Follow-Through Trades: Housing Drags, Tech Brags

The Follow-Through Intro Stocks and Indices Covered S&P 500 (SPY) Nasdaq (COMPQX) iShares Trust Russell 2000 Index ETF (IWM) volatility index (VIX) Alphabet (GOOG) Brinker International (EAT) Caterpillar Inc (CAT) NASDAQ (COMPQX) Coupa Software Incorporated (COUP) Citigroup (C) Deere & Company (DE) Financial Select Sector SPDR Fund (XLF) Hovnanian Enterprises Inc. (HOV) iShares 20+ Year … Read more

Key Stock Sectors Missed A Breakout In Market Breadth – Above the 40 (June 11, 2021)

Stock Market Commentary The stock market struggled for months against the downtrend line on market breadth. The struggle ended last week. My favorite technical indicator of breadth AT40 (T2108) broke out and closed the week at 61.9%. Now I start a countdown toward a test of the overbought threshold. However, several sectors dampened the week’s … Read more

Fades and Breakdowns Contradict The Calm of the S&P 500 – Above the 40 (May 7, 2021)

Stock Market Commentary The stock market is a cauldron of contradictions and divergences. Breakdowns below key support levels abound. Stocks suffer post-earnings fades even after companies report strong results, especially in both beaten up growth stocks and resilient big cap tech. Yet, the S&P 500 just rises above the steady erosion of market breadth with … Read more

Flashing A Mix of Signals Going into Housing’s Spring Selling Season – Housing Market Review (February, 2021)

Housing Market Intro and Summary A little over a month after Federal Reserve Chairman Jerome Powell suggested that the housing market would soon normalize, mortgage rates have increased and the stocks of home builders have generally gone nowhere. The National Association of Realtors projected much stronger growth in existing home sales this year than in … Read more

Housing Stocks In Limbo Amid New Signs of Market Normalization – Housing Market Review (December, 2020)

Housing Market Intro and Summary In recent months a divergence in the housing market emerged between rangebound home builder stocks and strong housing data. In October, new home sales recorded a third straight month at the 1 million mark. Since new home sales hit an August peak, the stocks of home builders have also largely … Read more

A Refresher for Extended Overbought Conditions in the Stock Market – Above the 40 (December 28, 2020)

Stock Market Commentary The stock market quickly moved away from its close call with overbought conditions to pulling off a refresher for extended overbought conditions. The acquiescence of President Trump in signing a heavily negotiated, highly contentious pandemic relief bill seemed to provide the spark for the buying in the major indices. The Stock Market … 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

Record Confidence, Rangebound Sales and Stocks – Housing Market Review (November, 2020)

The iShares Dow Jones US Home Construction Index Fund (ITB) lost 1.4% as it continues to pivot around its 50-day moving average in an extended trading range.

Housing Market Intro and Summary A divergence in the housing market emerged between rangebound home builder stocks and strong housing data. In October, new home sales recorded a third straight month at the 1 million mark. Since new home sales hit the August peak, the stocks of home builders have also largely gone nowhere. A … Read more

Divergence in the Housing Market: Slowing Stocks vs Soaring Data – Housing Market Review (October, 2020)

Housing Market Intro and Summary A divergence in the housing market is emerging between slowing home builder stocks and strong housing data. The housing boom in the U.S. continued to make its mark in the middle of the pandemic-induced recession. While new home sales took a bit of a pause in October, housing starts, existing … Read more

Stock Market Support Melts Away, Delays Launch to Higher Prices – Above the 40 (October 26, 2020)

Stock Market Statistics AT40 = 46.3% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 51.9% of stocks are trading above their respective 200DMAs (8-month high) VIX = 32.5 Short-term Trading Call: cautiously bullish Stock Market Commentary The stock market looked like it was warming up from a period of cooling … Read more