Investing Research

Dow Theory In Focus: Will Transports Confirm Industrials Highs?

As the markets push higher, investors tend to become more wary by nature. This often leads to the markets climbing the proverbial “wall of worry” and several investors missing out on the opportunity of higher prices. Will March offer more of the same? Or could the markets have something else in

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Dow Theory In Focus: Will Transports Confirm Industrials Highs?

As the markets push higher, investors tend to become more wary by nature. This often leads to the markets climbing the proverbial “wall of worry” and several investors missing out on the opportunity of higher prices. Will March offer more of the same? Or could the markets have something else in store for active investors. One of the many near-term indicators I am watching pertains to Dow theory. And more precisely,

GoPro Stock (GPRO) Nearing Key Technical Support Level

GoPro’s stock (GPRO) has definitely been taking it on the chin of late. Each bounce has been sold as investors have slowly deflated the IPO euphoria from the stock. The pullback off the highs wasn’t a surprise – I called the top in October – but depth of the pullback has been a bit eye-opening. With the stock trading at around $40 per share, and well off its post-IPO highs, it’s once again

3 Charts Showing Signs Of Market Exhaustion

It was a great February for the stock market, as the major market indices literally went straight up. For the month, the broad-based S&P 500 was up 5.5%, it’s best “February” since 1998. But as we enter March, the weekly candlesticks of the S&P 500 (and many leading sectors) are pointing to stock market exhaustion as upside momentum wanes. This pattern of market exhaustion can be seen in the weekly chart of the S&P

Corn Prices Holding Steady In Face Of Higher Dollar

For the past 6 months, I’ve been constructive on Corn prices. And last winter, it separated itself from the other grains by rallying in the face of a stronger US Dollar. This past week was like a fractal of late last year, with spot Corn prices up 1.55%. Other grains were up as well, with Soybeans jumping 2.9% and Wheat 0.3%. But Corn has stood out as the leader of this pack. Both

Top Trading Links: Market Seasonality, Analogs, and Breakout Levels To Watch

Wow, it’s already time to turn the page to March. February will go down as the month the bears threw it at the one yard line. The selling pressure has just evaporated. With the market going up nearly every day, it’s easy to get lackadaisical. But as active investors, we’ve got to do everything possible to avoid that. The best traders know they need to focus on their process even

Gasoline ETF (UGA) Surges Higher, Outperforming Stocks Like Apple!

After months of falling Gasoline prices, February saw a bounce higher in the Gasoline ETF (UGA). And it has been a big one. I wrote about gasoline’s biggest 3 day rally in early February and how the power of the pattern continued to suggest higher prices… and a rally for the Gasoline ETF. The pattern showed Gasoline was bouncing off a major long-term channel support. Well, it’s now the end of

4th Quarter GDP Report Shows Growth Slowing

Earlier today, the markets received word that 4th quarter GDP had been revised down from 2.6% to 2.2%. The 4th quarter GDP report was previously thought to be much higher (due to a strong 3rd quarter) before coming down over the past 2 months. The revised 4th quarter GDP number continues to show a stagnant economy, with slowing growth. The politicians like to take a single number for a quarter and

5 Reasons Value Investors Should Avoid ‘Sum Of The Parts’

Value investors are always on the search for clues. Seeking out undervalued securities involves relentless digging, scratching, and a myriad of valuation techniques to derive conclusions. In frothy markets, value managers are also notorious for spotting red flags and smoke signals urging caution. I’d like to share one of those signals with you. As a value manager, there is no phrase that makes me shudder more than “sum of the

10 Reasons Bull Markets SteamRoll Bears

Sure all bull markets have pullbacks. And it’s not uncommon for bull markets to have a few corrections. But each one breeds more bears with reasons and explanations for why the market shouldn’t go higher. And as bears build up short positions in bull markets, they often get steam rolled… adding steam to the bull market. Here are 10 reasons why bull markets often steam roll the bears: 1.  At all-time-highs