
Did you ever hear the old saying: “Fool me once shame on you, fool me twice shame on me!”? Unless you were already a sophisticated investor, I’m sure you suffered some significant losses last year and I’m sure you’ve asked yourself: “what could have I done and what can I do to avoid such a [...]
By definition, the market itself has an underlying beta of 1.0, and individual stocks are ranked according to how much they deviate from the macro market (for simplicity purposes, the S&P 500 is usually used as a proxy for the market as a whole). A stock that swings more than the market (i.e. more volatile) [...]
Last week I noted, “…high-flying stock markets are looking more and more vulnerable.” I wrote, “…resistance appears significant. Volatility (fear) is returning in a potentially big way. It’s not here yet; and that increases the likelihood of lower prices to come. Global markets are reflecting a reprise of contagion distress. I continue to suspect equities [...]
Around 2:45 this afternoon, the market went over a cliff! At one point, the Dow Jones Industrials were down 1,000 points on the day. And then it recovered about 500 of those points as quickly as it lost them. Moments before the close, the Dow was down 347.80 at 10,520.32. The market action must have [...]
There is a four letter word to describe yesterday’s action: U-G-L-Y! All of a sudden the world is waking up to the idea that maybe the Greece problem is bigger than Greece … All of a sudden people are thinking that maybe Europe’s debt crisis just might affect economic growth rates … All of a [...]
The CBOE Market Volatility Index (VIX) soared more than 18% yesterday, marking the index’s seventh straight absolute move in excess of 5%. According to Senior Quantitative Analyst Chris Prybal, the VIX has accomplished this feat only five other times since 1990. Furthermore, Chris says that the SPX’s average return following this signal is below average [...]
Economic Calendar The economic calendar offers up a busy first day of the week, as traders will be confronted with March’s personal income and spending data, March’s construction spending report, and the Institute for Supply Management’s (ISM) manufacturing index for April. Auto and truck sales reports for April will arrive in the afternoon. Tuesday offers [...]
The Dow Jones Industrial Average’s (DJIA) eight-week winning streak came to an end last week, as a confluence of weak economic data, Goldman Sachs (GS) fallout, a massive oil spill in the Gulf, and concern over European sovereign debt sent investors running for the sidelines. Still, the bulls claimed a couple small victories, as the [...]
The events of the last week have many market watchers quaking in their boots. Most of us can feel that there has been something wrong, something VERY wrong, with this so called “recovery” that we’ve been experiencing. And many are now fearful that things are starting to unravel at the seams — that the lipstick [...]
There’s much talk about financial reform, Goldman on the grill, and Sovereign default risk. But, just as sellers seemed set to capture the advantage, stocks found support. The market’s rally from Thursday’s lows, posting positive character of price movement, put buyers back in control. This new power grab may be forceful, but short-lived. I`m anxious [...]
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