Up and up we go. Three weeks and one day from now we will have an election and the markets could not be happier. That’s not good news for the soon to be ex-president as Joe Biden has the biggest lead three weeks before an election than any candidate since 1936, with a 55% to […]
Rebalancing your portfolio is an important risk management habit. It avoids oversized exposures and preserves diversification. As the saying goes “no one goes bankrupt from taking profits.” Modern portfolio theory suggests that diversification reduces the volatility of a portfolio without reducing its expected return. This year, technology stocks have outpaced other sectors. The chart compares […]
Joe Biden is leading by 14 points. No wonder Trump got sick — the old “dog ate my leadership” doesn’t work as well with voters as the sympathy vote. The president needs something to turn his campaign around and it’s a mix of opinions as to whether the president is faking Covid to gain sympathy […]
The idea behind technical analysis is about studying price changes and looking for patterns that repeat — at least that is how I view it. Sometimes spotting patterns is extremely easy and other times it is far more difficult. For cybersecurity software firm Fortinet (FTNT) the pattern was pretty simple to see. Looking at the […]
Over the last few years the Energy Select Sector SPDR (XLE) has primarily trended lower with a few bursts of upward momentum sprinkled in at certain times. The pattern for the ETF follows the pattern in oil prices pretty closely and that is to be expected. Global demand for oil is changing dramatically as we […]
Well that went as expected. Yesterday we titled our Morning Report: Testy Tuesday – Shorting the S&P 500 at 3,350 and we made a lovely $1,250 per contract on our shorts and got another chance to get in at 3,350 in last night’s futures. And we have another dip as the markets started selling off […]
A death cross! According to Investopedia: The death cross is a technical chart pattern indicating the potential for a major selloff. The death cross appears on a chart when a stock’s short-term moving average crosses below its long-term moving average. And it looks like this! That blue line is the 50-hour (1 week) moving average […]
Everything is proceeding as I have foreseen. In Monday’s “The Week Ahead — 200,000 Deaths Weigh Heavily on the Market,” we knew the 200,000th American death would put Covid back in the news cycle and there wasn’t much chance of Powell making us feel any better as the Fed is pretty much out of firepower […]
Since peaking in early September, the main indices have all three stumbled for the last few weeks with the S&P and Nasdaq falling over 10% from their highs already. Three sectors that have been hit especially hard are communication services, energy, and technology. One of the three sectors that have held up the best is […]
Tesla Inc. (TSLA) is one of the most popular stocks amongst investors. Led by CEO Elon Musk the electric vehicle manufacturer has disrupted the transportation industry, bringing hype to a faithful consumer and investor base. The chart shows one-year of stock price performance, which at peak increased close to 10 times. TSLA — 12 month […]
