Over the years, a new factor has emerged when attempting to measure investment suitability, which has little to do with balance sheets, forecasts or indicators. That factor can be generalized as the "social responsibility" component. We recall some of the original victims of socially correct investing which included tobacco and oil companies as well as … Continue reading The Sanctimony Factor
Five months following our annual forecast for the Dow Stocks, we show the 6 month period of subsequent activity in the grid of charts below (chart by StockCharts.com) While the details may be difficult to see, the salient point is only to observe which Dow stocks have performed well and which have lagged. The late … Continue reading Midyear (almost) Update
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
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?
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
Last year, we pointed out that PHM was an almost textbook example of a stock that had a significant breakout after a number of years trading in a bounded trading range. One of the most dependable charts in which to trade are those which exhibit such behavior. When all the trading statistics line up on … Continue reading Pulte Home Follow Up
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