Chart of the Week

“With a rise in social unrest, confusion over the pandemic response, and a highly volatile market, the probability of President Trump holding onto his office has dwindled,” says Jason Goepfert  of SentimenTrader.  Why? “Whatever one’s political association, there seems to be a clear correlation between re-election odds and the price path of the Dow Industrials,”…

We use numerous indicators to guide us on the strength and weakness of the stock market in terms of when to buy, sold and hold.  One of the important short-term indicators we follow is the 14-day S&P 500 Relative Strength index (RSI) which shows us the percentage of stocks that are overbought or oversold in the…

Is It Finally Time for Value Stocks?  In the summer of 1979, a BusinessWeek cover story pronounced “The Death of Equities.” Three years later in 1982 the stock market hit bottom and then rocketed higher. Since then the total return on the S&P 500 index with dividends reinvested has been more than 7,000%. This legendary…

Historical Trends Suggest Major Stock Market Volatility and Weakness In The Months Ahead.  Troy Bombardia is well known for his astute analysis on the stock market and trading based on historical trends.  He notes that huge swings in volatility in 2003 resulted in mostly bearish returns for the S&P 500 in the months ahead (See…

Why You Should Be Worried By Today’s Huge Amounts of Stock Market Investor Margin Debt.  As you can see from the chart below, margin debt is extraordinarily high, even after the pull back from the recent liquidation.  In fact, the sum total of  investor negative credit balances are huge, even compared to days of the…