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
The Strength Of Breadth
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
Stealth Bull
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
Cycles And Rotation
Classical models of market activity hold that there are predictable cyclic rotations in the equity markets. We are familiar with the overlapping sine waves of market segments as they progress through their stages of growth and decline. In broad brushstrokes, as leading industries such as financials mature, we would expect to see robust economic activity … Continue reading Cycles And Rotation
What The Dow Is Telling Us
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
The Significance Of Ranges
Experienced market participants know that stocks spend most of their time in seemingly random ranges. It is only for a short time that they will actively trend up or break down. This is logical since companies will go about their business in a somewhat predictable and systematic way. When something unusual or extraordinary happens, or … Continue reading The Significance Of Ranges
Cyclical Strategies
One of the comments I often address is whether only buying stocks that are making new highs is the best methodology. If you are an active trader, this makes sense because you want to go where the momentum is. While stocks do ebb and flow, it makes sense to be invested in the strongest stocks … Continue reading Cyclical Strategies
The Significance Of Trend
It's been almost 4 months since the initial shock to the stock markets ostensibly caused by the panicked entreaties of health officials. A number of factors contributed to the massive selloff which ensued over the following months based on the sudden introduction of unknowns. The lack of substantiated facts was one factor but also the … Continue reading The Significance Of Trend
Market Update May 14
On March 22, almost a month ago, we discussed scenarios for the direction of the market, specifically the Dow Jones in the weeks to follow. At the time, the market was at maximum fear and volatility measures were spiking to all time highs. Because of the climatic nature of the sell off at the time, … Continue reading Market Update May 14
Needs vs Wants
In line with the theme of the previous post, I am going to illustrate a thought process that anyone can employ. One of the hallmarks of a strong economy is the strength of the consumer sector, especially in what is labelled as 'consumer discretionary'. This sector encompasses companies that sell consumables or luxuries, including such … Continue reading Needs vs Wants
TC-TECHNICALS 