The Selloff is Gaining Traction - Let's Look at Potential Opportunities
If you’ve been able to make my daily trading room sessions, the selling of the past few days hasn’t been a surprise at all. The warning signs have been building and we’ve caught every single one. In fact, I’ve been doing everything short of pounding the table that we should expect downward pressure in the…
When "Different" Ends Up the Same Way
Google, Amazon, Apple, and Microsoft - together they’re worth more than $10 trillion-with-a-”T.” They account for a bit less than a quarter of the S&P 500 by weight. Incidentally, it’s been more than 50 years since the S&P 500’s top stocks were this concentrated. Well, they’re in real trouble now. All four of those mega-caps…
Consumers Are Tired - Retail Sales Numbers Clinch It
The almighty American consumer is… spread a little thin right now. A little worse for the wear. That’s not just a hunch. Today’s retail sales numbers were negative - very negative. But to understand what’s really happening we have to get in and look behind that headline 0.8% drop. A lot of that decline took…
The Market Is Cracking - Volatility and Bearishness Are Surging
The mainstream narrative today was, “Oh, look - a bounceback rally after a big down day.” But look just a little deeper, pull on the threads, and you find the situation is a lot more alarming than I think a lot of people realize right now. Apple, for one, did not advance today. Not only…
The Warnings We’ve Seen Lately Are Coming True
Over the past few weeks, we’ve talked about some of the various unsettling intermarket signals, like the strengthening dollar, that have come across the screens. Today, in the wake of a higher-than-expected inflation reading, the danger that had been lurking “out there” is now in our laps. The greenback is getting even stronger, and stocks,…
Get Ready for a Potentially Volatile Week
I hope you didn’t get your fill of competition this weekend, because we’re about to be treated to a matchup that I think will give Super Bowl LVIII a run for the money… It’s all about the bulls vs. the bears. Here’s what I mean… The S&P 500 started off the day pretty strong but…
Weekly Wrap: Welcome to the Great Tech Squeeze of 2024
You know it as “Nvidia, the Wall Street darling that for some reason is worth $1.7 trillion.” I know it as “Nvidia: The most dangerous stock in the S&P 500 right now.” NVDA’s valuation is so far out of whack, so divorced from reality that it has become a threat and a symbol of what’s…
Bonds and the Dollar Have Reached an Inflation Inflection Point
There comes a time in any economic cycle when inflation can roll over and begin a period of deflation. We’re at that point now, and just to make things interesting, we’re in the middle of a “Goldilocks” run in stocks. That makes now the perfect time to look at industries and assets that tend to…
Why Markets Don't Care About Risk Right Now
Stocks just keep going up. The S&P 500 is knocking at the psychologically important 5,000 level - an all-time high and a nice, big round number. So why do I feel uneasy? I think the market is really just fixated on the prospect of upside and is turning a blind eye to some significant risks…
These Are the Charts You Need to See Today
Markets are starting to come off their recent all-time highs, but it’s the tech-heavy NASDAQ that’s actually the most concerning right now. Tech, which led the markets last week, is starting to give up its leadership position, with chipmakers like Nvidia and AMD coming under pressure. With that said, a lot of the intermarket signals…