We Just Pulled the Trigger 2 Investments – Read to Find Out Which Ones

The markets have showed renewed strength over the past few weeks after the recent pullback.  Our indicators and research demonstrated a resurgence in the broad markets, so we originally gained much exposure quickly by purchasing large positions in 2 broad indexed based ETFs. We did this so we could gain exposure from our heavy cash position after lightening up on…

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Creating ‘Income’ During Choppy Earnings IDB

Dan Stewart CFA®President/Chief Investment OfficerNorAm Asset Management It’s been a while since I have written an article because my Chief Investment Strategist, Tim Reazor, has been doing such a remarkable job with his newsletter articles and videos.  But Tim did a 2 hour in-depth market webinar last night and I thought it was appropriate to give him a break. So…

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Is the Big Correction at Hand?

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management First off, I would like to thank our Chief Investment Strategist Tim Reazor for his enlightening and informational webinar last night.  As usual, he was on fire, and it was well attended with over 100 people.  Even as long as I have been in this business, Tim still teaches or reminds…

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The Next Catalyst

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The jobs numbers came in better than expected on the abbreviated trading session on Thursday with 288,000 new jobs created in June.  Despite the fact that virtually all new jobs created were part-time jobs, the markets applauded the news. The DOW closed above the 17,000 level for the 1st time.  And…

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Did You Sell in May and Go Away?

Dan Stewart CFA®President/Chief Investment OfficerNorAm Asset Management Many market pundits talk about the old adage ‘Sell in May and Go Away.’  This means that if you move to cash during May thru October, and then reenter the markets in November through May, your returns will be enhanced. Over a long time period this is true, and based upon long term…

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Is Robert Schiller right and Valuations Too High?

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management First off, Tim and I would like to thank everyone who attended our Investment Workshop last Thursday night.  It was a huge success and my hat is off to Tim Reazor who did a marvelous job. We did have many people who wanted to attend but were unable.  For this reason,…

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Markets Defy Bad News

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The final revision to 1st quarter GDP was crushed, down -2.9%.  Durable Goods Orders were down -1%, well below expectations of .4%.  So the economy definitely slowed and the recovery is in jeopardy. Now I am not so worried about the GDP number as that is a lagging indicator and some…

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Yellow Flag

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management New Home Sales came in much higher than expected in May to the highest level in 6 year.  Consumer Confidence handily beat estimates as well.  It looked to be smooth sailing in morning trading with all of the indices in the green. But as investors digested home sales, they realized the…

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Never Short a Dull Market

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management Chines manufacturing came in better than expected and our Existing Home crushed estimates.  But that wasn’t enough to drive the markets higher. We traded in a very tight ranges throughout the day.  We were able, however, to finish near the highs closing flat to slightly down on all of the indices….

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Consolidation Over Iraq

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The markets hit resistance yesterday over fears the Iraqi conflict.  President Obama has upped the ‘advisers’ (troops) to 300 to be deployed.  The insurgents are very near Baghdad and some important oil fields. The good news is that stocks recouped their midday losses finishing essentially flat.  But that was near the…

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If There was Any Doubt, Yellen Just Confirmed She is a Dove

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management Yesterday Fed Chairwomen Janet Yellen allayed fears that she may be too ‘hawkish’ for the ‘doves’ liking by raising interest rates too soon.  Well, she put that to bed real quick.  She stated that even though the economy is recovering slowly, the Fed would continue the 10 billion per month taper…

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Will the Catch-up Last, and Stocks Stocks Stocks

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management Housing starts came in much weaker than expected, down -6.5% month over month (MoM) yesterday.  And the Consumer Price Index (CPI) came in much higher than expected.  It came in at .4% MoM, double predictions of .2%. Food rose .7% and gas & electric .9%.  But even if you take out…

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Will the Markets Remain Healthy

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The markets had a rough midweek but were able to rally on Friday.   All of the major indices got a boost from Intel (INTC), which was up almost 7%.  This certainly helped the DOW, but also the NASDAQ. The question you have is whether the markets remain healthy, or are…

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A Stock Bucking the Broad Market Pressure

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The World Bank came out yesterday and cut their Global Growth Forecast for 2014.  They had previously estimated growth for this year to be 3.2%, but revised it lower to 2.8%. I am not sure why anyone is surprised, they have been repeatedly wrong just like our Fed.  Their reasoning was…

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Breather as the Cheerleading Continues on 30 Stocks

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The headline reads “Dow hits a record for a 4th Day.”  Really?!  The DOW was up 2 points closing at 16,946: that is .02%, or completely flat. But the talking “money heads” want you to believe everything is hunky dory and you should continue to buy at these levels.  The DOW…

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Is the Market Too Bullish?

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The markets were able to log another day in the green in the face of virtually no economic data while the financial media is cheering from the sidelines.  It seems the euphoria from last week over a looser, friendlier ECB spilled over into Monday. The DOW is trying to move above…

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It Doesn’t Matter What You Think, What Is the Market Telling You!

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management Non-Farm Payrolls came in at 217k, just above estimates of 213k.  This was the 4th straight month of 200k+ growth.  Coupled that with the European Central Bank (ECB) announcement of  ‘negative interest rates’ and ‘more measures if necessary’ Thursday and the markets liked it closing the week with gains. Whether you…

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Negative Interest Rates Spur Rally?!

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The European Central Bank (ECB) announced they cut interest rates to negative -.10?!  What exactly does that mean might you ask?  It means banks have to pay the ECB .1% to park their money there rather than getting paid interest. Now it gives banks are real big incentive to take their…

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Tourniquet for the Slow Bleed; and a Sector You Should Look At

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The markets began the day in the red yesterday after disappointing jobs data.  But the Institute of Supply Management (ISM) Manufacturing numbers came in better than expected and the markets firmed up. Then as the Fed’s Beige Book was released showing expansion in all 12 districts, the markets rallied and held…

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The Overall Markets Remain Flat

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management Both vehicle sales and Factory Orders came in better than expected yesterday.  But the positive news wasn’t enough to move the markets higher. The 3 major indices exhibited fractional losses as did the S&P Midcap index.  The Russell Small Cap 2000 index lost -1/4%. Over the past 3 trading days this…

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Trend of the Blue Chips Continue

You’ve heard the expression “same ole same ole’ or ‘Groundhog Day’?  Well, that is exactly what happened with the markets yesterday.  It was virtually a rerun from Friday, but even quieter. Small caps again was the worst performer, down -1/2% again, followed by the NASDAQ.  And, once again, both the DOW and S&P 500 ground out nominal gains. The only…

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Shift from Small to Large – A Materializing Theme

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The markets finished the week with mild gains, although Friday the equity markets came under pressure.  The good news is that they came off the lows of the day, and the S&P 500 and DOW even closed fractionally in the green. The NASDAQ, and especially the mid and small cap segments…

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Taper the Taper!?

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management Revised GDP came in at a deplorable -1%, so we were officially negative last quarter.  And Pending Home sales came in at .4%, less than ½ of expectations.  The prior months reading was 3.4%, so we are heading in the wrong direction on both fronts, overall and housing. The equity markets,…

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Could GDP Be a Spoiler?

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The markets attempted to rally for a 5th consecutive day, but no such luck.  Investors were simply unwilling to get in front of the GDP number out this morning, along with the plethora of other economic data released today. If the GDP number surprised to the upside, the equity markets should…

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The Bond Market or the Stock Market

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The markets continued their rally on Tuesday after the 3 day Holiday weekend.  And the NASDAQ and Russell handily outperformed the S&P 500. The S&P 500 held above the psychological 1900 level closing at 1912, and is above its 50 day moving average (50 DMA).  Both are positive signs. The Russell…

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A Tale of Two Markets

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The markets seems to be gaining some momentum even if the volume is light.  The more aggressive sectors, namely the Russell 2000 Small Caps and the NASDAQ, have been heating up more than the large cap, “safe” companies. This hasn’t been the case the past month, or for the year for…

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Holiday Trading

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management Before I begin this newsletter, I would like to give a personal thank you to all of our Veterans and their families for the sacrifices they have made for our country and freedom.  Remember the real reason for this Holiday and thank a Veteran. The markets staged a muted rally yesterday…

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Wait for the Break

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management All seemed right with the world yesterday and the markets staged a nice rally recouping Tuesday’s losses.  There were only a few glaring problems, but other than that, it was fine J. First off, total volume was very light.  That means big, institutional money wasn’t participating.  Secondly, and perhaps more troubling,…

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Retail Sales Continue to Miss

Dan Stewart CFA®President/Chief Investment OfficerNorAm Asset Management The markets sold off yesterday with intensity.  Retail sales continue with the misses and the likes of Home Depot (HD), TJX Companies (TJX), and Dick’s Sporting Goods (DKS) are now added to the pile of disappointment. This is beginning to take a toll on investors’ psyche.  They have been told that everything is…

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Is the Coast Clear?

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The markets were in the red at the open, but then staged a rally and remained in the green the day.  It was a rally, albeit fairly mild. At least for the ‘’Big Boys”- the DOW and S&P 500. The NASDAQ had a much better day due to the big rally…

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Short Covering

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The equity markets spent most of the day in the red on Friday.  But then staged a late day rally in the last few hours of trading to close in the green. It was Options Expiration Friday, the 3rd Friday of every month, for monthly options.  This always skews the numbers…

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The Bond Market Was Right

I have stated in my last few newsletters the I was concerned due the strength in treasury bonds.  Even in the face of a higher PPI on Wednesday, bonds were up 1%!? They were telegraphing something was wrong under the surface. The bond market is much bigger and deeper than the stock market, and when things don’t add up, the…

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The S&P Couldn’t Hold the Line

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management Yesterday I wrote that that I had concerns about the current market levels.  That it would be important for the S&P 500 to hold the line at 1897 to remain above the recent range. Well, that didn’t happen.  The markets reversed lower with the DOW experiencing a triple digit loss. The…

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A Few Concerns are Materializing

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The equity markets were unable to hold their morning gains and closed near their lows of the day.  Only the DOW closed with marginal gains.  The S&P 500 was flat while the NASDAQ was down -1/3%. The more aggressive names came under pressure while the conservative issues held up, a complete…

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All Seems Right But I Have a Few Concerns

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The major indices hit new highs yesterday and all seemed right in the world.  The question you have is whether this choppiness and volatile action is over and now we will have smooth sailing ahead. I wish I could be more comforting about my answer, but there are a few concerns…

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Consolidation in Energy

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The markets struggled to find direction on Friday, but in the end, closed higher with a late day rally.  Most growth stocks are still struggling while the mega cap ‘value’ stocks continue to rally. I have written recently about the underlying weakness in the internals of the broader markets.  This is…

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The Flight to Quality Continues

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management   As I write this newsletter our power is out due to the intense electrical storms.  I am running off my laptop battery and therefore will be brief. Yesterday during the morning session the markets seemed to be doing just fine.  Stocks and bonds were both in the green.  Then we…

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‘Yellen’ at You

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management Fed Chairwomen Janet Yellen took a barrage of questions by members of Congress yesterday regarding inflation, stimulus, unemployment, the faltering economy etc… – You name it, she was asked.  She conceded that many Americans are still unemployed who want jobs and there are still challenges facing our economy.  Thank you Janet…

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Market Weakness Continues – I Hate to Say I Told You So

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The equity market continued to show weakness yesterday closing near the lows of the day.  And worse, selling volume accelerated in the afternoon.  The only good news is that total volume was light. Nevertheless, the DOW suffered a triple digit loss, but percentagewise the NASDAQ was the worst performer of the…

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Markets Rebound Off Lows, but Weakness Continues

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management   The markets rebounded off of the early morning selloff to finish moderately in the green.  At one point, the DOW was down over 130 points. My biggest problem with yesterdays ‘rally’ was volume.  Total volume was anemic.  It dropped double digit on both major exchanges. Buyers simply weren’t out, at…

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Doesn’t Matter the Reason, the Market is Flashing Weakness

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management Don’t listen to the talking heads on the financial channels cheerleading about the markets making new highs.  Did the DOW and NY Composite hit new highs this past week?  Yes.  But it doesn’t matter where the market has been, but rather where it is going.  And right now, the market are…

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Something’s Gotta Give

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management Yesterday the markets tried to climb higher on weak economic data, namely the weak jobs report.  Bonds rallied, and the 20 year treasury bonds as represented by TLT was up over 1%. That is a big one day move by bond standards.  Today we get the Payrolls data.  If it comes…

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Separation Anxiety

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The DOW hit an all-time high yesterday while GDP came in flat.  Expectations were for growth of 1.1%.  The Fed stated that the economy “slowed sharply” due to the cold weather in their FOMC Minutes release yesterday. The Fed does, however, expect the economy to pick up even though most of…

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The Beat Goes On

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The beat of the markets goes on to start the week off in volatile fashion.  The indices began the day in the green only to reverse quickly lower: sharply lower. The good news is that the markets recouped big losses across the board coming back in late afternoon trading.  All of…

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No Faceplant, but Don’t Chase Either

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The markets had a tough day yesterday closing near their lows of the day, especially on the NASDAQ.  It seems the right shoulder of the ‘Head & Shoulder’ formation became more pronounced. I have attached both a 1 day graph and a 6 month graph on both the S&P 500 and…

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Look for Pressure

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management Before I begin, remember the markets are closed Friday for Good Friday.  Enjoy with your family if you have the time off. We will be doing The Wall Street Shuffle radio show Saturday and will be sending a video at 9:30 Saturday morning via e-mail to accompany the show.  You can…

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Did You See the Markets?

    Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management     Wow, I felt like I was on a rollercoaster yesterday.  The markets opened in the green, only to have a vicious selloff around an hour into trading and continued till 1:00 ET. The NASDAQ actually touched its 200 day moving average (200 DMA), but then the reversed…

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How We’re Proceeding, What are Your Plans?

  Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management   Before I begin I wanted to let you know that we will be sending out a Video Newsletter Saturday at 9:30 a.m. just before our radio show, The Wall Street Shuffle, at 10:00 a.m. on 1190 AM in DFW.  It is a quick, 5-7 minute video with graphs of…

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The Selling Continues

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The markets once again experienced a broad selloff Friday.  The DOW experienced another double digit decline and both the DOW and S&P 500 were down almost -1%. The brunt of the decline was once again the NASDAQ and growth stocks.  The NASDAQ was down -1.34%. Selling was robust with Down Volume…

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Painful for Most, What’s Next

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The markets took a major hit yesterday erasing all of Wednesday’s gains, and then some.  It was broad and it was ugly. Now I wrote in Thursday’s newsletter that Wednesday stocks, bonds, the Yen, and commodities were all in positive territory, and that was unusual and unstainable.  Something had to give….

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March Madness

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management No, I’m not talking about College Basketball.  I’m talking about the Fed’s March FOMC Meeting Minutes release, affectionately known as the ‘Beige Book.’ Janet Yellen’s Fed essentially walked backed the implication that the Fed would begin raising rates later this year or early next year and took a much more ‘dovish’…

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Sector Rotation

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The equity markets experienced a rally yesterday, but with the exception of the NASDAQ, the other 2 Big indices were muted.  Like the NASDAQ, both the mid and small cap indices also had a solid day. This makes perfect sense as those 3 indices experienced the most severe selling during the…

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A Few Bright Spots in an Otherwise Down Day

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management Friday was a tough day for the growth stocks and high flyers.  Everything from biotech, to 3D printing, to cloud computing, to solar, to Facebook (FB) and Chipotle (CMG) all got taken to the woodshed with intense selling.  Certainly glad I sold my CMG & FB a week ago protecting profits…

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Take a Deep Breath While We Tell You What We Did

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The markets took a tumble Friday after being in the green the first few hours of trading depending upon the index.  The NASDAQ and Small Caps easily took the brunt of the damage with both down well over -2%. In fact, the NASDAQ was down -110 points, or -2.6%.  That’s a…

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Patience is a Virtue

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management As I write this newsletter we are in the middle of a lighting storm.  I do not want to plug my computer into an outlet and running off my battery, so I will be brief. With the exception of the NASDAQ and Russell 2000 Small Cap indices both which were down…

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A Late Day Rally

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management A late day rally took the S&P 500 and S&P Mid Cap indices to new highs.  We have now broken just above the recent trading range, and if it can hold it will be a bullish sign. The US major indices were all up around 1/4% with the exception of the…

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Risk On, But Will It Last

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The markets rallied yesterday on higher total volume.  Over the past month, large cap, blue chip defensive stocks have been outperforming the tech heavy NASDAQ, small and mid caps, and especially the biotechs. In short, the advance has been primarily defensive in nature.  Yesterday was different.  It was a ‘risk on’…

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Window Dressing

  Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The markets rallied yesterday and the reason cited was dovish comments by Fed Chairwoman Janet Yellen.  She allayed concerns that rates would rise soon, and treasury yields remained essentially flat on the day. While total volume increased from Friday’s low volume day, volume was still somewhat muted.  Up Volume was…

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Beware of Light Volume

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The markets rallied on Friday, but beware.  First off, it was on very light volume.  Second, the rally faded into the close. We had a big open with strong gains and the DOW was up over 100 points.  Then we simply trailed off throughout the day closing near the lows day…

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Still Choppy & Sloppy

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management The markets continued their choppiness yesterday even after solid economic data.  The indices recouped some of their losses and were even in the green early afternoon, but rolled back over going into the close. Both the S&P 500 and DOW were down mildly, but the NASDAQ was down 1/2%.  So investors…

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The Damage Done?

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management Yesterday morning I wrote to be suspect of the market.  Well, the market opened with a bang to the upside on a rosy Durable Goods Orders that handily beat expectations. The rally quickly fizzled giving way to a lukewarm market at best.  Then in the afternoon, the US and the EU…

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Suspect

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management 3 26 2014 The markets rallied yesterday, but on suspect internals. Once again the large cap blue chips outperformed the NASDAQ, mid and small cap segments of the markets. In fact, the NASDAQ and S&P Midcap indices were barely in the green, while the Russell 2000 closed just barely in the…

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Don’t Be Fooled

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management 3 25 2014 The DOW ended the day yesterday with only mild losses.  But don’t be fooled, there was much more weakness in the broader markets underneath the surface. This is especially true for the NASDAQ, midcaps, and small caps.  The S&P 500 finished down about 1/2%, while the NASDAQ was…

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Patience

  Dan Stewart CFA®, President NorAm Asset Management 3,24, 2014 The markets continue with their “choppiness” giving up earlier gains Friday with all of the indices declining.  While the DOW, S&P 500, and S&P Midcap indices were down just moderately, the NASDAQ and Russell 2000 Small Cap indices were the worst performers. The NASDAQ was down almost -1% and the…

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Patience

3 24 2014 The markets continue with their “choppiness” giving up earlier gains Friday with all of the indices declining.  While the DOW, S&P 500, and S&P Midcap indices were down just moderately, the NASDAQ and Russell 2000 Small Cap indices were the worst performers. The NASDAQ was down almost -1% and the Russell 2000 Small Cap declined -.44%.  Biotechs…

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What a Difference a Day Makes

3 21 2014 The markets completely reversed course and recouped the losses from yesterday.  Seems investors believe all the Fed tapering is much to do about ‘nothing.’ The economic data also gave a boost to the markets.  Leading Indicators and Initial Jobless Claims came in better than expected. Leading growth stocks were mixed, but some performed quite well, especially Chipotle…

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All Quiet, that is Until the FED Speaks

3 20 2014 In yesterday’s newsletter I told you the markets would be quiet tame after the release of the FED’s FOMC meeting minutes and Janet Yellen’s 1st press conference.  I stated volume would be light until then, and then the action, or in this case, fireworks, would start. That is exactly what happened.  Yellen confirmed that the FED would…

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‘Jellen’ with Yellen

  3 18 2014 The markets registered the 2nd gain in a row yesterday after Russian President Putin stated he wasn’t interested in any more of the Ukraine.  That makes me feel much better. Total volume increased which is a good sign, and we are resting right on top of resistance for most of the indices.  Up Volume was 79%…

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Russian Roulette

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management 3 18 2014 After a solid week of selling, our equity markets were looking for any excuse to rally. And yesterday, our equity markets were relieved that we, the US and the EU, are just talking about sanctions and not any kind of military action regarding the Russian invasion of the…

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China or Russia

3 10 2014 Before I begin, I would like you to know that I am taking a week off of my newsletter to spend valuable time with my family over Spring Break.  But rest assured, you are in good hands with Tim Reazor, our newest addition to The Wall Street Shuffle radio show, daily contributor to our newsletter, and Chief…

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What the Markets are Telling Us

3 7 2014 All of the indices were in the green yesterday morning while gold and oil were in the red.  But then, just after midday, that all changed. The markets weakened quickly giving up much of their gains, and gold and oil had a strong reversal to the upside.  It seems that the Ukraine is unfortunately at the forefront….

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All Quiet on the American Front

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management 3 6 2014 It was a tepid day yesterday with the markets finishing moderately mixed.  The S&P 500 was flat, the DOW was down -36 points while the NASDAQ was up 6. The internals were also mixed.  Total volume was down across the board with Up Volume 55% on both the…

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Short Lived or Not

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management 3 5 2014 The markets had a big day yesterday with the S&P 500 hitting new highs on news that Russia pulled back troops from the Ukrainian border and Russian President Vladimir Putin said he wasn’t interested in the Ukraine.  All of the indices loved the news rallied hard while precious…

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Internals Stronger than You Might Think

Dan Stewart CFA® President/Chief Investment Officer NorAm Asset Management 3 4 2014 International concerns trumped our better than expected economic data yesterday with the Ukraine front and center.  But the EU and Chinese manufacturing data also came in weak showing a slowdown on both continents.  Also, as a whole, interest rates globally are on the rise. This put a damper…

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US Markets versus Russia

3 3 2014 Before I begin my newsletter, I want to make you aware of our new addition to the Wall Street Shuffle team, Tim Reazor.  Tim has just joined the Wall Street Shuffle team as well as NorAm Asset Management as Chief Investment Strategist. He will be a regular contributor to the Wall Street Shuffle Newsletter, so be sure…

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The Good, the Bad, and the Ugly

2 28 2014 Despite fears of an escalation of conflict in the Ukraine, the markets resumed their uptrend yesterday.  A better than expected Durable Goods Orders and comments by the new FED Chairwomen Janet Yellen before Congress seemed to sooth the markets and bolster an appetite for risk. Total volume was slightly lighter than Wednesday but healthy nonetheless,  and many…

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Patience

2 27 2014 The markets again started out in the green only to have the rally fizzle by the close.  Both the DOW and the NASDAQ finished mildly in the green, while the S&P 500 was perfectly flat. The good news is that both the small and midcaps outperformed their larger brethren with gains of .66% and .49% respectively.  The…

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Breather

2 26 2014 Economic reports came in mixed yesterday.  Most of the housing reports coming in solid, but consumer confidence was weaker than expected.  The real loser, though, was the Richmond FED Manufacturing Index.  It got squashed.  The prior reading was 12 with expectations of 5, but the number was -6 so a big manufacturing reversal in the mid-Atlantic region….

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Extended or Not

2 25 2014 The only 2 economic reports out yesterday were both Regional FED Activity Indices, and both missed estimates, but no major slowdown.  A few earnings reports came in solid. But the big news was that the Ukraine didn’t completely meltdown.  In fact, the Ukrainian stocks has the biggest performance of all the countries globally.  Really?!  Maybe just a…

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The Biggest Risk

2 24 2014 The markets were in the green for most of the day Friday only to give gave up those gains going into the close.  All of the Big 3 Large Cap indices closed with modest losses. The Small and Mid Cap indices, however, finished the day with modest gains.  The ratio of Up to Down Volume on the…

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The Trend Continues

2 21 2014 CPI and Initial Jobless Claims were in line with estimates and the Markit PMI was better than expected. But Mortgage Delinquencies were up 6.4% and the Philly FED Business Outlook was deplorable.  The prior reading was 9 and estimates were for 8, but the number was -6.3.  Among the various inputs to the Business Outlook, the most…

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Reality Sets In

2 20 2014 We received more negative economic data yesterday, which the markets seemed to take in stride in morning trading.  Mortgage Applications fell -4.1% while Building Permits dropped by -5.4%.  But the loser was Housing Starts, down -16% Month over Month (MoM)! The indices were in the green for most of the day until the FED released its FOMC…

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Weak Economy, Strong Markets and Oil

2 19 2014 Despite the weak economic data, with the exception of the DOW, the markets trudged higher.  The NAHB Housing Market Index actually went into contraction territory.  This is why I have been saying be wary of the housing sector as the run is likely over.  Housing stocks got hammered across the board. Empire Manufacturing also came in much…

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Economics and the Markets

2 18 2014 The markets shrugged off emerging market fears and rallied Friday.  The DOW was up over 125 points, or .79%, leading all of the major indices higher.  The DOW was helped by mega-cap Exxon (XOM), which is the 2nd largest company by market cap and 3rd by revenue in the world, up almost 3%.  The NASDAQ and Russell…

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Advance Decline Lines Confirming Strength

2 14 2014 Retail Sales and Initial Jobless Claims both came in weaker than expected dampening the mood before the open yesterday.  The futures were all firmly in the red just before the open. But the markets displayed their strength on a strong reversal.  The markets gapped down at the open decidedly in the red, only to quickly reverse with…

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Mixed Results

2 13 2014 The markets had mixed results yesterday.  The NASDAQ was consistently higher throughout the day with the exception of a brief moment late morning where it touched breakeven.  The S&P 500 and DOW, however, had trouble finding a discernible direction. The S&P 500 went between red & green throughout the day only to finish flat.  The DOW moved…

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Janet Yellen Gooses Stocks and Commodities

2 12 2013 Stocks and precious metals both had a strong showing yesterday on strong total volume.  It seems FED Chairwomen Janet Yellen’s ‘Fedspeak’ was not too hot, and not too cold.  It was just right, soothing the markets. First she complimented former Chairman Ben Bernanke for his service and said she agreed with the FED’s current course.  In fact,…

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‘Fedspeak’ by Janet Yellen

2 11 2014 The markets took a breather yesterday ahead of new FED Chairwoman Janet Yellen’s Congressional testimony to the House Financial Services Committee today.  When will the FED raise interest rates?  Is she worried about the economy?  Is the stock market in a bubble? These are likely questions she will get after she gives the ‘Fedspeak’ speech discussing monetary…

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Switching Gears

2 10 2014 Thursday Nonfarm Productivity came in much stronger than expected at the expense of Unit Labor Cost, meaning employee wages.  Bad for the economy but good for Wall Street.  Then Friday, the Nonfarm Payrolls came in much weaker than expected creating only 113k on new jobs.  Expectations were for 180k. The markets were able to shrugged off the…

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On the Side of Caution

2 7 2014 Economics provided a boost to our markets yesterday.  Nonfarm productivity came in much stronger than expected and Unit Labor Cost was down more than double expectations.  This came at the expense of wages and sometimes what’s good for Wall Street and stocks is not necessarily good for Main Street. But it is what the markets needed to…

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Failed Rally

2 6 2013 In the morning the markets opened mildly in the red and headed lower just after the open.  Then, the markets looked to be rebounding strong on increasing volume. However, it was short lived and the markets rolled back over.  The good news is that markets recovered off of their lows of the day to finish with moderate…

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Bounce Off Weaker Volume

2 5 2014 Although earnings got off to a sluggish start, we had a slew of earnings yesterday that helped pull the earnings above their long term average and mean estimates.  This provided a much needed boost to the markets.  Today we will have another round of earnings, many of them growth leaders over the past year (see below). We…

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Stimulus Gone Wild

2 4 2014 Stimulus Gone, Now What!  Before QE in late 2008 there was virtually no correlation between the FED’s balance sheet and the stock market.  But ever since the 1st QE, the correlation between the size of the FED’s balance sheet (asset purchases) and the stock market gains has been 94%, almost 1 to 1! So it stands to…

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Like the Seahawks, You Need Defense

2 3 2014 We are now seeing the fallout from the Federal Reserve tapering actions.  As his last action at the FED, Ben Bernanke announced this 2nd round of tapering of another 10 billion before handing the reigns over to Janet Yellen. Ever since the announcement,  the markets have lost ground with increasing volatility.  Ben believed there wouldn’t be any…

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Earnings Continue Mixed; End of the Carrytrade

1 31 2014 The markets staged a decent rally yesterday but on lower total volume.  The markets have become more volatile as of late, and the down days have had more selling intensity and volume than buying on the up days.   Not what you want to see for a sustainable trend. Up Volume was only 69% on the NYSE and…

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The FED has spoken: the Markets Have Changed Character

1 30 2014 The markets exhibited a strong day of selling yesterday and the Federal Reserve only made it worse.  The FED followed through with their tapering schedule of another 10 billion per month.  Even though predicted, it was still somewhat surprising with the weak economic data and earnings. When the announcement was made at 1:00 p.m. CT, the DOW…

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Ben Bernanke’s Exodus, Yahoo

1 29 2014 In the very short term, it looks as though the pullback has runs its course judging by Asian markets and our equity futures in overnight trading.  But that will depend on what FED Chairman Ben Bernanke says in his final remarks today. The markets rebounded off of key support levels yesterday after a 5 day selloff.  The…

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Yellow Light Ahead of the FED

1 28 2014 It was another day in the red yesterday, albeit muted from Friday’s 90% Down Volume day.  The markets attempted a rally in the morning only to give up its gains going firmly in the red. The good news is that the markets staged a late day rally to recoup some of it midday losses.  The NASDAQ and…

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Important Day, Can We Hold the Line

1 27 2014 We finally got a big down day with the accompanying selling intensity.  Total volume was healthy on both major exchanges.  And we did qualify for a 90% Down Volume day on the NYSE. Even though the NASDAQ was down more percentagewise, we did not qualify for a 90% Down Volume day on the NASDAQ.  Down Volume was…

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Unusual Selling, You Will Be Pleasantly Surprised

1 24 2014 China is front and center with major problems in their banking systems.  It seems the +40 billion of cash injection from their Central Bank wasn’t enough to hold rates at bay. The selloff was global in nature. Our markets’ selling was more intense than it has been on recent down days, and on much higher total volume…

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Repeat

1 23 2014 Have you ever seen the movie Groundhog Day with Bill Murray where the same day repeats over and over.  Well, that is exactly what happened yesterday. The markets did an did an almost carbon copy of Tuesday’s market.  The DOW closed in the red while all of the other indices finished in the green.  The NASDAQ and…

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The Markets Still Showing Resilience

1 22 2014 Jon Hilsenrath, who writes for the Wall Street Journal, is accredited with being the most accurate forecaster of future FED moves.  He had a lead cover story on the front of the WSJ stating he believed the FED would announce another $10 billion taper 10 at their meeting next week.  This would bring Quantitative Easing (QE) down…

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Can You Say Mixed

1 21 2013 The markets have been struggling to break out higher as of late.  Concerns over earnings justifying valuations has taken center stage. And to say the least, earnings thus far have come in mixed.  Many banking and financial stocks have come in below expectations and have lowered their guidance going forward, the most recent being Deutche Bank actually…

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Optical Illusion

1 17 2013 The markets seemed to decline yesterday as reported by the financial media.  The DOW was down -.39% on weakness of the mega cap stocks.  The main culprits were Goldman Sachs (GS), down 2%, on weak bond trading, Wal-Mart (WMT) down over -1%, and UnitedHealth Group down -2.78%. But the S&P 500 was down only marginally while the…

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Nice Follow Through

1 16 2013 The markets began the day in the green, quickly moved higher, and were able to hold onto most of their gains by the close.  Investors were feeling upbeat about the economic data . The FED’s Beige Book, which comes out 8 times per year, was released yesterday and provides the economic position of all 12 districts.  The…

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Rebound

1 15 2013 The equity markets staged a nice rally yesterday with the S&P and DOW recouping most of their losses from Monday on a better than expected Retail Sales report.  The NASDAQ recouped all of its losses as buyers reemerged. Growth and technology stocks were once again in favor with many leading strong breaking out to the upside.  The…

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Caution in a Bull Market

1 14 2013 The equity markets had their worst day of the year yesterday.  It began very slow and we were moderately in the red all morning.  But then selling picked up midday and accelerated into the close on higher total volume (see S&P 500 1 Day Graph). Numerous forward guidance warnings put a damper on the mood and investors…

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Resilience in lieu of Poor Job Growth

1 13 2013 The jobs numbers Friday came in deplorable with the variance, or miss, much larger than the actual numbers.  In fact, Nonfarm Payrolls were only 74k with expectations of 197k; a miss by 123k.  Similarly, Private Payrolls were 87k with expectations of 200k, a miss of 113k. And even though the Unemployment Rates came down to 6.7% with…

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Today Will Be About the Jobs Data

1 10 2014 Some days are very slow and the markets move listlessly without much action.  Yesterday was such a day. Both the DOW and NASDAQ were down marginally while the S&P 500 was flat.  If you look at the internals, whether it be advancers versus decliners or Up Volume versus Down Volume, they were all close to 50-50.  And…

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Fedspeak with Mixed Markets

1 9 2013 The markets had mixed results yesterday.  The DOW was down and the S&P 500 was flat, while the NASDAQ was in the green. The large cap interest sensitive and dividend paying stocks came under pressure due to rising interest rates.  Technology, biotech, and the security issues were the best performing sectors. Investors were looking for growth stocks…

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Psychology of a Buy

1 8 2013 The markets staged a rally yesterday with the DOW closing up over 100 points.  The real winners, however, were the tech heavy NASDAQ, small and mid cap sectors.  Overall growth stocks had the best showing. That said, if you look behind the price gains, the internals weren’t particularly strong for “conventional” stocks.  Up Volume was just 61%…

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Big Week

Big Week 1 7 2013 Monday was a slow day even though we had a big increase in overall total volume.  All the major exchanges were moderately down with the NASDAQ faring the worst. Up Volume was 44% on the NYSE with advancing issues 46%.  On the NASDAQ, Up Volume was curiously 51% while advancing issues were only 37%, more…

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Is the Consumer Feeling Fatigue?

By Danny Stewart 1 6 2013 Well it’s the beginning of a new year and I hope all of you had a wonderful Holiday.  I spent cherished time with family and friends. Before I go into market commentary I would like to make some economic observations that might affect your investment choices.  First, overall Christmas sales came in lighter than…

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Strengthening Trend and Discipline of a Missed Trade

12 23 2013 GDP was revised higher on Friday and the markets seemed to like the news. The equity markets moved higher and now the upward trend appears to be gaining some traction. Total volume was higher on both major exchanges, but much of this can be attributed to “quadruple witching.”  This occurs once per quarter on the 3rd Friday…

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Failed Follow Through

12 20 2013 The markets failed to have any kind of follow through yesterday.  Both the DOW & S&P 500 essentially finished flat on the day, but the NASDAQ closed down a little more than -1/4%.  Once again, much of the pressure on the technology index was due to Apple (AAPL) which was down a little over -1%. The other…

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The FED’s Subtle Surprise

12 19 2013 Yesterday ended up being a wild, afternoon ride finishing up nicely.  The markets began the day quietly oscillating back & forth patiently awaiting the announcement from the FED. When the news finally hit the wires, the DOW was up 40 points but immediately reversed to be down -60 points in the red, a 100 point swing within…

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I’m Just Waiting on the FED

12 18 2013 As I suspected, it was a slow day on Wall Street yesterday ahead of the Federal Reserve’s announcement later today concerning the pace of their treasury and mortgage backed securities.  To taper or not was all that investors were thinking about. The DOW, mid, and small cap indices were flat while the S&P 500 and NASDAQ were…

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Europe Trumps China, but the FED Will Trump Both

12 17 2013 When I wrote yesterday’s newsletter I stated it looked like the market would come under pressure.  In overnight trading, all of our US equity futures were firmly in the red as economic data out of China came in weak, both manufacturing and employment. However, positive Eurozone economic reports came in very early in the morning trumping the…

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Pressure

12 16 2013 The major indices were all over the place Friday but all 3 finished the day almost exactly where they started.  The big 3 finished flat, but both the small and mid caps were up about 1/3%. For the week, the markets finished down and had the worst showing since October.  Fears of the FED pulling bond purchases…

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Yellow Light

12 13 2013 The markets recorded another down day and counting.  We are at or very close to oversold levels on all of the technical indicators. Right now you should hold off on new buying until you see evidence the markets have formed a short term bottom.  We will see if the “buy the dips” mentality stays in the mindset…

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Bucking the Trend

12 12 2013 Selling finally intensified yesterday and this was reflected by the internals.  Down Volume was 86% on the NYSE and 79% on the NASDAQ.  Declining issues were 84% and 77% respectively. So selling was broad based.  The question is whether it will be enough to attract buyers.  The answer is probably not, but a weak bounce is likely….

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Tweets and Books and Yellen Puts

12 11 2013 The markets pulled back yesterday after a brief 2 day rally.  Selling wasn’t intense at all, but there simply weren’t many buyers to pick up the slack. Down Volume was 57% on the NYSE and only 51% on the NASDAQ.  Declining issues were 60% a d 64% respectively. On the whole, it seems to be just a…

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Slow New Day Accompanies Weak Rally, But a Few Interesting Movers

12 10 2013 It was a quiet day for economic news and the markets yesterday.  The S&P 500 and NASDAQ both finished with modest gains while the DOW closed flat. This was confirmed by the internals.  Up Volume was 62% on the NYSE and only 50% on the NASDAQ.  Market breadth was even weaker with advancing issues 50% on the…

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Finally, Good News is Good News, Not the Grinch Who Stole Christmas

By Dan Stewart 12 9 2013 The economic data came in stronger than expected Friday.  Nonfarm payrolls were 203k and the Unemployment Rate ticked down to 7% while expectations were 185k and 7.2% respectively. Creation of manufacturing jobs were particularly encouraging.  The other good bit other was that Personal Income came in much stronger at .3% versus estimates of -.1%….

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Important Numbers for Investors Today

12 6 2013 Yesterday, GDP came in at 3.6% versus expectations of 3.1%.  Other economic data came in stronger than expected as well.  The markets took this to mean that tapering could in fact come early. Some pundits say as early as January.  But if you look beneath the numbers, there was inventory buildup by companies who were gearing up…

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Day 4

12 5 2013 The equity markets were a rollercoaster yesterday unable to make up their minds.  With the ADP Jobs number coming in stronger than expected just before the open, the markets opened in the red as fear of tapering looming. Then other economic data came in below expectations and the market rallied quickly, only to rollover going into the…

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The Pullback Continues and a Great Investment Idea

12 4 2013 The markets continued their slide yesterday on heavier total volume than Monday.  This is the 3rd day in a row as investors are becoming impatient.  Overall volume was up double digits from the day before but is still low by historical standards. The good news is that the markets recouped much of their earlier losses and didn’t…

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Good News is Now Again Bad News

12 3 2013 The economic data came in strong yesterday.  Manufacturing showed improvement as did construction spending.  And early signs of Black Friday and Cyber Monday Holiday sales were touted as robust even though they were actually somewhat tepid. In this alternate universe, good news turned out to be bad news.  Investors took this to mean that tapering could come…

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Intense Selling Into the Close

11 27 2013 After a brief period in the red just after the open, the markets trended higher throughout the day only  to give up all of their gains in intense selling just before the close.  The DOW, S&P 500, and S&P Mid Cap 400 all finished almost perfectly flat on the day. Surprisingly, the NASDAQ and Russell Small Cap…

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Short Term Weakness

11 26 2013 Yesterday the financial media was cheering the fact that the NASDAQ broke the 4000 level, but the cheerleading was a little premature.  The NASDAQ was unable to hold its morning’s gains closing up just 3 points and 6 points shy of 4000. All of the other indices gave up their earlier gains too.  The DOW finished up…

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Is the Bull Getting Ready to Go to Pasture

11 25 2013 The major indices had a solid day on Friday.  The DOW was up 1/3% while both the S&P 500 and NASDAQ finished in the green by around 1/2%. The Russell Small Cap 2000 was also up around 1/2%.  The S&P Mid Cap 400 was the laggard of the day, up less than 1/4%. The market continue to…

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Economic Data; Good or Bad

11 22 2013 The markets had a nice pop to the upside yesterday.  The financial media claimed it was due to the stronger Initial Jobless Claims number. However, Initial Jobless Claims came in at 323k versus estimates for 335k.  This is only 12k better than expected, and you don’t even want to know how large the margin for error is….

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Fedspeak, You Decide

11 21 2013 The markets showed continued weakness yesterday with a fairly mild selloff.  The indices were green in morning trading, but moved into the red exactly after the FED’s FOMC minutes were released (see S&P 500 1 Day Graph). Investors interpreted the “Fedspeak” as implying tapering could come fairly soon.  Now I read the FED’s own press release and…

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Changing Character

11 20 2013 The markets have been very resilient thus far.  However, some chinks in the armor are appearing. Even though yesterday’s prices on the larger cap indices, the S&P 500 and DOW, were mild negative to flat, the NASDAQ, mid cap, and small cap indices suffered larger losses.  The larger indices have also held up better the past week…

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Early Signs of Weakness?

11 19 2013 The markets showed weakness yesterday unable to hold the morning rally.  All of the indices closed near their lows of the day (see S&P 500 1 Day Graph). It didn’t help famous investor billionaire Carl Icahn warned the major indices could suffer a “big drop.”  He went on to say the profits of many companies are being…

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Who is Right, the Economists or the CEOs

11 18 2013 The markets had a solid day Friday with all of the major indices closing in the green by 1/3% to slightly over 1/2% in the case of the DOW.  Many pundits are now trying to figure out what could be the driver for stocks going forward. And it is a valid question.  Most economists are forecasting GDP…

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The “Melt Up” Continues

11 15 2013 The markets continued to trudge higher on more bullish comments by the Central Bankers of the world, especially Janet Yellen.  And the fact that U.S. stocks are the best alternative for your money right now. We had decent gains although the NASDAQ was held back somewhat by Cisco (CSCO), which was down -11%.  Cisco revenue numbers were…

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Reversal Higher, Thanks Janet

11 14 2013 The markets staged a reversal into higher territory recouping morning losses.  Dovish comments by incoming FED Chairwomen Janet Yellen helped fuel the rally.  She essentially said that while the economy has made progress, it is just too early to change course. It didn’t hurt that the ECB announced that “all options are on the table.”  Translation, more…

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Execution of a Trade

11 13 2013 The markets spent all of the day in the red yesterday, but did manage to recoup most of their losses in afternoon trading.  Both the DOW and S&P 500 closed down less than 1/4% while the NASDAQ actually managed to finished in the green by less than a point, essentially flat. While the S&P Mid Cap 400…

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Excruciatingly Slow, but Watch for Divergence

11 12 2013 The equity markets had an excruciatingly slow day yesterday due to the Veteran’s Day Holiday, the lack of the economic data and few earnings to digest.  Even though the equity markets were open, the bond markets were closed. This gave way to very light total volume on both major exchanges; down 20% on the NASDAQ and 33%…

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Bad News is Still Good

11 11 2013 The markets started off rocky and in the red on Friday morning with the stronger than expected GDP and especially the much bigger than expected Nonfarm Payrolls (jobs created).  This spooked investors as they rationalized the FED’s tapering could come soon. But as investors actually read the report after reacting to the headline, they realized it was…

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Stimulus More Important Than Growth, and Don’t Get Caught Up in Twitterazzi

11 8 2013 GDP came in at 2.8%, higher than the 2% expected.  Now in a normal world that would be good news for stocks and the economy. But investors became worried that this would accelerate the Federal Reserve’s timeline to taper stimulus.  Let me make one thing clear, there will be no tapering anytime soon (if at all). First…

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Bifurcation

11 7 2013 The markets exhibited bifurcation yesterday.  What do I mean by that you ask?  Well, simply that while the DOW hit new bull market highs and the S&P 500 was within striking distance, the broader markets didn’t reciprocate. The DOW was up 128 points, or .82%, and the S&P 500 was up 7 1/2% points, or .43%.  But…

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Can You Say Sideways, also a Trading Idea & an Investment Idea

11 6 2013 The major indices again showed their strength yesterday able to recover from early losses.  At one point in early trading the DOW was down around 100 points, but recovered closing down only 21 points, or -.13%.  The S&P 500 fared a little worse, but the NASDAQ finished flat. The internals reflected these numbers.  Up Volume on the…

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Healthy Rotation

11 5 2013 On the surface, it was a dull day yesterday in the equity markets.  At first the markets sputtered, but then listlessly remained in the green for the remainder of the day.  Even though it seemed like a lackluster day, we had some positive signs. While the DOW only finished up modestly, the S&P 500, and NASDAQ finished…

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Resumption

11 4 2013 The markets staged a rally in afternoon trading erasing midday weakness (see S&P 500 1 Day Graph).  Healthcare, namely pharmaceuticals and biotech were the leaders.  The technology sectors were the laggards. While the DOW was up almost 1/2%, the S&P was up a little over 1/4%, but the NASDAQ was flat.  The internals confirmed these various returns,…

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Trick or Treat

11 1 2013 The markets just couldn’t make up their minds yesterday going back and forth between the red and green.  Was it going to be a trick or a treat. At first it looked like it was going to be a trick, with the markets in the red.  Then late morning through most of the afternoon, it looked like…

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Selling After the FED

10 31 2013 The Federal Reserve announced yesterday it would leave the current bond purchases unchanged.  Their logic was, that even though “economic activity has been expanding at a moderate pace,” they decided to “await more evidence that progress will be sustained will be sustained before adjusting the pace of its purchases.” Translation, the economy is still too weak to…

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Trading Ahead of the FED

10 30 2013 The markets were barely in the green in morning trading yesterday as a whole plethora of economic reports and earnings releases.  It was lackluster to say the least. As the economic reports came in, it was apparent that the recovery is still fragile.  Consumer Confidence came in well below expectations and Retail Sales came in flat to…

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Taper Schmaper

10 29 2013 The markets took a breather yesterday with all the indices finishing flat, even the small and mid caps.  Total volume was light.  And the ratio between Up/Down Volume and Advance/Decline lines were, for the most part, fairly neutral too. Investors were anxiously awaiting Apple’s (AAPL) after the bell.  And after the bell Apple beat on both top…

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Stay Long

10 28 2013 The markets continued higher Friday with all of Big 3 indices in the green.  Both the DOW & NASDAQ were up around 1/3% while the S&P 500 was up just under 1/2%. The mid caps were up only 1/4% and the small caps finished flat.  While buying was lackluster, selling wasn’t a concern, Total volume was light…

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Keep on Truckin

10 24 2013 The markets continued to trudge higher yesterday on decent total volume, especially the NASDAQ.  All of the indices including small and mid caps closed in the green. Both Up Volume and advancing issues registered 57% on the NYSE.  On the NASDAQ, Up Volume was only 53% but advancing issues were 60%. Precious metals, especially gold, put in…

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OMG, What is Saudi Arabia Telling Us

10 24 2013 The markets exhibited a mild pullback yesterday with all of the indices closing in the red.  Small caps held up the best while selling was most intense on the NASDAQ large cap stocks, especially the semiconductors. Total volume was relatively unchanged from Tuesday, and Down Volume was 69% on the NYSE and 77% on the NASDAQ.  Declining…

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The Trend is Your Friend

10 23 2013 The jobs numbers came in horribly yesterday, well under expectations.  And many of the stocks reporting, although beating earnings, missed their revenue numbers. So why the rally?  Because now it is even more apparent that the Federal Reserve will continue with stimulus, fondly known as quantitative easing or QE.  Therefore, there is more heroin on the way,…

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Consolidation Before Moving Higher

10 22 2013 It was a quiet day on Wall Street yesterday without much action.  Both the DOW and S&P 500 were flat while the NASDAQ was up marginally.  The NASDAQ was helped by a solid performance from Apple (AAPL) after an upgrade. Total volume was light on both major exchanges.  Advancing were almost split with declining issues on the…

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The Rally Continues, and a Stock Idea

10 21 2013 Strong earnings coupled with the debt ceiling fiasco behind us helped fuel the markets higher last Friday.  The NASDAQ handily outperformed the other major indices due to strong earnings reported by Google (GOOG), helping to skew the index higher. Conversely, the DOW was held back by UnitedHealth Group (UNH), Home Depot (HD), and Merck (MRK).  That’s what…

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It’s All About Revenue, and a Few Other Thoughts

10 18 2013 The financial news media loves to report on the DOW as a surrogate for the stock market.  Problem is, many times it can be misleading because the DOW only consist of 30 stocks. But out of those 30, only 6 of the DOW components were in the red yesterday.  And of those 6, IBM (IBM) was down…

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Forget the Stalemate Debate, Let’s Move to Earnings

The markets were all over the board yesterday thanks to Congress.  The daily graph looked perfectly like a rollercoaster ride. They opened mildly in the red, then as talks in Congress seemed productive turn green just before noon, but sold off as talks soured.  This was just what I was worried about, broken promises.  At least thus far. The good…

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Promises Promises

10 15 2013 As much as I hate to say it and sound again like a broken record, investors are focused on Washington rather than Wall Street.  Even with the kick off of earnings season, you are hard pressed to find mention of earnings on the front pages of the media, including the financial media. According to the Senate midmorning,…

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No Settlement Yet; Markets Under Pressure

10 14 2013 The markets had a pleasant follow through day Friday on continued hopes that talks over the debt ceiling was making progress.  The large cap indices were all up well over 1/2%, and small caps over 1 1/3%. Up Volume was 70% on the NYSE and 66% on the NASDAQ.  Advancing issues were 69% on both exchanges.  Total…

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Kumbaya Fleeting?

10 11 2013 The markets had a monster up day yesterday on news that a short term deal to raise the debt ceiling is within sight.  It looked to be building up to a Kumbaya moment. Maybe Bill Gross did know something Fidelity didn’t. In any event, the markets loved the news.  We qualified for a 90% Up Volume day…

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A Telling Sign

10 10 2013 With the exception of the NASDAQ, the larger indices staged a rally yesterday, albeit muted.  The S&P 500 had nominal gains while the DOW closed in the green by .18%. Both the small and mid caps finished in the red like the NASDAQ.  Up Volume was 54% on the NYSE but only 27% on the NASDAQ.  Advancing…

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Saber Rattling

10 9 2013 The markets came under pressure yesterday and selling broadened across virtually all sectors,  especially after President Obama came out and spoke.  He essentially told republicans they need to just go along with the budget and raise the debt ceiling, then they could all negotiate details afterwards. Obviously republicans would lose all leverage and the markets perceived this….

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What Could Reignite the Rally

10 8 2013 The markets began the week with a selloff.  The DOW opened down around 150 points but regained 1/2 its losses.  However, weakness again entered the markets in the afternoon and the DOW closed down 139 points.  Even though the NASDAQ’s internals were stronger, percentage wise, it was the weakest on the big 3 indices down almost 1%….

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Perception

10 7 2013 Media coverage and investor concern over the budget as well as the upcoming debt ceiling debate has made the markets nervous.  The indices have become more volatile lately and had a mild pullback the past week, with a stronger selloff on Thursday. Then the markets showed their resilience Friday with a broad rally across the board.  Advancing…

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Is the Fix In?

10 4 2013 The markets finally exhibited selling pressure on a broad basis.  All the major indices suffered losses yesterday across all market capitalizations. But at the open, the markets were in the red just mildly.  Then all of the sudden, selling entered with more intensity and on a broader basis. Why the change?  The markets had been taking the…

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Stand Pat

10 3 2013 The markets once again showed their resilience yesterday in the face of concern.   The DOW was down almost 150 points in early trading with all the other indices trading similarly. The DOW closed down -58 points, or -.39%, with both the small and mid caps exhibiting similar results percentagewise.  But the other 2 big indices, the S&P…

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Markets Rebuke Washington, Crisis Creation No Longer Valid

10 2 2013 The markets rebuked the politicians in Washington by recouping their losses from Monday.  And the small and mid cap indices were the strongest performers. Of their larger cap relatives, the NASDAQ outperformed the S&P 500 and the DOW.  Investors had an appetite for more risks yesterday. It seems they are becoming numb to all the various “crisis”…

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Tail Wagging the DOW

10 1 2013 You’ve heard the political expression “tail wagging the dog,” well now it’s “tail wagging the DOW.”  Or at least that is what most politicians want you to think. They want you to be very worried about this impending doom called the budget impasse, government shutdown, and debt ceiling debate all wrapped up in one.  A trifecta if…

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Today is the Day

9 30 2013 Last Friday the markets were finally spooked by the budget impasse.  Fears that the House & Senate wouldn’t be able to even come up with a temporary, short term agreement over the weekend trumped some decent reported economic data. Today the markets will come under pressure, especially at the open.  The markets will progress during the day…

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Pullback Broken, Bluff Being Called

9 27 2013 The multi day selloff was broken yesterday with a rally across all of the indices from large to small caps.  The NASDAQ was the best performer followed by the S&P 400 Mid Cap and the Russell 2000 Small Cap indices. Both the mid and small caps have been outperforming as of late and showing the most relative…

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No Panic Selling Yet, Still Some Good Ideas

9 26 2013 The major indices logged another down day, albeit not anything major.  Most commodities were in the red too.  Only bonds and the precious metals fared well. The DOW suffered the worst, closing down -.4%.  The NASDAQ is still showing the most relative strength and was just down marginally. The small and mid cap indices once again fared…

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Positive Internals, Small Caps Outperform

9 25 2013 The Big 3 large cap indices finished moderately down to flat in the case of the NASDAQ.  The DOW was the worst performer followed by the S&P 500. Much of the DOW’s losses were due to JP Morgan (JPM) being down -2.2% on fears of more regulatory scrutiny and fines.  In fact, the whole financial sector came…

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Resumption

9 24 2013 The markets closed in the red yesterday, but selling was light.  We have had a 3 day selloff, and with the exception of Friday’s selling after St. Louis FED President Bullard’s hawkish comments, selling volume hasn’t picked up significantly. In fact, even on Friday, selling was that intense.  The pullback has simply withdrawal of demand as investors…

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Doublespeak

9 23 2016 Last Wednesday Federal Reserve Chairman Ben Bernanke announce their would be no tapering yet.  His reasoning was that the economy was too fragile to pull stimulus at this point in the economic “recovery”. The markets responded with big gains across the board from stocks to bonds to commodities.  So what happened Friday? Well, Friday St. Louis Federal…

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The Bigger Question

9 20 2013 The markets took a breather yesterday with the major indices finishing moderately mixed.  The S&P and DOW closed with minor losses while the NASDAQ had a slight gain. Both the small and mid cap indices also finished with minor losses with mid caps faring the worst down 1/4%.  But intense selling has yet to materialize. Now the…

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Forget Larry, Thank You Ben

9 19 2013 The FED surprised most (not me) by announcing NO tapering for September citing that the economy is simply too weak to tighten at this point.  The markets responded with a broad based rally across the board. Stocks, commodities, precious metals, and bonds all rallied.  The US dollar was weaker across the board against other currencies triggering a…

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Septaper or Not to Septaper, That is the Big Question – (it’s Today)

9 18 2013 The markets staged a broad based rally yesterday, albeit on light volume.  Many investors are concerned about taking too big a position ahead of the FED announcement today regarding the tapering of treasury and mortgage bonds. Breadth was positive on both exchanges with advancing issues representing 64% on the NYSE and 65% on the NASDAQ.  Up Volume…

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Thank You Larry

9 17 2013 The markets had a good day yesterday exhibiting solid gains.  Not because of solid (or weak) economic data, but entirely due to Larry Summers pulling out of the FED Chairman race.  I only have 3 word – Thank you Larry! The only index slightly in the red was the NASDAQ.  And once again, it was almost entirely…

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Larry Summers Pulls Out of FED Chairman Race; Bully Bully

Larry Summers Pulls Out of FED Chairman Race; Bully Bully 9 16 2013 The markets ended the week on a positive note.  The DOW finished up 1/2%, the S&P a 1/4%, and the NASDAQ marginally.  The NASDAQ’s weaker performance can once again be laid at the feet of Apple (AAPL) which struggled Friday closing in the red by over -1…

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Will HOG be taken to Slaughter

Will HOG be taken to Slaughter 9 13 2013 Equities lost their mojo yesterday giving up on the recent string of days winning streak.  The good news is that it wasn’t too ugly, and total volume was light. Down Volume was 70% on the NYSE and 68% on the NASDAQ.  Declining issues were 66% and 62% respectively.  So again, sellers…

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The FIX is in for the DOW, & other market related news

9 12 2013 The DOW will be reconstituted and will drop Hewlett Packard (HP), Bank of America (BAC), and Alcoa (AA), all 3 at once!  The index will be adding Nike (NKE), Visa (V), and Goldman Sachs (GS), and this will take place on Monday, September 23rd. The DOW is an unusual index with the price of the stock being…

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Continuation or Stumble

9 11 2013 I am out of town at a debt seminar doing some research so I will be brief.  The markets staged a strong rally yesterday on solid total volume. The pundits are saying that it was because Syria is seemingly backing down (or Russia is out maneuvering us, whichever you prefer).  And that is true thus far and…

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Bill Murray Would Be Proud

9/10/13 The markets finally broke the on-going pattern of selling into the close and giving up the gains.  Groundhog day may finally be over and Bill Murray would be proud. Chinese export data came in stronger than expected, couple this with a weaker Yen, and you have everything you need for a rally.  This was especially true in Asia.  The…

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The Movie Continues and A Long Stock Pick

I guess Groundhog Day isn’t over yet as the movie continues.  Last Friday the markets, yet again, gave up their earlier gains. This performance has been repeated many times over the past over the past several days.  The markets open with a bang and fizzle going into the close. The bang was due to the weak employment data suggesting the…

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Seems Like Groundhog Day

Did you ever see that movie with Bill Murray, Groundhog Day, where the character relives the same day over and over. That is what it feels like the past week or two, except that we are alternating days between commodities and stocks. The major indices once again opened with a bang due to perceived improving economic data. Then they moved…

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Role Reversal

It was a complete role reversal yesterday with commodities and precious metals performing poorly while stocks did well. Auto sales and mortgage applications came in better than expected giving the markets a needed boost. There was also a relief rally over Syria now that Congress is on board. This removed some of the uncertainty of what is coming next in…

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Syria Front and Center

Over the weekend, it looked as if we may actually back down or at least moderate taking military action against Syria after President Obama announced he would seek Congressional approval first. Stocks responded by opening with a bang yesterday, no pun intended. However, midday it became clear that Congress, including many republicans, were going along with a military response to…

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What a Difference a Day Makes

The markets had a tough day Friday going into the 3 day Holiday weekend, especially the NASDAQ. Total volume was very light as you might expect as traders left early to make the most of their extended weekend. Commodities also finished in the red across the board. Bonds were the only investment to finish in the green. What a difference…

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Selling Into the Close, Again

The markets had a repeat performance from yesterday; solid gains for most of the day, then selling into the final hours. Only the NASDAQ held some of its solid gains and has been again the strongest of the Big 3 indices. The Russell Small Cap Index fared the best of all though. That said, if you take the big deal…

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Is the Bounce Enough

The equity markets spent most of the day with solid gains. Late day selling though caused stocks to close with small gains on low total volume yesterday. The small and mid cap sectors underperformed their larger counterparts. Market breadth was slightly positive with advancing issues edging out declining issues. Up Volume was in the mid 50s on the NYSE but…

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Fear Factor

Fear was in full force yesterday as investor selling intensified. Fear of the conflict in Syria escalating coupled with possible tapering by the Federal Reserve. We qualified for a 90% Down Volume day on both the NYSE and the NASDAQ. Down Volume was 92% on the NYSE and 90% on the NASDAQ. Market breath was decidedly negative with declining issues…

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Failed Attempt

Yesterday we had Durable Goods Orders and Capital Goods Orders both coming in well below estimates. Couple this with the deplorable New Home Sales last Friday, and you have signs of an economy faltering. But investors liked this news as it gives credence to the belief that the Federal Reserve will not taper in September. We are back to “bad…

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Central Bankers Jackson Hole Summit and Monsanto’s Nightmare

The markets staged a mild rally on weak volume. The NASDAQ fared the best as Microsoft (MSFT) was up over 7% with CEO Steve Ballmer announcing he was stepping down within a year. The problem is demand isn’t strong. Friday’s rally was simply a lack of sellers, and not strong demand. For the next leg higher, we need demand to…

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Strange Day

It was a strange day in the markets yesterday. The markets rallied on better than expected Chinese PMI data suggesting growth. It was “matched up” with improving Eurozone PMI expansion (off a low bottom) and the markets showed their appreciation. And as I suspected, once the FED’s FOMC minutes were completely digested, investors would realize that the Bernanke Federal Reserve…

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To Taper or Not to Taper, Problem is the FED Doesn’t Even Know

The markets were moderately in the red throughout most of the day. Before the release of the minutes from the recent FED’s FOMC meeting, bonds and stocks rallied. In fact, the S&P 500 actually went into the green for a brief period just before the release. After the release as investors perused the (confusing) statement, both bonds and stocks sold…

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Weak Bounce, Too Early

With the exception of the DOW, the other indices finished in the green yesterday. The markets gave up some of their earlier gains with intense selling into the close (see S&P 500 1 Day Graph). The most promising development was mid and small caps were the best performers. But demand wasn’t particularly strong and total volume was down from Monday….

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What to Do

The markets were unable to hold their morning gains yesterday with all of the indices closing in the red. This is the 4th day in the row the markets closed in the red, the 1st time this year we have had 4 consecutive down days. Thank God for stop losses. I got stopped out 3 days ago on my most…

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The Red Trend Weakens

The market continued their red trend Friday, but with only modest declines across the board. And selling wasn’t intense. The downward momentum may have runs this correction may have run its course. But I will definitely wait for confirmation before putting the cash I am holding to work to ensure it is not just a “dead cat bounce.” Total volume…

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Red Light for Stocks; Gold Breaks Out

It was a perfect storm yesterday with both the economic data and on the earnings front. The CPI came in higher, up.2% for July while production was flat. Earnings were weak to say the least and investors are fixated on the FED tapering. Selling increased yesterday with a broad based selloff in equities. The DOW was down 225 points, but…

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Rotation

The markets had a tough day yesterday with all of indices closing in the red including the mid and small cap indices. The DOW suffered its largest decline since June 28th. The NASDAQ was down .4% even with Apple (AAPL) up 1.8%. The good news is that the internals didn’t reflect any intense selling. Total volume was down on both…

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Ante Up

The larger indices enjoyed a day in the green yesterday with all of the major indices closing near their highs of the day. The NASDAQ was once again the strongest of the Big 3 finishing in the green by over 1/3%. Both the S&P 500 and the DOW finished around 1/4%. Interestingly, both the mid and small caps finished in…

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Breakout

It was an quiet day for the equity markets yesterday on extremely light total volume. All of the larger, major indices closed moderately mixed. The ratio of Up to Down Volume and Advancing Issues to Declining Issues was close to 50-50 on the NYSE. The internals were stronger on the NASDAQ with Up Volume registering 58% and Advancing Issues 54%….

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Know When to Hold ‘Em & Know When to Fold ‘Em

Stocks closed the week with minor losses after a nice run. All of the major indices were down 1/2% or less. The good news is that it was on very light, declining volume. Thus far selling hasn’t been intense. Friday’s total volume was down double digit from Thursday while volume on the NASDAQ was down less than 5%. In fact,…

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The Perfect Recipe

Yesterday we got better than expected economic date, namely manufacturing and jobs data. Couple this with Wednesday’s promise by Bernanke not to taper stimulus, and you have the perfect recipe. A recovery without pulling stimulus, every Central Bankers dream. But that could also be a recipe for higher inflation. Oh, I forgot, that’s just what Ben wants. Anyway, the markets…

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Not Yet

We still are churning in sideways fashion as the rally faded yesterday going into the close. This was with a better than expected GDP report and Bernanke’s remarks that he would not taper bond buying anytime soon. The two things that caught my attention while watching Bernanke’s speech. First, he was that he is worried about (the state rate of)…

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A Couple of Stock Ideas

The DOW and S&P 500 were all over the board yesterday but finished flat on the day. They opened in the green but had a steep midday selloff. Then rebounded higher in afternoon trading into the close. It seems every time sellers attempt to take the markets lower, buyers enter the markets. The NYSE internals were a virtual stalemate. Up…

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Is Ag Heating Up

The markets gave back a little on light volume yesterday. It seems traders and investors don’t really want to take a stand before the 2 big reports on Wednesday. GDP and the FED’s FOMC minutes are both released tomorrow are investors are thus far in neutral. All the major indices were down between a 1/4% to a little over a…

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Definitely Worth a Read

The major indices spent most of Friday morning in the red, but reversed late morning. By the close, DOW and S&P 500 both finished flat. The NASDAQ, however, showed more strength thanks to Amazon’s (AMZN) big reversal (see S&P 500 1 Day Graphs) . Amazon began morning trading down 3%, but by the end of the day close up almost…

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Could SAC Capital Be a Black Swan

The markets have become more choppy recently. Earnings have been mixed and the economic data is showing a slowdown in the U.S. economy. Yesterday the DOW and the S&P 500 spent most of the morning in the red, but then reversed finishing moderately in the green. The NASDAQ had a much better day due to Facebook’s (FB) strong performance after…

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First Sign of Weakness

We had our first bout of real weakness yesterday as sellers appeared with more strength. Total volume was up on both major exchanges. The internals were weaker on the NYSE, but a big part of that was due to strength in Apple (AAPL). Apple, the biggest component of the NASDAQ, was up over 5%. Down Volume won the day registering…

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Doldrums Part 2

It was another slow day on Wall Street yesterday. The Summer Doldrums have definitely taken hold the past few days. There is really not too much to report in yesterday’s trading, and I know your time is valuable, so I will be brief. Both the S&P 500 and DOW were marginally mixed, but the NASDAQ was down -.59%, much of…

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Summer Doldrums Before Earnings But Gold is Getting Interesting

The markets exhibited a lackluster, uneventful day Monday on the DOW and S&P 500. Both finished virtually neutral. During the summer we call this the Summer Doldrums. The NASDAQ got a weak bounce after Friday’s weakness. Both the small and mid caps were in positive territory with mid caps leading the way. Total volume was down double digit on both…

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Bears Versus Bulls

The DOW and the S&P 500 took a breather Friday with the DOW flat and the S&P up marginally. The NASDAQ, however, came under pressure due to mega caps Microsoft (MSFT) and Google (GOOG) both coming in below expectations. Google was down -1.55%, but Microsoft was down -11.4% (in one day)! That big of a move is understandable with a…

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Will There Be a Wave of Muni Selling Coming Soon?

The markets had a solid day yesterday with the exception of the NASDAQ which was only up fractionally. This was primarily due to heavy selling in Intel (INTC) due to their earnings miss. The rally was not due to earnings because they have been coming in very mixed, but from supportive comments by FED Chairman Bernanke and some decent economic…

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Ben Day 2

The markets were anxiously awaiting the Bernanke’s Humphrey-Hawkins testimony yesterday before Congress. He reiterated that the FED needs a plan to taper but the economy is still too weak to begin yet. Then he went on to say that the bond buying is not “a preset course” and that the FED wasn’t even tied to the original metrics given by…

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Breather Before Ben’s Testimony

Goldman Sachs (GS) reported earnings yesterday that handily beat expectations, as did Johnson & Johnson (JNJ). But CPI came in a little hot, up .5%, higher than the .3% consensus of 83 economists. The markets responded breaking their winning streak with a mild, broad based selloff. Selling wasn’t very intense though as Down Volume was 62% on the NYSE and…

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Slow Monday, Earnings, and an Idea

Stocks had a day of rest Monday but the indices were still marginally higher. Retail Sales came in weaker than expected putting a damper on the mood. Then investors rationalized this meant the FED’s tapering could be put off longer. Total volume was light as investors anticipate many earnings releases for the remainder of the week. And Ben will be…

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What to Expect Heading Into Earnings

Stocks finished marginally higher on Friday with the exception of the NASDAQ which was up .6%. Total volume was down double digits on both major exchanges. Up Volume was 56% on the NYSE and 62% on the NASDAQ. Advancing issues were 48% and 53% respectively. So it was a docile day and investors want more information heading into earnings. JPMorgan…

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The Speech After the Speech

On Wednesday, after the FED’s FOMC meeting minutes were released, the headline was the FED discussed tapering, but not yet. The market reversed from red to green. However, as Ben Bernanke spoke and investors waded through the actual report they realized about 1/2 of the regional FED policymakers believed QE should be tapered and/or ceased by the end of this…

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The FED Said They Should Taper, Just Not Yet

The FED released their FOMC (Federal Open Market Committee) meeting minutes yesterday at 2 ET. They essentially said they do need to taper bond purchases (QE) at some point in the future, but just not yet. They would like to see better job growth first. The markets were initially relieved at the news as they quickly reversed from being in…

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Improving Internals

The markets had another solid performance making it the 4th day in a row, and this time the NASDAQ participated. So did the small and mid cap indices. This time, though, with the exception of total volume, the internals improved. Demand expanded, which is just what we want to see. Up Volume was 79% on the NYSE and on the…

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Earnings Kickoff

The markets had a positive day across the board yesterday from stocks to precious metals to commodities to bonds. Only the NASDAQ lagged but was still up marginally. The NASDAQ’s underperformance was entirely due to Intel (INTC) and the semiconductor sector. Pressure on Intel came after Citigroup issued a negative forward looking report on the stock. Intel was down -3.64%,…

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Unintended Consequences

The equity markets had a solid day Friday on a “good” June employment report. Nonfarm payrolls rose by 195k, higher than the estimate of 165k. But if you read beyond the headlines, Full-Time Employment plunged 240k and virtually ALL of the jobs created were part-time. So employers are firing 1 full-time worker and hiring 2 part-time workers to avoid upcoming…

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Subdued Rally

Stocks began the day strong with the DOW up over 170 points in morning trading, but gave back much of their earlier gains. What originally looked to be an impressive, strong breakout to start the 2nd half of the year turned out to fizzle by the close into a subdued rally. Nevertheless, all the major indices had positive results for…

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What’s In Store for 2nd Half of the Year

The markets exhibited a choppy session Friday with the major indices bouncing all over the place. Much of this was due to end of quarter “Window Dressing” and rebalancing. At the end of the day, the DOW closed down -115 points, the S&P 500 down -7, while the NASDAQ was flat. Total volume was up 6% on the NYSE and…

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The 3rd Time is a Charm, or Is It

The markets logged their 3rd positive day in a row yesterday after the big selloff last week. We received some positive economic data, namely that Personal Income rose and Pending Home Sales beat expectations. So it seems that good news was actually good news, and well received by the markets. Total volume was mixed on the major exchanges but still…

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Break on Through to the Other Side

Once again bad news is good news. The 1st Quarter GDP numbers were revised downward to 1.8% from the initially reported 2.4% while Personal Consumption was below estimates. This means the economy isn’t chugging along as previously thought. Why was this good for stocks? Because it relieves pressures and expectations or “premature” tapering of stimulus by the FED and lowers…

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Me and My Bully Pulpit

We finally got a break from all of the negativity and concern regarding whether the FED is or isn’t going to pull or wean off stimulus. You do remember our country did just fine for a few hundred years without stimulus, right. In fact, you should realize that all civilizations, that once they begin to artificially stimulate their economies in…

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One Dove and One Hawk Try to Verbally Stimulate

The market had yet another tough day. That is why I told you in Monday’s newsletter not to listen to the talking heads on the financial networks telling you to jump in because just because we had a moderately green day Friday. The only good news yesterday is the markets came significantly off of their lows of the day (see…

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Have We Hit a Short Term Bottom or Run Away

Last Friday the DOW and S&P 500 were both up about 1/4% while the NASDAQ was down -1/4%. And much of the NASDAQ’s losses though can be attributable to mega cap Oracle (ORCL) missing expectations and down over -9% thus skewing the index downward. Since we had 1 moderately positive day after the big selloff, all of the financial media…

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What To Do When There Is No Place To Hide

China’s manufacturing PMI contracted more than expected, and the decline is accelerating. Forget what China is saying or building, just look at their energy (electricity) consumption, or lack thereof. Asian is going to be the next Europe. The global markets didn’t like this one bit, especially on the heels of Bernanke’s comments on Wednesday. The markets responded by a continuation…

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The FED’s Big Bang

The FED’s big event went of with a Bang yesterday. A bang to the downside. The FED’s minutes stated that risks to the economy have “diminished since the fall.” And even though the FED reiterated its 85 billion per month of bond buying, went on to say they could reduce bond purchases later this year if the economy grows stronger….

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It’s All About You Ben

The markets had another solid day as the economic data came in slightly below expectations. Investors feel this gives Ben even more of an excuse to postpone tapering stimulus at least a little longer. Although total volume was light, it was heavier than Monday. Up Volume was 75% on both major exchanges. Advancing issues were 67% on the NYSE and…

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To Taper or Not To Taper, That is the Question

The markets opened with a bang today quickly up around 200 points on the DOW. Investors were becoming more confident that Bernanke will not take away the punchbowl when he speaks on Wednesday. Or at least he will remain neutral being sure not to upset the markets. But then the Financial Times ran a story 2 hours before the close…

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Japanese Rates and Volatility

The markets sold off Friday giving up most of Thursday’s gains. The DOW was down -106 points while the volatility continues. In fact, volatility has been rising over the past few weeks as demonstrated by the Volatility Index, or VIX, on the S&P 500. Why is this important? Because there is a strong inverse correlation between the VIX and the…

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Do You Remember Long-Term Capital?

After 3 days of a rollercoaster ride with huge moves up and down, the markets finally settled into a solid trend, this time to the upside. The markets opened down but reversed and continually trended consistently higher throughout the day (see 1 Day S&P 500 Graph). The rally was on decent economic data, especially compared to the rest of the…

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Can You Say Jesse

Another day, another rollercoaster. The markets looked to be poised for a rally at the open yesterday. The DOW was quickly up almost 120 points, but that didn’t last long. The DOW closed down -126 points with the other indices having similar results. It was very similar to Tuesday’s results, and it is our 1st 3 day losing streak of…

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Pulled the Trigger on a Rollercoaster

It was a rollercoaster day yesterday with the major indices literally all over the place. It began overseas with the Bank of Japan announcing Monday night they would not be taking any new stimulus measures at this time. This caught the global markets by surprise. Renewed fears of the Central Banks weaning off of stimulus once spooked investors. The DOW…

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Doldrums and an Idea

It was a dull day in the markets yesterday as there was no U.S. economic data and hardly any earnings, all small cap, on which to focus. Both the S&P 500 and DOW finished flat, while the NASDAQ was up marginally. Total volume was light on both major exchanges. Up Volume was 49% on the NYSE and 55% on the…

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Is the Correction Over?

The markets exhibited a short-term, two week slide but found footing Thursday afternoon and Friday. The question is whether this is a trap or resumption of the rally. The simple answer is that it looks to be a resumption of the rally. Although Friday’s internals were not as strong as the percentage gains, it was a good follow through to…

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Welcomed Reversal or Dead Cat Bounce?

I stated in yesterday’s newsletter it would be important to hold the 50 day moving average (50 DMA) on both the S&P 500 and the DOW. Well, that is exactly what happened around midday today. The markets began the day with a broad selloff and the DOW was even down over 100 points. That would have been 3 days in…

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Lack of Cooperation

The economic data came in bad yesterday. Worse than bad, horrible. Even though productivity was up, wages were down; and down big. This is the tradeoff for more productivity in this environment. Corporations are laying off workers or switching to part-time workers to cut costs. And without jobs, you cannot have a real recovery. This pulled the curtain back from…

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The Streak is Over

The consecutive run of 20 positive Tuesday’s in a row have come to a close. Really doesn’t mean much, just an anomaly in a bull market. And Kansas City FED President Esther George really put a damper on the markets with comments that the FED should consider reducing the stimulus. As soon as she made the announcement, the markets went…

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Bad Means Good, But Weak Internals

The markets opened with a thud to start the week. The ISM Manufacturing data suggested contraction in the US economy falling to a 4 year low. This put a damper on the mood. But then Atlanta FED President Lockhart said that the US economy was too weak to pull the stimulus yet. This brightened the mood and stocks rallied. Remember…

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What To Do About Your 401k Mutual Funds

It turned ugly Friday with selling accelerating into the close. The DOW literally gave up over 50 points within the final minutes of trading. It was red from equities, commodities, precious metals, and even bonds. Yields on bonds rose even in lieu of the equity selloff – very unusual. This could signal we are in the final stages of low…

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Stimulus Flowing

The markets rebounded yesterday as the economic data came in lukewarm at best. Initial Jobless Claims and GDP were both slightly worse than expectations. And Pending Home Sales MoM came in at .3% with expectations of 1.5%. That is a big shift in one month. If you own some home building stocks, you may want to take some profits. When…

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Perfect Reversal, but Will it Last?

The markets, or at least the DOW, gave back the exact points gained on Tuesday. On Tuesday the DOW was up 106 points, and yesterday it was down -106 points. While the NASDAQ and the S&P 500 had similar results, the small caps weren’t so lucky. The good news is that selling wasn’t that intense. Total volume was in line…

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Tuesday’s Magic

Our markets had another Tuesday in the green yesterday. That’s 20 in a row. The major indices opened with a bang after positive housing and consumer confidence reports. In early trading, the DOW was up over 200 points. But by midday, it was down in the 80s, but began to rebound. This is when I increased my equity exposure. I…

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Danny’s Picks – May 29, 2013

Austerity About-Face: No More Austerity, Germany Embraces Stimulus – Wow! 4 Words: Precious Metals, Bullish Stocks http://www.spiegel.de/international/europe/german-government-to-test-stimulus-instead-of-austerity-a-901946.html Central bankers reject collateral shortage warnings – Would you admit your collateral was no good?! http://uk.reuters.com/article/2013/05/27/uk-bis-banks-collateral-idUKBRE94Q0J520130527 U.S. 2-Year $35 Billion Auction Attracts Fewest Bids Since 2011 – Rates are rising http://www.bloomberg.com/news/2013-05-28/u-s-2-year-35-billion-auction-attracts-fewest-bids-since-2011.html Japan retains status as top creditor nation – for 22 years! http://www.france24.com/en/20130528-japan-retains-status-top-creditor-nation…

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The Markets, Lebanon, and Oil

I trust everyone had a good Memorial Day weekend. And that you thanked a veteran for your Freedom. All of the global markets sold off on Friday amid reports on China slowing and our FED possibly weaning off of stimulus. Our US equity markets opened firmly in the red too, but managed to claw their way back by the end…

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A Sign of Relative Strength

China reported disappointing PMI numbers which came in below 50, which means contraction. That sent the global markets into a tailspin. Most of the Asian markets were down between -1% to -2%, but Japan got literally crushed. The NIKKEI was down -7.3%, in one day! The European markets followed suit with their markets down between -2% to -3%. And it…

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Ben Told the Truth!

The markets spent the morning session in the green with visions of Ben keeping the printing presses going. And that is exactly what is he announced, the printing and bond buying will continue. But Ben surprised us and went over the top. He told the truth. He told us that he couldn’t pull the stimulus yet as the economy was…

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Never Fear, the FED is Here!? Now for the Majors

Earnings season is coming to an end and there isn’t much to fuel the rally further. Taken as a whole, earnings were lukewarm. And the global growth story is weak as are the employment numbers. The major indices spent most of the morning in the red. But never fear, the FED is here! St. Louis FED President Bullard’s statements were…

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Double Bottom

The major indices closed slightly lower yesterday on mediocre volume. The internals were stronger the price performance. Both the NYSE and the NASDAQ had positive breath with advancers outpacing decliners. And Up Volume won on both exchanges. Even though a pullback is likely, there is no reason for panic. But the big news of the day was the huge reversal…

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Making Market Clarity – May 21, 2013

Apple Pays No Tax on Much of Its Overseas Income, Senate Panel Finds. Wow, first Google, now Apple. http://online.wsj.com/article/SB10001424127887324787004578495250424727708.html?mod=djemalertTECH Loopholes allowed Apple (AAPL) to avoid $44B in U.S. taxes from 2009-2012, claims a Senate as they slam Apple. http://seekingalpha.com/article/1448571-senate-slams-apple-on-tax-avoidance?source=email_rt_article_title Japan Upgrades its Economic Outlook. But it will be short lived. Give it less than 2 years. http://www.reuters.com/article/2013/05/20/us-japan-economy-report-idUSBRE94J00S20130520 IMF Predicts Cyprus…

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Buyers Back in Quick Turnaround, But Will It Last

Buyers came back with a vengeance Friday after the University of Michigan Consumer Confidence number came in better than expected as did Leading Indicators. This gave the markets a warm fuzzy. The markets had originally sold off Thursday afternoon after comments by San Francisco FED President John Williams as well as Obama getting attacked with tough questions in the Rose…

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Groundhog Day

We are heading into earnings season in full force.  For the most part, earnings will be “managed” in order to surprise to the upside.  So you should focus your attention on revenue growth, or lack thereof, and not earnings.  Earnings surprises either way may cause an initial short term pop or pullback, but the midterm trend will be determined by…

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Germany and France Get an F

10-24-2011 Our markets had a strong day Friday on increasing volume on hopes of a European debt solution being reached this weekend. But Sunday, no solution was reached. European leaders stated they were making progress and promised to continue to work toward a solution. Merkel stated after the meeting “Today, we will not undertake any decisions, but will undertake preparatory…

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Earnings, M&A, and the European Overhang

10-25-2011 In spite of the European overhang, our markets continued rallying yesterday on lukewarm volume. Most earnings were positive and a few provided positive outlooks. Also, heavy Mergers and Acquisition (“M&A”) activity is driving the market. Netflix reported after the bell and significantly disappointed the market. It was down -$33/share or 28% in afterhours trading. Tuesday, Texas Instruments, Amazon, UPS,…

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Pay Attention to Europe and Our Trading Volume

10-21-2011 Investors around the world are waiting on an EU decision. The Asian and European markets sold off yesterday as fears about a solution were put on hold. Our markets were all over the place but were more fortunate than the foreign markets. The good news is our markets came off their lows of the day and closed near their…

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No Solution in Europe Yet, Germany and France Walk Away From the Table

10-20-2011 When push came to shove, Germany and France just didn’t quite see eye to eye and walked away from the table. Germany feels the private sector, the banks and institutional investors (pension funds etc.), should accept bigger losses. The French don’t want bigger losses for the private sector as their banks have bigger exposure to Greece. Either way, taxpayers…

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2 Trillion Euro Bailout Trail Balloon Announced

10-19-2011 The Producers Price Index (PPI) came out hot indicating there is in fact inflation coming through the system. The markets began on a sour note yesterday and looked to be a follow through down day. We had a mixed bag of earnings. Even though a few banks had some good news, it was primarily due to accounting gains. Goldman…

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Germany & France to the Rescue – Possible Short Squeeze

10-10-2011 The markets ended their 3 day winning streak on Friday. The S&P and NASDAQ were down -.82% and -1.1% respectively, and the DOW was down only marginally. The DOW’s smaller decline can be explained by a few mega stocks, namely Intel and Wal-Mart, up strong and therefore skewing the index. However, we will likely get a strong bounce at…

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Price Volume Divergence

10-11-2011 All the market indices ended much higher in Monday’s trading on the promises of a European debt crisis solution by France and Germany. No details were given but German Chancellor Merkel and French President Sarkozy said they were unified and would provide details early next month. Gold, silver, and oil all followed suit and had a big day as…

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Over There, Over There, What’s Happening Over There

10-7-2011 The markets continued their rally yesterday for the 3rd day after the brutal selloff. Advancers beat decliners by 5 to 1 on the NYSE and 3 to 1 on the NASDAQ. Total volume was down from Wednesday but still healthy. We just qualified for a 90% Up Volume day on the NYSE and registered in the high 80s on…

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Short Term Rally in a Bear Market

10-6-2011 The European markets all had a big day yesterday. Their rallies were based upon European leaders agreeing to recapitalize their banks. It is not about Greece at all, but the banks. European leaders are trying to buy time with Greece so they can strengthen the banks. Once this is accomplished, Greece will be allowed to go bankrupt. Bankruptcy is…

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Is the Reversal Sustainable?

10-5-2011 The markets started the day on a very negative note and the DOW was down 250 points but regained some of the losses during the early afternoon. Then sold off again, but had a strong reversal  in the last hour of trading. The near vertical ascent saw the DOW close up 153 points (see graph). The range was over…

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A Key Technical Time – Rebound or Another Leg Down

10-4-2011 It was a rout yesterday on heavy volume and selling was widespread. Breadth was extremely negative with decliners beating advancers by 9 to 1 on the NYSE and over 8 to 1 on the NASDAQ. Once again the only place for cover was the US dollar and gold. This time silver was in the green as well. It is…

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Selling Continues, and Will Continue – Here’s Why & What To Do

10-3-2011 The 3rd Quarter is in the books, and if you weren’t hedged or holding a lot of cash, it was ugly. All 3 major indices were in the red by double digits. The DOW was down -12%, the NASDAQ down -13%, and the S&P down -14%. The markets continued this trend on the last day of the quarter by…

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Mixed Signals on a Trifecta

9-30-2011 The markets gave mixed signals yesterday despite  the trifecta of positive economic news and the DOW was quickly up 250 points.  Europe announced they would double the size of their bailout. In the US, our GDP number came in at 1.3% beating the 1.2% estimate and prior 1% growth rate. Initial Jobless Claims came in lower than expected and…

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Selling Accelerating, Cash in King

9-29-2011 The European debt crisis is weighing heavily on the markets. While it looked liked there might be some solution put forth a few days ago, when push came to shove, leaders of the EU backed away from the table. The leaders of the various countries cannot agree on how much of a write-down, or “haircut”, the European banks should…

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the dollar is in trouble

Rebound Rally May Be Coming to an End

9-28-2011 What looked to be a strong 90% Up Volume day reversed on heavy volume with an hour left in trading. At one point, Up Volume was in the mid 90s but finished only in the high 70s on the NYSE. The markets still finished in positive territory with all the major indices up over 1%. The problem was they…

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Market Internals Weaker Than Points Gained Suggest

9-27-2011 The markets had a strong rally with a few hours left in trading yesterday on a report our government was going to provide a bailout to Europe. Information is sketchy and there is no real news of any details, just a statement by a “government official.” European leaders announced their own bailout will have to be much larger than…

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What’s Next?

9-26-2011 Friday was a rollercoaster day with the major indices oscillating wildly, finally ended in positive territory. The DOW was up about 1/3%, the S&P a little over 1/2%, but the NASDAQ showed the most strength up over 1%. Gold and silver, on the other hand, were crushed as were most of the commodities, especially industrial commodities. The big question…

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Volatility Rising as Bernanke Speaks

9-22-2011 The markets were in mild negative territory yesterday, then FED Chairman Ben Bernanke came out and spoke. He formally announced Operation Twist of 400 billion and the markets immediately tanked. Whether his announcement was traders “buying the rumor and selling the news,” or whether it is because his announcement was not big enough can be debated. The main point…

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Will Operation Twist Work?

9-21-2011 The markets attempted to follow through yesterday on expectations of Bernanke would provide more stimulus and Greece’s bailout money would arrive. At one point, the DOW was up almost 150 points. No such luck. The regulators for Greece put off the next tranche of bailout money and wanted to reconvene in a few weeks after Greece provided more proof…

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Déjà Vu

9-19-2011 We had a strong total volume day on Friday, but that is typical of options expiration day occurring the 3rd Friday of every month. There was much churning and not much movement in prices. The markets finished modestly in the green, but be wary. The market internals tell me of a different story, which is confirmed by services I…

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Central Banks of the Western World to the Rescue – But Will It Work?

9-16-2011 The Central Banks of the Western World are coming to the rescue. Our FED, the European Central Bank (ECB), the Bank of England, the Bank of Japan, and the Swiss National Bank all united to conduct “US dollar liquidity-providing operations.” This is supposed to solve the acute shortage of US dollars in the European banking system. The European banks,…

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The News Driven Market Continues, So Does the Volatility

9-15-2011 It continues to be a news driven market as the economic news points to a slowing global economy.  Our retail sales numbers stalled. In response, the DOW was down triple digits during the early morning session. The other indices weren’t faring much better. Then France and Germany came out and said they will support Greece. France in particular said…

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It Looks Like the Fear Trade is Creeping Back Into the Markets

9-14-2011 Worries over the European debt crisis continued to make the markets depressed, then manic. Global markets are hanging on any news of possible failure or bailout buying of Greece, and even Italy. The Italian bond auction went lukewarm at best. Virtually the only buyer was the European Central Bank (ECB). This will be troubling for the upcoming Spanish auction…

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Late Day Reversal, But Were Not Out of the Woods Just Yet

9-13-2011 The markets had a surprising rebound in the last 45 minutes of trading yesterday. At one point the DOW was down over -165 points but closed up 69 points. That is a range of over 235 points and the volatility continues. Two reasons for the reversal and late day rally. First, reports that Greece is likely to get an…

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Europe Coming Apart Fast as Germany Prepares for Greek Default

9-12-2011 The European debt crisis is back on the front pages just as I said it would be, and wreaking havoc in global markets. Unless you are an agile, short term trader, going long and trying to invest in any rally is dangerous, and probably futile. The European Central Bank’s Chief Economist, Jurgen Stark, resigned Friday stating personal reasons. The…

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Market Selloff Coincides with Bernanke’s Speech While Gold Miners Breakout

9-9-2011 Obama came out and, as expected, delivered a hollow speech last night with nothing new. Extending jobless benefits, building some roads and bridges, taxing the rich, and a few tax breaks for small business was all he could muster. His proposals have little chance of passing the House. On a bright note. gold and silver had a strong reversal…

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Approaching Resistance in Choppy Markets

9-8-2011 The choppy, volatile markets continued yesterday, this time to the upside. The DOW was up almost 2 1/2% while the NASDAQ was up 3%. We qualified for a 90% Up Volume day with both the NYSE and NASDAQ exchanges registering in the mid 90′s. Overall volume was up slightly on the NASDAQ but decreased on the NYSE by over…

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Bounce Likely, But Don’t Be Fooled and When To Buy Oil

9-7-2011 The markets sold off yesterday as expected, but came off of their lows significantly closing near their highs of the day. At one point the NASDAQ was down over -2.7%  but closed down only -.26%. The DOW had been down as much as -308 points, but closed down  -100 points or -.9%. The S&P had similar results closing down…

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The Global Bloodbath Continues as Europe Falls Apart Fast – Are You Prepared?

9-6-2011 Last Friday was a bloodbath in almost all sectors of the market unless you were hedged.  Heavy selling on Wall Street qualified for a 90% Down Volume day on both the NYSE and NASDAQ registering in the mid 90s on both exchanges. This will continue today! Gold and silver had a big day along with the dollar strengthening at…

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Gentlemen, Start Your Printing Presses – Both in Europe & the US

9-2-2011 The markets began the day with a slight “pop” yesterday due to the upside surprise in the Initial Jobless Claims.  It came out lower (better) than expectations, but if you look beyond the headline, expectations were for 410k and the number came in at 409k. So we beat estimates by 1k…are you kidding? That is .0024 better than expectations…

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Exactly What Does Stimulus Mean?

9-1-2011 Even though the markets have been up a few days in a row, they remain very choppy and the internals are just not strong enough to suggest a midterm sustainable rally. That is, until stimulus is formally announced. Make no mistake, this is a stimulus (expectations) driven market. The markets were all over the place yesterday. They began with…

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Is the Market Momentum Waning?

8-31-2011 The markets finished positive yesterday, but only marginally. Consumer confidence came out very weak at the bell and the markets began in the red. The markets then came back because of rumors the FED would be stimulating are in play. The release of the Federal Open Market Committee (FOMC) minutes on August 9th hinted they would step in if…

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We Need Volume

8-30-2011 The markets has a strong follow through day yesterday, the only problem, it was on very light volume. We did qualify for a 90% Up Volume day on both the NYSE and NASDAQ registering in the high 90s on both exchanges. However, you want to see strong buying volume when breaking through resistance. Overall volume decrease by double digits…

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Volatility Continues as Bernanke Hints at Stimulus But Doesn’t Confirm

8-29-2011 Bernanke spoke on Friday after our GDP report confirmed we were in fact slowing. GDP came out at just 1%. At first glance, it seemed like Bernanke wasn’t coming to the rescue and was not going to do anything – no stimulus. The markets responded by selling off quickly. The DOW was already down by -80 points due to…

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Actionable Information Today – GDP Report AND Bernanke Speaks – How Will You Respond?

8-26-2011 The market continued with its manic behavior yesterday, this time to the down side. After the recent and violent selloff 2 weeks ago, the market cannot seem to find a direction or trend. A day or two up, then a day or two down is all it can muster. During times like these an investor needs to be patient…

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Gold Margins Raised by the CME and CDS on European Banks at an All Time High

8-25-2011 As I expected, the CME raised margin requirements yesterday afternoon on gold futures contracts (by 22%). This is turn caused gold to sell off almost $100/ounce, or -5.6%. Silver followed suit and was down over -5% as well. In yesterday’s newsletter I stated I would watch gold carefully today and if selling continued on heavy volume, I would sell…

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Broader Markets Need a Follow Through and What To Do About Gold

8-24-2011 We had a strong day on all the major indices yesterday on increasing overall volume. The markets did not qualify for a 90% Up Volume day but both the NYSE and the NASDAQ finished in the mid 80s on Up Volume. Breadth was positive across the all the major exchanges – the NYSE, the AMEX, and the NASDAQ –…

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The Markets Eek Out Gains, But the Internals Tell a Different Story

8-23-2011 The markets opened in strong positive territory yesterday and the DOW was up over 200 points within minutes. This strong opened only lasted about 15 minutes and the markets continued to trickle down throughout the day eking out modest gains. There was a modest bounce in the early afternoon but the markets rolled over again. The DOW closed up…

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Why Both the Technical Analysts and the Fundamental Analysts are Wrong!

8-22-2011 The markets tried to stage a rally a few times during the day Friday, but sold off in the end. All the major indices were down over -1 1/2%. Selling continues and has been gaining momentum. Total volume decreased Friday from the big volume on Thursday, but selling volume over the past few weeks has been increasing while buying…

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Volatility Spikes & Risk Still High – Remain Hedged and in Cash

8-19-2011 Our markets followed Europe’s lead yesterday and were crushed. Europe was down between -4 1/2% to -6%. Our markets were down slightly less, but it was still painful unless you were wisely hedged and/or holding cash. The DOW was down -3 2/3%, the S&P down -4 1/2% and the NASDAQ – 5 1/4%. We unequivocally qualified for a Down…

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Should You Worry About the Death Cross?

8-18-2011 The markets yesterday gave up their early gains. The DOW and S&P ended flat, but the NASDAQ finished down about -1/2%. Advancers beat decliners on on the NYSE by 4 to 3, but on the NASDAQ, decliners beat advancers by 7 to 6. More importantly, the markets’ rebound rally is losing steam. There has been much buzz on Wall…

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Tuesday’s Decision Disappointed, Expect More Weakness – Hedge or Raise Cash

8-17-2011 The markets ended their brief winning streak and closed down on the day. The good news is that the markets recouped some of their losses and didn’t end near their lows of the day.  This is a good sign. The bad news is the prior few days of gains were on decreasing overall volume. However, yesterday’s decline was on…

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Volatility Continues and Margin Requirements for Gold Increased – Here’s What I Am Doing

8-12-2011 Yesterday it was yet again another volatile day on Wall Street, this time to the upside. The DOW closed up 3.9% or 423 points, about 100 points shy of its losses on Wednesday. The S&P and NASDAQ were up 4.6% and 4.7% respectively, but they recouped slightly more than their losses Wednesday. Every day this week has been a…

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Unprecedented

8-11-2011 The markets had another extreme day yesterday, an extreme down day. The DOW close down -520 points or -4.6%, and is under 11,000. Both the NASDAQ and S&P had similar results. We qualified for a 90% Down Volume day on both the NYSE and the NASDAQ both registering in the mid 90s. We had a 90% Down Day Monday,…

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Be Ready to Fade the Rally

8-10-2011 The markets had another manic-depressive day with HUGE swings in the market. They began in positive territory. Then Bernanke spoke and the markets tanked. The DOW was down almost 200 points at one point. Bernanke stated he would leave interest rates unchanged all the way through mid 2013. That will be inflationary. Many pundits believe that the markets rallied…

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2008 All Over Again – Gold and Cash Are King!

8-9-2011 The markets got crushed yesterday on heavy volume. Fortunately, I am holding large amounts of cash for clients along with my largest holding, gold. Gold was up big yesterday, and gold and cash are kings! The DOW fell -634 points and is now below 11,000. The S&P was down -80 points and the NASDAQ down -175. Among the DOW,…

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Downgrades and Bailouts – The Ponzi Scheme Continues

8-8-2011 In case you were on vacation in a remote location without any form of communication whatsoever and haven’t heard, the US government was downgraded late Friday after the markets closed by Standard and Poor’s rating agency. S&P downgraded the US from AAA to AA+ with a negative outlook (France is next). In response, the US dollar has come under…

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The Race to Zero is Back On, and the Biggest Ponzi Scheme Ever is Collapsing

8-5-2011 It is now officially on record. Our global growth is zero according to JP Morgan. We have been saying all along that without the stimulus and bailouts, growth is actually negative and we never really came out of the recession. This is NOW finally being carried by the mainstream media outlets, and the analyst cannot ignore the problem anymore…

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Another Roller Coaster Day, This One Positive

8-4-2011 We had another roller coaster day yesterday. The DOW went from a positive open to quickly being down triple digits. The markets began to firm up but then Obama came out and spoke. They quickly turned negative again. Every time he speaks, the markets head south. Can’t someone please stop him from giving constant speeches! By the end of…

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IntraDay Update

7-29-2011 Our GDP was revised downward and Moody’s placed 5 Spanish banks on review for downgrade after already warning that they may downgrade Spain’s sovereign debt. Remember that our debt ceiling is not the only thing that you need to worry about right now. Do not forget about Europe. They will back in the headlines soon. The markets opened down…

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Sometimes Defense is the Best Offense

7-29-2011 The negative trifecta still seems to be in place. Growth is slowing globally, earnings aren’t quite as good overall as expected, and the politicians in Washington can’t seem to get anything right. Don’t forget, Europe is about to be on the front page again as soon as our debt ceiling debate is resolved. GDP came out a meager 1.8%…

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A Perfect Negative Trifecta

7-28-2011 Wall Street had a very tough day yesterday based on political fears. Couple that with bad economic data and weak earnings reports and you have a perfect, negative trifecta to the downside. The stalemate in Washington seems to be getting worse and is giving investors the jitters. On the economic front, Durable Goods Orders reversed their positive trend and…

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Is Your Armageddon Trade Ready Just in Case

7-27-2011 The markets finished in the red yesterday over continued fears the debt ceiling debate will not be resolved in time. The DOW was the weakest of the 3 main indices percentage wise, down .73%. This was followed by the S&P, down .41%, and finally, the NASDAQ was the best performer down only .1%. Looks can be deceiving though. The…

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Obama Spoke But Said Nothing…

7-26-2011 …the Stalemate Continues The markets sold off yesterday as the debt ceiling gridlock continues. Utilities were the strongest sector and the weakest sector was again the Financials.  It sure sounds familiar. Down Volume was in the mid 70s on both the NYSE and the NASDAQ. Total volume was relatively flat from Friday. The good news is both the NASDAQ…

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The High Stakes Poker Continues – How to Assure a Winning Hand

7-25-2011 The high stakes poker on the debt ceiling debate continues, but the markets have not yet responded. The next few days should be interesting as tensions heat up in Washington. Even with all this uncertainty, over the past week, the markets have been showing some signs of improvement and buying interest has been strengthening though it has been somewhat…

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Earnings Strong, Market Improving – But Is the Greek Debt Crisis Really Solved?

7-22-2011 It was an earnings driven market yesterday and earnings were strong. Out of 39 S&P companies reporting, only a handful surprised to the downside. And, approximately 12% beat estimates by double digits. Another positive came in the afternoon when the EU announced they had reached a tentative agreement on Greece. Europe rallied as did the US. The EU solution,…

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Looks Like Meredith Whitney Was Right

7-21-2011 Even with good earnings reports from many companies, the markets finished mildly in the red and we did not get a follow through day. Virtually all of the 27 reporting companies in the S&P 500 beat estimates. Nevertheless, both the S&P and DOW were only down marginally and the NASDAQ finished down -.43%. Investors are again focusing on our…

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Forget Our Debt Ceiling Debate, Europe is Back on the Front Page

7-19-2011 Our debt ceiling debate was not even in the financial news yesterday as all eyes were squarely on Europe once again. The European Union is struggling to find a way out of their mess, especially without causing a default whether a “technical default” or not. The problem is there is no way around a default for some countries that…

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The Real News

7-18-2011 With the exception of the NASDAQ and the technology sector, it was another rollercoaster on Friday. The technology sector was overjoyed by the news that Google crushed earnings. The NASDAQ stayed well in positive territory all day and finished up 1%. The broader market, however, gyrated but did rally in the last 45 minutes of the day. The DOW…

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Bernanke Off His Meds

7-15-2011 Trying to follow what Ben Bernanke is saying from one day to the next It is like riding a roller coaster up and down. One day QE3 is on, the next day he is backing off his position. Ben, don’t you know the markets don’t like uncertainty? If you are trying to create uncertainty in the markets, you are…

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QE3 on the Way, Gold Hit All Time High and Silver Up Over 7%

7-14-2011 The markets started the day yesterday with a bang and the DOW was quickly up over 150 points. Likewise the S&P and NASDAQ were also in strong positive territory and 3 indices were up around 1 1/2%. This came on the heels of Bernanke implying that QE3 was on the way. Bernanke told Congress he is prepared to take…

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Where I Stand

7-13-2011 Yesterday, the markets hovered just above and below the flat line, in what seemed like slow motion for most of the day. Then things started to happen just after 2:00 CST. The FED’s release of the minutes from their June 21st-22nd FOMC meeting was actually leaked about a half-hour before the formal release was scheduled to happen. The report…

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Moody’s Puts US Debt on Review…

6-3-2011 … due to Downgrade, as a Result, Treasuries Get Hammered The markets had a choppy day going above and below the flat line throughout the day. The DOW was the weakest finishing down .34% and the S&P down just marginally. The NASDAQ was the strongest of the 3 indices finishing up .15%. Total volume was down double digit on…

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Global Selloff – How to Tell What’s Next

6-2-2011 The economic data across the board confirmed the economy is slowing rapidly. The ADP Employment Change was expected to create 175k jobs, but only 38k were recorded. Way off! The ISM Manufacturing number also came in far under expectations. Vehicle Sales were down and MBA Mortgage Applications were -4% after the prior number had been a positive 1.1%. Taken…

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Mixed Bag

6-1-2011 The Case/Shiller  Home Price Index came out yesterday morning confirming the housing market is unequivocally in a double dip recession.  It came out much lower than analyst expected and dropped to their lowest levels since 2003 (see graph).  It was the biggest year over year (YoY) drop since the economic crisis ending in November 2009. Mortgage Applications come out…

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Europe and Middle East in Crisis

6-1-2011 Last Friday we had moderate gains across the markets going into the 3 day holiday weekend on light overall volume.  It seems no one wanted to take a definitive stand over the long weekend.  The DOW ended up .3%, the S&P up .4%, and the NASDAQ up .5%. Oil was up around half a percent and is still over…

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The Wild Card Remains Europe…

5-27-2011 …China Will Be Next The markets resumed the rally, albeit not all that impressive, despite a weak GDP report and higher Initial Jobless Claims. Overall volume was down on the NYSE but was up marginally on the NASDAQ. Breadth was positive with advancer beating decliners by 2 to 1 on both exchanges. Up Volume was in the mid 70s…

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Rebound Rally On Weak Internals…

5-26-2011 …But This Could Change for the Better It was a choppy day yesterday but the markets had a mild rebound rally with the DOW & S&P up almost 1/3% and the NASDAQ up over 1/2%. With the exception of the NASDAQ, the internals weren’t that strong and tell a different story. Total volume was relatively unchanged from Tuesday. Up…

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Likely Another Choppy Day

5-25-2011 Goldman Sachs came out with a bullish outlook on commodities giving gold, silver and commodities a boost. Commodities were up across the board and oil is once again closing in on $100 per barrel. Gold was up .6% and silver, the big winner, was plus 4.7%. The markets, however, were once again choppy, starting off in the green but…

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The US Markets are Showing Resilience…

5-24-2011 …With Exception to the NASDAQ – a Rebound Rally is Likely The markets showed resilience yesterday compared to the global indices.  Both Europe & Asia were down, on average, between 1 1/2% to over 3%.  Both the DOW and the S&P were down about 1% on light volume.  The NASDAQ, however, was down 1.6% on solid volume. Down Volume…

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We Hit the Debt Ceiling…

5-17-2011 …and Selling Continued on Monday, But Lacked Intensity Yesterday, we technically hit the debt ceiling.  However, Treasury Secretary Geithner borrowed from public pension funds to avoid technical default.  At this point, it seems a non-event.  But our day of reckoning is coming soon.  They will raise the debt ceiling and Bernanke will continue some type of “stimulus” or quantitative…

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More FED QE, Israel’s Possible War…

5-16-2011 …IMF Pres Arrested for Attempted Rape – What It Means It has been an interesting weekend to say the least.  Yesterday, Dennis Lockhart, the Atlanta FED President, planted the seeds for further quantitative easing.  At the very least, he opened the door for discussions of further stimulus. Specifically, he said, “Some of my colleagues have already begun to weigh…

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Attention Central Banks…

5-12-2011 …No More Bailouts Please! The markets had a tough day yesterday as all eyes were on Europe. Europe is in deep trouble. There is unrest in the streets in Greece and hundreds of thousands of civil servants, teachers, and other public service employees went on a general strike. They are protesting the austerity cuts with more to come. The…

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A Place to Screen and Research ETFs

5-11-2011 The markets ended in positive territory on increasing overall volume and all 3 major indices closed near their highs of the day. The DOW closed up .6%, the S&P .8%, and the NASDAQ 1%. Overall volume increased double digit on both the NYSE and the NASDAQ. Up Volume was in the high 70s on both exchanges demonstrating increasing demand…

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The Dollar Strengthens…

5-10-2011 …Along with Gold, Silver, and Oil The markets moved higher yesterday especially in the energy, precious metals and commodity sectors. They were the most oversold sectors partially due to the increased margin requirements mentioned in recent newsletters. The new silver margin requirements took effect yesterday and have shaken out all the weak hands and overleveraged positions.  Silver was up…

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Will the Europe Be the Next Black Swan?

5-9-2011 The markets had a positive day Friday on apparently good economic news.  They did, however, come off the highs of the day. Non-farm payroll created many more jobs than expected but the unemployment rate went up to 9%. The reason given was more people “were coming off the couch and looking for jobs” as the economy is getting better….

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A Selloff Because of the Strengthening Dollar…

5-6-2011 …or Slowing Economy?  I Think Not – It is All About Motive The equity markets had another tough day on Wall Street yesterday. In fact, equity markets across the globe were down yesterday. Breadth was negative on both major exchanges but weaker on the NYSE. Decliners beat advancers by 3 to 2 on the NYSE but breadth was only…

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Pullback Continues on Stronger Dollar…

…Extend the Debt Ceiling and Rally Continues Except for Treasuries The markets finished lower yesterday on a lot of churning. Volume on the NYSE was on heavy volume at well over 5 billion shares traded and volume increased from Monday by double digits. The NASDAQ’s volume on a relative basis was lighter, but still decent at over 2.2 billion shares….

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Silver, Silver, Silver

5-3-2011 The markets finished marginally lower across the board after the Osama Bin Laden rally and euphoria wore off. Overall volume was also down from Friday. The supply and demand picture still looks positive for stocks as the sellers are not showing much enthusiasm. Down volume represented 57% of volume on the NYSE and only 55% on the NASDAQ. Therefore…

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Silver Margin Requirements Raised Again!!

5-2-2011 …Currencies to Own & to Avoid The markets were up marginally on Friday as the DOW was up 47 points, the S&P was up 3 points and the NASDAQ up 1 point.  Again, the strength is in large, multinational companies all benefiting from the devaluation of the US dollar. Selling pressure is diminishing but the demand for stocks is…

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MultiNational Earnings Strong…

4-29-2011 …Economic Data Deplorable Yesterday, the equity markets began negative, reversed in a choppy fashion and finished in positive territory for the day. The good news is they finished near their highs. This was due a strong earnings reports, especially for the large and mega cap multinationals with overseas sales. It was not due to our economic data which I…

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Bernanke Spoke, Nobody Believed…

4-28-2011 …Time to Fight the FED Ben Bernanke spoke today and said the inflation spike was short term in nature and probably come down to the inflation target set by the FED just under 2%. He stated inflation was “just transitory”. Silver and gold did not buy it as they both rallied strong. Silver was up over 6% well over…

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I’m Just Waiting on a Ben

4-26-2011 The DOW and S&P both finished down marginally, but the NASDAQ was up marginally yesterday. All 3 indices came off their lows and finished new their highs of the day. Volume on the NYSE and the NASDAQ was the lightest of the year. The market is searching for direction. Neither side, buyers or sellers, want to take a stand….

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Silver & Gold on a Tear in Overnight Trading

4-25-2011 Nothing to report on the US markets as they were all closed Friday due to the Holiday. However, in Monday overnight Asian trading (10:10 p.m. CST) silver is at $47.85 up 60 cents, and gold is at 1,512.10 up over $5 per ounce. This is all based upon the devaluation of the dollar and they will continue to make…

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Devaluation Trade Continues with a Vengance…

4-22-2011 …What To Do with Idle Cash The markets finished moderately higher today on good earnings reports. Volume, though, was off from Wednesday. Gold and oil were both up, but silver was on a tear. Commodities were mostly up as well. The dollar devaluation trade is still on and accelerating as investors realize both sides of the isle in Congress,…

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Strong Day Yesterday, What to Look for Next

4-21-2011 The markets had a strong day yesterday on good volume.  Strong earnings, especially from the technology sector, gave the markets a boost.  All the indices gapped up at the open and never looked back. The S&P was up 1.3%, the DOW 1.5%, and the NASDAQ 2%.  The rally was broad based on positive breadth with advancers beating decliners by…

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Commodities & Silver Racing, Gold at $1,500…

4-20-2011 …and the Migration Continues After a reversal midday, the markets had a solid performance yesterday with all 3 major indices ending in positive territory. The S&P 500 and the DOW both finished up over 1/2% and the NASDAQ finished up 1/3%. However, demand was mild and volume was lower than Monday on both exchanges. Selling did contract and was…

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Market Update – February 16, 2011

Have we hit peak debt? Congress is not taking budget cuts seriously. Treasury yields are showing a very steep yield curve with significant risk. Click here to see my recent article on this very issue. This means treasury sovereign and government bonds are becoming dangerous. As inflation continues to show its ugly head, commodities are going to be the safe…

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Market Update – Jan 12, 2011

Market Update – Jan 10, 2011

Sovereign debt problems in Portugal are a concern around the world. More money being printed in Europe means that the price of gold and sliver will continue their bullish trend.

Market Update – Jan 7, 2011

Hold Your Available Cash For Now

The world markets have the jitters today due to Europe. And, Europe is only going to get worse. Europe’s sovereign debt interest rates or yields are rising quickly and their government bonds are going down in price. In fact, Ireland’s government 10 year yields have gone over 10% and they already want to refinance their recently issued bonds. Their cost…

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Market Update – Jan 6, 2011

Market Update – Jan 5, 2011

Market Update – Jan 4, 2011

Second trading day of 2011 and everyone is talking about defaulting. Chicago is in need of a bailout; Watch for municipal bonds to pop if this happens Gold, Silver and Oil all had a sell off today and ended up down for the day. Why? The stronger U.S. dollar. What’s going to make Gold and Silver come back up? Chicago and Europe….

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Market Update – Jan 3, 2011

Market Update – Dec 30, 2010

Market Update – Dec 28, 2010

Market Update – Dec 21, 2010

Europe in Dire Straits

Market Update – Dec 17, 2010

Market Update – Dec 16, 2010

Market Update – December 15, 2010

Market Update – December 15, 2010

Consolidation or Breakout?

Market Update – Dec 10, 2010

North Korea Firing Artillery & the EU in Trouble

Today, political fears of North Korea and worries about the European Debt crisis shook the markets around the world. North Korea fired artillery at a South Korean island and 2 marine lives were lost. South Korea fired back. Over in Europe, the Irish government seems to be breaking apart. This does not help “sooth” the markets especially before a long…

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Consolidation

The markets closed with their worst day since August 11th.  However, all 3 indices came off their lows for the day. The markets were down approximately -2% last week, and were essentially flat Monday. Monday began the day off positive on good economic data, namely better than expected consumer spending. However, in the afternoon Demand was weak, and according to…

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China Downgrades US Debt

Treasuries are Down and it’s Time to Short It was an eventful day in the markets and across the globe today.  China downgraded our US Debt today and we no longer have the highest credit rating.  This sent interest rates up across the board, especially longer term rates.  As a result, US Government Treasuries were down in price. Was this…

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Ben, Tim & the US Under Fire by World Govts

It was an interesting weekend in the Political and Economic arenas. Timothy Geithner had to formally apologize to the G-20 Nations for his proposal on exports. All the G-20 nations summarily dismissed him and his ideas. Then today in London, Robert Zoellick, the World Bank President, proposed that leading economies should adopt a “modified gold standard” to guide currency rates…

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Forget the Elections, Today, It’s All About You Ben

Bernanke came out with a big stimulus package or QE2 today. The markets then turned marginally positive. However, they were negative throughout the day waiting on pins and needles for his announcement. Investors were expecting between 500 Billion to a 1 Trillion dollars of bond and other asset buying by the FED. This number came in at 600 Billion and…

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Ben Bernake Trumps Election Eve (Please Go Vote)

The markets were negative going into the close and into Election day. However, they staged a last minute rally to get back to right at breakeven. You have heard the old saying “buy the rumor, sell the new.” But really, the market internals are providing statistical evidence for short term weakness. Breadth indicators are bearish as are some other technical…

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I’m Just Waiting on a FED

All the markets are waiting on the FED, not only in the US but around the world. The FED decision of not whether to implement QE2, but how much. Some FED dissenters and even Bernanke himself have been hinting over the past few days that it may not be a big as previously thought. Our US GDP came out today…

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Still About the Benjamin’s

Yesterday, it was all about the dollar strengthening. Today, it is all about the dollar weakening. The dollar sold off against all the major currencies today which drove the prices of gold and silver up significantly. Gold was up 1 1/2% and silver was up almost 2 1/2%. This should have also been positive for stocks but did not drive…

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It is All About Bernanke and the Dollar

Now is the time to be patient and watch how the elections play out & what Bernanke does. It looks as though he may not do a full blown version of QE2, but may take a “watered down” approach. If this is true, the market will most likely sell off as QE2 was already priced into the market. For this…

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Time to Be Patient and Watch

The markets are not showing signs of continued strength and momentum is waning. Yesterday as the indices approached their April highs, they quickly reversed. Even though the markets ended up with moderate gains, they were well off their intraday highs. One can conclude that the April highs constitute resistance and overhead supply. Other short term indicators are also showing weakness…

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The Economy, Corporate Profits, and the Longer Term

The G-20 Meeting went off as planned this weekend. All the finance ministers from the major countries met and basically “rebuked” the United States and confirmed they would all like the International Monetary Fund to be the World’s Bank. This does not bode well for the US long term, especially if the other countries do follow through with a world…

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Guidance is Key

Earnings season is in full swing. Earning reports are coming out with upside surprised left and right. The market should be in a strong rally, right? But the momentum of buying is slowing. I have been doing quite a bit of research today on the earnings in the markets. Earnings estimates are “surprising” to the upside by well over 80%….

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If It Doesn’t Work, Is More Better?

The market was up yesterday from Tuesday’s sell off, but it wasn’t as strong as we would have liked based upon the internals. Volume could have been stronger and fell almost 10% from Tuesday. According to Lowrys, Up Volume was 70% on the NYSE which is not all that convincing. Today, we would like to see an increase in volume…

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Looking in the Wrong Place at the Wrong Time

23 years ago yesterday the market suffered its worst day in the 1900s. It was down -22% one day, known as Black Tuesday. Yesterday, not wanting to disappoint, the market sold off a couple of percent. It was a broad based sell off and included commodities and stocks. Preliminary numbers show an 89% Down Volume on the NYSE and 86%…

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The Markets Took a Bite Out of Apple

Apple and IBM both lowered their guidance going forward which did not bode well for the markets. China’s surprise rate increase didn’t help much either. Even with more earnings coming out with “positive” surprises versus negative surprises, the markets are focusing on the negative. In particular, they are zeroing in on guidance going forward rather than current earnings, which is…

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The Emperor Isn’t Wearing Any Clothes

The markets had a good day after the positive earnings from Citibank and an upbeat report on the housing market. Homebuilders Sentiment increased and the dollar has also firmed up relative to other currencies over the past few days. Investors are becoming worried that the market has become overvalued in the short term. Many short term indicators are showing “Overbought”…

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Keep a Close Eye on Japan

Yesterday’s final tally of the market internals confirmed what we had already suspected. The markets are due for a pullback. Down Volume on the NYSE registered at 72% and 56% on the NASDAQ. Market breadth also showed more weakness on the NYSE with Declining Issues beating Advancing Issues 3 to 2. On the NASDAQ, it was much closer to 1…

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Do You Own Any Commodity Companies?

…You Should. Although the markets pulled back from their highs in the afternoon, the equity markets had a strong commodity based rally today based upon the Quantitative Easing 2 (QE2). Everyone is pricing this as fact and forgone conclusion into the markets. The strength of rally was confirmed by the significant increase in volume. Volume on the NYSE was 5…

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A Voice of Reason in the Wilderness

The Minutes from the Federal Reserve meeting on September 21st were released today earlier this afternoon. The markets were negative up until that time and then reversed, moving higher to the positive side. The DOW was up over 30 points or +1/4%, but going right into the close the DOW has pulled back and closed up only 10 points or…

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A Slow Columbus Day

The bond market was closed today and many of the equity traders took a three day weekend in observation of Columbus Day.  Today was very slow so I will be brief.  Volume on the NYSE today was 3.2 billion shares and the 30 day moving average (“DMA”) is 4 billion.  Volume on the NASDAQ was 1.5 billion shares and its…

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Bernanke Gets Green Light on Jobs Data

Futures were down before the market open today.  However, the change in Payrolls came out much worse than expected. The survey was for job losses of 5,000 but the actual losses were 95,000.. Futures immediately turned around and the markets opened in positive territory.  They remained positive throughout the day with the exception of a few minutes in the late…

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Market Change of Character for the Short Term…

…Thank you Mr. Bernanke (and Japan) On Tuesday, the markets qualified for a 90% Up Volume day on the NYSE, but not quite on the NASDAQ. Up Volume on the NYSE was 93% and was 87% on the NASDAQ on increasing, strong volume. Volume on the NYSE was 4.8 billion while its 30 Day Moving Average is 4 billion. Volume…

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Race to Zero Interest Rates – Japan Wins

The markets virtually across the world today were up today because Japan made a surprise announcement they would take interest rates to zero. In addition, they announced a 500 billion dollar stimulus. They are buying corporate bonds, long-term government bonds and government notes,  commercial paper, asset-backed paper, and even exchange traded funds (ETFs). Essentially Japan is buying up everything to…

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Roller Rally Coaster to a Sell Off

The markets will finish up for the month of September, and be one of the best months for the year. This is September’s best finish is over 7 decades. That’s right, over 70 years. Historically, September is by far the worst month out of all 12. In fact, it virtually never finishes out of the bottom 3 months. September’s finish…

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Rates Will Be Rising, and Soon

I have been doing a lot of research today on the market internals, and I still have another meeting so I will be brief. Monday’s selloff was followed by a big decline Tuesday morning, but the markets came back in the last hour. Monday’s Down Volume was 65% on the NYSE and 55% on the NASDAQ. Up Volume on the…

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Wholesale Credit Union In Trouble, What’s Next?

The markets had a strong up day today as Durable Goods Orders ex Transportation (primarily cars and commercial planes) beat expectations today coming out at 2%. Expectations were for only 1% so it was double what analyst were looking for. The complete Durable Goods Orders came out below expectations of -1% at -1.3%, but the markets are looking for good…

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Utilities for Income (and Security)

It was the 3rd down day for the S&P today as all three major indices closed in the red.  Initial jobless claims came out worse than expected and we are going in the wrong direction. Politics are heating up and, probably, nothing substantive will get done but, at least, it will be an entertaining few weeks. Yesterday’s final numbers are…

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Gold at All Time High & the Trend is Still Strong

Today, the markets sold off on increasing volume. This is not a bullish sign. Preliminary numbers show volume on the NASDAQ was above its 30 Day Moving Average and the NYSE was hovering around its 30 DMA. Housing Prices came out down -.5% and mortgage applications were down -1.4%. Once again we are going in the wrong direction. Europe was…

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Some Ideas for Income – More to Come

The markets were unimpressive today, especially with the surprise in housing starts. They were up 10.5% and estimates were only for .7%.  However, when you look deeper into the numbers, most of the increase was attributed to apartments, not houses. Also, Larry Summers, Director of the White House National Economic Council, announced he will return to Harvard.  So the Obama…

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A Rally in Gold, Bonds, and Stocks!?!?

The National Bureau of Economic Research stated that the recession officially ended in June of last year. The committee went on to warn that “any future downturn of the economy would be a new recession and not a continuation of the recession that began in December 2007,” … wouldn’t that be the double dip many of us a speculating will…

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Uneventful Friday Even With Triple Witching

While it is true the markets were essentially flat yesterday with the DOW up marginally, the internals show a different story. The final internal numbers for the markets came in yesterday as I suspected. The market is losing steam and momentum. Up Volume on the NYSE was only 48% and 54% on the NASDAQ. In addition, breadth measures were weak…

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Economic Sense

Yesterday I spoke of the political versus economic. Well, unemployment came out positive, or at least not negative. Initial Jobless Claims were 450k versus a previously revised 543k. Therefore, they got “better” by 3,000. Regardless of the fact that the margin for error is enormous, this should have stimulated the markets. But it didn’t. The mood of investors is changing…

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Politics or Fundamentals?

The markets came back essentially even from yesterday’s selling. For a further rally, all the major indices would have to break through key resistance levels and overhead supply. The DOW has more room until it meets overhead supply at 10,700. The S&P and the NASDAQ are much closer, actually right there, at 1130 and 2300 respectively. In addition, with this…

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Gold is Golden – and Will Continue to Be So

It is all about Gold today. Gold surged today up $25/ounce or 2% on rumors the Federal Reserve will purchase an additional 1 Trillion Dollars of Treasuries to “stimulate” the economy and keep interest rates down. Silver was also up 1 1/2% today. Investors are worried about protecting our currency, and hard assets are becoming more attractive. I have attached…

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Let’s Here It For Silver

Silver broke over $20 per ounce today, up over 1 1/2% and is still in a primary uptrend and a strong bull market. Not only will it be one of the safest investments going forward, but will probably be one of the most lucrative. It is up in the high double digits over the past few months, but is still…

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If Interest Rates Rise, What Happens to Bonds

The markets have been very difficult over the past 5 months since early May. In fact, we have had 25 Up or Down Volume Days since the beginning of May. That is a manic depressive market with a lot of volatility, although volatility has subsided some since a few months ago and especially May. The economic data has been slightly…

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I Didn’t Buy Any Portuguese Bonds, Did You?

The markets were up marginally today on the news that the Portuguese Bond Offering went well and was fully subscribed. This is in spite of the fact that Ireland’s Finance Minister said that the Anglo Irish Bank, which was nationalized, will be split into two. A funding bank and an asset recovery bank. This was to allay fears about more…

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Europe Sparks a Sell Off

The markets were down across the planet today with the exception of a few Asian countries that were up marginally. The Dow was down triple digit or 1%, and the NASDAQ and the S&P were both down more percentage wise at -1 1/4% each. Volume, however, was light with preliminary numbers coming in at 3 billion on the NYSE and…

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Purchasing Gold? There are alternatives…

A listener e-mailed me today asking me to help him with a couple questions regarding Gold. Weighing his current situation, he has begun the process of refinancing his home. His wife just got downsized and they now have a 401k with a little less than $10,000 that needs to be rolled over. He is considering putting all of this “found…

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Volume Volume Volume

We had a positive day in the markets today as most of the jobs number came out better than expected. Change in Nonfarm Payrolls lost -54k jobs, but the estimate was for -105k.  In addition, the prior months numbers were revised up from -131k up to -54k. Therefore, less jobs were lost than expected. Change in Private Payrolls was +67k…

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Fundamentals, Technicals, Politics, and Joy Global

Yesterday was confirmed as a 90% Up Volume Day following Monday’s 90% Down Volume Day and Friday’s 90% Up Volume Day. That is 3 out of 4 days being 90% Volume Days. Talk about volatility. The Up Volume on the NYSE was 96% on overall volume of 4.6 billion shares. The overall volume was heavier than Monday’s sell-off, and the…

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Investors Latched onto the Positive and Dismissed the Negative – Beware Though

The Markets had a great day today as we finally mostly upbeat economic news. The ADP Employment Change showed private sector jobs lost -10k when expectations were to gain +15k. However, the ISM Manufacturing number came out above expectations, which surprised many including myself as all the regional Fed numbers were showing declines. The big story in my opinion was…

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Yesterday, Lowest Volume of the Year, Today also Low and Slow

It’s been a fairly slow day today on Wall Street. The markets opened up down in anticipation of bad consumer confidence numbers, then stages a mild rally once the number came out above expectations. The number was 53.5 and the survey was for 50.7 so it was a pleasant surprise. However, above a 90 denotes a healthy economy, so we…

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No Institutional Money Bought Bernanke’s Head Fake

Friday I stated not to buy into Bernanke’s head fake. It turned out to be true. I’d rather be lucky than good any day. However, the economic news is coming out negative by the day, and we don’t have the managed earnings to make us feel better. Personal Income came out today at .2% with expectations at .3% so this…

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One day a rally doesn’t make, Don’t buy into Bernanke’s head fake

Bernanke came out and said things the market wanted to hear. But, if you read between the lines, you will see how much trouble the economy is actually in. The GDP numbers came out this morning beating expectations at 1.6% and the survey was for 1.4% to 1.3%. But wait a minute, the original expectations just a month ago was…

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Time To Reduce Risk (Even Further)

It was a very busy day today, so I must be brief. Yesterday’s mild rally was uplifting, but today’s follow through or intensity of buying was not there at all.   The DOW  went below 10,000 for the 2nd day in a row, and the S&P tested & went tested & went through support levels.   Initial Jobless Claims came…

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Bounce or Bear Market

The markets opened down after the Durable Goods Order report came out worse than expected (what a surprise) right at the opening bell. Then they sold off in anticipation of the New Home Sales report. There DOW gapped down, as did the other indices, precisely at 10:00 EST with the DOW down about 80 points. Then, just after Durable Goods…

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What’s Next?

Yesterday, the markets began positive with the DOW up almost 100 points at the open, while the NASDAQ was over 20 points. However, it was short lived and all the indices were negative for the day. Again, the weakness was, and still is, in technology and small caps. The final tabulations for yesterday are in and volume yesterday was extremely…

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Oil & Gas Pipelines ???

Today the markets were positive for most of the day, but the DOW and the S&P ended up selling off marginally at the end of the day, but the NASDAQ was down .9%. Again, the weakest arena is small and mid cap stocks. Preliminary data shows volume on both the NYSE and the NASDAQ. On an interesting note, the “Hindenburg…

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Almost a Perfect V on the DOW

The markets sold off another day, although they did come back significantly from their mid day lows, almost exactly at noon. Volume, which is what I wanted to view, remained fairly constant throughout day. I have attached a one day chart of the DOW showing the gap down at the open, selling off during the morning, then coming back towards…

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How To Know When & If To Raise More Cash

Home Depot and Wal-Mart both beat expectations today, and Hewlett-Packard announces after the bell and will not doubt beat estimates as well. However, the economic data trumped the earnings reports. Initial Jobless Claims came out-22k worse than expected at -500k, estimates were for -478. Also, the Philly Fed Business Outlook report (Diffusion Index) came out at -7.7. The Survey was…

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Oil on Reversal and Follow Through This Afternoon

Today, the markets opened down and remained down for most of the morning. Then, late morning, we had a reversal. Oil was down as well, approximately 2%. Then it, too, started to reverse. The reason I bring up oil is I have been patiently waiting for oil to come back down from around 81. I have had a trade loaded…

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Broke Through Resistance Today, Tomorrow Need Follow Through

Yesterday the numbers came in from the market very slow. Up Volume on the NYSE was 50% and was equal to Down Volume. On the NASDAQ is was slightly better at 60% Up Volume. Overall volume on both exchanges was very light at 3.1 billion on the NYSE and 1.6 billion on the NASDAQ. This is well below their 30…

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A Really Boring Day

Well, today was a very lackluster, boring day. Not much economic news to report of any significance and the markets were fairly boring too on very light volume. Volume on the NASDAQ was just over 1.5 billion and just over 3.3 billion on the NYSE, both very light. Both the S&P and the DOW ended up flat, but the NASDAQ…

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Something to Talk About?

Yesterday’s internals came in showing the market’s resilience as I suspected yesterday. The sharp drop or gap down at the open was met by Buying Demand late morning. Although the markets did not end up positive, it did suggest the “pullback” did attract buyers/buying. The NASDAQ has an important level to defend. Its July, it hit 2 lows. 2159.9 mid-July…

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Fundamentals, Fundamentals, Fundamentals

With earnings season over, now all we have to look forward to is bad, slowing economic data. The Feds outlook yesterday showed we actually had negative GDP growth this last (2nd) quarter. Also, Chinese manufacturing data came out today weaker than expected.     The markets took it on the chin today. All of the major indices are down well…

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When Bernake Speaks, People Listen

(Just Not For Too Long) Well, productivity fell .9% in the 2nd Quarter, the first fall/decline since the fall of 08. Labor cost also went slightly higher. The markets were down most of the day, the DOW was down triple digits, but percentage wise, the NASDAQ was down the most. Everyone was waiting on “Pins and Needles” for Bernake to…

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Real Estate Prices – What’s Next

My regular Investment Daily Briefing will still come later on today, but this is an interim newsletter which I thought very important. Normally, I do not send out e-mails which aren’t directly investment and market related. However, this will directly affect real estate prices/markets and the overall markets as a whole, although the timing is a little uncertain. Therefore, I…

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No News Today, But Bernake Tomorrow

Stocks are posting a modest gain today while they are waiting for the Fed and Bernake to speak tomorrow. The NASDAQ is up the most, but it was down the most over the past few days. There is no economic news of any significance today, and trading is very light. Investors, especially the large institutional investors are waiting for tomorrow….

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There is Order in the Universe

Well, the markets sold off big for most of the day, but came back some to recover some of the losses. The US Unemployment numbers came out and our economy lost -131k. The Unemployment rate remained at 9.5%. The problem I have is that last month’s numbers came in at -125k, but were just revised down to -221, or almost…

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Maybe the World Does Make Sense and Fundamentals Do Matter

Initial Jobless Claims came out higher than expected at 479k. Estimates were for 455k. The previous number was 457k, but was revised upward slightly to 460k. Not good, and remember what Geithner said about unemployment would go higher. Tomorrow, Friday, the Unemployment numbers come out. Unemployment is expected to go up to 9.6% from 9.5%, an increase of -70k jobs…

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Good Ecomomic News ???

The markets were up today with the DOW up +45 to 10,680, the S&P +6 to 1127, and the NASDAQ up +20 to 2303. The ADP Employment number came out at a positive private job creation of 42k and the estimate was for 30k. Not really statistically significant percentage wise. Mortgage applications were up 1.3%, even though people aren’t qualifying…

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Today Was a Good Day to Fade

It is good to be back. I have been watching the markets from afar, on vacation with my kids. So even though I did not do my daily newsletter, I was watching the markets and ready to trade if necessary. I hope you had a good a weekend as I did. Well, we got some more economic reports out today….

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Are You Starting to Fade the Rally, I Am

The markets were down today, the first in many days. The Dow was down -40% or -.38%, the S&P -8% or -.69%, and the NASDAQ -23% or -1%. The volume on the NYSE was 4.5 billion and 1.86 billion on the NASDAQ. Today, we had Coca-Cola surprising by 14% on the upside and Sprint with a downside surprise of -39.6%,…

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Volume Waning, Time to Sell?

The markets ended up essentially flat today, the Dow was up +12, the S&P 500 down -1, and the NASDAQ down -8. Volume on the NYSE was 5.3 billion shares and just over 2 billion on the NASDAQ. As I have stated over the past 2 weeks, you need to watch the momentum via volume. Pay attention to volume. Especially…

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Should We Kick the Can Down the Road, or Take Our Medicine?

Since late May, the markets have staged 3 rallies. The first 2 rolled over and sold off, we are now in the 3rd. Well, this time it is playing out as expected. The earnings are coming in ahead of expectations due to cost cutting, not more sales, and the markets like “surprises.” Three companies in the S&P reported today –…

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Countries Fleeing the $US, China Moving to a Basket of Currencies

We are going into the close and the markets are in positive territory once again and the S&P tops 1,100 for the first time in over a month. Verizon & McDonalds both beat estimates and GE raises it dividend. All is well. Right? Well, I am sticking to my guns that I am going to ride this momentum into earnings…

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Revenues Up from UPS & Catepillar & New Reasons for Gold

I wanted to do a market briefing earlier today. We are having a good day and companies have reported good earnings AND good top line revenue numbers. Both UPS and Caterpillar not only had earnings increase significantly, their revenues beat expectations. These are both positive news for an economy that seems to be slowing. In addition, Bernanke was saying all…

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Can’t We Lock Bernanke Up Somewhere

The markets were on course today for a nice rally following two good earnings reports before the opening bell. Wells Fargo beating earnings estimates (although revenue came out a little light), and especially Morgan Stanley’s strong earnings at $1.09/share. Absolutely blew away estimates, but more importantly, their revenue was up over 50%, just what the market ordered. You think Morgan…

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Companies Report Weak Revenue Growth…

and Gold Bouncing Off Support?? As I am writing this we are going into the close with about 10 minutes left. The markets have come back from being down to be up fairly positively. Currently the Dow is up +70, the S&P up over +12, and the NASDAQ up +20. Therefore, the S&P & NASDAQ are up approximately 1% with…

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Fundamentals or Technicals

The technical picture is beginning to look brighter as Lowrys is reporting a Stronger Supply and Demand Outlook for stocks. The volume of selling is declining and this is a bullish sign. However, the economic data is coming out weak and I am concerned the fundamentals will catch up with us, Home builder confidence came out today with a 15…

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Global Fundamentals Continuing to Win Over the Markets…

But the Technicals Will Provide the Magnitude Today, the markets sold off with a vengeance on increasing volume versus the past few days, especially on the NYSE. The S&P and NASDAQ were both down approximately -3%, and the Dow was down -2 1/2%. The deflation argument seems to be winning here in the short term as CPI came out negative…

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Fundamentals are Winning Over Technicals Going Into The Close

JPMorgan Chase came out with earnings and blew away analyst estimates. Earnings estimates were .709 and actual earnings were $1.09/share. Therefore, the was an upside surprise of 53.7%. Virtually all companies announcing thus far have been upside surprises, and not by just a few percent, but easily double digit. This should be extremely bullish for the market, right. The markets…

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The Markets Take a Breather

The Next Directional Move and What To Look For… Yesterday, we had a good day and the market internals confirmed it qualified for a 90% Up Volume day on both the NYSE and the NASDAQ. The NYSE had a 93% Upside Day and the NASDAQ a 92% Upside Day. Overall volume was up 36% on the NYSE, and 31% on…

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Earnings Looking Good So Far…

Especially When They Are Managed – How Will You Know To Fade The Rally? Yesterday, the internals of the markets show that overall volume was light and the Dow, S&P, and NASDAQ ended up with only marginal gains. However, small caps underperformed and the Russell 2000 ended up down more than 1%. Everyone was waiting for some good news. Today,…

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Barely Up on Low Volume, What Next?

The markets had another up day, albeit just marginally. The Dow was up +18 or .18% to 10,216. The S&P and the NASDAQ were essentially flat and were up .79% to 1,087 and 1.91% to 2,198 respectively. Earnings season have just started today with Alcoa reporting and beating estimates today by 14%. Estimates were for $.114/share and actual came out…

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Just What the Doctor Ordered – Market Ends Up On Friday

The Markets ended up higher again today. The Dow was up +58 pts, the S&P +7, and the NASDAQ +21 and were up 3/4%, 1%, and 1% respectively. The volume was fairly light though. The NYSE traded 3.8 billion shares just before the market closed and the NASDAQ traded 1.5 billion shares. For a continued rally, we need increased buying…

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Rally, Day 2

Yesterday did qualify for a 90% Up Volume day on the NYSE, but narrowly missed on the NASDAQ. The NYSE had a 94% Up Volume day and the NASDAQ had a 88% Up Volume day. Overall volume (shares traded) was fairly strong, but on the 90% Up day, you would like to see more volume and definitely higher than the…

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Finally, a Strong Rally on Good Volume

What To Do Next… Yesterday, it looked like it was going to be a good day with a strong market. Then the market sold off late morning and was down for most of the remainder of the day. With less than an hour left in trading, it staged a small rally and the major indices ended up marginally positive. Seemed…

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Market Finished Up, But Narrowly

The markets opened up strong with all three indices up strongly on good volume. Then late morning, two economic reports came out to dampen the early rally. The Institute of Supply Management (ISM) reported the service sector growth was slowing and Citi’s revised negative outlook on the retail sector sent stocks lower, especially retail stocks. The markets sold off hovering…

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Window Dressing or Beginning of a Bear Market?

Currently, the markets are marginally up, but we really need some buying on increased volume to get investor’s attention and a resumed interest in buying. The ADM Private Employment numbers came out this morning and were actually negative. The economist were looking for a positive number. We really need some good economic news to help jump start this market if…

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Global Concerns Still Dominating Markets World Wide

The US markets are following the overseas markets. The European markets are currently down around 3 1/2 to 4% and it is good to be short the European markets. The Asian markets were down less for the most part with the exception of Shanghai which was down significantly. The risk over the holiday weekend, in my opinion, is significant. Consumer…

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Stimulus or Austerity Cuts? Markets Up or Down?

It has been a mild roller coaster day but the markets spent most of the day on the upside. The markets started off positive, then quickly sold off and went modestly negative. Then about 10:45 turned positive and bounced around above the neutral line in positive territory. They sold off with a few minutes left just before the close of…

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Are We Still Rolling Over or Getting a  Repreive

The markets yesterday finished down fairly significantly and it looked like they would qualify for a 90% Down Volume Day. However, both the NYSE and the NASDAQ fell just short with the NYSE at 89.3% and the NASDAQ at 89.1%. The market breadth was also negative with the decliners outpacing advancers by approximately 3 to 1 on both the NYSE…

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Do Markets See Economic Slowdown and Contagion?

As I stated yesterday, Tuesday’s down market qualified for a 90% Down Volume day. Statistically, a 90% Down day is usually followed by a 2 to 7 day rally. This is usually due to bargain hunters entering the market, technical traders looking at oversold indicators, and short covering, However, yesterday, Wednesday, was essentially flat and Tuesday’s selling wasn’t enough to…

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Resilience in the Face of Bad News

Yesterday, the markets tried to respond to Monday’s failed rally. But again, in the afternoon the markets sold off. Yesterday qualified for a 90% Down day on the NYSE with 90.7% Down Volume. The NASDAQ, however, did not qualify and Down Volume was only 70%. Overall volume on the NYSE was 4.6 billion shares, below the 30 DMA of 5.9…

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Getting Close to Resistance Without a US Budget

Yesterday, the initial rally wore off after the DOW was up 145 points and finished marginally down. The S&P and the NASDAQ were slightly worse. However, two positives came out of yesterday’s market. First, the selling lacked intensity and Down Volume on the NYSE was 50%, and a little heavier on the NASDAQ at 60. Also, it was light volume…

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No Congressional Budget This Year! Are you kidding me?

This is an important article that should not be glossed over. I normally do not get too political in my blogs as I want to focus on investments. However, this will directly affect you investments in the midterm and long term. The link is below, but please read carefully and pass onto your friends. It looks like Congress is NOT…

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Yuan Led Rally Fades in the Afternoon

The markets opened up strong and remained fairly strong throughout the morning. It was led by the news over the weekend the Chinese will let the Yuan float and therefore strengthen against the US dollar. Theoretically, this should make our products, good, and services “cheaper” over in Asia and give a boost to our companies. The DOW was in the…

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What’s to Come, What to Know, and What to Do About It

Today’s blog, at least the 1st Part, is going to be a philosophical discussion and may be the most important thing you hear or read this year. You need to think carefully about what we are saying and see if it matches up with your perception of what is happening. Dan Cofall and I have been working out & studying…

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Markets Resilience in Spite of Bad News & Oil Cleanup Ideas

Well, it was an up down up down up down up day, what can I say. The markets opened positive then shortly sold off after the rose and some economic news was also negative. Initial Jobless Claims rose by 12,000 when analyst expected them to fall by 6,000. In addition, The Philly Fed’s June index of Business Activity for factories…

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Rally after 10 and Bottom Fishing

The Markets were pretty much flat today, and rather boring. They opened & sold off in early morning trading after a horrible housing starts number. Housing starts were down 10% and estimate were at 3.7%, therefore, the number came out much worse than expected. The market acted pretty resilient and was not down much through this new, then came back…

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Finally, a Follow Through Day – Just What the Doctor Ordered

Today, the markets started up, continued climbing, and never looked back. This is just what we needed and just what the doctor ordered. Yesterday the markets looked like they were going to post their 1st 3-day gain in 2 months. The DOW was up almost 120 points and the S&P 15. However, sellers emerged and all the gains disappeared. Only…

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Insufficient Evidence

European output (industrial production) was slightly higher than expected and the markets in Europe & the US started out their respective sessions strong. Earlier overnight Asia was strong with our better than expected US consumer sentiment, which is paramount to them as we buy their products/output. However, the “robustness” wore off and our markets are flat going into the close…

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Follow Through? Not Yet

After yesterday’s big rally, I said we needed one more good day of follow through to demonstrate the resumption of the bull market after a 2 month sell off was continuing, and we weren’t rolling back over. We did bounce off resistance but we need the buying volume to continue increasing. This has not been happening and stocks have been…

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The Good News! (so far)

Yesterday I told you that follow through would be key. The markets failed to follow through. They were up in the morning, then around mid-day then turned around, sold off, and ended up down. Down volume was 55% on the NYSE and 60% on the NASDAQ, both on light volume below their 30 Day Moving Average. All of the markets…

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Will the Market Hold?

Will the market hold, or will it roll over. The markets made a comeback during the last hour of trading, with the DOW making the biggest reversal. Mega caps outperformed the broader stocks and the DOW ended up 1.26%, and the S&P ended up 1.1% All three indices bounced off the support levels of May 25th, with the DOW bouncing…

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Euro Reversal?

Last night European countries announce last night (on 6/7/2010) they would actually began implementing austerity measures (cuts). Germany, England, and even France, European growth is going to be hurt significantly, but this should defend the Euro from further decline. The problem, if the Euro gets stronger relative to other currencies, it will hurt their exports and worldwide demand for their products….

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Europe to Finally Stop Spending & Start Cutting

Over the weekend, the G-20 Nations got together to discuss the world financial situation. All the European Union countries made 180 degree about face! They said they were all going to collectively start cutting drastically implementing austerity plans. Among the 4 disagreeing were the United States and Great Britain. This really flushes us out in the open and shows our…

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Oil ETFs vs. ETNs – Different, Even Amongst Themselves

I just wanted to clarify a few things for those of you who are interested in price oil, whether long or short. First of all, at the top level you have ETFs (exchange traded funds) and ETNs (exchange traded notes). They are both meant to replicate an index, sector, or price of an asset or commodity. In this case, I…

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Watching the Markets & Oil

Today I have been very busy watching the markets all day. Began up on high volume, then quickly sold off and seesawed its way up throughout the day. I was getting a block trade ready for Oil, but just as I getting ready to pull the trigger at 1:30 our time, the markets took off led by, you guessed it,…

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The Price of Oil – A Political Perspective

I am keeping an eye out for the price of oil spiking up. Not because of anything to do with the Gulf oil spill & BP. It has nothing to do with the supply & demand for oil. In fact, there is plenty of oil above and below ground. There is plenty of supply, especially with economies slowing down in…

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Correlations and Risk Management

As I stated yesterday, what the markets are doing and how they are acting is more important than what you think they should be doing. I also stated that as they go down, correlations get closer together and the benefits of diversification go away. Simply put, they go down together. So just when you need “diversification” it is not there…

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Nasdaq Showing Strength

Today I am looking at the broad indices. As I told listeners over 3-4 weeks ago, we were due for a pullback, but most of the economic data was still positive in the U.S. The wildcard was, and still is, Europe, with Japan a little further down the road. In any event, we had our over 10% pullback (actually 12-14%…

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Pulled the Trigger on Silver Today as Bounced Off Support & Trend Line

For my blog today, I thought I would post a response to an e-mail I received from a loyal listener. Below are his questions, then my response. Hi Dan, I have a question about the reliability of the ETF SLV. I have been wanting to add Silver plays into my portfolio and I hear you mention SLV on your show….

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CEF – Central Fd of Canada Closed End Fd – Gold & Silver

Today I am looking at the Central Fund of Canada, ticker CEF, a closed end (commodity) fund that invest primarily in Gold & Silver.  In fact, the fund has to be invested 90% of its net assets in gold & silver, and at least 85% must be in the form of gold & silver physical bullion. This is one great…

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