Investing Research

Volatility Hits Financial Markets As Stocks “Chop”

The market had a rough day yesterday, with recent leadership sectors getting hit hard. The small caps (Russell 2000) was down 2.34%, while the Biotech Index was down 4.14% and the Semiconductors Index down 4.47%. Needless to say, market volatility emerged a winner again. Considering that type of punishment, it will

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Volatility Hits Financial Markets As Stocks “Chop”

The market had a rough day yesterday, with recent leadership sectors getting hit hard. The small caps (Russell 2000) was down 2.34%, while the Biotech Index was down 4.14% and the Semiconductors Index down 4.47%. Needless to say, market volatility emerged a winner again. Considering that type of punishment, it will likely take some time to heal the internal damage (i.e. breadth). But there have been visible warning signs that active

Why Best Buy Stock (BBY) May Be Running Out Of Steam

Best Buy stock (BBY) has been on an amazing run rallying over 65% since the start of 2014. Is it time to take to a breather? The evidence is pretty convincing that it is. Here’s a list of indicators and occurrences that are concerning me. Use the Best Buy stock chart below for reference. Price is testing resistance from the mid 2000’s high Simultaneously, relative strength is testing declining trend

Is The Russell 2000 ETF (IWM) Poised To Roll Over?

On the stock exchanges in the United States and globally, many of the equity indices we monitor are displaying potential topping patterns and signals. Some have reached significant upward targets and resistance levels. Others appear ready to create lower highs this month. Among the U.S stock market indices, the Russell 2000 (RUT) offers one of the clearest examples of an index that may be on the verge of a major

Biotech Sector (IBB): The Anatomy Of A “Blow Off” Top

Recent price action in the Biotech Sector ETF (IBB) and select biotech stocks has attracted a lot of attention and with good reason: it is not often that we see such a powerful and sustained move spanning multiple years. Many articles have been written lately (including by yours truly) about the potential top in the Biotech sector and my intention is not to rehash any of those fundamental or technical

Secular Bull Market Study: How Long Before A Bear Market?

Could the S&P 500 continue to advance to 3615 – 3944 before a cyclical bear market? Yes, that’s possible based on historical precedent. To better understand the current secular bull market, it’s a good idea to revisit past ones for size, scope, and quantitative comparison. Let’s start with the 1950’s secular bull market. 1949 – 1956 In June 1949 the S&P 500 launched a new secular bull market that rallied

S&P 500 Update: Cloudy With A Chance Of Meat-Bulls

Although the S&P 500 is just 1.5% off its all time highs, it’s fair to say that 2015 has been a chop-fest for active investors. And this doesn’t solely apply to the equity markets – it has been choppy for bonds, currencies, and commodities as well. Without regurgitating all the details, it’s also fair to say that investors have had A LOT of noise to deal with. This is the primary

Sector ETFs In Focus: Healthcare Leading, Utilities Improving

When the markets get choppy or begin to consolidate, it’s a good idea to understand what’s happening under the surface. Market breadth indicators (like %stocks above their 50 day moving average) are one way to assess internals, but another way is by looking at sector rotation. By examining sector ETFs to see which are leading and lagging, we can figure out where the smart money is going. One tool that

March Federal Reserve Meeting: Economy Slowing, Party On

The Big Macro Event that had been hanging over the stock and bond markets the last month was finally resolved last week when the March Federal Reserve FOMC meeting concluded and Fed Chairwoman Janet Yellen announced that they were removing the word ‘patient’. Those expecting higher interest rates were initially cheered by that removal. Their celebration was short-lived, though, because she then went through a litany of economic data that

Silver Prices, Sentiment Trying To Bottom: ETF Levels To Watch

While many point to the Federal Reserve as the tide that raises all ships, the boats carrying commodities have all but sank over the last couple of years. Silver prices have fallen nearly 30% since it’s 2014 high alone and made a series of lower highs and lower lows. It’s hard to argue against the notion that Silver is in a bear market as each rally gets faded. We can also

The Amazing Run In Biotech Stocks

Biotech stocks have been on fire in 2015. In the Biotech & Pharmaceuticals sector of the Russell 2000 Growth Index, there are over sixty stocks up by more than 30% this year. More than thirty stocks are up greater than 50% while six have more than doubled. The iShares Biotechnology ETF (IBB) is already up more than 20% less than 3 months into the year. But this is nothing new