50-day moving average

Weekly Update

And Again … the Stock Market Finds Buyers


Published September 3, 2021

The S&P 500 has spent ten straight months above its 50-day moving average, one of history’s longest stretches of calm. Ultra-low interest rates from an extremely cautious and accommodative Federal Reserve have supported risk-taking investors by keeping the cost of money near zero. Very strong corporate earnings have rewarded investors by expanding the ‘E’ in the P/E ratio, justifying the market’s run upward. (more…)

Uncategorized

High Valuations and Seasonal Trends Make September a Scary Month


Published August 27, 2021

We have written often in recent weeks about how extended the market seems to be. Some of this content has come from Schwab. Back in the late 1990s, Schwab notified clients more than once that the market’s valuation was excessive and to be careful. Similarly, they have been proactively warning this summer of higher-than-normal market valuations and a market ripe for some downside action. There are notable differences between now and the late 1990s. (more…)

Weekly Update

Different Types of Market Corrections


Published July 23, 2021

 

We thought a recent article by David Keller on the various types of market corrections might be of interest. Here it is with some recast charts we provide to assist:

“As the S&P 500 and Nasdaq 100 indexes have pounded away at new all-time highs basically every month in 2021, investors are left to wonder when a correction may actually be coming. We were taught that markets do not just go straight up, but instead they move in a series of impulse moves and corrective reactions as the overall trend continues. But 2021 has very much been the exception to that rule of market trends! (more…)

Uncategorized, Weekly Update

The Nasdaq Goes Its Own Way


Published April 17, 2020

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The stock market’s recovery from its March plunge has seen a few groups and stocks rise to the top. Many of those favored groups and stocks are heavyweight members of the Nasdaq 100 stock index, trading under the symbol QQQ. (more…)

Uncategorized, Weekly Update

Happy Happy


Published October 13, 2017

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The stock market continued its happiness this week rising to further new highs. This bullishness is certainly rewarding to our subscribers as well as, frankly, anyone fortunate enough to have chosen to invest in the Nasdaq late last year. (more…)

Weekly Update

A Technical Reflection on the QQQ


Published June 16, 2017

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This week, for the first time this year, the Nasdaq 100 (symbol: QQQ) said “hello!” to its 50-day moving average. The 50-day moving average is a very common reference point for investors and machines programmed to trade. In Chart 1 below, the 50-day moving average is the blue upward sloping line. (more…)