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 Extended Overbought Rally Moves Into Historic Territory (Above the 40) – December 18, 2020

Stock Market Commentary The Federal Reserve signaled an incremental improvement in its economic outlook by making an allowance for limited stock repurchases and dividends by the country’s top financial institutions. As a result, bank stocks apparently soared in after hours trading. That fresh rally in financials should extend to a positive open on Monday and … Read more

Bearish Indices and Bullish Reopen Stocks Create Abrupt Rotation – Above the 40 (November 9, 2020)

AT200 (T2107) surged 10 percentage points to close near a 3-year high and a breakout above the post financial crisis downtrend.

Stock Market Statistics AT40 = 67.8% of stocks are trading above their respective 40-day moving averages (DMAs) (high of 75.1%) AT200 = 63.6% of stocks are trading above their respective 200DMAs (near 3-year high and breakout above post financial crisis downtrend) VIX = 25.8 (as low as 22.4) Short-term Trading Call: neutral Stock Market Commentary … Read more

The Stock Market Pushes Through Its 50DMA Resistance – Above the 40 (September 28, 2020)

Stock Market Statistics AT40 = 33.6% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 42.6% of stocks are trading above their respective 200DMAs VIX = 26.2 Short-term Trading Call: cautiously bullish Stock Market Commentary The major indices bounced out of oversold trading conditions only to face down the immediate challenge … Read more

A Tech Stock Breakdown While Rest of Market Yawns – Above the 40 (September 18, 2020)

Stock Market Statistics AT40 = 43.5% of stocks are trading above their respective 40-day moving averages (DMAs)AT200 = 44.9% of stocks are trading above their respective 200DMAsVIX = 25.8Short-term Trading Call: cautiously bearish Stock Market Commentary Tech stocks led the way up, and now they are leading the way down. The top 1% of the … Read more

A Pause in the Frenzy Ends Stock Market Bid for A Parabolic Run-Up – Above the 40 (September 4, 2020)

Stock Market Statistics AT40 = 54.6% of stocks are trading above their respective 40-day moving averages (DMAs) (intraday low of 45.9% which was solid support in second half of July and early August)AT200 = 46.9% of stocks are trading above their respective 200DMAs VIX = 30.8Short-term Trading Call: cautiously bearish Stock Market Commentary I thought … Read more

A Two-Speed Stock Market Remains on Edge – Above the 40 (July 2, 2020)

Stock Market Statistics AT40 = 53.9% of stocks are trading above their respective 40-day moving averages (DMAs) (2-month low)AT200 = 25.6% of stocks are trading above their respective 200DMAs VIX = 34.7Short-term Trading Call: neutral Stock Market Commentary The damage in the stock market the previous week looked strong enough to eventually take trading conditions … Read more

Green Shoots for A Grinding and Historic Oversold Period – Above the 40 (March 20, 2020)

AT40 = 2.0% of stocks are trading above their respective 40-day moving averages (DMAs) (18th oversold day)AT200 = 2.6% of stocks are trading above their respective 200DMAs (new low for the oversold period)VIX = 66.0Short-term Trading Call: bullish Stock Market Commentary The bear market grinds on. At the time of writing, U.S. stock market futures … Read more

A Bearish Divergence Now Behind, Overbought Awaits for Stocks – Above the 40 (December 20, 2019)

AT40 (T2108) finally broke out of an extended 2-month trading range and looks ready to challenge the overbought threshold.

AT40 = 65.7% of stocks are trading above their respective 40-day moving averages (DMAs)AT200 = 59.8% of stocks are trading above their respective 200DMAs (just under high for 2019 of 60.2%)VIX = 12.5Short-term Trading Call: neutral Stock Market Commentary The bearish divergence finally ended between a range-bound AT40 (T2108) and an S&P 500 (SPY) steadily … Read more

Above the 40 (December 3, 2019) – A Quick U-Turn for Speculation in the Stock Market

AT40 = 48.5% of stocks are trading above their respective 40-day moving averages (DMAs)AT200 = 50.2% of stocks are trading above their respective 200DMAsVIX = 16.0 (up 7.0% and went as high as 18.0)Short-term Trading Call: neutral Stock Market Commentary It was fun for the short time it lasted. The speculative turn in the stock … Read more