The market finally pulled back on Wednesday. A review of ETF sector charts shows that many of them pulled back from resistance, which leaves doubt whether the rally was a reaction rally or the start of something bigger on the upside. There is some evidence that suggests what it is.
The stock market now has set up parameters between which it will have all the suspense of an Alfred Hitchcock thriller. You know how those things end. Somebody gets killed.
A lot is riding on gold’s price action today. It was at a convergence of key lines of support and resistance. The mini smash this morning just broke a short term uptrend line. Recovery is still possible by the end of today, but if it does not happen, the effect on the short term trend…
Cycle screening measures screamed higher along with the market averages. The market is so thin and the move so strong will it even provide the luxury of allowing anyone in on a pullback or will bulls who have been frozen out, panic, driving the market up even faster?
The V shaped rebound actually accelerated today. The SPX cleared would-be lines of resistance with no pause whatsoever. What does that say about where the market might be headed?
Primary Dealers are getting longer Treasury coupons and futures and banks are sharply increasing their funding of the Treasury carry trade. Will this be problematic for the markets?
The macroliquidity indicator continues to flatten as the Fed stays the course of reducing outright securities purchases. Bank deposits have again surged to a new high but several other macro liquidity component indicators are on the cusp of breaking the long term uptrends in force since 2009 or 2010. Their weakening in September accurately foreshadowed…
Mr Hanky, who posts on Capitalstool.com, wondered today whether strength in the Homebuilder Index portended a housing boom. I responded that I doubt it. With the average wage stagnant and median household income in the toilet, new housing demand will remain weak. In the stock market, the housing ETFs are not really about housing. They’re overweighted with home…
Gold is on the verge of signaling an upturn in the 9-12 month cycle. Here’s what needs to happen, and what it needs to do to avoid falling back into they abyss. Meanwhile, the 3 PM stocks that were selected as potential sector leaders in the past two weeks continue to hold gains.
Cycle screening measures surged on Monday. It was the 5th straight day of improvement in a string that began slightly before the market averages reversed. The aggregate measure broke its downtrend and surged into positive territory.