Stock Market Guidance

Market Summary – After a 3 week boost to prices as the Wilshire 5000 broke out of the prior 8 week base, it appears some downside risk is returning to the broad market. As always, follow the swing trading buy and sell rules to maximize profitability and reduce drawdowns. Here are the sell rules again: […]

Suggested Strategy: No change from last week – consider new long positions as Alerts are issued from either the Best ETF, Strong ETF or Top Stocks watchlists. This week is the official start of earnings week. FactSet is estimating Q1 earnings growth of 24.5%. If FactSet is accurate that will be a large jump in earnings and very likely to support the

Suggested Strategy: Hold longs on strong stocks, consider new long positions as Alerts are issued from either the Best ETF, Strong ETF or Top Stocks watchlists. Last week we looked at the Wilshire 5000 index which was coming very close to an all-time high. This week I want to check 3 things, VTI, QQQ, and

https://youtu.be/YUiSmofy3kE&rel=0

Weekly Summary: While the NASDAQ index continues to be mired in underperformance, the DIA (DOW) and the SPY (SP 500) resumed their inexorable treck northwards on the last two trading days of the week. Although the NASDAQ has recently underperformed – mostly due to losses across the FANGT stocks – many breakouts were identified through

What to watch for: The S&P 500 (represented by the SPY ETF) has to hold at the current uptrend line and/or the Nasdaq (represented by the QQQ ETF) has to bounce from the downtrend line. The broad market has been showing strength in a variety of areas. Techs are still weak, blue ship stocks held

Summary:  Small caps renew the charge while the NASDAQ marks time at the trendline. As mentioned in last week’s Market Timing update, major indexes would need to move above the downsloping trendline before a resumption of the uptrend could occur. This week’s market action indicated a clear distinction between market segments. Winners were represented by

Weekly Market SummarySP500 is in much better shape for a bounce than NASDAQ. Either way, market indexes are in a downtrend until prices move above the downtrend line shown in the charts below. The blame for much of the recent drawdown is being placed on the sharp increase in 10 year bond yields over the

Summary: A midweek rebound allayed some fears of a further drawdown but volume is a concern. Investors cheered a sharp rebound today after a week of worrisome action. The daily VTI chart – the broadest index available and very useful for assessing market conditions – shows the rebound from Tuesday’s low very clearly. Daily action