Kevin Duffy of Bearing Asset Management thinks we are facing another major bear market.
Kevin Duffy thinks that this 8 year bull market has been one of the most anemic recoveries since World War II. Also, valuations are very stretched. Duffy thinks we are in a stimulus bubble.
The Tech Bubble was very narrow. (Read More….)
I have downgraded the market further today with the rating that Bears have the advantage over Bulls going into Wednesday. Here is my objective reasoning for downgrading the market further after today’s trading.
The NYSE percent of stocks above the 50 day moving average is plunging as traders have been rushing for the exit across (Read More….)
I have downgraded the rating of markets to Sidelines after the bearish cross today of the TSI on the S&P 500.
The NYSE percent of stocks above the 50 day moving average has fallen off a cliff. With the 13 day EMA crossing below the 50 day EMA.
The NYSE McClellan has broken (Read More….)
For the first time since the Trump rally began on November 7, 2016, we have actual catalysts that are powering markets higher. President Trump continued to use executive powers to start implementing some of his campaign promises. Today he signed off for the continuation of the Keystone XL and Dakota Access pipelines. The Energy sector (Read More….)
The Twiggs Money Flow is falling on the major indices. That means that traders are choosing to sell out of the market and book their profits.
S&P 500 Chart
Comments: The money flow has been falling on the S&P 500 this entire week. Watch 2193 support level. In an uptrend, previous resistance should become (Read More….)
The high yield debt chart is very troubling IMO. If we overlay the S&P 500 and the high yield debt chart, a huge bearish divergence is revealed. Check out this chart with the red line being the S&P 500 and the purple line being high yield debt.
High yield debt (purple) is nowhere near (Read More….)
Franklin Financial Network provides various banking and related financial services to small businesses, corporate entities, local governments, and individuals.
Franklin Financial Stock Chart
Chart Comments: Testing previous resistance at around $38. Inverted hammer with long upper shadow is bearish and may indicate a pullback is coming. Wait for close above $38 before long entry. (Read More….)
Traders get confused by price action in bonds relative to the stock market because of perma-bear websites like ZeroHedge. Folks, the most reliable signal for how bonds impact the stock market is very simple.
Look At Bond Prices
Your primary research into bonds should always start with bond prices first, then yields second. A bond (Read More….)
Stocks that have a positive divergence between the Twiggs Money Flow and price. Today’s stocks include DAR, GME, MMS, OPHT, PEIX.
Darling Ingredients Stock Chart
Comments: BlackRock, EMINENCE CAPITAL, and SOUTHERNSUN ASSET MANAGEMENT have been accumulators of DAR during 2016. Solid valuation at P/E 16.4, and forward P/E 19.6. Huge buy side volume on (Read More….)
Stocks with a positive divergence between the money flow and price for November 22, 2016. Tickers: TAST, HWKN, RETL, WLH.
Carrols Restaurant Group Stock Chart
Comments: Nobody knows why this stock is moving higher. Don’t like chasing stocks without a clear catalyst. Not saying one isn’t there, just not one that I’ve found. Could (Read More….)
The stocks below have formed a bullish divergence between the Twiggs Money Flow and price on November 21, 2016.
Aceto Corp Stock Chart
Comments: Coming up to horizontal resistance (red line). Breakout of horizontal resistance will take the stock to $21.50, a quick cha-ching play.
CVR Partners Stock Chart
Comments: Broke above 50-day (Read More….)
We pulled off an incredible victory of getting Donald Trump elected. Congrats guys, we did it. Now the first point of focus is the backward bending Laffer Curve. Thanks to the reckless policies of Democrats and Obama, the national debt is up to almost $20 trillion dollars. The horrible national debt leaves Trump with little (Read More….)
For the week the S&P 500 fell -1.9%, the DJIA fell -1.5%, and the Nasdaq plunged -2.8%. Last week the VIX shot back above 20 to trade at levels not seen since the June Brexit vote. The S&P extended its longest losing streak since 1980 with its ninth consecutive decline on Friday.
Oil was (Read More….)
We have enough data to say that inflation is finally trending higher.
In case you are wondering why inflation moving higher is important, please review this.
The less volatile sticky CPI confirms the uptrend.
ObamaCare has exploded the cost of medical care higher.
Medical care commodities, which are prescription and (Read More….)
For the week, the S&P 500 lost -1%, the DJIA fell -0.6%, and the Nasdaq dropped -1.5%. Last week, preannouncements from Honeywell, Dover, Ericsson, and Fortinet scared traders, along with a disappointing Q3 report from Alcoa. HP announced a cut of 3,000 to 4,000 jobs across all divisions because of challenging market conditions.
Friday’s solid (Read More….)
We all love rising wages, but it is rising wages that will cause the next recession and Bear market.
Below is a chart of labor costs (red) versus corporate profits (blue).
A clear pattern emerges from the chart above. Profits rise after a recession as labor costs fall. When the labor market reaches (Read More….)
The months of October and November are the two best months of the year for small cap stocks. This seasonal strength in small-cap stocks during the 4th quarter is well documented. The Stock Trader’s Almanac writes:
October has killed many a bear; Buy techs and small caps and soon wear a grin ear to ear.
Never underestimate the utter wickedness of institutional traders. The ‘Get Shorty’ trade is on. The way the trade works is that institutional traders stir up the bearish sentiment in the market by going out in the mainstream media and talking up doom and gloom.
In after-hours trading, they buy S&P futures causing the market to (Read More….)
The Bears strengthened their dominant position over Bulls today as evidenced by the falling money flow on the S&P 500.
No institutional buying was detected today on the TICK. Why isn’t the smart money buying and loading the boat on this market pullback?
The S&P 500 High Low index continues to plunge.
The world’s largest funds are sovereign wealth funds used by countries to run an entire government and to provide social welfare programs for the people. Back in January of 2015, I wrote about the drop in the price of oil impacting sovereign wealth funds here.
It was inevitable that if oil did not recover quickly, (Read More….)