Overbought Trading Conditions, Yet Still Bullish – The Market Breadth

Overbought Trading Conditions, Yet Still Bullish

Stock Market Commentary We made it through another week without any major negative headlines impacting the stock market. Although late-breaking news took futures down due to Moody’s dropping the U.S. from its top credit rating, marking the loss of the last top-tier assessment of U.S. government debt, I expect the market impact to be minimal. … Read more

From One Cliffhanger to the Next: A Breakout to the Overbought Threshold – The Market Breadth

From One Cliffhanger to the Next - A Breakout to the Overbought Threshold - The Market Breadth

Stock Market Commentary The stock market resolved one cliffhanger, a hovering just below resistance at 200-day moving averages (DMAs) on the major indices, and moved on to another. A large surge in reaction to a pause in China vs U.S. trade hostilities sent the major indices gapping right over resistance and directly into the overbought … Read more

The Tariff Tainted Oversold Period Finally Ends! – The Market Breadth

the tariff tainted oversold period finally ends

Stock Market Commentary Big news: the oversold period is officially OVER. This tariff tainted oversold period was lasted a historical 12 trading days. Several catalysts emerged during and after market hours to support a narrative of a sustained bottom, including: While the length of the oversold period confirms bear market trading, these developments suggest the … Read more

Bullish Engulfing Green Shoots On A Rumor-Inspired Day – The Market Breadth

Bullish Engulfing Green Shoots On A Rumor-Inspired Day

Stock Market Commentary The trading week started with a powerful jolt to the market. The major catalyst was a rumor that President Trump was considering a 90-day delay on tariffs, triggering a nearly 30-minute, $2.5 trillion rally. While ultimately unfounded, the rumor represented the kind of response markets expect: when financial markets panic, policy-makers panic. … Read more

Time for A Tariff Crash Trading Plan – The Market Breadth

Time for A Tariff Crash Trading Plan

Stock Market Commentary The stock market suffered experienced a jarring selloff during the announcement of reciprocal tariffs from President Trump, a move that, despite ample telegraphing, shocked both investors and global trade partners. The Futures dropped sharply, with even oil down 2.4% and the S&P 500 plunging as much as 3% after-hours. This tariff crash … Read more

Early Santa Rally Fails to Fade Fed Fallout – The Market Breadth

Early Santa Rally Fails to Fade Fed Fallout – The Market Breadth (Credit: Matti Mattila on Flickr: https://www.flickr.com/photos/65448940@N00/3054240654)

Stock Market Commentary Investopedia defines the Santa Rally very precisely: “A Santa Claus rally refers to the sustained increases found in the stock market during the last five trading days of December through the first two trading days of January.” Based on this definition, Santa is failing…and just as the stock market risks a January … Read more

A Lazy Holiday Week Sets Up December Buys – The Market Breadth

The S&P 500 (SPY) began to stagnate but still hit new all-time highs.

Stock Market Commentary Holiday trading last week was deceptively lazy. The indices did a lot of churning, yet the S&P 500 and the ETF of small caps each made all-time highs at some point. A good number of individual stocks developed and followed through on bullish setups. For example, all week long, new highs greatly … Read more

Stock Chart Reviews – A Bear Market of Crushed Gems and False Hopes

Stock Market Commentary: A little over a month ago, the prospects of a bottom for this bear market got me a little more interested in individual stocks. Unfortunately, the bear market rubble expanded shortly after that. Amid the rubble are crushed gems and false hopes. These stock charts follow up on my initial reads and … Read more

Stock Chart Reviews – Sifting Trash & Opportunity In Bear Market Rubble

Stock Market Commentary: With the prospects of a bottom for this bear market, I am getting a little more interested in individual stock narratives. The bear market rubble is extensive. The gems are dispersed across a wide area. These stock charts provide one framework for sifting through the trash and the opportunity. {note: in this … Read more

Inflation-Friendly Retail Stocks Are Still Outperforming

Stock Market Commentary: Inflation is everywhere in the global economy, and inflation will hang around for some time to come. The inflation problem is so bad that the Federal Reserve does not think inflation will return to its 2% target for another three years. While economists and pundits debate about how long inflation will last, … Read more