Smelling Rotations to Ensure Survival

12Jan1:40 pmEST

A Few Stops Down

The working thesis for bears has been that the early relative weakness for small caps in the Russell 2000 Index in the new year would eventually drag most of the other indices lower, too. After a few attempts to squeeze bears highs, bulls failed to hold the mid-point of a well-defined price range on the IWM (Russell's ETF), seen on the update...

12Jan10:43 amEST

Another Split Out Wide

It is usually interesting to see the timing of when some of the volatility ETFs effect a reverse-split, as we are seeing today with a 1-5 reverse split for UVXY (the ultra-long VIX ETF). As UVXY reverse-splits, stocks are getting hit with the most selling we have seen in this young year so far. We know volatilty has been a tough long for a...

11Jan3:51 pmEST

Stock Market Recap 01/11/17 {Video}

The following video is a brief, condensed version of the Stock Market Recap which I present each evening to members of Market Chess Subscription Services. In the longer version, I offer tons of actionable trade ideas, educational content, and in-depth objective analysis across all markets. If you enjoy my videos and blog posts, then please...

11Jan3:47 pmEST

No More Polar Bears Means No More Solar Bears

Beyond the title of this blog post rhyming, I am not interested in delving into any issues related to the science of weather and its relationship to energy sources. What I do care about is whether it may be time to hold our proverbial nose and buy solar stocks, a sector we have long been bearish on inside Market Chess Subscription Services for...

11Jan1:34 pmEST

A Rocky Day at Sea

With multiple swings centered around a Trump news conference, markets are rather rocky today. Unfortunately for VIX longs, the the fact that VXX is up barely 1% as I write this drives home the point that both they and equity bears need much more selling in stocks before we get the look and feel of a market in a true correction. For now, we are...

11Jan10:53 amEST

The Long View of Merck

Drug giant Merck is up nicely this removing on news of FDA accepting the firm's application for a speedy review of its lung cancer therapy drug. MRK, like other healthcare titans ABBV LLY PFE, has been dead money, on the whole for roughly fifteen years, giving new meaning to the phrase "paid to wait" with the firm's dividend payments to...

10Jan3:49 pmEST

Stock Market Recap 01/10/17 {Video}

The following video is a brief, condensed version of the Stock Market Recap which I present each evening to members of Market Chess Subscription Services. In the longer version, I offer tons of actionable trade ideas, educational content, and in-depth objective analysis across all markets. If you enjoy my videos and blog posts, then please...

10Jan3:48 pmEST

Long Time No Eat

Into the bell, bulls are bouncing back a bit from a mid-afternoon broad market fade. Still, we have not quite gotten decisively bullish resolution from recent index ranges. On a separate note, it is worth noting this is the first precise 200-day moving average test for Chipotle since October 2015, which is rather difficult to believe. But is...

10Jan1:17 pmEST

A Mass-Produced Algo Chart

The small caps remain at the core of the bull versus bear debate as we delve further into the winter months of 2017. Specifically, the recent relative weakness in the Russell 2000 Index has galvanized bears insofar as expecting an imminent market pullback. That may very well materialize, but we need to see the small cap actually break down...

10Jan10:42 amEST

Smelling Rotations to Ensure Survival

If the major averages are going to continue to churn, then bulls likely need to continue the daily theme of sector rotation in order to ensure that bears betting on an imminent market swoon are proven wrong again. This morning, we have some materials giants like BHP RIO VALE gapping up off the opening bell. As one of our Members noted earlier,...