Note to the reader: This is the eleventh in a series of articles I’m publishing here taken from my book, “Investing with the Trend.” Hopefully, you will find this content useful. Market myths are generally perpetuated by repetition, misleading symbolic connections, and the complete ignorance of facts. The world of…
Tag: SPX
Why you can count on the Dow making changes in February
Investors can count on the Dow Jones Industrial Average changing its members next month, for the first time in nearly four years, for several reasons. The question is, who’s out and who’s in? How and when the keepers of the Dow DJIA choose the stocks they add and those they…
The Top Five Charts of 2023
KEY TAKEAWAYS 2023 was dominated by mega cap growth stocks, but the fourth quarter saw a potential change as other sectors experienced renewed vigor. Three breadth indicators provided great clarity to the up and down cycles over the course of the year, as extreme readings tended to coincide with major…
Santa May Be Warming Up His Sled; What’s Next? Watch the Fed and the Bond Market
The traditional year-end rally may have started with last week’s liftoff on Wall Street, as the Fed’s rate hikes start to bite and the economy shows signs of slowing. Investors hope the economy slows just enough to reduce inflation. The stock market seems to have bottomed, as short sellers panicked and…
Unintended Consequences Hit Healthcare; Why the Sector Bears Close Scrutiny
The selling in this market is accelerating, and some of it is in areas of the market which usually hold up during stressful periods. One of them is healthcare, where a changing financial picture and the effects of AI are creating a new landscape for investors to ponder. Of course, this…
Bonds Toy with Secular Bear Market — Was That the Top in Housing Stocks? Maybe Yes, Maybe No.
The market’s worsening breadth and the lack of a robust bounce on 8/18/23, even as bond yields reversed course after their runaway freight train climb during the week, is worrisome. On the other hand, the market’s sentiment is souring rapidly, and oversold gauges are closing in on traditional bounce territory. Consider…
Wynn Resorts: Is Now a Good Time to Trade the Stock?
When the stock market trends higher, it doesn’t necessarily mean all stocks are moving higher. This is why it’s necessary to have a method to filter through the day’s market action and select stocks or securities to trade that have the potential for a decent return. And since each trader…
Megacap tech stocks out of control? Big Tech still has the power to extend the rally and weather an economic storm, analysts say.
Megacap technology stocks have dominated the U.S. stock market performance this year, powering the Nasdaq Composite to a new nine-month high this week as investors have loaded up on them in a “safe-haven play” on concerns over a potential recession, a federal debt-ceiling breach and more stress in regional banks.…
As Fed Plays with Fire, Focus on Strength, Ignore Intraday Volatility, and Expect the Unexpected
There is only one way to survive this market. Focus on strength. Ignore the intraday volatility. And always expect the unexpected. The stock market remains in a stubborn trading pattern, with nearly equal measures of strength and relative weakness. On the one hand, many hedge funds remain short stocks. Their…
‘It’s payback time.’ U.S. stocks have been a no-brainer moneymaker for years — but those days are over.
If you owned U.S. stocks over the past decade, you’ve been richly rewarded. It’s payback time. Over the next decade or two, investors will experience bull- and bear markets, but at the end of the journey they will not be far from where they started. When you own a stock,…