S P 500 Stocks - Keep Rallying The stock market is extremely overbought in the short term. It’s so overbought that the 0.15% rally in the S P 500 on Tuesday is impressive. Nasdaq was up 0.19% and the Russell 2000 was up 0.33%. S P 500 is up 10.89% for the year. Even though we have 10 months
Investors - 2019 Earnings Expectations Are Low 2019 earnings are very interesting because of the effect comparisons will have on growth. It’s very important to differentiate between actual bad earnings and weak earnings growth rates caused by tough comparisons. Expectations are for just 0.65% earnin
Snapback Rally - Another Big Rally The stock market is overbought, and the economic reports are missing estimates. Earnings estimates have fallen to the point where 1st half results are expected to barely show any growth. But stocks still roared higher on Friday. Bullish investors see a scenario whe
GDP Growth - Citi Economic Surprise Index Crashes In this article we will review some top down analyses of the economy. As you can see from the chart below, the Citi Economic Surprise index fell 31.1 points in one day which is the biggest one day drop since January 2006. The Citi surprise index meas
Stocks Ignore - Were Mixed On Thursday S P 500 was down 0.27% on Thursday, but that should be considered an amazing performance when context is given. The stock market came into the day overbought and the retail sales disaster report was released. You would think an overbought market would worry abo
December Retail Sales - The Retail Disaster The retail sales report from December was a disaster. Good news is this report was from December and we are already in February, so it’s very delayed. At this point, we already know all the retailers did and investors have utilized private estimates to und
S P 500 Stocks - Extreme Rally Continues Investors keep saying the stock market’s parabolic start to the year won’t continue. But it keeps proving us wrong. Personally, I want to be bullish because the economic data doesn’t signal a recession is coming But the stock market is overbought and getting
Small Business Sentiment - Major Decline In Small Business Optimism The January small business optimism report wasn’t great. Going from great to good is terrible in rate of change terms. As you can see from the chart below, the index fell from 104.4 to 101.2. That missed estimates for 103 and the lo
Stocks Rally - New 2019 High For The S P 500 Stocks Rally - The stock market’s performance this year has been unreal. It appears investors realized there won’t be a recession this year, so they are buying stocks with reckless abandon. Valuations have gotten expensive because earnings estimates have
