Charting Stocks

When we wrote “Inflating a Bull Market,” we mentioned the inverse relationship between the US dollar and stock prices. In March, the US dollar peaked from overbought levels and began to decline. At the same time stocks bottomed from oversold levels and began to move up. The reason is simple – Stocks are priced [...]

It must be nice to be a huge conglomerate like General Electric. After all, you can drum up support for a meaningless war through one subsidiary (NBC/MSNBC) and then reap the financial benefits of that war through another. You can even invest in a company which has yet to turn a profit as your media [...]

Was it the iPhone app? Traders have been baffled by the unusually high buying interest in VoIP phone call provider Vonage Holdings Corp (NYSE: VG). The stock has risen 500% in 2 weeks with little or no news to warrant such a move. Perhaps the most amazing thing was the volume: Nearly 40 million shares [...]

Vacation Time
Hope you all enjoy the remaining month of summer. See you in a few weeks.

Last week, we mentioned that technical indicators began to turn negative. Technical damage continued today as the Dow Jones Industrial Average, Dow Jones Transportation Average, and  S&P 500 closed below their pivotal 50 and 200 day moving averages (first time since March), with all 3 averages registering an RSI sell signal.  NASDAQ bucks the trend [...]

Technical indicators are beginning to turn negative for the first time since the beginning of the March rally. The S&P 500 index  violated its 3-month uptrend while the Dow Jones Industrial Average closed below its 200-day-moving-average. Momentum indicators have turned bearish.
The Dow Jones (Chart below) is still holding on to its uptrend line though RSI [...]

We’ve written about the relationship between US equities and the US dollar. Stocks bottomed in March and began to move up as the US Dollar topped during the same time and began to move down. Todays market selloff came as an oversold dollar (short term) found buyers.
If the dollar continues this advance, US equities should [...]

Much has been made over the recent stock market rally. The advance from the bottom has, indeed, been historic and has caught many of us by surprise. Though the market was extremely oversold and due for an upward correction, we continue to be  amazed at its strength and longevity.  A closer examination, however, reveals that [...]

Last week we mentioned that the spring rally had reached completion.The major averages were coming up against major resistance at a time when an oversold rally was losing momentum. Admittedly, our call was a couple of days early but today looks like a key reversal day. If the selling continues into tomorrows close, last week [...]

What a wild ride these past few weeks have been. Only a month or so ago the Dow Jones Industrial Average traded down to 6,500 amid an onslaught of catastrophic economic news. The market has since rallied 25% from its low with insolvent banks such as Citigroup and Bank of America quadrupling in value. Jim [...]