High-Tech Stocks Break Down In Fallout from Fierce Bear-Bull Battle – Above the 40 (March 5, 2021)

Stock Market Commentary The stock market continued its streak of trickiness. Buyers and sellers played a fierce bear-bull battle starting with one of the biggest fake-out one-day rallies since last September 2nd’s near parabolic run-up. Fresh money flowed into funds to start the month of March to for gains of 2.4% on the S&P 500 … Read more

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

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

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

How to Protect Gains After Surviving A Stock Market Sell-Off

The stock market crash in March was stomach-churning and generated a lot of panic. At its lowest point, the S&P 500 (SPY) was down 33.9% from its all-time high set just the previous month. The rebound from that stock market sell-off has been heroic with a 32.1% gain taking the index within another 14.6% rally … Read more

Stock Market Holds Tenuous Breakout from Oversold Conditions – Above the 40 (April 15, 2020)

AT40 = 21.5% of stocks are trading above their respective 40-day moving averages (DMAs) (2nd day outside oversold conditions)AT200 = 10.1% of stocks are trading above their respective 200DMAsVIX = 40.8Short-term Trading Call: cautiously bullish Stock Market Commentary “Swift and sweeping fiscal and monetary policy responses from U.S. officials will ultimately support stock prices from … Read more

An Oversold Stock Market Stakes A Claim On A Bottom – Above the 40 (March 2, 2020)

The S&P 500 (SPY) jumped 4.6% and sliced right through 200DMA resistance.

AT40 = 11.4% of stocks are trading above their respective 40-day moving averages (DMAs)AT200 = 29.7% of stocks are trading above their respective 200DMAsVIX = 33.4Short-term Trading Call: bullish Stock Market Commentary On a day of incredible moves, I was most surprised that the stock market gave traders a chance to get in on the … Read more

Chipotle Mexican Grill: A Quick Lesson In Trending

Last week, I thought a quick burst of morning buying in Chipotle Mexican Grill (CMG) was a potentially bullish sign for the hapless CMG. I anticipated buyers might finally be ready to stave off the relentless selling pressure. I even bought a call option and shares as a part of my speculation. So far, the … Read more

Trading Through the Fickleness in Chipotle Mexican Grill

(This is an excerpt from an article I originally published on Seeking Alpha on March 22, 2016. Click here to read the entire piece.) Last week, March 17, 2016, Jefferies analyst Andy Barish downgraded Chipotle Mexican Grill (CMG) to a sell from neutral and cut his price target from $390 to $360. {snip} Source: FreeStockCharts.com … Read more

Lessons Learned From Earnings Trades For Google and Chipotle

(This is an excerpt from an article I originally published on Seeking Alpha on October 22, 2012. Click here to read the entire piece.) {snip} Google (GOOG) GOOG was a stock that had a lot of momentum off the summer lows although it still trailed the NASDAQ (QQQ) year-to-date. Ironically, GOOG finally caught up to … Read more