Gold

As you'd expect, there has been positive activity in the Gold sector. It may be surprising that relative strength was occurring here even before the recent market volatility.  As we look at the relative performance of some major sectors, it wasn't obvious that gold stocks were outperforming the overall market (as measured by the Nasdaq).  … Continue reading Gold

The Rogue Wave

As this is being written, the US equity markets have opened sharply lower following the action of the  Asian market sell off. Late Friday afternoon, OPEC had essentially announced that their cartel has fractured and that oil prices would no longer be controlled at managed levels via production controls.   Couple this with the on-going panic … Continue reading The Rogue Wave

What Can Go Wrong

In the last commentary, we discussed technical tools to determine when downside momentum may have stopped and whether it would be safe to re-enter markets from the long side. To reiterate, technical tools give traders a framework for risk, but they are  not fortune telling devices.  Acting on logical evidence is a skill that has … Continue reading What Can Go Wrong

Markets Continue to Advance: Search For Relative Strength

As postulated in our last post, the major stock indices have managed to claw their way back after the climatic sell off in February.  While you can never be precisely sure about the reaction of markets after a dramatic move, historical precedent can provide clues as to what is likely to happen.  In general, if … Continue reading Markets Continue to Advance: Search For Relative Strength

Oil And Oil Services

As we begin this new calendar year, the markets continue to surge into new highs even as some fatigue seems to be settling in among some individual issues.  Plotting the performance of select sectors versus the benchmark S&P shows that many of the strong momentum groups remain strong and not exhibiting conspicuous weakness. Technology stocks … Continue reading Oil And Oil Services