Investing Research

Is The Energy Summation Index Signaling A Tradable Bottom?

It’s been a relentless crash in energy stocks as some have fallen 70 to 80 percent from their highs. And from peak to trough the SPDR Energy ETF (XLE) dropped 27 percent. During the most recent drop in energy stocks, The McClellan Summation Index of XLE components flashed a massive bullish divergence. If you’re not familiar, this can be indicative of tired selling (exhaustion) via waning breadth on an intermediate term

4 Reasons Utilities Deserve A Place In Your Portfolio

Utilities often isn’t the sexiest sector to invest in, but its days as purely a defensive space or a dividend play are long gone. If you’ve geared your holdings in this bull market to where the best relative strength is compared to the S&P 500 (SPX – Quote), you’re no doubt heavily exposed to technology. Good for you. Now consider managing stock market risk via some exposure to utilities. There

Is Apple’s Stock (AAPL) A Buy On This Pullback?

The big drop in Apple’s stock price on December 1st was a near-term warning. Not only for Apple (AAPL – Quote) investors, but for the broader market. Surprisingly, the NASDAQ 100 (NDX – Quote) absorbed that down day pretty well and appeared (on the surface) as though consolidation was an easy game into the first week of December. But that consolidation gave way to deeper pullback, and AAPL led the way lower. Apple’s

5th Longest Period In 50 Years Without 10 Percent Correction Being Tested Now

It’s been a while since the S&P 500 (SPX – Quote) had a 10 percent correction. To be precise it’s been 38 months! (See attached table below). As you can see, this is the 5th longest streak in the past half century. This table also highlights that the streak of months without a 10 percent correction in the 1990’s was twice as long as the current streak. Now let’s check out

SPX Offers Potential 39% Return For Bearish Traders

The S&P 500 (SPX) has taken a bit of a beating recently and (so far at least) Santa Claus has not come to town. One trading opportunity for those traders with a bearish bias over the next week or so is a Bear Call Spread using the 2000 strike as the short call and the 2025 strike as the long call. As of Tuesday’s close, this trade offered a roughly

2015 Market Outlook: The Consumer Discretionary And Staples Sectors

One of the most important functions in my research is tracking sector performance. It is deeply imbedded within my broader macro work, as I find that drilling down into each sector allows me to gauge the overall health of the financial markets. It also assists me in locating areas of the market that I want to focus my investment strategies on. For more on my approach and to read my other

2015 Market Outlook: The Materials And Energy Sectors

One of the most important functions in my research is tracking sector performance. It is deeply imbedded into my broader macro work, as I find that drilling down into each sector allows me to gauge the overall health of the financial markets. It also assists me in locating areas of the market that I want to focus my investment strategies on. For more on my approach and to read my other

10 Things Successful Traders Must Quantify

Subjective: Based on or influenced by personal feelings, tastes, or opinions. Proceeding from or taking place in a person’s mind rather than the external world. Subjective traders are intertwined with their trades. They generally enter trades out of greed and exit based on fear. They believe in their opinions more than the actual price action. They base trades off how they feel about a particular market at that time. A subjective

Could Crude Oil Prices Fall To $45 Per Barrel?

All eyes on Crude Oil prices. The downturn has been relentless and traders are now trying to figure out where the bottom will be. Normally, I only chart Crude Oil Futures on a daily basis, but with the recent collapse in futures prices I wanted to apply my Fibonacci method to some longer time frame charts to ascertain where the price of Crude Oil may be headed. If you follow

S&P 500 Fibonacci Pullback Sequence Strikes Again! What’s Next?

A month ago I pointed out in a note about the S&P 500‘s (Select SPDR ETF: SPY – Quote) fibonacci pullback sequence that the modest and viciously negated corrections that equities continue to have are anything but random in a larger context  – all building out as separate, strikingly similar leaves on the same up-trending branch of pullback and advance. Here’s what we noted then, following in the wake off