Investing Research

Emerging Markets Update: EEM, BRICs Nearing Critical Juncture

Well, that didn’t take long. In just under 6 weeks, the Emerging Markets ETF (EEM) has corrected nearly 6 percent. Today alone, EEM declined 1.52%. A stronger dollar, Russian sanctions, and worries about global growth (i.e. the Euro zone) have likely played a role in stalling the Emerging Markets rally. To be fair, though, the pullback is still within the bounds of what might be expected after rallying nearly 25 percent

3 Reasons Crude Oil Is Ready To Reverse Higher

The commodities sector has been hit hard by a stronger US Dollar and Crude Oil hasn’t been spared. But perhaps the decline in select commodities like Crude Oil is nearing an end. On September 15th, I wrote a piece for See It Market arguing that it was time to cover short positions in WTI crude oil futures (or related exchange traded products). Since that post, three key pieces of technical

Market Update: Earnings, Financials Driving Stocks Higher

I was on Fox Business on Tuesday and had a good market discussion discussing everything from the Fed to Corporate earnings to the Financials sector with hosts Liz Claman and David Asman, and guests Larry Shover and John Buckingham. I’ve been on a few times with Larry and I’m a big fan. He kicked things of pointing out the economic data still isn’t perfect and the Fed will act very slowly.

Gas Prices: Seasonality, Sentiment Indicate Higher Prices Ahead

Gas prices have been heading lower over the past several months and are down 19% since the June high. This has been great news for drivers and especially families taking road trips throughout the summer. However, it appears we may start paying more at the pump as gas prices begin to bottom out. Price and Momentum Below is a daily chart for the spot price of Unleaded Gasoline (RB_F) since mid-2012.

Why Next Week Is The Worst Week Of The Year For Stocks

Next week is the 38th week of the year. Might not mean much to you, but this is actually the worst week of the year for the S&P 500 (SPX) going back to 1950. Yes, I just noted how September options expiration week (this week) tends to be strong, but it all changes next week. Now the 38th week usually takes place during the latter part of September and we all

Dow Theory: Caution Flags Or Green Light?

What Is Dow Theory? Dow Theory’s stance has changed in the last 30 days; this article covers the recent improvement in the observable evidence. Before we cover the updated charts, it is important to revisit the fundamental concepts they convey. Dow Theory is based on a series of Wall Street Journal articles written by Charles Dow. The basic tenets are easy to understand. Charles Dow believed that: In order for

Russell 2000: Bulls and Bears Favorite Way Of Looking At Small Caps

Year-to-date, the Russell 2000 (RUT) has lagged the S&P 500 by almost 8%, a fairly wide divergence. This divergence has a few investors concerned that this is a sign of weakness to come in the broad markets. But an interesting technical development highlights an important near-term intersection of time and price. The chart below takes a technical perspective of how the bulls & bears could be looking at small caps.

Dow Transports: Generationally Overbought. What’s Next?

Though backed up against long-term trend line resistance, the Dow Jones Transportation Average (DJTA) continues to grind higher in 2014,  moving from strength to strength in it’s largest nominal and real cyclical move higher since at least the mid-1980s. As a result “The Transports” have entered a rarefied, “persistently overbought” state on its monthly chart.  Since the Crash of 1987, DJTA has gone through 9 “persistently overbought” periods, defined here

Emerging Markets (EEM) Underperformance: Charts In Focus

The Emerging Markets sector has been a tricky play for active investors. 3 failed rallies in 3 years has left many with a poor taste in their mouths. And once again, the rally is on. Is it for real this time? The Emerging Markets ETF (EEM) has put together a strong rally out of the February bottom and is currently attempting to breakout above key resistance. But EEM has a few issues to

3 ETFs For Trading Japanese Equities Amid Yen Weakness

There have been a couple of developments in the Japanese markets that traders are (or should be) monitoring. In the equity markets, there is a bullish consolidation pattern developing that active investors with an intermediate-term horizon may benefit from. Yet, at the same time, Japanese equities investors will need to keep an eye on the currency market with a focus on the impact of a weakening trend in the Japanese Yen’s value to the US Dollar.