There are signs pointing towards a bullish market right now. The main ones being: A definitive break over the old highs of the mid 2900’s, and a higher low since last December. A market that remains above the 200 day SMA At ValueTrend, we had concerns of the SPX failing at the old highs Read More
Trapped in a box
The SPX 500 and the TSX 300 indices seem to be trapped in boxes. The SPX is yet again testing its ceiling in the mid 2900’s. So too is the TSX as it struggles to blow through the mid 16,000’s. Both indices show an amazing commonality of divergences between the return to these old 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
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
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
It’s the end of the world as we know it. And I feel fine.
Rock band REM sang a truly great song called “It’s the end of the world (as we know it)”. Many of you have heard the song, I’m sure, but if you wish to marvel at how lyrist Mike Mills can carry off a fairly rapid flow of complex lyrics – click here. Today, I’d like Read More
Chicken (USD) or egg (SPX)..which came first?
There is a relationship between the USD and the stock market. Below is a pretty long chart of the S&P 500 (red line) vs the USD (black line). It goes back to 1990. I’d like to note that the USD index displayed is that of the USD against a world basket of currencies. This is Read More
Is this the real life, or is this just fantasy?
Regular readers know I refer to 1970’s and 1980’s rock lyrics periodically to inspire my blog topics. Today’s blog is brought to you by Queens hit song “Bohemian Rhapsody“. The song begins by asking if this is the real life, or is it just fantasy… I might ask the same about the stock market. Much Read More