The chart above has some common characteristics found in a potentially bullish formation known as an inverse head-and-shoulders pattern. A break of the orange neckline will improve the odds of the current rally in equities carrying quite a bit further.
Is This Lagging Sector Ready To Lead?
November 14, 2014 by Leave a Comment
Investing is about probabilities. The improving fundamental and technicals in the housing sector tell us the odds of success in that sector are also improving. It should be noted that even if the weekly trends continue and homebuilders lead, that does not remove normal retracements and pullbacks from the equation. The odds of good things happening in homebuilders are better today than they were in early October.
Could The S&P 500 Fall To 1,625?
October 16, 2014 by Leave a Comment
A Trip Down Correction Memory Lane Since the correction-less market theory has been dropping transmission parts over the last three weeks, it is prudent to revisit some topics we have touched on in the past. We will focus on two questions: How far can stocks drop? How long can corrections last? History Says Corrections Can […]
A Rational Look At Stock Market Risk
September 22, 2014 by Leave a Comment
No Fear Mongering, Just Facts Group of 20 finance chiefs and central bankers said current risks include uneven growth and the possibility of excessive risk-taking in a low interest rate environment. They also pointed out that when push comes to shove, they will continue to stimulate. From Bloomberg: “It is critical that we take concrete […]
Anatomy Of A Stock Market Turn
August 28, 2014 by 2 Comments
Catch-22 Data Hits Tuesday Before we begin to examine the recent bottom in the stock market, investors were greeted with an eye-popping nugget of economic data Tuesday morning. From Reuters: The Commerce Department said on Tuesday durable goods orders, items ranging from toasters to aircraft that are meant to last three years or more, […]
Adjusting Your Investments
July 1, 2014 by 1 Comment
Regular readers know our approach involves meticulously paying attention to known information about the markets and making allocation adjustments when conditions change. Small caps provide a recent example of how this approach can be helpful to investors and traders.
How Should Investors Handle Iraq?
June 12, 2014 by Leave a Comment
Less than three years after the abrupt U.S. pull-out of Iraq the country is falling apart as Islamic militants who seized cities and towns vowed to march on Baghdad and settle old scores. In northern Iraq, Kurdish security forces moved to fill the power vacuum — taking over an air base and other posts abandoned […]
It’s Difficult to Buy the Rumor
June 4, 2014 by
Rumor has it that the European Central Bank (ECB) fears low inflation or even deflation so what should we do with our investments? Should we, as the old saying goes, “buy the rumor, sell the news?” In today’s article Chris Ciovacco, looks at what is expected from Thursday’s ECB statement and what to do about […]
What Is Dow Theory Telling Us Now?
May 13, 2014 by Leave a Comment
Positive Message For Manufacturing Stock prices have a high correlation to economic activity and earnings. History tells us bear markets are often kicked-off by recessions. The head of one of the nation’s closely watched manufacturing indexes says a recession does not appear to be imminent. From ThomasNet News: In a one-on-one interview with ThomasNet News […]
Stocks: Four Reasons To Have Defensive Contingency Plans
April 8, 2014 by Leave a Comment
The stock market is nearing the typical length for a bull market and today Chris Ciovacco shows us four reasons caution is advised regarding the current market.
