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
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
When the media refers to "the market", the normal reference is to the Dow Jones Industrial Average. As we know, the Dow is only a very narrow measure of stock market activity. Though its constituency changes over the years to better reflect the most dynamic sectors of the US economy, it does not necessarily measure … Continue reading Where Is The Action?
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
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