TheoTrade’s Tale of the Tape: Get Ready for the “Great Reflation” This Week
Stocks bounced from an oversold level late last week. As I settled back into my desk over the weekend, I was able to take full stock of the situation. It’s important to realize that some of the biggest rallies in stocks often occur during bear trends. These come from short squeezes. Remember, every current short…
It’s Not Business, It’s Personal
I’m wrapping up my first real vacation in 5+ years down in sunny Florida. Though my laptop only collected dust for three days, my mental batteries are now charged fuller than a Tesla at a Supercharger station. Those three days of peace gave me something rare: time to think. And perfect timing too, because this…
TheoTrade’s Tale of the Tape: The Market Is Trying to Heal
Hello TheoTrader, The global equity realignment is still ongoing, as the market’s internals here in the U.S. tell us defensiveness is the proper position. But in reality, the selling has been pretty orderly thus far. The meaning behind this runs deep. For years, U.S.-based traders have been spoiled - all the exciting action was taking…
QE, But for Crypto?
It’s been a while since we’ve uttered the words quantitative easing, and for good reason. Markets have been operating smoothly without the Fed’s infamous program, and even amidst the selling we’ve seen lately, it’s been fairly orderly. But has this orderly market carried over into cryptocurrencies? Hardly. Many cryptos staged impressive rallies after Sunday’s initial…
How to Do What I Do When the Market Drops
For a while there, it appeared as though all the negative market sentiment was unfounded, but then last Friday, we saw the market’s internals deteriorate quickly, which forced me to shift my market outlook to the defensive. To be clear, I don’t think this is going to last long, but time is only one part…
TheoTrade’s Tale of the Tape: Staples Surge on a Dime
It’s been a volatile earnings season to say the least. Coming into last week, we saw positive market internals, but then, on Friday, a sudden, tremendous shift occurred. This earnings season has been marked by two-sided action. Earnings misses have been punished viciously, while earnings beats have only been modestly rewarded. Now we’re starting to…
TheoTrade’s Tale of the Tape: Tech’s Timely Triumph
We just saw both the Nasdaq and S&P 500 close at their highest weekly level in history. From a purely technical standpoint, this would imply that another leg higher in stocks is in the works. But all year, we’ve heard stories about bad market breadth, negative market sentiment, tariff tantrums, a clueless Fed, and more.…
New All-Time Highs Are on the Way - Prepare Now
Stocks are looking to cap off another impressive week, and register their highest weekly closes in history. Of course, we’ll see how we shape up into the closing bell, but the recent price action really is a testament to the idea that sentiment follows price, not the other way around. Here we have stocks within…
Zooming In on China - Here’s the Real Story
A few weeks ago, I shared my thoughts on how Trump’s presidency could turn out to be bullish for the Chinese equity market. I’m still very much in this camp, but now I want to take it a step further, especially after recent headlines of individuals like David Tepper boosting his allocation to China. I…
TheoTrade’s Tale of the Tape: Rate-Sensitive Sectors Rip Higher
Over the past few weeks, we’ve seen the market’s trading range become increasingly narrow. But there is some context to this, because we’ve seen tremendous intraday volatility, or wide trading ranges on the daily timeframe. This is why I love to say, “When in doubt, zoom out.” Because even though there’s a healthy level of…