While price movements are the ultimate determinant of market health, assessing relationships between key fundamental measures will give clues as to underlying strength, or weakness. There can be no healthy equities market without an underlying healthy consumer market. Consumption drives demand, which drives production which drives raw materials, which translates into economic growth. During these … Continue reading Relationships Matter
Just over 5 months ago, the overall US stock markets began a decline which has continued up to this writing. Of course it would have been difficult to predict the ensuing course of prices other than to use the simple gauges of support and resistance levels. What was observable were momentum indicators hinting at a … Continue reading Are We There Yet?
No one really ever knows how high is high or how low is low, but using this simple tool can be a great advantage in dispassionately making effective trades.
Ascertaining trend and controlling risks constitute the majority of the skills needed for trading and investing.
Technical analysis has evolved in many ways since the first time someone decided to plot the movements of stock prices on to graph paper. The logic behind this was to systematically determine the direction of prices over time. The underlying premise of all analysis of course is the notion of trend. Once a ‘trend’ has … Continue reading Determining Market Condition Using Point And Figure
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