An Obvious Stock Market Breakout Leaves Open Questions – Above the 40 (September 6, 2019)

AT40 = 49.7% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 48.1% of stocks are trading above their respective 200DMAsVIX = 15.0Short-term Trading Call: neutral Stock Market Commentary One Obvious Pattern to Another The S&P 500 (SPY) and the NASDAQ (COMPQX) transitioned from an obvious trading range to an obvious … Read more

Overbought Conditions Remain Elusive As Market Wavers Ahead of the Fed – Above the 40 (July 19, 2019)

AT40 = 58.4% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = ~52.4% of stocks are trading above their respective 200DMAs VIX = 14.5Short-term Trading Call: neutral Stock Market Commentary A week ago, the S&P 500 (SPY) made a new all-time, and I was expecting a trip into overbought conditions. AT40 … Read more

From Loitering to Breakout: Stocks Look for Bad News Worthy of Rate Cuts – Above the 40 (June 21, 2019)

AT40 = 53.7% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 50.3% of stocks are trading above their respective 200DMAsVIX = 15.4Short-term Trading Call: neutral Stock Market Commentary The stock market is officially in bizarro world. The stock market is breathlessly rallying in anticipation of rate cuts that will come … Read more

Above the 40 (March 1, 2019) – A Small Nick in the Ever-Lengthening Overbought Period

AT40 = 76.8% of stocks are trading above their respective 40-day moving averages (DMAs) (25th overbought day)AT200 = 45.8% of stocks are trading above their respective 200DMAsVIX = 13.6Short-term Trading Call: neutral Stock Market Commentary The trading action on the major indices is practically a broken record. An extended overbought rally just grows older and … Read more

Above the 40 (February 19, 2019) – An Extended Overbought Rally In Slow Motion

AT40 = 88.1% of stocks are trading above their respective 40-day moving averages (DMAs) (17th overbought day)AT200 = 45.9% of stocks are trading above their respective 200DMAs (4-month high that effectively reverses the October, 2018 breakdown)VIX = 14.9Short-term Trading Call: neutral Stock Market Commentary AT40 (T2108), the percentage of stocks trading above their respective 40DMAs, … Read more

Above the 40 (February 8, 2019) – Convenient Resistance Holds Market Back But Sellers Do Little Else

AT40 = 78.7% of stocks are trading above their respective 40-day moving averages (DMAs) (11th overbought day)AT200 = 35.3% of stocks are trading above their respective 200DMAsVIX = 15.7Short-term Trading Call: neutral Commentary In my last Above the 40 post, I noted the “convenience” test of 200DMA resistance for major indices. The S&P 500 and … Read more

Above the 40 (January 25, 2019) – Stock Market Completes A 1-Week Roundtrip Back to Overbought

AT40 = 76.4% of stocks are trading above their respective 40-day moving averages (DMAs) (1st overbought day)AT200 = 28.7% of stocks are trading above their respective 200DMAs (near 2-month high)VIX = 17.4Short-term Trading Call: neutral Commentary It was just a week ago when the stock market surged to overbought levels in a bullish move. AT40 … Read more

Above the 40 (January 9, 2019) – Stocks Make Important Breakouts Even As Indices Face Major Tests

AT40 = 46.3% of stocks are trading above their respective 40-day moving averages (DMAs) (1-month high)AT200 = 20.7% of stocks are trading above their respective 200DMAs (3-week high)VIX = 20.0Short-term Trading Call: cautiously bullish Commentary Just as the last oversold period exceeded expectations to an extreme downside, the rebound out of the oversold period is … Read more

Powell Takes Some Air Out the Dollar, Boosts Gold and Silver

Federal Reserve Chair Jerome Powell delivered a speech at Jackson Hole, Wyoming last Friday that seemed to reassure financial markets. The S&P 500 (SPY) finally closed at a new all-time high, and the U.S. dollar cooled off a bit again. Source: FreeStockCharts.com Source: TradingView.com Fundamentally, the speech contained no new news, but it did reaffirm … Read more

A Gold Bottom But Will the U.S. Dollar Cooperate?

Gold, and by extension the SPDR Gold Shares (GLD), has had a rough year. However, based on a historic flip in speculative positioning in gold futures, a bottom is likely in for GLD. According to the tweet and chart below, the net speculative positioning in gold recently went net negative for the first time in … Read more