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Head Fake or Bear Market?

January 5th, 2019

Video – Watch! It was an absolutely fierce battle between the bulls and bears this past week. Alas, the bulls posted a victory for the week as the S&P 500 finished up 1.86%. It was exciting to say the least, but even after the past two weeks of bullish price action, the longer term structure of the S&P 500 remains bearish. There are two fundamental reasons why the S&P 500 structure is bearish. The first is that on a monthly chart, the S&P 500 has made a lower low. A down trend is defined as a series of lower lows and lower highs. We now have our first lower low. The second is that 12-month momentum has in fact turned negative for the S&P 500. It has been negative for the MSCI All World (ex-USA) index for some time now. This was the primary reason we switched our focus away…

Santa Delivers Hope for Bulls – But is it too late?

December 31st, 2018

Video – Watch / Like / Subscribe And so Santa delivered a little cheer for the bulls! I have to tell you, one of my friends at work was telling me how he had a rough Christmas Eve and day because of the market action. Goodness gracious, it doesn’t need to be like that! The market is going to go up and down…you MUST have a plan in place before it happens as you MUST know it is GOING to happen! OK, let’s get back to the market action. The S&P 500 finished the week up 2.86% by Friday’s close. Although it was a good week for the bulls, they absolutely have work to do before creating a bullish price environment on the weekly time scale. The last day of trading for 2018 is today…a big day since we get all the monthly momentum readings. The readings will more than likely be bearish…

Number One Sign You’re Investing Wrong

December 22nd, 2018

Video – Click / Watch / Subscribe! Just like there are MANY ways to skin the cat, there are MANY ways to invest. The fact is that there is no ‘right’ way to invest. There are an endless number of strategies and tactics and then nuances of those strategies and tactics that can be altered ever so slightly. One of the most difficult parts of investing is an investor’s philosophy. This is important because from here you derive beliefs and from those beliefs comes action. Those actions can either harm or benefit you financially. I would argue that most investors don’t have a solid philosophy although this is the starting place for any investment strategy or program. So, what’s the number one sign you’re investing wrong? The answer is: You’re worried about the stock market. Look, the stock market is going to go up, it is going to go down, and…

Where are the Christmas Bulls?

December 15th, 2018

YouTube Video – Watch & Subscribe The S&P 500 finished the week down 1.26% after it was all said and done. The week started out great for the bulls, but they could not hold on. They simply did not have enough power to continue pushing the S&P 500 higher or even keep it at a steady price. By Wednesday afternoon, the bears had taken over control and they were relentless. Our monthly readings of the bull or bear market are now in the negative territory. We have to wait until the end of the month to see how it finishes, but if the bulls do not get their act together, the reading will surely signal sell. The international markets have been screaming sell for quite some time and they continue to do so. Of course, there are some that are bucking the trend, but they still don’t look good…they just look…

What the Bulls Gain, the Bears Taketh

December 8th, 2018

VIDEO! Watch and Subscribe The S&P 500 finished the week down 4.6%. What the bulls gained the prior week, the bears taketh away. Right now, the S&P 500 is sitting on support in which it has sat two times prior just recently. Monday was a great open for the S&P 500, but it could not close on a strong note. So what happens when the market is supposed to do something and it can’t…it does the opposite! Last week’s price action did not change the structure of the S&P 500 as far as being in a trading range, but if the longer-term indicators were to close on Friday, we would have gotten a bear market signal. This puts the S&P 500 in treacherous times since it continues to remain so close to these bearish readings. We did not hit any stops in the portfolio last week, but we have certainly gotten…