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Hey Traders and Investors 2016 is destined to once again be challenging for the ‘buy & hold’ crowd. After a year of consolidation in 2015, the coming year will likely see significantly higher volatility with the chance of a 20% – 30% correction in the broader stock indices. Active investors and traders will have wonderful […]
Take Some Profits In McDonald’s Corporation (MCD) Stock
McDonald’s Corporation (MCD) stock has surged nearly 30% this year, and with Tuesday’s 1.11% lift, MCD stock has reached my near- to medium-term price target of $120. To be sure, McDonald’s stock continues to be supported by several factors, including a turnaround story that is believable and visible … as well as a somewhat defensive nature […]
Three Key Trades for 2016
In many ways, 2015 was the year of the return of volatility. While stocks largely traded sideways, the August/September shakeout is likely a sign of things to come in 2016. If we expand our horizon across asset classes and the globe, there was significantly higher volatility and more downtrending price action. Thus, my main theme […]
Apple Inc. (AAPL) Stock Has That Heavy, Sinking Feeling
Shares of Apple Inc. (AAPL) dropped another 2% on Thursday as the broader stock market erased all of Wednesday’s post-FOMC rally. Apple stock has looked weak for the most part of 2015, and now it has arrived at a crucial juncture through both the longer and near/medium-term lens. Bulls would be wise to respect that heavy […]
The market post-Fed. Path of least resistance is…
With the Fed’s 25 bps interest rate hike out of the way, what’s the path of least resistance into year-end and early 2016? Thursday’s reversal lower was ugly and erased Wednesday’s entire post-Fed rally. Parts of the sell-off could be blamed on Friday’s upcoming options expiration, but price action none-the-less must be respected. Here are […]
Facebook’s bullish reversal sets up a trade
After some early weakness on Monday stocks staged a bullish turnaround in the afternoon session. This saw the major indices and a host of important stocks such as Facebook (FB) leave bullish marks behind on their daily charts, right at crucial technical support areas. Watch the video for the trade setup in Facebook stock. […]
Will December 2015 rhyme with history for stocks?
One of my former bosses used to remind me on a daily basis that while history doesn’t necessarily repeat itself it sure tends to rhyme more often than people give it credit for. And this gets me back to seasonality for stocks in the month of December. Through the seasonality lens US stocks tend to […]
Beware: Stocks seasonal weakness into mid-December
After displaying traditional seasonal strength into late November and possibly very early December, stocks this year again may see some weakness into the middle part of December. Tactically this may offer active investors and traders a chance to take some longs off the table, possibly even short the indices after a confirmed bearish reversal, only […]
What to Expect From the S&P 500 Into Year-End
Fund managers and investors alike are asking themselves whether the year-to-date highs for the SPDR S&P 500 ETF Trust(SPY) are in the past or whether a Santa Claus rally could push us to marginal higher highs. While market breadth is about as weak as I have ever seen it by some measures, a glimpse at seasonal […]
The German DAX and that pesky 200 day moving average
Looking back at the gyrations of the German Dax index this year shows what a roller coaster it has been. While I shy away from using simple, single-factor models or analyses when it comes to markets, the key line in the sand for the Dax in 2015 has been a closely watched one: the 200-day simple […]