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S&P 500 Stalls in Trading Zone

November 18th, 2017

YouTube Channel – Weekly Video Update The S&P 500 finished the week down .13 percent. The index didn’t finish on the lows for the week as the bulls pushed hard on Thursday and if not for Friday’s negative action, it would have finished slightly up. The index has once again appeared to enter into a trading range. The range is approximately from 2545 to 2595. Each time the index has entered into a range since the beginning of this year, it has broken to the upside. When I talk to other investors, many seem to be looking for the next shoe to drop and the markets to go into a deeper correction rather than a trading range. The trading range is relatively tight as was the rally up. This gives more credence to the bulls at this point, but it could quickly be changed by a series of lower lows. Until…

S&P 500 Upward Movement Slightly Stalls

November 12th, 2017

YouTube Channel – Weekly Update The S&P 500 has seemed unstoppable over the past many weeks as the index has risen just about every week since Mid-August. This past week, the S&P 500 finished down .21%. There is no doubt that the index is losing steam, but after a strong run like the one we just had, you have to think that the bulls will step in at a lower price and buy back in to at least test the recent highs. When it comes to the longer-term trend and bear market territory, we are not even close. Both the S&P 500 and All-World (ex-USA) Index are greatly outpacing treasuries. Until we see weakness compared to Treasuries, we are looking at more of a risk on stance. The risk of a correction has been building over the past many weeks simply because the number of stocks participating in the recent advances…

November 4th, 2017

YouTube Channel – Click to Watch Weekly Video The S&P 500 is showing continued strength as it finished the week up .26%. Each time the index gives a hint of a pull back, the bulls come in and squeeze the S&P 500 higher. The S&P 500 seems to be in a euphoric state of mind. Last week was the end of the month and so it was time to measure the performance of the S&P 500 vs. the All World (ex-USA) Index in order to give us guidance about where to focus. Even though there is strength in the S&P 500, the All World (ex-USA) Index pulled out the win for October and still leads the advance as measured on a 12-month rolling basis. Therefore, we are still going to keep a closer focus on international markets. As the S&P 500 goes up, the number of stocks participating in the advance has…

S&P Crawls Wall of Worry

October 28th, 2017

Check out and Subscribe to Our YouTube Channel! The S&P 500 creeped higher this past week in a little more of a volatile fashion as it traded outside of the previous week’s trading range and then some. Each time the S&P 500 starts to head south, the bulls come into the picture and push the index higher. Now is a perfect example of buying begetting buying. The phenomenon is called ‘momentum’ in the financial world. The markets change at each moment, but they always remain the same. Said another way, they cycle. The reason they cycle is because the markets are driven by emotional beings. Even if the computer is doing the trades, people are writing the trading programs. Right now we are clearly in a bull cycle as the S&P 500 continues to make higher lows and highs. We don’t know how long it is going to last, but our monthly…

S&P 500 Advances Again to New Highs

October 22nd, 2017

Click & Subscribe to Our YouTube Channel! The S&P 500 once again advanced to new highs this past week. The index finished up .86% closing at 2575.21. The bulls are certainly leading the advance right now. Since mid-August, the bulls have been able to buy just about anywhere and be rewarded for it in short order. The S&P 500 has been trading in a pretty tight bull channel and when this happens, it usually leads to at least a test of the high after a pull-back in price. This is good for the bulls. Most equity markets are greatly outpacing treasuries and so we are nowhere close to a bear market according to our readings. The momentum is good in equities right now, but the number of stocks participating in the advance is slowing which gives caution for a pull-back. Breadth has been slowing since the beginning of this month, but…