Posts Tagged ‘market cycle’
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 MoreDon’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 MoreThis 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 MoreAre 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 MoreHere’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 MoreWatch 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 MoreLet’s Look Ahead to October and Q4
Today is the last day of September, and you know what that means – it’s the last day of the month and the last day of Q3. So get ready, because next week is where we’ll do a deep dive into everything from asset class and sector strength to market breadth and investor sentiment. Consider…
Read MoreWhat the “Fab 5” Can Tell You About the Market Right Now
I have an important question to ask today: How do you see the market? Do you see a stock market (i.e. S&P 500 or DJIA) or a market of stocks? How you answer that question can have a lot to do with your success. You see, there are a lot of investors out there who…
Read MoreIt’s As Simple As Following Price
YOU DON’T FIGHT THE FED. It’s a long-standing market adage. But so too should be: FOLLOW PRICE. At the end of the day, only price matters. I bring that to your attention as an important, critical reminder to never lose sight of what’s important. Because, regardless of all the talk of rate hikes, recessions, housing,…
Read MoreThis Has Everything to Do with Rising Rates
In case you missed the memo, 2022 has been all about rising bond yields. It’s undeniable. We can’t talk about stocks without including a conversation about the bond market. More specifically, the direction of bond yields. Yields are once again pushing up against their June highs, so investors must understand the correlation between the equity…
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