Stocks Rally & Netflix Spikes On Great Earnings

Stocks Rally - Finally The stock market finally skyrocketed like I expected on Tuesday. Stocks were intensely oversold heading into the day. Short term indicators signaled stocks should burst higher soon. The performance over the next 12 months is still dependent on the fundamentals. The S&P 500 increased 2.15%, the Nasdaq increased 2.89%, and the…

Retail Sales Report - 5% Year Over Year Control Group

Retail Sales Report - Decent Retail Sales Growth The September retail sales report was controversial in that both the bulls and the bears used it to support their narratives. With stocks falling on Monday, the bears were gaining confidence and ready to declare another victory. I disagree with the bears. I think this was a…

Stocks Decline On Monday Even Though They Are Oversold

Stocks Decline Again Surprisingly, stocks fell on Monday. The market is very oversold which usually implies a bull run is coming. I’m not saying stocks should hit a new high. But I think a 2% to 3% recovery this week is in the cards unless there’s a negative catalyst. The S&P 500 14 day relative…

Trade War - Negative Impacts

Trade War - Soybean Inspections It’s very important to avoid listening to cynics who claim soybeans aren’t important. They are America’s largest export to China. The trade war between China and American appears to be getting worse. It’s important to follow this commodity closely. America has a mixed economy while China has a command economy.…

Modest Stocks Rebound Ends A Terrible Week

Modest Stocks Rebound - A Mini Recovery The stock market recovered on Friday after having two terrible days. In bull markets stocks recover slowly. In bear markets stocks recover quickly and then lose more value even quicker. Fiercest rallies are in bear markets because traders fall into the trap of thinking the bear market is…

Stocks Bounce Usually After A Decline Like This

Stocks Bounce - Time To Buy Stocks Sentiment on stocks has shifted so quickly the S&P 500 went from being overbought to oversold in a few trading days. The CNN Fear and Greed index bottomed at 6 out of 100 which signals extreme fear. That doesn’t mean stocks will increase over the next 12 months.…

Stocks Oversold At Extremes

Stocks Oversold - Another Down Day The stock market had another weak trading session on Thursday. The S&P 500 fell 2.06% and the Russell 2000 fell 1.91%. On the bright side, some of the hardest hit groups outperformed. The Nasdaq only fell 1.25%. EEM emerging markets ETF fell 1.01%.  Facebook stock rose 1.3%. I’m not…

S&P 500 Falls The Most Since February | Nasdaq 100 Falls 4.44%

S&P 500 Falls - Big Correction On Wednesday The stock market cratered on Wednesday. The Dow fell 3.16%, the Nasdaq fell 4.08%, the Russell 2000 fell 2.86%, and the S&P 500 fell 3.29%. You can see the daily changes in all four indexes in the charts below. This was the biggest decline since February. There…

Hurricane Michael Hits Florida As A Category 4 Storm

Hurricane Michael Makes Landfall In a few days, hurricane Michael went from nothing to a storm with 155 mile per hour winds. Unlike hurricane Florence, the winds increased as it went ashore. The good news is this is a quick moving, small storm. The hurricane force winds only extended for 30 miles. The flooding from…

Small Caps Underperform In October & Materials Crater On Tuesday

Small Caps Continue Downtrend - Flat Market The S&P 500 fell 0.14% which puts it in a 4 day losing streak. There’s not much to make of this losing streak. The S&P 500 is near its record high. In fact, its outperformance of small caps is more notable than this mini losing streak. The Russell…