Last week we questioned the validity of the rally that was induced by the trade war truce. It turned that the rally was used as a selling opportunity. It didn’t even have the strength to reach a symmetry swing at 2845 to create an appearance of a bullishness. It promptly failed at 78.6% of the […]
The news of a cease fire of the trade war and the most recent FED statements seem to be providing the much needed good relief for the market. The S&P 500 futures gapped up almost 40 points at open for the overnight session on Sunday night. The important question is can we trust this rally? […]
Over the previous 12 business cycles, the best money managers during a cycle produced average annual compounded total returns of 25% to, in a few rare cases, 30%. This small group consisted of either growth-stock managers or managers whose most successful investments were in growth stocks plus a few turnaround situations.
The semi-conductor sector is clearly in bearish territory. The superstar chip stock NVDA dropped 18.8% on Friday due to bad earnings and forecast. The chip sector ETF SMH topped in March 2018, but NVDA was the last man standing in chip sector until October 2018.
Since the beginning of the October we have blogged several times that the stock market has entered the 4-year cycle high to low phase. This stock market 4-year cycle high to low phase corresponds to the current cyclical economic de-acceleration while the central bank continues to raise rates. You need to login to view the […]
In the last five trading days, the DOW was able to produce a relief rally that retraced half of the shock drop from 26951.81 to 24122.23. But the S&P 500 and Nasdaq were unable to retrace 50% and the small cap couldn’t even retrace 38% of the down move. Overall the market is weak and […]
