Follow-Through Trades: Housing Drags, Tech Brags

The Follow-Through Intro Stocks and Indices Covered S&P 500 (SPY) Nasdaq (COMPQX) iShares Trust Russell 2000 Index ETF (IWM) volatility index (VIX) Alphabet (GOOG) Brinker International (EAT) Caterpillar Inc (CAT) NASDAQ (COMPQX) Coupa Software Incorporated (COUP) Citigroup (C) Deere & Company (DE) Financial Select Sector SPDR Fund (XLF) Hovnanian Enterprises Inc. (HOV) iShares 20+ Year … Read more

Key Stock Sectors Missed A Breakout In Market Breadth – Above the 40 (June 11, 2021)

Stock Market Commentary The stock market struggled for months against the downtrend line on market breadth. The struggle ended last week. My favorite technical indicator of breadth AT40 (T2108) broke out and closed the week at 61.9%. Now I start a countdown toward a test of the overbought threshold. However, several sectors dampened the week’s … 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

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

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

How To Trade When An Analyst Flips A Stock: Deere & Company

Analyst action can quickly flip a stock and change its prospects. Such a move happened to Deere & Company (DE) as Baird moved from neutral to outperform and upped its price target from $129/share to $175/share on the stock. I previously flagged DE as a bearish stock given its week-long inability to break through overhead … Read more

T2108 Update (November 26, 2014) – FINALLY Overbought, Essentially (including Chart Reviews of DE and INTC)

(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are … Read more