Our Latest Market Commentary
Have you ever soaked in a hot tub for a little while and then jumped into a pool? The pool water feels even colder than it normally would, doesn’t it? That’s because you’ve been sitting in warm water long enough for your body to adapt to the temperature and it almost feels “normal” after awhile. Then, when you jump into water that sits at a significantly lower temperature than the hot tub, your body can’t adjust and it just doesn’t feel like it did earlier that day, when it was 80 degrees outside! read more…
At this point in the year, the volume on the exchanges goes down, traders go on vacation, and we’ll spend the next five months in the “Seasonally Weak” months of the year. Normally, these summer doldrums cause tepid performance in the markets, but that’s just not what I’m seeing right now. Whether you’re an investor who’s “all-in” right now, 100% invested in stocks… or better yet, if you’re someone who’s still sitting on your hands, waiting for the crash to occur before you invest, you need to see the chart below and read the rest of this, short educational piece.
Before I explain the analysis in the chart below, I need to re-explain an analogy I’ve discussed in past articles; and that is the concept of “Generals and Troops.” read more…
The stock market as defined by the S&P 500 has been trading sideways in a descending pattern since the beginning of this year. What’s interesting is that, in most situations like this, the pattern breaks down, not up. In other words, whenever a technician/chartist sees a descending triangle pattern show up on a chart, the immediate assumption is a bearish one. However, like all market pattern and trends, a savvy investor must always search for additional evidence that either confirms the negative scenario – or contradicting evidence that suggests we’re being fooled.