I wasn’t expecting a huge 4% move in small caps on Friday, but I was looking for this group to start flexing its muscles. I’ve been telling our EarningsBeats.com members that small caps were poised for a big move to the upside. We’ve seen the kind of “value to growth” rotation in small caps that...
Sentiment was a HUGE problem for the bulls to start 2022 and now it’s become a similarly big issue for the bears now. If you haven’t noticed, most bulls don’t begin to turn bearish until after all or most of the selling is complete. After we’ve endured a nasty bear market, either secular or cyclical,...
It was the culmination of many months of accumulation by Wall Street firms. I’ve discussed this accumulation, or manipulation, over and over and over and indicated that it was the likely precursor to a big stock market advance. I’ve updated a chart of the QQQ (ETF that tracks the NASDAQ 100) to show how the...
Price Action Clearly, the most important aspect of the stock market is price action. That’s where it all begins. Currently, I like the daily and weekly charts, but we do still have one very important price resistance level to clear: S&P 500 – Weekly: There are obvious improvements on this chart in 2023. First, the...
I remain quite bullish the overall market. I call what I see and what I saw in 2022 were stock market participants that turned incredibly bearish. I said at the beginning of 2022 that we needed a bear market brutal enough to send the masses to the sidelines and never wanting to own another stock...
Growth-oriented stocks tend to have their best relative showing vs. value-oriented stocks beginning in May and running through August. Check out the relative seasonal performance of the XLK (vs. the SPY) over the next four months: If you add the bottom numbers of each calendar month (represents average monthly outperformance of XLK vs. SPY since...
The normal relationship between the Volatility Index ($VIX) and the S&P 500 is an inverse one. The easiest way to illustrate this is to pull up a chart showing both and their correlation coefficient: The red arrows mark bottoms in the S&P 500 and they generally coincide almost perfectly with tops in the Volatility Index....
There are plenty of reversing patterns in technical analysis, but my personal favorite is the combination of a weekly positive divergence and a bottoming head & shoulders pattern. The positive divergence captures the slowing downside momentum and the head & shoulders provides confirmation that prices are indeed turning up. Keep in mind that a downtrend...
Cintas Corp (CTAS) is just 1 of 83 companies that have qualified to be on our most powerful ChartList, our Bullish Trifecta ChartList. In order to make it, it must be on our (1) Strong Earnings ChartList (SECL – tracks companies that beat quarterly revenue and EPS estimates), (2) Strong AD ChartList (SADCL – requires...
Okay, first when I say “it’s easy”, I’m not saying it’s easy to call tops and bottoms. Instead, I’m say that answering that rhetorical question is easy. If you can call a top, you can exit equities with your capital completely intact. And if you can also time a bottom, you can reinvest at a...