Category Archives: Hot Stocks

The NASDAQ Is Playing Catch-up

The stock market rally appears to be rotating toward tech growth plays after a long break. The NASDAQ hit a bear market closing low as recently as Dec. 28. But in 2023, the NASDAQ is up 6.4%. The SMH chip ETF has rallied 12%, the IGV software ETF 5.5% and the speculative ARKK 16.8%.  This is a clear risk-on signal. 

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The Rate Hiking Cycle Is Closer to End

We had December CPI release and banks’ earnings reports last week.  The December CPI was falling as expected and the banks’ earnings were not as bad as feared, although the CEOs kept talking about “mild recession”.  The sentiment continues to be bearish, but the price action is quite bullish.  The S&P 500 cash index closed above its 200-day moving average again last Friday.  This is the second

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Are Sellers Exhausted Or Something Else?

Since the December FOMC meeting on December 13, 2022, the market has been thoroughly scared of the Fed’s hawkish rhetoric.  The S&P 500 was sold off to make a bottom on December 22, 2022, right before the Christmas and New Year’s holiday.  The market has been trapped for 9 trading days until the December Employment Situation report on Friday January

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Why is the Mid October Bottom More Durable?

On Wednesday November 30, 2022 the Fed chair positively confirmed that a smaller rate hike is coming as soon as in the December Fed meeting.  The market welcomed the positive confirmation and promptly rallied to close above its 200-day moving average.  This literally changed the S&P 500 from a bear market to a bull market if it can stay above the 200-day moving average

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A Waiting Game for the Fed December Meeting

Last week was a holiday shortened trading week that all indices closed in positive territory.  As we blogged before, this is the type of difficult market that it’s hard to make profitable short-term trades.  The moves on either side are short-lived and sporadic.  The short trade definitely didn’t work out against the mid-October seasonal low, but the long trade is very laborious.  The

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