Here’s an example of something that concerns me in light of the current rally. Namely, that price and volume should go together, but now they’re not. That is, in a normal environment–one where things are acting right–rising prices are accompanied by rising volume, and falling prices are accompanied by falling volume. The latter is one reason that folks could say that the market’s bottom testing had been successful in March even though it occurred at lower prices than in November. (more…)
We place a lot of confidence in the services of BCA Research and Ned Davis Research, two independent investment strategy research firms. We’ve been waiting for them to give the thumbs-up for stocks before increasing our exposure. Yesterday, NDR’s Chart of the Day was titled Getting More Aggressive–Now Overweight Equities, Favoring Small-Caps [my underlining]. (more…)
This week, the Dow 30 rose by 65.79 points, or 0.82%, to 8,083.38. The S & P 500 (SPX) rose by 14.06 points, or 1.67%, to close at 856.56. The NASDAQ Composite rose by 30.67 points, or 1.89%, to 1,652.54. The S & P Mid-cap index rose by 11.92 points, or 2.27%, to close at 536.43. The Russell 2000 small-cap index rose by 12.07 points, or 2.65%, to close at 468.20. Finally, the Morgan Stanley EAFE (Europe Australasia & Far East) index rose by 4.51 points, or 0.74%, to close at 615.78. (more…)
Not a few smart folks have begun to compare the current market with 1938. I was motivated to do the same after reading a Citigroup report this morning, and the particular catalyst was this quote . . . (more…)
