The equity market spent the month of May in the void, it didn’t go up and didn’t go down either. But underneath the surface, the market has been correcting the excesses in different sectors since January 2021. Now the last sector left to be corrected is the re-opening stocks. The peak of the everything is […]
Last week the NASDAQ took the lead when the market bounced back from the May 19 low, but the bounce didn’t come with any enthusiasm, meaning the volume was anemic. The 10-year treasury yield has come down, yet the NASDAQ is hardly rising accordingly. When the mega tech reported fabulous Q1 earnings, the market shook […]
The market bounced back strongly last Thursday and Friday. Can you trust the bounce? Yes, we believe this bounce is trustworthy and indeed a good buying opportunity. The bullish fundamentals (monetary and fiscal polices) have not changed. Yes, there are scary talks about inflation, but the real inflation is not here yet.
In the last few blogs, we have been warning the potential of a breakdown of 5-10% because the DOW was not able to breakout the trend line clearly for the last two weeks while the NASDAQ was in correction mode. The bifurcated markets made us cautious and wondering what’s behind the scene to create such […]
The DOW, S&P 500, NASDAQ and the small cap Russell 2000 index reached their perspective all time new monthly closing high at the month end of April, which left the market in a very strong technical position. The bullish momentum is not showing any signs of weakening. The earnings season has exceeded expectations.
The NASDAQ corrected more than 10% from February to early March while the DOW and S&P 500 had a very shallow, less than 5% correction. Since the February NASDAQ top, the DOW and S&P 500 took the lead over NASDAQ while the NASDAQ appears to be forming a double top.
