The Death Cross And Market Bottoms
In financial markets, few technical patterns generate as much attention and anxiety as the death cross. This ominous-sounding term refers to a crossover on a price chart when a short-term moving average, most commonly the 50-day moving average (50-DMA), drops […]
Yield Spreads Suggest The Risk Isn’t Over Yet
In November last year, I discussed the importance of yield spreads, historically the market’s “early warning system.” To wit:“ “Yield spreads are critical to understanding market sentiment and predicting potential stock market downturns. A credit spread refers to the difference […]
The Market Crash – Hope In The Fear
Last week, we noted that “nothing good happens below the 200-DMA,” and the tariff-induced market crash this past week confirmed that statement. However, we also noted that over the last 30 years, previous failures at the 200-DMA have also often […]
The Stock Market Warning Of A Recession?
A Wall Street axiom states that the stock markets lead the economy by about six months. While not a perfect predictor, the stock market reacts to investor expectations about future corporate earnings, economic activity, interest rates, and inflation. When sentiment […]
Failure At The 200-DMA
In last week’s post, “Is the correction over?” we wrote about the potential for a rally back to the 200-DMA. However, the failure of that test increased short-term concerns. As we noted in that post, there were early indications of […]
Correction Over? Or, More To Go.
The biggest question I have been getting from clients and prospects lately is, “Is the correction over?” \This is not surprising, given that market declines are brutal on emotions. However, as investors, we often forget that, like the laws of […]
Retail Investor Buys The Dip Despite Bearish Sentiment
It has been an interesting correction. The average retail investor was “buying the dip” despite having an extremely bearish outlook. This is an interesting point because, as shown, the retail investor used to be considered a “contrarian indicator” as they were prone […]
NYSE A/D Line: A Topping Process In Progress?
The recent sell-off has certainly sparked concerns with investors but the NYSE advance-decline line is an important technical measure to watch. However, what is it, and why does it matter? The NYSE Advance-Decline (A/D) Line is one of the most […]
Bearish Sentiment Surges As If The Market Just Crashed
Investor’s bearish sentiment has surged to levels that generally align with previous market corrections and crashes. While concerns about the recent market correction have risen, and bearish headlines are rampant, investor sentiment has become so bearish that it’s bullish. While […]