An Oversold Stock Market With Plenty of Downside Risk – Above the 40 (September 23, 2020)

Stock Market Statistics AT40 = 19.6% of stocks are trading above their respective 40-day moving averages (DMAs) (oversold)AT200 = 36.2% of stocks are trading above their respective 200DMAsVIX = 28.6Short-term Trading Call: cautiously bullish Stock Market Commentary On Monday I switched to a neutral short-term trading call to get mentally ready for a major change … Read more

Stock Market Rebounds Deeply Into Overbought Trading Conditions – Above the 40 (May 8, 2020)

Stock Market Statistics AT40 = 82.3% of stocks are trading above their respective 40-day moving averages (DMAs) (overbought day #2)AT200 = 16.5% of stocks are trading above their respective 200DMAsVIX = 28.0Short-term Trading Call: neutral Stock Market Commentary Winners and losers are becoming more and more distinct in the stock market. While skeptics and bears … Read more

Stock Market Launches Deeply Into Overbought Trading Conditions – Above the 40 (April 29, 2020)

AT40 (T2108) soared to 82.6% and started overbought conditions at extreme levels.

Stock Market Statistics AT40 = 82.6% of stocks are trading above their respective 40-day moving averages (DMAs) (first oversold day)AT200 = 17.7% of stocks are trading above their respective 200DMAsVIX = 31.2Short-term Trading Call: neutral Stock Market Commentary On Tuesday, AT40 (T2108), the percentage of stocks trading above their respective 40-day moving averages (DMAs), rallied … Read more

From the Ashes of A Crash, Key Divergences in Housing-Related Stocks

This week’s market crash and subsequent sharp rebound revealed some key divergences among housing-related stocks. While one more home builder made it to my “do not touch” list, I see even more opportunities. Opportunities iShares Dow Jones US Home Construction Index Fund ETF (ITB) To start the week, the iShares Dow Jones US Home Construction … Read more

Being Oversold Is Reason Enough for Buying the Stock Market – Above the 40 (March 4, 2020)

AT40 = 17.5% of stocks are trading above their respective 40-day moving averages (DMAs) (6th oversold day)AT200 = 32.9% of stocks are trading above their respective 200DMAsVIX = 32.0Short-term Trading Call: bullish Stock Market Commentary Was it a delayed response to the emergency rate cut from the Federal Reserve? Was it the big comeback by … Read more

Housing Market Review (November, 2019) – Home Builders Still Knocking at the Moment of Truth

Housing Market Intro/Summary When I wrote the Housing Market Review for October, the stocks of home builders were failing their moment of truth. The iShares US Home Construction (ITB) soon rebounded, including a near picture-perfect test of support at its 50-day moving average (DMA). Last week, ITB actually printed a fresh 21-month high before pulling back. … Read more

A Home Depot and Lowe’s Companies Mismatch for the Holidays

Home Depot (HD) is on a relatively reliable uptrend of higher highs and higher lows on the way to all-time highs.

Valuation Gap Lowe’s Companies (LOW) gets a bad rap relative to Home Depot (HD) for being the weaker operator for the home improvement and do-it-yourself (DIY) crowd. Investors are willing to pay a trailing 36 P/E, forward 17 P/E, 1.2 price/sales, and 33.5 price/book for LOW. Investors are willing to pay a trailing 23 P/E, … Read more

Home Depot: Housing Market Now A Positive Contribution to Company’s Growth

This is an excerpt from an article I originally published on Seeking Alpha on November 14, 2012. Click here to read the entire piece.) By now, news about the budding housing recovery should feel like very old news. However, I think it still makes sense to continue checking in with companies with front row seats … Read more