Are Stocks Ready To Bounce?

We’ve had our eye on the 3800 level in the S&P 500 as an area of logical support. Assuming the index finds support at 3800, it sets up the possibility for a bounce-back up to the 4200 level before running into any serious overhead resistance. At the end of last Friday’s trading session, the index…

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Buy the Dips or Sell the Rallies?

Earlier this week, I put out a short video addressing current market conditions using price, breadth, and Relative Strength ratios as our guide.  The reasons we had moved all but a small portion of investor funds to the safety of cash are still very much in play, and based on the data, we believe the…

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No Banks, No Bull

Regardless of daily headlines about the current direction of equity markets, what the Fed is thinking, or what Elon is doing, there are a few tried and true rules that remain pretty consistent. And one of those rules is that without banks, there are no bull markets.  That doesn’t mean banks have to be the…

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Most Investors Aren’t Prepared for What Comes Next

Thus far 2022 is giving investors very few places to hide… Friday’s free-fall capped the worst month for the S&P 500 since the COVID crash in 2020 and the NASDAQ just experienced its worst month since 2008.  There are 10 index charts here – pick one, any one – not one of them is in…

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How to Know Your Investment Outcome in Advance

Growing up, I loved to watch and play baseball and I was an avid baseball card collector, but it wasn’t until I was in my teens that I recognized the importance of all of those statistics kept for each player.   Being numbers-oriented as I am and a baseball enthusiast, it was only natural I would…

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This Market Calls for Defense & Caution

Here’s what sector performance looks like right now: Consumer Discretionaries (XLY) is down -13.2%.  Technology (XLK) is down -16.32%. Communications Services (XLC) is off by -19.78% year-to-date… And it’s still only April! Think about this for a minute…  These three sectors XLY, XLK, and XLC account for two-thirds of the market cap of the S&P…

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Here’s What Netflix Is Signaling for the Rest of the Market

On Tuesday, Netflix reported earnings that disappointed the Street. As a result, the stock imploded, dropping by over 25%.   Netflix shares have been part of the “club” – the mega-cap market leaders known as the FAANGMs (Facebook, Amazon, Apple, Netflix Google, and Microsoft). First, Facebook disappointed. Now it’s Netflix. The Generals are getting shot one…

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When Seasonal Patterns Fail, Take Notice

March’s epic bounce in the S&P 500 and NASDAQ offered promise – that is, until it didn’t.  With all the noise, both the S&P 500 and NASDAQ are right back where they were a month ago, and heading towards the March lows.  But why?  Both indexes have given back nearly all of March’s gains and…

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