You Can t Fall Too Far If You re Going Sideways Let s look at this either/or market and why we just aren t getting the big whoosh. (And what ever happened to the inflation rate fears?)
Let s go back to the notion of a whoosh.
In a true whoosh, the market gets so cleaned out, all the selling is finished, such that the resistance overhead is minimal. That is clearly not the case in this market. It remains an either/or market. And I am still in the camp that growth stocks should see some rotation back to them.
Let s first note interest rates. They have been steady for months. And as I noted last week, it seems for now that the inflation obsession has tapered off somewhat. The
The S&P Is Up, but Are Your Stocks? Here s why my inbox was filled with complaints on Thursday.
Apr 30, 2021 | 06:00 AM EDT
So many will hail the fact that the S&P 500 is going to be up somewhere along the lines of 10% for April. There will be all sorts of statistics thrown around about how great that is for markets going forward or how it was the best April since whenever.
So why is my inbox filled with complaints?
I ll tell you why. Because the month has been a boon for the S&P, but the Nasdaq has spent the last two weeks in a chop-fest. The Russell looks as though it will be up around 3% on the month and that is if you didn t get shaken out on the 4% whack two weeks ago.
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The Market Throws Us a Curve Ball Let s check under the hood for the interesting twist that occurred late last week, the short-term overbought/oversold readings, sentiment and more on the indicators.
Apr 19, 2021 | 06:00 AM EDT
An interesting twist occurred in the market last week. The short-term overbought reading for Nasdaq, which is based on the advance/decline line, went from overbought to (almost) oversold. That is how crummy Nasdaq breadth was last week. Six of the last 10 trading days have seen Nasdaq breadth negative.
The same is true of net volume for Nasdaq: Six of the last 10 trading days have seen more downside than upside volume. Yet in the last 10 trading days, Nasdaq has managed to tack on 4%. Oh, sure, most of it came two weeks ago since last week Nasdaq only managed to eke out 1% (barely) for the week. But that s the weakness under the hood.