Like a broken record, major indices remain stretched, extended and overbought while bullishness has become rampant. In fact, our sentiment numbers are almost surpassing the numbers we have seen when the market was topping into October. But everyone continues to ease…everyone is printing money…central bankers do not shut up about the potential for more QE…
We are watching the big financials here. BAC,C,GS,JPM,MS,WFC are all acting constructively. If they can break out of the range-bound action they have been in, be rest assured there will be more upside in the market. As we have told you forever, if big finacials and the semis are acting well, there is no chance…
We had a report about yesterday’s icky action all set for you. We could have talked about any number of things…the Russell again leading on any down move, the Regional Banks rolling over and a few other tidbits but only one thing stood out for us. It is the same thing that stopped the markets…
Besides central banks, the falling price of oil is one of the dominant market moving forces as we move into end of year trading. Here is what is and looks to be the winners and the losers. Winners: The consumer. Every 10 cent drop equals about $10 billion in the consumer’s pocket…and that’s just here…
Near term, markets remain stretched and extended to the upside…except as usual, the Russell 2000 and small caps. Bullishness remains rampant with some numbers off the charts. We are now past the Thanksgiving seasonal bias so with the negative divergence late in the week, don’t be surprised if markets do indeed settle down a bit…
Source: http://www.economist.com/news/books-and-arts/21633785-academic-investigation-networks-control-russia-band-brothers?fsrc=scn/tw/te/pe/ed/bandofbrothers
Amazingly, OPEC has no reaction to plunging prices and does nothing. This morning, prices are gapping down in a big way for the price of oil and the underlying stocks. Lesson time: just about the whole energy complex has been in a bear market since the breakdown in July. How does one know when something…
I have been amazed to read many articles by pundits saying lower oil prices are a bad thing. Their contention is based on lower prices are forecasting a major global recession. I have news for them. That is just a guess. If they were smart, they would just deal in the facts…and the facts are…
As we stated, this week contains a positive seasonal bias. So far…so good. The market was much better than the Dow yesterday and will never complain about that. Even the small caps got into the fray as the Russell actually led up yesterday. If that continues, the market only strengthens. We have no complaints here…
Hopefully in the future we will not have to talk central banks any more. But…right now…they are front and center with no end in sight to the trillions that are being printed. As the markets were swooning into a bear phase, a coordinated effort was hatched around the globe. By no coincidence, at the same…
