Posts Tagged ‘sector strength’
2022: A Year for the History Books (And Our Outlook for 2023)
2022 will be remembered as one of the worst years ever for a portfolio of stocks and bonds. Stocks and bonds both fell by double digits. It’s rare for stocks and bonds to fall in the same year. By my calculations, it’s happened just four times before this year going back to 1928. But in…
Read MoreWhat 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 MoreWas That a Black Friday Sale or Sell-Off?
News that a new COVID-19 variant has surfaced in South Africa spooked global equity markets this past Friday causing a frenzied sell-off. The question coming into Monday’s open was whether that sell-off was an overreaction and an opportunity – or the beginning of a much deeper, panic-driven sell-off. My thinking was – if global markets…
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