Stocks Are Getting Squeezed - Get Ready to Act

Jul 9, 2020

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01:13 PM PST

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And so it begins. I'm not talking about the Janet Yellen era as head of the Federal Reserve, which could have arguably kicked off yesterday with her first press conference in that role. I'm talking about the NCAA men's basketball tournament - aka "March Madness". We're only a handful of games into it, and it already looks like some brackets are going to be busted. I suppose that's why they actually play the games.


Investors are More Nervous Than Friday's Action Suggests

Jul 9, 2020

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01:13 PM PST

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Is everybody ready for the weekend? It looks like a bunch of us are going to get another round of snow on Sunday and Monday... just in time for St. Patrick's Day. Maybe those of you in the wintry weather's path - the northwestern quarter of the country - will have the luck of the Irish before Sunday evening and the storm will end up somewhere else.


Unfortunately, the weather forecasters have been pretty well spot-on this year, so it would take an inordinate amount of luck to sidestep the impending snow. Yeesh. I don't know about you, but I'm through with winter. Too bad winter isn't through with us.

The Bears Finally Growled. Do the Bulls Need to Worry?

Jul 9, 2020

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01:13 PM PST

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Well, there certainly aren't too many ways to interpret Thursday's beat-down. The February rally was already hanging by a thread, but any lingering hope would have been wiped away by today's strong selling.


It's not the size of the selloff that should have you a little worried, however. Heck, after a day like today, we can probably even expect something of a dead-cat bounce on Friday or Monday. Such a bounce is likely to be short-lived, however, because of the technical damage done to the market indices on Thursday.

Don't Jump to Conclusions About Wednesday's Mid-Day Reversal

Jul 9, 2020

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01:13 PM PST

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Hidy-ho, friends and fellow traders. How was your Wednesday?


First of all, thanks for all the kind words regarding yesterday's edition of the newsletter, which explained the importance of thinking about sectors as you pick (or avoid) certain stocks. We're glad you liked it. And if you missed it, you may want to back-track and take a look - what you're about to read will make a lot more sense if you know what we're talking about.

The Market's Stagnant, But Our Portfolio Sure Isn't

Jul 9, 2020

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01:13 PM PST

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Well, that was a fairly lethargic start to the trading week. Though stocks certainly could have fared worse, they also could have fared better. I suspect traders are still mostly stuck on the fence, unsure as to the market's true undertow. Rather than take a swing in either direction, they were content to simply sit on their hands. Volume was quite light today too, underscoring the theory.


You know what though? While the market as a whole wasn't impressive on Monday, we had a couple of stock picks make some surprisingly big gains. Let's just show you where we are with those first, since we want to raise our stop levels on them. We'll take care of the marketwide stuff in a moment.

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