Panic Buying, Catch-Up Trades Further Extend Overbought Stock Market – Above the 40 (June 5, 2020)

Stock Market Statistics AT40 = 90.5% of stocks are trading above their respective 40-day moving averages (DMAs) (overbought 13 of last 14 trading days)AT200 = 37.4% of stocks are trading above their respective 200DMAs (highest since February 26, 2020)VIX = 24.5Short-term Trading Call: cautiously bullish Stock Market Commentary The on-going recovery in the stock market … Read more

An Overbought Stock Market Stretching Past A Hurting Country – Above the 40 (May 29, 2020)

Stock Market Statistics AT40 = 82.9% of stocks are trading above their respective 40-day moving averages (DMAs) (overbought 4 of last 5 trading days)AT200 = 25.4% of stocks are trading above their respective 200DMAsVIX = 27.5Short-term Trading Call: cautiously bullish (changed from neutral) Stock Market Commentary It feels surreal to write about the latest machinations … Read more

Overbought Holding Pattern for the Stock Market – Above the 40 (May 22, 2020)

Stock Market Statistics AT40 = 73.1% of stocks are trading above their respective 40-day moving averages (DMAs) (overbought 4 of last 5 trading days)AT200 = 20.0% of stocks are trading above their respective 200DMAsVIX = 28.2Short-term Trading Call: neutral Stock Market Commentary The stock market had a promising start with a large gap up to … Read more

A $2.3 Trillion End to An Extreme Oversold Period in the Stock Market – Above the 40 (April 10, 2020)

AT40 = 24.4% of stocks are trading above their respective 40-day moving averages (DMAs) (ended 31-day oversold period)AT200 = 10.9% of stocks are trading above their respective 200DMAsVIX = 41.7Short-term Trading Call: cautiously bullish Stock Market Commentary “The Federal Reserve on Thursday took additional actions to provide up to $2.3 trillion in loans to support … Read more

A Stock Market Content to Drift Higher No Matter What – Above the 40 (November 22, 2019)

AT40 = 53.7% of stocks are trading above their respective 40-day moving averages (DMAs)AT200 = 52.7% of stocks are trading above their respective 200DMAsVIX = 12.3Short-term Trading Call: neutral Stock Market Commentary The S&P 500 (SPY) pulled back slightly last week as the stock market’s underlying bearish divergence finally proved too heavy. Yet, the pullback … Read more

A Stock Market Pivot Around Overbought As Indices Fail At Highs – Above the 40 (September 20, 2019)

AT40 = 69.6% of stocks are trading above their respective 40-day moving averages (DMAs)AT200 = 56.3% of stocks are trading above their respective 200DMAs (13-month high)VIX = 15.3Short-term Trading Call: neutral Stock Market Commentary A Broken Record Last week had some big moments. Looking back, the week looks like a broken record. The Federal Reserve … Read more

Small Caps Answer the Call: Overbought Trading Conditions Now Approach – Above the 40 (September 10, 2019)

The iShares Russell 2000 Index Fund ETF (IWM) has surged through 200 and 50DMA resistance in a high-volume breakout move.

AT40 = 62.1% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 55.2% of stocks are trading above their respective 200DMAs (finished reversing all of August’s decline)VIX = 15.2Short-term Trading Call: neutral Stock Market Commentary Role reversal While the S&P 500 (SPY) and the NASDAQ (COMPQX) continue to fail at confirming … Read more

A Stock Market Floating Precariously – Above the 40 (May 24, 2019)

AT40 = 34.4% of stocks are trading above their respective 40-day moving averages (DMAs)AT200 = 43.8% of stocks are trading above their respective 200DMAsVIX = 15.9Short-term Trading Call: neutral Stock Market Commentary Bearish resistance won the trading battle the previous week. Last week, sellers did their best to follow-through. It was a week of chop … Read more

Above the 40 (May 10, 2019) – A Constructive Stock Market

AT40 = 49.4% of stocks are trading above their respective 40-day moving averages (DMAs)AT200 = 49.9% of stocks are trading above their respective 200DMAsVIX = 16.0Short-term Trading Call: neutral Stock Market Commentary The stock market’s coordinated yet precarious dance around 50-day moving averages (DMAs) continued on Friday. The latest round of technical battles played out … Read more