Rate Of Change Analysis Says Buy!
Earnings Growth Estimates Stop Falling This article will be all about rate of change analysis. The stock market loves when the economy and earnings go from terrible to less bad. Since this was the worst recession in modern history, we are getting a lot of that. As you can see from the table below, Q2…
Market Setup with Phenomenal Risk/Reward
Ripping to the upside on a wing and a prayer... Is this a short squeeze or real buyers? Pop goes the volatility Box Who says volatility cannot be to the upside. Bonds UP, Market UP? VVIX under 110 Monsters Weak Relative to QQQ SPX Expected Move --last week-- 71.62 (expected move) --next week- 78.31 (expected…
Stocks Fall Slightly Amidst Extremely Positive Sentiment & Geopolitical Issues
Stocks Finally Decline There was some volatility on Wednesday morning, but the market ended up higher which put it on a 3 day winning streak. That was a 7.66% gain since May 13th. Stocks were very overbought. You could tell sentiment was overheated because there were people saying you should be permanently bullish on stocks…
The Rubber Band Effect for Stocks - Snap-Back or Just Snap?
We had initial upside breakout activity above the weekly expected move today, but all that was erased with a sharp sell-off in the close that froze price right at the weekly expected move. In tonight's video, Corey highlights the similarities of last week to this week and how we're framing the opportunities in stocks, bonds,…
Consumer Spending Growth Increases As States Reopen
Spending Growth Is Improving Consumer spending growth is in a steady uptrend. That’s not surprising because the fear in late March and early April was unsustainable. There is a sense of a return to normalcy as the economy reopens. Plus, most people who applied for unemployment benefits have gotten them. Finally, the stock market has…
Tech Stocks Gone Rogue
The S&P hit the expected move for the week on the back of financials. Surprisingly, tech doesn't participate. Today it seemed like all of our trades were firing on all cylinders with back ratio spreads in XLF working out spectacularly and big tech shorts seeing results. The next 2 trading days are critical. Here's what…
Stocks Due For A Correction As Retail Traders Become Excited
Not Extremely Overbought, But Due For A Correction The stock market is overbought. It’s not at an extreme level because the AAII sentiment and the NAAIM exposure indexes aren’t showing signs of froth. Plus, the Bank of America fund manager survey showed managers were hoarding cash. To be clear, that survey was from a couple…
Rate of Change Improvements In All Aspects Of The Economy
Economic Anxiety Scars of the COVID-19 shutdown won’t heal easily. These are economic and social. That’s a toxic combination. This situation is directly the opposite of the recent stock market performance. The stock market is acting as if COVID-19 is a done deal and any of its consequences will be gone in a few months. …
This Really is the Make or Break Level for the Market
Enormous Short-Squeezed Bullish Breakout, or Bull Trap? That's what we'll be discussing and addressing positions in tonight's video. We have a very similar theme to all of last week yet the market did not yet break lower. In tonight's video, Corey updates your critical levels and highlights the make-or-break bearish or bullish element at play…
Are New Stock Market Highs Inevitable?
3rd Best Bear Market Rally Ever As you can see from the chart below, this has been the 3rd largest bear market rally ever. Of course, you can argue this, among others, is the start of a bull market. However, we don’t know for sure if this is a new bull market and we didn’t know if…