Dollar Correlation With Stocks

it's almost uncanny, check out this inverse correlation of the dollar index bs the s&p 500 on a 10 day 60 minute chart:

Huge Indecision Area On Major Equity Indices

The Russell 2000 is at the 50 day moving average as well as a horizontal and uptrend resistance area.   The S&P 500 has now put in three weekly doji closes in a row….indecision is an understatement.  While it can break in either direction at any time, this choppy sideways action can also continue.  Our […]

Update on Financial Stocks. Where Is The Bounce?

Last week I pondered whether the financial sector might be due for a bounce soon. Read here. Thus far the financial sector has not bounced since I wrote last week.  As we are heading into a long weekend and the tape is choppy I wanted to give a quick update.   I don't want to […]

Various Market Thoughts – Time To Shorten Trading Horizon

Despite a bounce in the major averages yesterday, the market remains in no-man's land and is churning away. Given all the headwinds I discussed here tirelessly I think the direction of stock prices over the next two months is flat to down.  As such we are increasing our focus on shorter-term trading in Bucket 1 […]

Good Reward/Risk for Longs

The S&P 500 chart gives us good reward/risk trades here.  On the SPX itself stops can be placed near $1318 (Tuesday's low…which was also the 50 dma and 61.8% Fibonacci retracement),  Upside targets as we see them are between $1380 and $1400, giving us a 2:1 reward/risk ration on the conservative side.

Thursday Morning Market Thoughts

Yesterday's trading action was bullish, period.  Coming into yesterday morning, the market still felt heavy despite the intraday reversal on Tuesday.  As the morning unfolded however something took the fear level out and markets pushed higher.  Financials performed again and some of the high-beta names like AAPL and AMZN resumed their bounce higher.   We […]

Market Summary – April 27

This here is the martini-hour thoughts newsletter summary sent to premium members.  I am posting it today on the public blog  here as a sample, but without the charts.  Enjoy!     Wednesday, April 27                                                             Just as we wrote in the morning line-up letter, the morning ended up fairly boring in terms of pure […]

Inverse Head & Shoulders In AMZN, SPX, And All Around!

For the sake of pointing it out but not so much because I want to play this….note the inverse head and shoulders pattern in AMZN.  The neckline (resistance) is ust around $192, which by the way is also an all-time high for AMZN.  The stock is up nicely today after announcing earnings last night, so […]

Quick End Of Day S&P 500 Chart Looksy

Silver was about the most exciting thing happening today while stocks slapped around the unchanged mark, at least as measured by the broader indices.   As such the SPX is still right at the resistance area near the 1337 area.  This week is sure to bring some action soon enough with earnings, FOMC meeting, and […]