Investing Research

Why Investors Shouldn’t Fear New All-Time Highs

The S&P 500 (SPX) just closed at another new all-time high today. We’ve heard a lot how new all-time highs are a reason to be worried. Been hearing that for over a year now actually. Sure, major peaks took place in 2000 and 2007, but the reality is we saw a lot of new highs made in the meantime. In fact, last year there were 45 new highs, so along

The Anatomy Of A Stock Market Turn

Before we begin to examine the recent bottom and subsequent stock market turn higher, investors were greeted with an eye-popping nugget of economic data Tuesday morning. From Reuters: The Commerce Department said on Tuesday durable goods orders, items ranging from toasters to aircraft that are meant to last three years or more, jumped 22.6 percent last month after an upwardly revised 2.7 percent increase in June. July’s increase was the

Why Traders Should Focus On Signals And Tune Out Noise

Among the mistakes of the new traders that never make it to profitability is the fact that they never develop a filter to enable them to see what really matters in the financial markets. Much of what a new trader is exposed to is just pure noise. Noise does not lead to making money, it leads to confusion and frustration. What the new trader must be in search for is

Week Before Labor Day Has Been Bearish For Stocks Lately

Summer is almost over, kids are going back to school, and we are looking at a pretty solid August so far. What I like about this month is housing and consumer discretionary are finally leading. These groups haven’t done anything all year and to see them finally leading could be a good sign as we inch closer to Labor Day and the month of September. I was on Fox Business

Wall Street Is Bullish And Main Street Is Bearish: Who Is Right?

As this bull market continues to trend higher and defy nearly all bears along the way, the confusion continues to mount. Recently I noticed two things that really stood out and showed the level of confusion is about as high as it can get:  Just look at the difference between what Wall Street thinks of equities and what Main Street thinks of equities here and now. A month ago for

Is The Options Market Signaling More Upside For Stocks?

One of my favorite indicators could be flashing a major buy signal here.  I’ve used the 21-day moving average of the CBOE options equity put call ratio a lot the past few months and it has done a good job of predicting things.  Here’s why it could now be sending a bullish signal. First off, to keep this simple, when this equity put call ratio trends lower – it has

Nasdaq 100 Breaks Out: Follow The Leader Part 2

There have been two important stock market lows this year and both came early on.  The first low came in February and ultimately could mark the low for 2014. The second one came in April and I would argue that it was the more important of the two.  Let me explain:  The April low saw a full retest of the February lows for the Nasdaq 100 (NDX) and Russell 2000 (RUT).

Why August Volatility Is Normal And Bulls Are Still In Charge

While in New York last week for a Yahoo Finance Contributor’s party, I dropped by the Wall Street Journal and shot a video with Paul Vigna for MoneyBeat. You can find the video at the bottom of this post, but one of the themes was August volatility and what to expect from this bull market. Here’s a summary of what we discussed: Seasonality is a big worry here. August and

Why European Stocks Demand Your Attention

As European stocks began to crack in early July, U.S. equities continued to climb higher. Although this divergence seemed minor at first, it would turn out to be a near-term warning for global investors. Indices like the S&P 500 would eventually follow European stocks lower. And when coupled with the recent stealth drop in the Euro, it’s apparent that concerns around the Russian-Ukraine conflict (and correlated markets) need to be on our collective

Traders: Wait For Crude Oil Bounce Before Going Short

It looks pretty clear at this point that WTI Crude Oil futures have broken down from a substantial topping formation. A head and shoulders top could be drawn a few different ways. I prefer not to get hung up on every detail of a chart pattern or the measuring implications. The bottom line here is that crude oil has broken below a threshold that leaves it without any meaningful technical