It’s All About Finding Support

We can just call today’s theme SUPPORT… Because if what I’m about to show you doesn’t hold support, then the next few months could look a lot like the summer of 2008. There’s a simple way to visualize the overall direction and strength of our equity markets through the lens of just five price charts.…

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Is This Signaling a Cautionary Tale?

There’s one ratio chart you don’t want to miss right now. It’s one to focus on over the coming days and weeks ahead. I’ve been saying this most of the year.  Don’t be fooled by what you think you see out of the cap-weighted S&P 500 index… Most stocks are either grinding sideways or have…

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Was 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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Don’t Sleep on Small-Caps

According to historic seasonal trends, the best time of the year for the stock market is from November to January. Here’s something that can give you an investment edge… November is by far the single best month of the entire year for small-cap stocks. In fact, November of 2020 was the best month ever for…

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Keep a Keen Eye on Small Caps

Last September (9/21/2020), I wrote an article titled “Are Small Caps Rising from the Ashes.” Since that date, the Russell 2000 Small-Cap index, using IWM as a proxy, has all but doubled the return of the S&P 500 – with IWM returning 55.54% compared to 28.07% for the SPX. Here’s a link to that article.…

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Is Strength Returning to Small Caps?

Lets face it, small-caps have been a mess. As a matter of fact, the Russell 2000 index (RUT) has done nothing for 21 months. It’s been trading in a range between 1450 and 1600 since late 2017. RUT has bumped up against overhead resistance at 1600 no less than 6 times since January of last…

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