Overbought Period Demonstrates Freshly Bullish Sentiment for Stocks – Above the 40 (January 8, 2021)

Stock Market Commentary What a week to start the year’s trading. It started with a definitively bearish end to extended overbought conditions. Overbought conditions bullishly resumed in the middle of the week despite an insurrection in Washington D.C. The week ended with a confirmation of the freshly bullish sentiment in the market. The trading action … 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

Tech Fertilizes the Weeds in the Stock Market – Above the 40 (September 11, 2020)

Stock Market Statistics AT40 = 40.2% of stocks are trading above their respective 40-day moving averages (DMAs) (2-month low)AT200 = 43.0% of stocks are trading above their respective 200DMAs (2 1/2 week low)VIX = 31.5Short-term Trading Call: cautiously bearish Stock Market Commentary The weeds in the stock market thickened last week. Tech stocks fertilized the … Read more

Stock Market Hits Overbought with A Bullish Divergence – Above the 40 (August 7, 2020)

Stock Market Statistics AT40 = 72.2% of stocks are trading above their respective 40-day moving averages (DMAs) (1st day overbought)AT200 = 42.3% of stocks are trading above their respective 200DMAs VIX = 22.2Short-term Trading Call: cautiously bullish Stock Market Commentary The last overbought period ended in June. The volatility index (VIX) did not drop much … Read more