Bubble has to be popped before it goes higher.
Summary: Monday started with a dip, just like the past several Mondays. This week's difference is that the bulls entered in the afternoon, bringing the major indices back to near their open. Small Caps performed best on the day as inflation still weighed on big tech and mid-cap growth. Notes Ideas always welcome in the comments. Errors will be amended as...
Summary: The focus was all on inflation this week. The updated consumer price index numbers were due on Wednesday, and investors entered the week expected the worst. On top of inflation, an oil pipeline closure on the east coast meant even more upward price pressure for consumers. Monday started the week with a terrible-looking marubozu candle which has no upper...
Summary: A lighter volume but positive day followed lower than expected economic indicators, including Retail Sales and Consumer Sentiment. Perhaps the economic recovery is pausing as consumers react to the increases in prices. A little water on the fire could be good news to investors who are afraid things are overheating. Notes Ideas always welcome in the...
Summary: Buy the dip? That seems to be what drove prices higher today on optimism after a positive jobs report. But caution is still in the market with Utilities as the leading sector, growth stocks essentially not participating, and an advance/decline ratio still below 1.0. Notes Ideas always welcome in the comments. Errors will be amended as comments on...
NASDAQ (IXIC) Breaks UP Channel and rising wedge. TP1 @10893.0
Summary: Consumer price index data was higher than expected which is great for the US dollar, but sent investors into a selling frenzy as they reacted to higher inflation and the possibility of higher interest rates. It's a conflicting mix of being glad the economy is recovering, but also trying to price in the impact to valuations and potential reactions by the...
I have to highlight that, the American stock market in 2021 is fundamentally different from the market in 2018 or 2019. Unprecedented amount of new investors have jumped into the stock market since April 2020, lured by zero commission brokers, close to zero interest rate and the boredom of COVID restrictions. Like I have mentioned before, the period of 2020-2025...
Summary: A gap down must have shocked the bulls into action as the major indices crawled their way back up from morning lows. The results show a rotation happened underneath a market sell-off. Growth stocks benefited from the rotation while the broader market had more than two declining stocks for every advancing stock. Notes Ideas always welcome in the...
Summary: Inflation looms over big tech and growth stocks like an approaching hurricane, keeping investors wondering when and how big it will hit. Last week's jobs data supported the government's case that there is still support needed for economic recovery and that inflation is transitionary. But a shutdown oil pipeline over the weekend has investors worried. And...
Summary: The market is the great fortune teller, always trying to price in the future, not the present. We saw that in action this week in several ways. The first was with Janet Yellen's comments on Tuesday that interest rate hikes might be needed in the future. That sent investors into a frenzy sell-off before she walked back the comments. Notes The...
Summary: More records were set as the S&P 500 and Dow Jones Industrial average both had record closes while the Nasdaq and Russell 2000 joined the rally, also making gains. Employment data in the morning caused the dollar to fall which can give a boost to mega-caps and growth stocks. Notes Ideas always welcome in the comments. Errors will be amended as...
Summary: Another record was set for the Dow Jones Industrial average while value stocks continue to outpace growth stocks. Two intraday rallies might just be the action the Nasdaq needed to join the rally, but the gains were mostly isolated to the mega-caps. Notes Ideas always welcome in the comments. Errors will be amended as comments on TradingView or...
Summary: This is not the rally we are looking for. The Dow Jones Industrial average closed at a record high today while the rest of the market struggled to hold any gains, with the Nasdaq and Russell 2000 falling further behind the other major indexes. Notes Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected...
Summary: The market sold off sharply at open after comments from Janet Yellen suggested that interest rates might need to increase to keep the economy from overheating. Investors fled sectors more sensitive to interest rate hikes and rotated into the cyclical sectors. Notes Ideas always welcome in the comments. Errors will be amended as comments on...
I haven't posted in a while because it is pointless. My English is bad but still I decided to post this. It's about to get real. 2000 Dot com bubble Weekly chart looks eerily similar to the our current position on the monthly chart. Nature likes making repeating shapes. I won't get into it, look it up. The writing is all over the wall right now. From the charts,...
After February pullback, again nq futures are flashing caution. If it can't hold 13755, possibly bounce from13730, 13650. If close below 13732, short term trend change. Close above 13900 is good sign. Trend line support at 13525. Other levels as marked.