Morning Comment: Europe Breaking Key Support Levels


As a reminder, I will be presenting at the MoneyShow's Virtual expo today at 1:20. Click here to sign up for this conference for free. Thank you and I look forward to the Show!


The last thing President Trump wanted this week (the week before the election) was a significant increase in Covid cases in the U.S. around the globe...and a substantial decline in the stock market...but that’s exactly what he’s getting. (The right wing conspiracy theorists must be apoplectic today.).......If the DJIA opens where the futures are telling us it will open as we write (down 600 points), that index will be down more than 5% so far this week! No, the DJIA is not the index that most people on Wall Street follow most closely, but it IS the index that most VOTERS follow most closely, so this is a bad week for the GOP.

Today’s weakness is being led by an outsized decline in European stock markets...due to further fears about the strength of this new wave of the coronavirus...and the lockdowns that will go with it. We highlighted the fact that Germany’s DAX was close to testing key support Monday morning...and it has broken that support today. As we said two days ago, the DAX had already broken well below its trend-line from March...and was then testing its 200 DMA (which had provided solid support since June). This week’s more than 7% decline has taken it well below that line, so unless it bounces back and regains that line immediately (like it did in mid-June), this is going to be a very bearish technical development for Europe’s most important stock market.......We do need to point out that the DAX is becoming oversold, so a quick bounce-back is not out of the question, but today’s action still ...

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Morning Comment: A Rise in SAP-type Announcements Will Be Quite Bearish


  • A rise in SAP-type announcements will be quite bearish.
  • CAT is overbought near-term, but any eventual break of its 2018 highs will be VERY bullish.


There is no question that yesterday was a rough day for the stock market...as the ...

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Morning Comment: What is SAP telling us?


As a reminder, I will be presenting at the MoneyShow's Virtual expo in this Wednesday. Click here to sign up for this conference for free. Thank you and I look forward to the Show!


Well, we have just over a ...

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THE WEEKLY TOP 10


I was out of the office and out of contact with the markets on Thursday and Friday in order to attend a memorial service. Therefore this weekend’s piece will be quite a bit shorter than usual...and there will only be ...

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Morning Comment: Yields testing resistance....NFLX testing support.


The market finished the day with a decent gain yesterday, but it closed well off its early afternoon highs. The gain also came on lower volume and mediocre breadth (2.4 to 1 positive on the S&P 500)...so the action so ...

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Morning Comment: LA Dodgers!


For the first time in the history of Major League Baseball, a team has come back from a 0-3 deficit to win their League’s Championship and move-on to the World Series. That’s right, the LA Dodgers were able to come ...

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THE WEEKLY TOP 10


Quick Note: I will be participating in the next "MoneyShow Virtual Expo" that runs from October 27-29. I will be presenting early in the afternoon on October 28th and I hope you will join me. They have a fabulous line-up ...

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Morning Comment: Bullish "internals" this week.


We got more evidence yesterday that this week’s “breather” in the stock market will be followed by a further rally into the election. We’ll still have to watch the action in the market for a couple of more trading days, ...

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Morning Comment: Keep Watching the Dollar


We had been expecting a pull-back in the stock market after its nice two-week rally, so the decline in the market yesterday was not a surprise. In fact, it can be seen as normal and healthy. Of course, if the ...

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Morning Comment: NY Sports Teams Have Become Irrelevant (and that's not good).


It should be a quiet day today...as the bond market is closed for Columbus Day (or whatever the call it now)...and a lot of market participants (both bond & stock market players) have taken a three-day weekend. To be honest, ...

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Morning Comment: Next Week Will Be Very Important For The Stock Market


Our apologies for not publishing yesterday, we had a power outage and it took quite a long time to get back up and running yesterday. Anyway, our feeling is that the only thing that will really be remembered from the ...

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Morning Comment: Bank stocks and the yield curve


The stock market rallied nicely yesterday...and although talk of a fiscal deal out of Washington and news that President Trump was leaving the hospital got a lot of the credit for the advance...we believe the falling odds of a contested ...

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