Investing Research

Is A 1929/1987-Like Crash Imminent?

A Logical Comparison Before we compare 2017 to 1929 and 1987, it is helpful to understand our frame of reference in the context of sound decision making. From the Harvard Business Review: Bad decisions can damage a business and a career, sometimes irreparably. So where do bad decisions come from? In…

S&P 500 Could Record First Counter-Trend “Sell” Signal In Weeks

S&P 500 futures (and broader indexes) are showing first signs of weakening down to new 4-5 day closing lows as of today, while the NASDAQ 100 (NASDAQ:QQQ) has been down every day except Tuesday.  This may catch up to the S&P 500 (INDEXSP:.INX) near-term. So while we’ve had 9 consecutive UP…

S&P 500 Trading Outlook For September 22, 2017

S&P 500 Index – Key Trading Levels & Considerations The S&P 500 Index (INDEXSP:.INX) is set to gap down into support at the open. Fades into support are likely today. Here’s a list of trading support/resistance levels to watch today: Bounces are likely to reject at resistance at lower highs….

Continental AG: A Foreign Automotive Stock Worth a Look

For today’s stock spotlight, I’m heading overseas and looking at an automotive supplier that has the potential to offer something for both value and growth investors. Many of you may know them for their tires… Continental AG (CTTAY) Continental is a $50B company in Germany that provides automotive supplies, involved…

S&P 500 Chart Spotlight: 2500 and Big Round Numbers

The S&P 500 (INDEXSP:.INX) is still technically in rally mode as the short-term and intermediate-term trends are in tact. However, stocks are sure magnetized to the 2500 level on the S&P 500 and 6000 level on the Nasdaq 100 (INDEXNASDAQ:NDX). For traders, patience some is required. We are all different…

Nasdaq 100 (NDX) Trading Update: Topping Formation?

As mentioned in the title, the chart of the Nasdaq 100 Index (INDEXNASDAQ:.IXIC) is showing topping formations. The chart below shows overhead resistance… and how momentum is beginning to stall out for large cap tech stocks. Although pullbacks are likely to be bought, traders should use caution here.  Below is…

S&P 500 Market Update: 5 Key Concerns For Traders

S&P 500 Trading Outlook (2-3 Days):  BEARISH The S&P 500 Index (INDEXSP:.INX) has now risen into the first important zone where a trend reversal could take place between now and Friday. Overall, 2520 (futures) should be an area to sell into on any opening Spike between now and Friday.  UNDER 2487, or last week’s…

Rewriting History: The Federal Reserve’s Epic Policy Bet

Chasing the Dragon “There is no other agency of government which can overrule actions that we take.” – Alan Greenspan The Federal Reserve (Fed) currently expects real economic growth for the foreseeable future to average below 2.00%. Japan, the United Kingdom, and the European region are forecasting an even more…

Commodities Update: What’s Next For Energy & Materials Stocks?

Last week we took a look at interest rate sensitive sectors to kick off our mini-series on core income. In our second edition of the of this series we examine the Commodity sectors: Energy (NYSEARCA:XLE) and Materials (NYSEARCA:XLB) both of which are very sensitive to economic conditions. These sectors tend…

Russell 2000 Volatility Index Hits Record Lows: Trouble Ahead?

Small-Cap volatility expectations just smashed previous record lows. I’ve written a fair amount lately on various themes related to volatility expectations in the stock market. Many of these posts focused on the behavior of volatility expectations relative to their underlying stock market indices, including one last week on the “stand-off” between the Russell…