Morning Comment: European Banks Testing Critical Support Level


We saw a nice bounce in the stock market yesterday, but the trend on the “internals” on the market continues to be the same that it has been since the beginning of the month. In other words, “internals” continue to be strong on down-days and weak on up-days. For instance, the breadth on the S&P 500 was just 2 to 1 positive yesterday...which is mediocre at best for a day that the index rallied over 1%. It was actually negative for the Nasdaq Composite...on a day when that index rallied 1.7%! That is not good at all........On top of this, the composite volume barely made it above 3bn shares...so there is no question that the volume continues to be much stronger on the days when the stock market declines than it is when the market rallies.

It seems like there is a new issue to throw into the mix each week...and this week’s “new issue” that is getting the most attention this week surrounds the Supreme Court. However, another “new issue” is the report that several of the most powerful global banks have allowed some suspicious transactions that allowed these banks to profit from powerful and suspicious players for two decades. This news hit the tape over the weekend and the bank stocks around the globe have been hit hard over the past two trading days. This has taken the domestic bank ETF below a first support level...and down close to another one. More importantly, it has taken the European bank index down do a CRITICAL support level. Therefore, any further downside follow-through will be VERY negative for the European banks.

Let’s start with the domestic banks...and the KBE bank ETF. This week’s news has taken it below the bottom line of a “symmetrical triangle” pattern. It has also taken ...

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THE WEEKLY TOP 10


THE WEEKLY T0P 10


Table of Contents:

1) The stock market was (and is still) ripe for a further decline...no matter what the Fed said this week.

2) However, the Fed’s actions of the past decade HAVE put us in ...

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Morning Comment: DON'T BLAME THE FED for today's weakness!


We’ll start by saying that if it turns out be true that President Trump played a large role in getting the Big 10 to reinstate their football season, the election in over! Given how important college football is to the ...

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Morning Comment.....FDX: GREAT quarter, but VERY overbought....Stewart Cink.



The stock market gave back some of its midday gains late in the afternoon yesterday...after APPL slipped well off of its highs for the day and the dollar bounced back into positive territory for the day. However the stock market ...

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THE WEEKLY TOP 10



THE WEEKLY TOP 10


Table of Contents:

1) The “artificial” moves actually started in Q4 of last year (after the repo debacle).

2) When the market reaches the kinds of extremes it did in Aug, it takes time to work ...

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Morning Comment: Too early to "buy on weakness"



  • The "internals" during yesterday's rally were mediocre.
  • The call buying in AAPL was huge yesterday, so very little froth has been wrung out of the market. (Many mega-cap tech stocks are still quite overbought on an intermediate-term basis.)
  • It's usually ...
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Morning Comment: Watch Friday's intraday lows, they're KEY support


The U.S. futures are trading significantly lower this morning as the tech stocks (especially the mega-cap tech names) are under pressure once again. Our stance on this situation is a lot different than most. Many people are saying that it’s ...

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THE WEEKLY TOP 10

THE WEEKLY TOP 10


Table of Contents:

1) The sell-off in the stock market likely has more room to run.

2) An explanation of what has taken place in the options market this summer.

3) We’ll need more downside follow-through ...

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Morning Comment....Caveat Emptor


It has been a very different kind of year for the stock market and this week has been no different...as the week before Labor Day weekend has not been the normal boring week we usually see in the market place. ...

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Morning Comment.....Tom Seaver: An


Well, we finally got some good breadth on a strong day in the stock market...as the advancers vs. decliners were 11 to 1 positive on the S&P 500 index yesterday! It was strange that the breadth was only 1.4 to ...

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Morning Comment: Germany's DAX trying to breakout


Back in 1999, every once in a while we would jokingly exclaim, “The stock market will never go down again in our lifetime!” We did said that because it seemed like the stock market would rise every day no matter ...

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Morning Comment: Suckers.....TRAN.....Trump sets the


  • Don’t follow the suckers. In other words, don’t buy the mega-cap tech stocks up at these levels. They’re now ripe for a powerful decline.
  • The Transports have played catch-up quite nicely, but they’re getting overbought on a near-term basis.
  • Love ...
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