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

Now What?

Following an extended period of prices steadily ratcheting higher, the stock markets finally collectively hit some wild turbulence.  The speed and ferocity of the past week's decline was alarming particularly because over the past 2 years, people have been lulled into believing that a steady, low volatility advance was the new normal.  In fact, it … Continue reading Now What?

AAPL Inflection Point

In the very recent update on AAPL, we opined that the trend on the stock appeared intact and unless some indicators showed divergence, we would have to default to being long.  In the weeks since, we've observed some interesting price action on this stock shown by the charts following. (charts by stockcharts.com) Quite a few … Continue reading AAPL Inflection Point

That Was Then, This Is Now Part 3

Part 3 of the Dow review MSFT Forecast:  "..$62.14 Microsoft was one of the steadiest performers of the Dow in 2016 with price action consistently showing a higher relative strength than the S&P. Despite the steady advance all year, the SCTR still remains high at 78 and looks very strong. The PNF chart shows a … Continue reading That Was Then, This Is Now Part 3

That Was Then, This Is Now Part 2

We continue with our Dow recap. XOM Forecast: "...$90.26 When viewed in the context of a longer term monthly chart, XOM is dead neutral essentially trading in a broad range for years. The SCTR reading is 43 which is just middling but XOM does perform a bit better than the S&P benchmark. There is a breakout … Continue reading That Was Then, This Is Now Part 2

The Trend Is Your Friend

The year 2017 was one of the most remarkable years in my investment history...or any one's investment history.  At the beginning of 2017, post the Trump election, the Dow index hovered at an already elevated level of 20,000.  It proceeded to advance another 5000 points to touch 25,000 by year's end; a 25% gain for … Continue reading The Trend Is Your Friend