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?
We've discussed the strength of the overall U.S. stock market numerous times as supported by the very positive internal statistics. Advancing versus declines, new highs versus new lows, numbers of stocks in the positive bullish percent column, all have been supportive of the strong advance since mid November. The lack of volatility is the real … Continue reading Looking For Clues
From the beginning of 2017 to now, we've seen an abundance of optimism enter all sectors of the US equity markets, from large cap Dow stocks to small cap Russell. Since the "Trump Rally" of late 2016 to present day, a period of consolidation transpired in which the 20,000 threshold on the Dow Jones was … Continue reading Indecision