What We Can Learn From the Bullish Percent Index

The behavior of the stock market is controlled by large fund managers. There are organized “buy programs” and “sell programs.” When a buy program is in play, “demand is in control.” There’s a concerted effort to accumulate stock positions in a controlled way that gradually pushes prices higher. When there’s a buy program in play,…

Read More

Don’t Fight the Fed

Ask any market technician about the late, great, Marty Zweig and you’ll hear about a time-tested set of trading rules that are just as relevant today as they were when Marty first put pen to paper. For example, the #1 rule: The trend is your friend, don’t fight the tape. This is at the very…

Read More

This Is a Market of Stocks – Not a Stock Market

Have you noticed that the financial media can’t get enough Doom & Gloom?  Every headline is another big loser. Another miss. Another crash. The media knows what buttons to push – they’re masters at it.  And they’re up to their old tricks again… I hope you’re not falling for it.  Let’s break the cycle starting…

Read More

Are Investors Too Optimistic?

Stocks rallied last week into last Friday’s close – an encouraging development!  But dare I say… investors are optimistic.  You see, if you’ve been paying attention, you’d know that many Fridays this year have experienced sizable sell-offs.  Why? Because traders wanted no part in holding positions over the weekend. The risk was too great.  What…

Read More

Here’s What an Aggressive Fed Means for the Housing Market

Following last Thursday’s very impressive upside move, investors were looking for confirmation with some follow-through on Friday.  Unfortunately, that never happened… All the excitement and talk of engulfing patterns and upside reversals were all for naught, as stocks did what they have done many times throughout the bear of 2022…  They sold off. Inflation data…

Read More

Watch What They Do, Not What They Say

Investor sentiment can be a valuable contrarian indicator.  The idea is that when everyone is either too Bullish or too Bearish (as they are now) it implies that it may be time to consider the other side of what the majority is thinking. We gauge the level of Bullishness/Bearishness through sentiment surveys… and when levels…

Read More