Category: Market Breadth
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Breadth of the Stock Market Indicates Internal Weakness and a Stealth Bear Market
I focus most of my attention on my own positions or those on my lists for portfolio management. Nothing is more telling than what the stocks on my lists that meet certain fundamental earnings growth… Read More
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Interesting convergence between small and large company stocks
Market cycles and trends are dynamic, ever evolving, so labels such as big and small are subjective, relative, and change over time. Everything is impermanent, so nothing lasts forever. Investors expect smaller companies stocks to… Read More
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The weight of evidence is becoming increasingly bearish for the US stock market
“The trend is your friend, until the end when it bends.” Stock indexes making higher highs and higher lows is a good thing – until it isn’t. I run a combination of systems. Most of them… Read More
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If we’re going to see a second leg down, this is where I think it will start.
“I still had much to learn, but I knew what to do. No more floundering, no more half-right methods. Tape reading was an important part of the game; so was beginning at the right time;… Read More
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Volatility contraction, sentiment shifts, and most are participating in the uptrend
On February 6th, I shared and observation in “19 is the new 20, but is this a new low volatility regime?” the lower level of implied (expected) volatility at the time may be driven by two… Read More
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Panic selling drove a waterfall decline and washout for the stock market
Growing up in East Tennessee and the Great Smoky Mountains, I observed a lot of waterfalls. Wiki says a fall of water is an area where water flows over a vertical drop or a series… Read More
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Is the panic selling drying up?
After yesterday’s continued selling pressure, only 7% of the S&P 500 stocks remain in uptrends as measured by the 50-day moving average. As most stocks are participating in the downtrend, this breadth measure is about… Read More
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The stock index falls below its long-term trend, but stocks are now getting oversold
The stock index falls below its long-term trend, but just as stocks are getting oversold. The 200-day moving average was about 11% below the high February 19th, just eight days ago. As you can see… Read More
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Stock market recoveries are a process, not an event
After yesterday’s close, the popular stock market indexes, including the S&P 500, Dow Jones Industrial Average, and NASDAQ were down around -3% for the day. Adding volatility bands around the price trend and its 20… Read More
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Stock prices may not be finished falling, but some opportunities for asymmetric risk-reward may be present for those willing to take risks
Based on my velocity measuring algorithms, the stock indexes are now starting to get oversold. That is, the stock indexes are reaching a point we could see at least a short term countertrend back up,… Read More