Pause Before the Turn?

pauseIt’s amazing to say that the DJIA was -115 points and call that a pause. When you look at Monday’s and Friday’s action combined, the two days are the most compressed two days of trading since just before the recent sell-off.

In the Weekday Market Wrap video (below) I look at the market action and review monthly charts of all the indices also. Stocks in focus are Alibaba (BABA), Youku Tudou (YOKU), Celgene (CELG), Vipshop (VIPS) and a new trade idea on Southwest Airlines (LUV) got entered today. Continue reading

Trade Ideas Video

Below is the Trade Ideas video for the week of August 31. In this video I review the trade ideas from last week: Celgene(CELG), Sandisk (SNDK) and GoPro (GPRO). And I review our watchlist: American Airlines Group (AAL), Adobe (ADBE), DollarTree (DLTR), First Solar (FSLR), Michael Kors (KORS), Lululemon (LULU), Southwest Airline (LUV) and U.S. Silica (SLCA).

As I get read to post this at 6:45pm CT, Dow futures are -192 points and S&P 500 -23.75. Continue reading

Is the Market About to Crash?

China crashChina’s GDP growth rate keeps getting revised lower. Economic data shows their economy is slowing. China devalued their currency to stimulate their economy. Its stock markets are crashing as their economy slows.  This has rippled throughout the globe and major stock markets broke during the 5-day stretch from Aug. 18-24.

From the close on August 17 to the low on August 24, the Dow Jones Industrial Average (DJIA) lost 12.4%. If measured to the low close on August 25th, it lost 10.7%. The DJIA peaked on May 19 at 18,312.39. At the close on August 25th it was down 14.5% from the peak close.

A guy messaged me on Friday to say “most technicians ignore the one time market panic event when analyzing the chart, or so I think”.  I said, “price action is price action, if one doesn’t like it, the market doesn’t care”.

Price action is price action, if one doesn’t like it, the market doesn’t care”.  

– Joe Hentges

In the video below I take a look at all the market action like I normally do in the Weekend Market Analysis video. But this time I also discuss why I believe our recent downdraft may just be a taste of what’s to come. I also review AAPL, FB, UAL and FCX.

Continue reading

So How Far Does it Bounce?

bounceThe stock market continued its bounce today with the Dow Jones Industrial Average(DJIA) up another 369 points.  The S&P500 (SPX) was up 47 points and the Nasdaq Composite up 115 points. Oil was also a big story today…up 10.7%.  In tonight’s video I show why I think the pullback may be about over. Continue reading

Like a Rubber Band

rubber bandThe market bounced back with a vengeance today with the Dow Jones Industrial Average (DJIA) up 619 points…wow!  But when you stretch the market like a rubber band, it’s not surprising to get a snap back like that.  As I mentioned on Monday, indicators got to extreme readings similar to October 2008. But unlike 2008… Continue reading