Now that’s what I’m talking about. I have been discussing the overbought technical conditions of the S&P 500 for some time and the need for a pullback to test bullish support levels. And as many commentators have suggested, the more time between pullbacks, the more severe is the action when it finally arrives. Bears had become very hungry after a prolonged hibernation. This week offered up a nasty pullback. Read more about Sector Detector: Patient bulls finally get a new entry point, thanks to inflation fears

Scott MartindaleOnce again, stocks have shown some inkling of weakness. But every other time for almost three years running, the bears have failed to pile on and get a real correction in gear. Will this time be different? Read more about Sector Detector: Bold bulls dare meek bears to take another crack

Despite a highly eventful week in the news, not much has changed from a stock market perspective. No doubt, investors have grown immune to the daily reports of geopolitical turmoil, including Ukraine vs. Russia for control of the eastern regions, Japan’s dispute with China over territorial waters, Sunni vs. Shiite for control of Iraq, Christians being driven out by Islamists, and other religious conflicts in places like Nigeria and Central African Republic. Read more about Sector Detector: Bulls remain unfazed by borderline Black Swans

Scott MartindaleMore unnerving conflicts around the globe have flared up, but as usual, U.S. equity investors have given it nary a yawn as they seem to have become pretty much numb to the steady stream of unwelcome news, particularly out of the Middle East. Now we enter the summer version of earnings season. Read more about Sector Detector: Will earnings season provide the next catalyst for stocks?

Stock investors entered the Fourth of July holiday on a high note, pushing the Dow Jones Industrials Index above 17,000 and the Wilshire 5000 Total Market Index above 21,000, and even pushing the S&P 500 to a smidge above the upper trend line of its long-standing bullish ascending channel that has been in place for nearly three years. Read more about Sector Detector: Summer slog likely to keep a lid on further stock gains

U.S. stocks just continue to cruise right along, although investors seem to be displaying a healthy level of caution, looking over their shoulders as they whistle past the graveyard and bet on ongoing improvement in corporate earnings and economic growth. Despite extremely overbought technical conditions and regional hot spots that may ultimately threaten global economic recovery, investors seem undeterred. Read more about Sector Detector: Stocks cruise right along, whistling past the graveyard

Scott MartindaleAfter its long-awaiting breakout of the 1900 level the other week, the S&P 500 gained another +1.3% last week alone, but this double-low progression as I call it -- i.e., on extremely low volume and with persistently low volatility -- is worrisome. Read more about Sector Detector: Bulls revel in the new normal, while bears lie in wait

Education is the ability to listen to almost anything without losing your temper or your self confidence.” -- Robert Frost

Right now, it looks like it would take a major downside event to prevent the major indices from having a swimmingly good year. Read more about ETF Periscope: Low Volatility Levels Provide Hedge Opportunity at Discount Rates

daniel / Tag: SPX, DJIA, NASDAQ, COMP, VIX, VXX, KIE, FXO, XLF, IYF, VFH, volatility, CBOE, Fear Index / 0 Comments


Wall Street seems to be in a bit of a holding pattern, not quite sure which way to go as it ponders how to respond to the possibility of another war, a domestic economy that seems to sputter out with regularity, and the inevitability of a tapering off of the massive bond-buying program that has goosed the equity market to record highs. Read more about ETF Periscope: Investors Unimpressed With Sound of War Drumbeat

daniel / Tag: USO, DJIA, COMP, SPX, VIX, FDN, SOXX, FXL, SMH, QTEC, IGV, VGK, NYMEX, Syria, volatility, Middle East, Crude Oil / 0 Comments

If you happened to blink last Thursday, you probably missed an event that contains powerful implications for investors and, well, pretty much anyone who has a stake in the economy. That’s when China’s Shanghai Composite Index experienced a 6% swing, going from a roughly 1% loss to a 5.6% gain. And this happened over the course of a mere two minutes.

To put that in perspective, the Dow Jones Industrial Average (DJIA) would need to undergo a 900-point swing to experience a similar move.

In other words, it was a huge intraday move, but a staggering two-minute one. Read more about ETF Periscope: Chinese Flash Crash Reminder That Volatility Lurks Always

daniel / Tag: DJIA, COMP, SPX, FDN, SOXX, FXL, SMH, QTEC, IGV, VGK, Flash Crash, volatility, Shanghai Composite Index / 0 Comments

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