Stocks & Bonds

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.

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.

Recognizing When You Are In Trading Tilt

Tilt is a poker term for a state of mental or emotional confusion or frustration in which a player adopts a less than optimal strategy. Do you think this can apply to the markets as well? Absolutely it can. Have you ever had a period of trading where nothing seems to go your way and you start to doubt your process and your decision-making? Well, that is being in Trading

Why September OpEx Could Be Very Bullish For Stocks

Next week is options expiration week. From here on out, I’ll just call it September OpEx. Last month, I took a closer look at August OpEx and today I’ll look at what September OpEx has historically done. I’ve long noted how this week tends to go with the overall trend, only it is more magnified. For this reason some of the best weeks the past five years have taken place

United States Equity Markets: Bend or Break Moment

The developing secular bull market in the United States equity markets has been driven by a flood of liquidity resulting from the global monetary experiment conducted by the major central banks of the world. The move has defied forecasts (including my own), pushed many market indicators into the trash and as a result, forced many market participants to play catch-up. To provide perspective, the NASDAQ Composite (COMPQ) is only 100