With the break down in IWM, reversal in SPY and the BABA initial public offering, social media is again filled with bearish scenarios. Seasonality dims considerably going into next 2 weeks and there was a pickup in IWM put buying. However with the bearish sentiment pickup, a sideways consolidation or a probe lower and reverse could [...]
Rate worries put a lid on any rallies this week. China deciding not to lower rates and election rumors have the futures below Friday’s low. Next week favors either continued chop with the downside likely targeting around the 50-day moving average at 1971 or more upside. Furthermore, based on the V-shaped bottoms since 2012, the risk/reward favors [...]
SPY and DIA are forming positive cup and handle patterns. NASDAQ is very extended trading well above the recent trend channel, but high betas are leading. After a good run, some back an fill last week seem to refresh the overall market and hint at more upside.
The hallmark of this bull market has been rotation and for this rally to continue we could see more of that next week. V shaped rally and the most recent shallow pull-back hints the market has more upside to come. While beginning of September is strong, seasonality tapers off into mid September where crash articles often [...]
Fed Chief’s Janet Yellen’s speech at Jackson Hole was well anticipated and the indices barely moved on the news of how the labor market is influencing potential interest rate hikes. The market had a minor “sell the news” reaction to the speech as it was technically ripe for some profit-taking. Further weakness next week to [...]
After a furious bounce last week, the market may stall and pull-back next week. It will be important for it to hold the 1930 level. A breach of 1930 would then increase the chance that the market bottom was not made on August 2nd and the odds of a visit to the 200-day moving average [...]
190 support on SPY held despite continuous global unrest news hitting the tape. We finished the week where we started going into option expiration. If markets are able to close green Monday, the bulls have a better shot going forward. The typical pattern had been a bounce followed by a shallower retest before going up further. [...]
News events and IWM breaking down finally pull down the overall market. We are pretty oversold for a bounce even though the correction in large caps and technology stocks maybe just starting to peak heading into the summer. A retest of the 1970 break down area or the 50ema at 1945 could be in the [...]
IWM currently holding on to its 200 day MA at 113.52. Below there it will be important for the recent low of 112.20 to hold. Getting and staying above 114 would be a good first step to a possible recovery back to highs. GDP/FOMC/NFP are all slated next week and could provide a large moving range [...]
After 60+ days of calm, we finally had back to back 1% movement on the S&P500 with poor international news flow. The red hot housing market along with improving economy continue to put a strong support under the market. Bulls continue to hold the upper hand.
Banco Espirito Santo, Portugal’s second-largest bank by market value reassured the markets late Thursday that potential losses resulting from its exposure to Espirito Santo Group will not compromise its compliance with regulatory capital requirements and the bulls were back in business. While the small cap suffered, S&P and Tech. held in very well and may [...]
Top callers are again out this week, but the bulls continued to march higher. While the Jobs gap left today may fill in the coming days, the trend is pointing up with economy picking up strength. Happy 4th.
Calls for a Twin Tops or at best a consolidation phase at lower levels with Earnings due out soon is again popular. It is a delicate area due to the World Reserve Banks protecting assets so well and lengthening normal cycles. VIX continued to stay very low with a possible raise in July. With good [...]
Market continue to grind higher after some minor side way action. IWM next week could possibly reclaim previous highs. Individual stocks have been providing huge returns in a short time span. Energy, healthcare, solars, semiconductors and select tech are showing enormous strength. Financials may also have some more upside ahead. Granted some names may be overextended [...]
The insurgents are on a roll in Iraq right now and, so far, they are meeting very little resistance from the Iraqi military. The big question is going to be what will the U.S. do and when? With the FOMC on deck, SPY dividend looming, and the potential quarter end markup, bulls continue to hold [...]
The incessant creep higher in the S&P 500 is making investment managers having to pay up for stocks. SPX has basically been higher without much of a pullback for the last 12 consecutive days. That makes it overbought, but not wanting to give back any gains. The ECB took the rates to unprecedented negative level [...]
No changes to the bullish play book, as all the dips were continuously bought and S&P broke out of several month of consolidation. The new highs in the market keeps us incrementally more bullish and ‘buy the dip’ probably will continue to work into new month and nonfarm payroll data. 1930-1940 could be near term resistance. [...]
The NASDAQ and small-cap indexes are breaking above their recent down trend. That embolden the bulls and lead to new highs in the SPX. We could still have a bit more to go until early June before any significant correction takes place. We will want to proceed with cautious optimism as we head into the [...]