About That Friday Bounce

The U.S. stock market roared back to life on Friday. After a dismal trading day on Thursday, stocks opened the Friday session in a choppy sideways pattern between 1968 and 1975 on the S&P 500 Index through much of the trading day. Then suddenly, like so many times before in the post-crisis period, stocks suddenly awoke around 1PM and rallied for the next two hours before settling into the close. Does this mean that the market has finally shaken off its recent blues and is poised to make its next bold move higher? Hardly.

Please click on the link to read more of my article on Seeking Alpha.

Perspectives On Thursday’s Sell Off

Thursday was a lousy day for equity investors. U.S. stocks as measured by the S&P 500 Index dropped by -1.62%, which represented its fifth worst decline in 2014 thus far. When putting this latest decline into perspective, it appears at first glance that the bulls still have good reason to remain optimistic. But when exploring deeper under the surface, troublesome signs are increasingly accumulating that may be hinting that a far more significant change in the long-term market trend may soon be on its way.

Please click on the link to read more of my article on Seeking Alpha.

The Stock Market Machines Are Breaking Down

Much has been made of the relative weakness of U.S. small cap stocks so far in 2014. Despite the fact that the large cap S&P 500 Index has battled its way to fresh new highs throughout the year, the small cap Russell 2000 Index is down by -2% year to date. But what is perhaps even more notable than small cap underperformace is the fact that increasing signs of rot are presenting themselves from within the S&P 500 Index itself. And the fact that these trailing results are coming from the economically sensitive industrials sector is particularly troublesome for the sustainability of the stock market rally going forward.

Please click on the link to read more of my article on Seeking Alpha.

U.S. Stocks: All Better Now?

After having drifted lower since the beginning of the month, the U.S. stock market as measured by the S&P 500 Index suddenly exploded higher on Tuesday. And the key index tacked on a few additional points on Wednesday. In the process, the S&P 500 not only broke decisively above its recent downward trading channel but also nearly set a new all-time intraday high. Such a decisive reversal might understandably lead one to conclude that all is once again right with the U.S. stock market. But one does not have to look far under the surface to find evidence to the contrary.

Please click on the link to read more of my article on Seeking Alpha.

Is A Stealth Liquidation In Stocks Underway?

It is September 2014 and all is well. Or is it? The U.S. stock market set a new all-time high earlier in the month and is less than +2% from striking another fresh peak despite some modest weakness in recent days. The uptrend in stocks also remains firmly intact and is supported by an economy that while sluggish is still plodding along. But despite this generally placid appearance on the surface, some notable signs of deterioration are growing underneath that warrant close attention in the days ahead. For it is possible that something much more substantial to the downside may be slowly starting to brew.

Please click on the link to read more of my article on Seeking Alpha.


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