fairy Dust on the Stock Market – The Market Breadth

Stock Market Commentary Say whatever you want, Jerome (Jay) Powell, the chair of the Federal Reserve, affectionately known as J-Pow, has become a master orchestrator of the stock market. Other Federal Reserve Board members peppered the airwaves with hawkish talk about tapering and inflation in the days preceding Powell’s address at this year’s Jackson Hole, … Read more

Follow-Through Trades: Another Bounce from “Oversold Enough”

The Follow-Through Intro The stock market followed a rare stumble with a broad-based rebound from “oversold enough” conditions. Stocks were generally up across the board as buyers rushed in to grab “bargains.” AT40 (T2108), the percentage of stocks trading above their respective 40-day moving averages (DMAs), jumped from 37% to 46%. My favorite technical indicator … Read more

A Rare Stumble for the Stock Market As Oversold Conditions Loom – Above the 40 (June 18, 2021)

Stock Market Commentary The Federal Reserve seemed to change the rules of the game. To-date, easy money policies and stubborn dovishness in the face of rising inflation was a formula for higher asset prices, reflation and inflation-friendly trades, and even rising fears of an over-heating economy. Last week, Federal Reserve Chair Jay Powell shifted the … Read more

A Split Personality Market Emerges from the End of Overbought Conditions – Above the 40 (February 19, 2021)

Stock Market Commentary The week ended with a split personality. While the S&P 500 meandered and the NASDAQ flattened, small caps rebounded convincingly. Financials also forged ahead. As a result, the recent end to overbought conditions may only signal (mild) bearish conditions for a portion of the stock market. The Stock Market Indices The S&P … Read more