Will This Omen Crush the NASDAQ?
Stocks slightly lower on the day as bonds continue the march higher. In this market update we look at a omen that has popped in the NASDAQ for the first time since 2014. Watch this video as Doc shares what historically this means for the NASDAQ and what to expect in the next 40 days...
Stocks & Treasuries Are Living In Separate Worlds
The stock market and the bond market are in two separate worlds. Ever since the March bottom at 2.64%, the ten-year bond has been rallying. The selloff after the all-time low in yields in the summer of 2016 didn’t even get the yield to have a higher high. The downtrend in yields is still intact.…
The Stock Market Barely Moves As It Awaits Fed Meeting Next Week
The stock market on Monday had another sluggish day as the trading range was tight. In the past 27 years the S&P 500 has had 15 days with ranges of less than 0.25% and four of them have been in the past month. It’s quite unusual action. I think this trend of low volatility begets…
How to Create Your Own Index
Stocks flat today on a very light volume trading day. In this market update I want to show you how to create your own index. As we know most of this market rally is based on only 4 stocks so here is the right way to create an index using these 4 stocks. Recently…
Earnings Expectations Have Declined Less Than Average
The S&P 500 earnings season is almost completed. Q1 operating earnings, which are 97.3% completed, were $27.90 on a bottom up basis. That’s the third highest earnings in history. On an as reported basis, earnings were $27.60 which is the highest ever. Operating margins increased from 8.75% in Q1 2016 to 9.89%. It was a…
The VIX Has It’s 4th Lowest Close (9.75)
The weak jobs report was ignored by the stock market on Friday. The S&P 500 was up 0.37% and the Nasdaq was up 0.94% bringing both to a new record high. The small correction at the end of May was a great buying opportunity as the S&P 500 is up 3.5% since then. This ‘buy…
Gamma is Why Markets are Exploding to the Upside
Stocks and bonds explode higher together on Friday's disappointing jobs report. In this weekend's crucial market update we look at how inefficiencies in the market are causing the markets to explode higher. Watch this video as I share the opportunities and pitfalls to watch out for in the upcoming week...
Margins Might Not Expand In The Next Few Quarters
The stock market closed at a new record high on Thursday. The main reason for this rally is seen in the chart below. It shows year over year quarterly operating earnings growth since 1995. The mini-decline in earnings growth in 2015 and 2016 is like the one in 1998. Earnings growth had been sinking prior…
BLS Report Shows 138,000 Jobs Created
The ADP May private sector jobs report on Thursday signaled a great BLS jobs report would come on Friday. Sometimes the ADP report doesn’t indicate how the BLS report will be. This was one of those months as the BLS report was bad across the board. It looked like the online job listings report that…
Monsters of Tech Display Weakness
Stocks hit new all time highs today on the back of financials and small caps for a change. The monsters of tech took a break today as Trump announces the US withdrawing from the Paris Accord. In tonight's market update we look at the break out of the small caps and a few trade ideas...