Stocks & ETFs

The Rotation Report: Patience Leads To Market Opportunities

After Facebook (FB) reported earnings, 22 analysts raised price targets.  22!  That is a helluva clear sign the bull’s boat is getting full. That also shows a clear lack of diversity in opinion, which is a key characteristics of market reversal points. Remember the monster earnings pop for Amazon (AMZN) that lasted 10-15 minutes in the open market before fading? This week, LinkedIn (LNKD) and Twitter (TWTR) enjoyed similar earnings

The Greatest Risk Of A Market Top Since 2007

I realize with a title like this there will likely be great skepticism that this article is just click bait. However, that’s not the case and I’ve chosen my words very carefully. You see I am not saying we have reached a market top – we can’t know that until after the fact. I’m not calling for a future market top, because while we can judge the probabilities of an outcome,

Why The Australian Dollar Is Nearing A Countertrend Move

The continued advance in the U.S. Dollar since 2011 has made short positions with several paired currencies attractive for investors with a multi-year perspective. However, the Australian Dollar (AUDUSD) appears poised for bounce soon. This sets up the possibility of a countertrend trade for a few months, as well as a lower-risk attempt at downward continuation later in summer or autumn. Here we present a big-picture analysis of the futures

Trading Setups: 5 Stocks To Watch (SLV, ABMD, ZIOP, MDXG, NOC)

Given the broad oversold conditions, today’s bounce should not have been a surprise to anyone. As a result, several short-term trading setups emerged this morning. The S&P 500 bounced right off its 200 day moving average (dma) and ended the day in the 2090-2100 resistance area. The Russell 2000 had a textbook opening flush under the 200dma, followed by a potent bullish reversal. The question now, of course, is where

Stock Market Outlook: Weekly Reversal Leaves Technical Damage

What a difference a week makes. The market ended the previous week on a strong note. And the S&P 500 seemed poised to follow the Nasdaq Composite and push to new all-time highs. But these and any other bullish hopes for the stock market were swiftly extinguished as the market put in an ugly reversal last week that resulted in a good deal of technical damage. The S&P 500 and Nasdaq

The Rotation Report: Are Clouds Moving In Over Market?

The action in the mega cap leaders has just been absurd of late. For example, take Amazon (AMZN). It was already significantly overbought on its weekly time-frame leading into earnings and it just happened to gap up 100 dollars and open 15 percent above the weekly upper bollinger band (the most since 1999). You don’t see this action very often. Sure seems like late stage bull market stuff. But how

S&P 500 Technical Outlook: A Look Ahead For Stocks

Like clockwork, the S&P 500 ran out of gas at the top of the price range that goes all the way back to February. As a technician, I have been trained to make a call on the market, generally up or down. Maybe the toughest call of all is sideways. Why? It just doesn’t happen that often for an extended period of time, but as I have discussed in many

Stocks Hit Crossroads In 2015: Key Resistance Levels To Watch

Yesterday, I noted that the Dow Jones Industrial Average (DJIA) has been bumping up against a key technical resistance level all year – its 1.618 Fibonacci extension level (around 18,200). But this may be a more important price point for stocks than many think. Check out the chart below. It dates back to 1970 and highlights a key trend line for the Dow Jones, connecting from the 1987 highs through

What’s Next For The VIX? Checking In On The Volatility Index

Of late, volatility has been volatile. In the past month, the Volatility Index (VIX) has done a complete round trip – surging 68 percent in 11 sessions and then giving it all back in the next eight. As the fear premium related to Greece and Chinese stocks came out, there was less need to buy protection – at least this is the impression one gets looking at how market participants