Monthly Archives: January 2024

Critical Week Ahead

Quite a few pending catalysts will test the durability of this unrelenting mega tech led rally this coming week.  First is the Fed meeting decision on Wednesday, then we will have AMD, Google and Microsoft report earnings on Tuesday, 1/30/24.  Finally Apple, Amazon and Meta will report earnings on Thursday 2/1/24.  Lastly, three US service members were

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Double Top Formation Voided Last Week

Whatever the Fed officials said about the timing of the anticipated rate cuts didn’t do a thing to scare the market.  Instead, the market grabbed on everything TSMC said about AI chips.  The S&P 500 powered through the potential double top formation we talked about in our last blog to make a new high last Friday.  Essentially, the rally started from

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Be Aware of A Double Top Formation

Last week’s rally confirmed the 1/5/2024 low as the low of the second daily cycle bottom and also the half weekly cycle bottom.  The confluence of the two bottoms made the S&P 500 rally from the last six trading days a good one at 2.57% measured from low to high (1/5/24-1/12/24).  The DOW and S&P 500 both made a new high while the NASDAQ

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Inconsistent Distribution

The trading in the first week of 2024 has shown some signs of distribution in the NASDAQ and S&P 500.  But no signs of distribution in the DOW stocks.  We talked about the DOW being left in an extremely overbought position in our last blog.  An overbought position never leads a severe selloff immediately.  An overbought momentum can be absorbed

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2023 – The Year of AI and War

A lot has happened in 2023, but AI and the wars in Ukraine and Gaza strip are the most impactful events to the world and financial markets.  Despite all the human sufferings from the two brutal wars, the U.S. stock market was not fazed and did a fabulous job in 2023.  The advent of AI in 2023 has inspired our imaginations about a future dominated

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Cycle Forecast

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