Supply and Demand. The dynamic expressed by this phrase is the cornerstone of Capitalism: In fact, this concept drives most of the things that we experience in life and is not confined just to issues of money. But for our purposes, the supply demand dynamic is played out daily in the public stock markets and … Continue reading Why Rotation?
In the last article, I discussed the likelihood of rotation in the stock markets even as bigger trends continue to advance. While the market leaders in the tech heavy Nasdaq issues held mainly firm, conspicuous strength rotated into a number of other emerging sectors. As discussed last year, the surprising strength of the consumer economy … Continue reading Trends And Rotation
2020 will go down as one of the most volatile trading years in recent history, if not ever. Traders and investors were subjected to a sickening meltdown of financial assets in the early part of the year. The financial world appeared to have had become totally unglued. The breadth of the selling panic in February/March … Continue reading Lessons Of 2020
I've stolen that sentence from Franklin D. Roosevelt to commemorate today's date, October 19th. To those who have been long time participants in the stock markets, that day in 1987 was the single most traumatic experience in their lives, even as ensuing selloffs in the years since have arguably been as dramatic. At that time … Continue reading A Date That Will Live In Infamy
Most of the time, the public is exposed to the statistic of price to measure market activity, whether the indices or their specific holdings. While this can certainly measure current action, it does not reveal any underlying strength or weakness. How can we be sure that price trends will continue? In order to have confidence … Continue reading The Strength Of Breadth
The majority of the public, including some professionals, obsess over the action of the popular averages of the Dow Jones or the S&P in order to gauge market health. It should be clear that these measures are only barometers of stock market activity, they don't provide enough detail to reveal many underlying sectors. After all, … Continue reading Stealth Bull
When people refer to "the market", they generally mean the Dow Jones, despite that index's very narrow representation of the stock market. As most know, much of the more robust American companies are not represented in the Dow Jones, but rather in the broader Nasdaq or S&P indices. Nevertheless, the position of the Dow Jones … Continue reading What The Dow Is Telling Us
After a prolonged period of steadily ratcheting prices, all stock indices sold off abruptly over the last week. The breakdown in discussions on trade between the US and China has been blamed for the swoon. In fact, this was the case since nothing else has really changed in the past few months. While the selloff … Continue reading Now What?
There's an old saying that Generals are always fighting the last war. In similar fashion, many stock market participants do the same thing. Since the great market swoon in December of last year, market pundits on video and print media obsess about the return to the new lows, or at least a test thereof. The … Continue reading ‘A Bubblin’ Crude
2018 ended quite differently than we would have imagined considering the positive start to the year. Long term trends and a high level of complacency gave way late in the year to a much more defensive view of the stock markets. While the volatility is unsettling, it's nothing new for the stock markets. On the … Continue reading Apple And Tom Brady