It’s been a relatively quiet week for the major indexes despite some bad news (Iran, big warning from Broadcom today), which we take as a constructive sign following the strong push higher after last Monday’s market low. As we write this, the S&P up...
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From Cabot Top Ten Trader
Our intermediate-term trend model has yet to turn positive—it’s relatively close, we’d probably need to see the Nasdaq lift a couple of percentage points from here for it to happen. There are also a couple of yellow flags we’re an...
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The June market rally has been a ray of sunshine after a dreary May. Is it sustainable? Here are two reasons to think so - and two reasons to question it.
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Our Cabot Tides are yet to flash a green light, and thus we’re content to hold our strong, profitable stocks, but also to keep a chunk of cash on the sideline.
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We’re looking at economic data that could push interest rates upward (rising food price inflation and business expansion) and we’re also looking at economic data that could push rates downward (GDP potentially falling due to China tariffs, and slowing employment numbers).
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The market started this week with another sharp selloff, continuing the May weakness and bringing the major indexes down 7.65% (S&P 500) to 10.8% (Nasdaq) from their peaks. But since Monday, the action has been excellent, and the major indexes are working on gains,...
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Pieces are in Place
We’re about five weeks into this market correction, and it’s been a pretty nasty one when looking at the major indexes—from high to low, the S&P 500 has fallen as much as 7.6% and the Nasdaq by 10.8%, with small- mid-cap...
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It’s the last day of May, to which most investors (including us) say “good riddance,” as the major indexes are working on their fourth straight losing week. Including this morning’s plunge, the S&P has fallen as much as 6.9% from its high, while Nasdaq...
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Our Cabot Tides are still clearly negative, and in recent days the selling pressure has broadened out, causing more stocks and sectors to take on water.
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The major indexes have had another rough go of it, notching their third straight weekly decline. Before the opening bell this morning (futures are indicating a modestly higher open), the S&P 500 is sitting on a 1.3% weekly loss, while the Nasdaq is a..
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Time Likely Needed
In The Perfect Speculator (written by Brad Koteshwar), fictional trader Boyd Hunt said, “Everything in the market takes time. Learning takes time. Making gains takes time. Even losing big takes time because the market will occasionally offer small crumbs to remove (We...
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Many of our stocks are still recovering from the steep stock market downturn that occurred in the fourth quarter of 2018. As long as their fundamentals (profits, valuation, etc.) remain strong, I’m going to give those stocks some rope and allow them to recover.
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The market has been all over the place this week, starting with a decisive cracking of its intermediate-term on Monday, a good-looking snapback from Tuesday through Thursday (especially among leading growth stocks, many of which zoomed to new highs) and bookended with this selling...
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The market’s three-day rally has been solid, but even better than that has been the action of growth stocks, many of which have zoomed to new highs.
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After rising 25% from its December low to its May high, the S&P 500 index is finally taking a breather. I don’t expect a shocking price drop like we saw in December. Rather, I anticipate the S&P 500 receding to 2,750, which would down...
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The weeklong tariff threats and (this morning) levies have caused a consistent wave of selling this week, which, as we write, has brought most major indexes down to (or a bit below) their 50-day moving averages.
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Tariff Grenade
In last week’s update, we wrote, “We are seeing some short-term things to keep an eye on … earnings season has [shown] plenty of poor reactions and few solid gaps higher … sentiment has turned complacent … upside momentum has been waning and...
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It’s shaping up to be a week of little change in the major indexes, but that doesn’t tell the tale—there was plenty of volatility all week (and even intraday) as earnings season and major news items (Fed, jobs, other economic data) hit the tape.
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Remain bullish, but keep your eyes open. Our indicators and most of our stocks are still trending up, though we’re seeing some funky action that’s worth monitoring.
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When a famous company’s stock falls, there are lessons to be learned that can help you improve your game. Shares of 3M Co. (MMM) fell last week when first-quarter results revealed revenue and profits that did not meet the market’s expectations.
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