Excesses of the Bull Market on Mardi Gras

11Feb12:43 pmEST

Total DB Move

Much like at various junctures in the 2008 bear with Bear Stearns, Fannie/Freddie, AIG, then Lehman and Citi, equities may very well be tethered to the day-to-day movements in the likes of CS and DB, two European banks under significant pressure and may be indicating systemic risk. Although it may seem too obvious and simplistic to draw that...

11Feb10:49 amEST

Aerospace and Defense: Time to Come Back Down to Earth

Many aerospace and defense stocks have seemingly defied the market selling in 2016. Beyond that, they have largely enjoyed steep, multi-year uptrends. Today, however, the likes of Boeing are getting sold hard, in addition to mainstays like GD LMT RTN. I also view a chart like NOC, below on the daily timeframe, as being an actionable short...

10Feb5:31 pmEST

Stock Market Recap 02/10/16 {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...

10Feb3:11 pmEST

The Last Minute Strip

We noted in the Midday Video for Members that the semiconductor stocks were suspiciously weak today, even with the Nasdaq at-large leading the rally. As it turned out, semis may have been some type of canary today, as we head into the final hour. The market simply has not yet staged a runaway short squeeze higher, a thesis which many market...

10Feb12:50 pmEST

The Yen Looks Like an Erupting Volcano on Iwo Jima

While stocks bounce today, the Japanese Yen is not coming in the way you would expect for a "risk on" trading session. The FXY, Yen ETF, below on the daily chart, shows price on its way to a confirmed weekly base bottom, assuming it does not lose $83 before Friday's close. You can see the launching pad the base provides, stretching back over...

10Feb10:54 amEST

A Little Rain is Good, But Not Too Much

The price action in the precious metals and their miners in recent weeks has been very impressive on a standalone basis, let alone within the context of a possible bear market bottom. The rationale for a new bull run in the metals and miners could range from anything to markets revolting, once and for all, against maniacal central banking...

09Feb5:10 pmEST

Stock Market Recap 02/09/16 {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...

09Feb2:54 pmEST

Slugfest

Less is more today, in terms of trading a churning market in front of Chair Yellen's semi-annual monetary report to House Financial Services Committee tomorrow morning. The crude oil weakness has yet to plunge stocks to fresh lows today, while trouble DB popped on rumors of a major Euro Bond buyback. Precious metals and miners finally look...

09Feb12:36 pmEST

First in First Out of Port

With crude oil and high yield paper pushing session lows as we speak, stocks are wobbly but have not plunged to follow suit, just yet. Into the afternoon, the crude oil weakness is a concern, but shorts should still not rely on it as a proxy to short tech and biotech, for example. At the moment, a more interesting development to my eye is the...

09Feb10:49 amEST

Excesses of the Bull Market on Mardi Gras

Today is a busy day across the country, with both Mardi Gras festivities and the New Hampshire Primary. Regarding the Mardi Gras partying, followed by Ash Wednesday and the beginning of Lent, markets also display a similar pattern, broadly speaking, of enjoying the complacency and excesses of a long bull run, before eventually the cleansing...