Why Bank Stocks are Forecasting More Market Volatility
Shares of banking and finance stocks are trading lethargically and forecasting more trouble ahead for markets. Between a flatening yield curve, slowing global growth, concerns over high corporate borrowing and more, bank stocks and thus the entire stock market faces a strong uphill battle at least through the first half of 2016. Watch the video […]
It’s ugly times ugly…
and look where the Russell 2000 has fallen to as a result of another 2.60% smack-down today… Mucho oversold from a momentum perspective and 17% below its red 200 day moving average. Very stretched on the downside.. BUT, we need a confirmed bullish reversal before any buying in more size makes sense. Period? I had […]
Stocks: Beware of a sharp counter-trend rally
Bear markets are notoriously difficult for anyone to make money in. Sharp sell-offs are followed by snappy counter-trend rallies. Unless one has some perspective on the market it is an almost sure bet to lose money. With the selling for stocks in January intensifying we are ever closer to a sharp counter-trend bounce. Quicker traders […]
Free Webinar, Sign Up Now: Profit in 2016 with The Confluence Zone
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 […]
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 […]
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 […]
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 […]
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. […]