Lots of questions are coming in regarding how I might play the current market. I’ll start off by quoting a reply (with some minor edits) I gave to a reader named Chris as to how I am strategizing right now. Chris’s question came about after last week’s blog regarding the overbought market condition: “Any pullback Read More
One with the market
“It’s easier to fool people than to convince them they’ve been fooled.” Mark Twain At this point, a lot of people are forming theories and opinions about the market. The bulls are theorizing that the economy is going to continue expanding and earnings will continue growing for a prosperous stock market. The bears are Read More
The game plan
The following is a reprint from a client update we just sent. I thought it would be of use to readers of the blog. As I suggested on BNN recently, the market has made it back into a “vital zone of support”. My last blog also discussed this vital support zone for the markets. The S&P Read More
The long and short of it all
Today I’d like to review the longer (macro) termed outlook via a current reading of my Bear-o-meter. I’ll re-post a chart of the S&P 500 that I’ve put up a couple of times that will point out a few potential technical targets for that index. Finally, I’d also like to review the neartermed probability targets Read More
Bear market confirmation
As noted on this blog the market is ripe for a near termed rally. Yesterdays Boxing Day blip pushed the Dow up 1000 points. But I note on today’s futures that the market looks to open lower – this, after the largest boxing day rally on record. As I projected on my Friday Bloomberg BNN appearance I Read More
I dont believe in Santa, but there may be an Elf rally coming soon
It’s too late for any hope of the Santa Rally for the S&P 500 or the TSX 300. In fact, we now have a “bear market/ phase 2 top” confirmation signal. For those unfamiliar with my rules– to confirm an uptrend (mid termed trend) on the weekly chart we need: Higher highs Higher lows Market Read More
The dumber smart money says it ain’t the bottom yet
I’d like to give a shout out to Five Star Charts today for an interesting observation regarding a different view on investor sentiment. Rather than focus on “dumb money” as an indicator of an oversold capitulation point, Boris Chai – founder of FiveStar – focused on looking at institutional money as a contrarian indicator. Interesting, Read More
You are here
Big malls and places like Disney give you a map showing you where you are in the mall or resort. My first chart shows us where we are in relation to the market’s recent support/resistance zones. The S&P broke support last Friday, and is now toying with my previously described final support zone. The chart Read More
Opportunities for mid-termed trades
Today’s blog is going to be short and sweet. Celebrate, for I shall avoid waxing eloquent, and get right to the point! Each of the 4 notations below are encapsulated in a capitalized summary sentence. Here goes: Reversals are often signalled by short-bodied candles. Short bodied candles occur when the market rises or falls Read More
Bear-o-meter drops a point
Gotta admit I was a little surprised at today’s reading of the Bear-o-meter. My last reading of the compilation, which was taken at the end of October , showed an improvement in risk/ reward. The Bear-o-meter had moved into the “neutral” risk/reward zone with a score of 4 – that, from its prior reading taken Read More