Morning Comment: Watch the chip stocks for guidance


Wow, another wild day in the stock market yesterday. A 1.5% rally off the initial lows was followed by a 1% decline into late-morning. That, in turn, was followed by a 1.7% rally into mid-afternoon...which was then followed by another decline of 1.5%. Luckily, the market was able to see one bounce (a more mild one) into the close, so it was able to finish the day in positive territory. However, this is not the kind of action one sees in a healthy stock market.

If there is a silver lining to the dark cloud that this pull-back/correction is giving us, it’s that the lack of a new fiscal package from Congress is finally getting some of the blame for the decline.......Of course, we think the decline has a lot more to do with the fact that the stock market had become SO over-bought and over-valued...that it was going to take several “waves” of weakness to work-off those extremes. However, there’s no question that concerns over a lack of fiscal stimulus...as well as concerns about another “wave” of the pandemic...are helping fuel the decline during this renewed down-leg in this correction. (Lots of “waves” in our analysis right now. 😊)

Earlier this week, we highlighted our concerns about the technical condition of the European bank index...as well as weakness in the broad STOXX Europe 600. We're also watching Germany's DAX index...which is testing a key support level on a technical basis.

On this side of the Atlantic, we're closely watching the chip stocks...and one name in that group in particular. The chips have been an important leadership group, so whichever way things break in the near future should be important for the broad market.

To see more details on these issues...and to get our insights on a regular basis, please ...

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Morning Comment: European Banks Testing Critical Support Level


We saw a nice bounce in the stock market yesterday, but the trend on the “internals” on the market continues to be the same that it has been since the beginning of the month. In other words, “internals” continue to ...

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THE WEEKLY TOP 10


THE WEEKLY T0P 10


Table of Contents:

1) The stock market was (and is still) ripe for a further decline...no matter what the Fed said this week.

2) However, the Fed’s actions of the past decade HAVE put us in ...

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Morning Comment: DON'T BLAME THE FED for today's weakness!


We’ll start by saying that if it turns out be true that President Trump played a large role in getting the Big 10 to reinstate their football season, the election in over! Given how important college football is to the ...

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Morning Comment.....FDX: GREAT quarter, but VERY overbought....Stewart Cink.



The stock market gave back some of its midday gains late in the afternoon yesterday...after APPL slipped well off of its highs for the day and the dollar bounced back into positive territory for the day. However the stock market ...

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THE WEEKLY TOP 10



THE WEEKLY TOP 10


Table of Contents:

1) The “artificial” moves actually started in Q4 of last year (after the repo debacle).

2) When the market reaches the kinds of extremes it did in Aug, it takes time to work ...

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Morning Comment: Too early to "buy on weakness"



  • The "internals" during yesterday's rally were mediocre.
  • The call buying in AAPL was huge yesterday, so very little froth has been wrung out of the market. (Many mega-cap tech stocks are still quite overbought on an intermediate-term basis.)
  • It's usually ...
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Morning Comment: Watch Friday's intraday lows, they're KEY support


The U.S. futures are trading significantly lower this morning as the tech stocks (especially the mega-cap tech names) are under pressure once again. Our stance on this situation is a lot different than most. Many people are saying that it’s ...

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THE WEEKLY TOP 10

THE WEEKLY TOP 10


Table of Contents:

1) The sell-off in the stock market likely has more room to run.

2) An explanation of what has taken place in the options market this summer.

3) We’ll need more downside follow-through ...

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Morning Comment....Caveat Emptor


It has been a very different kind of year for the stock market and this week has been no different...as the week before Labor Day weekend has not been the normal boring week we usually see in the market place. ...

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Morning Comment.....Tom Seaver: An


Well, we finally got some good breadth on a strong day in the stock market...as the advancers vs. decliners were 11 to 1 positive on the S&P 500 index yesterday! It was strange that the breadth was only 1.4 to ...

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Morning Comment: Germany's DAX trying to breakout


Back in 1999, every once in a while we would jokingly exclaim, “The stock market will never go down again in our lifetime!” We did said that because it seemed like the stock market would rise every day no matter ...

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