I’m Not Worried About This Pullback
Stocks gave back all of Monday’s gains and then some today. Monday’s panic buyers were mercilessly punished for going nuts during the spree. Frankly, I’m not surprised by today’s plunge - I actually find it encouraging. That’s because a period of sideways price action will provide fuel for an even more powerful rally down the…
TheoTrade’s Tale of the Tape: Energy’s Pop Is Likely a Bottom Signal
For the second week in a row, energy was the top-performing sector in the S&P 500. This is especially interesting because, given the strength of Friday’s rally, it looks like bears may be about to be squeezed again. Whenever energy outperforms, it gives us a clue as to where we are in the market cycle.…
I Am Forever a Student of the Market (and I've Beaten It By More Than 4X)
A new year is upon us, which means it’s finally safe to count all those chickens that hatched in 2024. Needless to say, it was a year for the record books. The S&P 500 finished 23.3% higher in 2024 - not bad - but our trading strategies were able to quadruple that performance using stocks…
Santa Claus Is Not Coming to Town - Here’s What Happens Next
This is what I’d call a highly unusual “Santa Claus rally” period - what with the consecutive days of selling and all. But keep it in perspective; volume is light this time of year and the bears don’t have much fight in them right now. This is a great time to reflect on a record…
TheoTrade’s Tale of the Tape: Is Energy’s Pop a Warning?
Despite the mid-week turbulence and holiday trading last week, stocks managed to squeeze out a modest gain. However, there are some interesting details to note in last week's market activity. First, the bullish news - the Nasdaq outperformed the other indices (S&P 500 and Dow), which is typically a strong sign. However, interestingly, the top-performing…
The Seven Days of Christmas: Understanding the Santa Claus Rally
With less than 3 full trading days remaining in 2024, we're entering the final countdown of what has been a memorable year for markets. You might be thinking, "Shouldn't it be the twelve days of Christmas?" While that's true for the holiday tradition, the market has its own special seven-day period. What Is the Santa…
Bulls: The Santa Claus Rally Is Coming to Town After All
Stocks nailed a higher low last week - which we discussed at length in the TheoTrade live trading room. I’m seeing strong leadership from the tech sector and emerging strength in semiconductors, too. I’ve been pounding the table about this for a few weeks now; these two conditions tick that final “box” we need to…
Crude Oil Is Going to Save the Fed
What a week it’s been! Volatility came back into the picture after the Fed cut rates and Fed Chair Powell exclaimed that there is a concern about inflation over at the Eccles Building. But let’s be real here: When is the Fed ever right about anything? I wish I could confidently say that the central…
Stocks Are Staying Split - Here’s What to Do About It
The big indexes are split up and down at the moment, and I’m sensing some concern over this out there. Tonight we’ll get to the bottom of the “worry or opportunity?” question. There’s plenty of weight to the “opportunity” argument. We’ve seen the NASDAQ reclaim and reassert its leadership over the last few weeks. If…
TheoTrade’s Tale of the Tape: Time for a Little Holiday Entertainment
The performance of stocks at the index level may be causing concern for some market participants, and understandably so. The Dow has sold off for eight days in a row, which is enough to raise the eyebrows of the market’s trend-followers. But last week saw the Nasdaq continue its surge to new all-time highs again.…