At ValueTrend, we’ve been pretty concerned about the overbought conditions on the markets. Sure, we rode the rally for a while, but 3 weeks ago we brought our cash back up, and even went so far as to raise our cash levels to an aggressive 40% weighting in the Equity Platform. We made the move Read More
For what its worth
I thought I would pull some comments (excluding the individual stock names) from an update we just emailed out to our clients. I want to emphasize that these comments should not be taken as investment advice. You have to make your own decisions, or consult with a qualified advisor. I can be wrong – and Read More
The playbook
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
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
Contrarian stock picking
Below, I have copied the year end summary from Seeking Alpha for 2018. It may be of interest to some readers. I added to the international index returns the statistic for the TSX 300 total return, as they didn’t bother reporting that. After reviewing the “top stock losers” for the DJIA, S&P500 and NASDAQ, I 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
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