Stock Market Indices Break South On Expanded Border Tensions – Above the 40 (May 31, 2019)

AT40 = 23.8% of stocks are trading above their respective 40-day moving averages (DMAs) (hit a low of 20.7%)AT200 = 36.9% of stocks are trading above their respective 200DMAs (2 1/2 month low)VIX = 18.7Short-term Trading Call: neutral Stock Market Commentary So much for the potential for follow-through on bullish divergence! Perhaps the failure is … Read more

Above the 40 (October 4, 2018) – Extremes Prime Prospects for Market Bounce But Oversold Conditions Loom

AT40 = 33.8% of stocks are trading above their respective 40-day moving averages (DMAs) (was as low 31.9%) AT200 = 47.8% of stocks are trading above their respective 200DMAs VIX = 14.0 (was as high as 15.8) Short-term Trading Call: neutral Commentary The S&P 500 is only 1.0% off its all-time high, yet extremes and … Read more

Above the 40 (August 10, 2018) – Facing Fresh Macro Challenges and Lacking Technical Confirmations, the S&P 500 Stalls Under All-Time Highs

AT40 = 51.6% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 55.3% of stocks are trading above their respective 200DMAs VIX = 13.2 Short-term Trading Call: neutral Commentary The indicators barely changed from the last Above the 40 post, but the technical winds are likely changing yet again. A little … Read more

Above the 40 (June 8, 2018) – A Promising Stock Rally Comes Up Short of Important Threshold

AT40 = 69.6% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 57.1% of stocks are trading above their respective 200DMAs (a 4-month high) VIX = 12.2 Short-term Trading Call: neutral (“almost bullish”) Commentary Friday started out in bearish fashion. Apple (AAPL) took a broadside from yet another one of those … Read more

Above the 40 (June 1, 2018) – Uncomfortable Divergences Weigh On the Stock Market’s Manic Rally

AT40 = 62.5% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 52.7% of stocks are trading above their respective 200DMAs (a near 4-month high) VIX = 13.5 (down 12.8%) Short-term Trading Call: neutral Commentary A day like this past Friday makes me want to be bullish about the entire stock … Read more

Brazil’s Big Comeback: EWZ Breaks Out

What a difference three months makes. On May 18th, I wrote “Trading Panic: Rushing Past the Exit from Brazil” to explain why I bought the big dip in iShares MSCI Brazil Capped ETF (EWZ) after Brazilian President Michel Temer was accused of bribery. I greatly under-estimated the upside opportunity at the time, and I find … Read more

Above the 40 (July 13, 2017) – The S&P 500 Shows Off Again

AT40 = 59.3% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 58.3% of stocks are trading above their respective 200DMAs VIX = 9.9 (volatility index) Short-term Trading Call: neutral Commentary The stock market continued its healing process from its last bout of mild indigestion. Most impressive is the S&P 500 … Read more

Above the 40 (June 20, 2017) – Buyers Fail to Follow-Through As the S&P 500 Goes On Notice

AT40 = 52.8% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 56.3% of stocks are trading above their respective 200DMAs VIX = 10.9 (volatility index) Short-term Trading Call: cautiously bullish Commentary The Fed hikes short-term rates, and long-term rates go down. This relationship is not the expected one but is … Read more

Above the 40 (May 19, 2017) – The Nut Job Stock Market: Nutty By Nature

AT40 = 42.8% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 54.3% of stocks are trading above their respective 200DMAs VIX = 12.0 (volatility index) – a 17.9% decrease Short-term Trading Call: neutral (bullish only after the latest Trump Turmoil reverses OR oversold conditions, potentially bearish upon a retest of … Read more

Trading Panic: Rushing Past the Exit from Brazil

Another Presidential-level scandal has engulfed Brazil. On the morning of Thursday, May 18th, news hit the wires that Brazilian President Michel Temer was accused of bribery. The crisis deepened after Brazil’s Supreme Court gave the go-ahead for an investigation into the bribery allegations From Reuters: “Brazil’s President Michel Temer on Thursday defiantly said he would … Read more