Was That The Soybean Bottom?

It was another wild ride on Wall Street yesterday. Stocks stumbled hard out of the gate, following the lead of most global markets. By 11:00am EST, the DJIA was down more than 500 points, had broken below the October lows, and appeared to be heading toward the next important level on the charts - the February lows.

In fact, the S&P 500 wound up testing the closing lows of early February and April. The financials led the way lower as the action in many of the nation's largest banks was horrid. And the transports were busy exploring new lows for the cycle, causing folks to begin talking about the Dow Theory again.

Then came a small bounce, which was immediately tested with another sell program. For a change, the lows of the day held. After half an hour of sideways action, an actual rally ensued that would wind up erasing the day's losses. And by the time the closing bell rang, the major indices sported small gains. So, as I wrote last week, All's Well That Ends Well, Right?

Why The Turn?

The question of the day, of course, is, why did the market turn? Sure, stocks were very oversold and investor sentiment had become dour as just about everybody on the planet was now calling for another big drop in the stock market. Thus, the table was set for the bulls to get back in the game. But, as is usually the case, a trigger was needed to get things moving the other direction.

In this case, the "trigger" appeared to be several headlines, which when combined were enough for the programs to flip from sell to buy, for the shorts to cover, and for traders to jump in for another "ride the range" opportunity.

Although ...

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The Good News: Valuations Are Improving

Due to system maintenance, updates to several key data/models in our indicator boards were not available over the weekend. Thus, our weekly review of market indicators will be postponed until tomorrow morning. But as the title of this morning ...

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All's Well That Ends Well, Right?

The financial press reported that stocks remained "volatile" on Thursday. But since the Dow ended the day with a loss of "only" 79 points and the S&P 500 fell just 4, the attitude appeared to be, all's well that ...

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Tariff Man Set The Stage, Then The Machines Took Over

I opined after Monday's "relief rally" that the move had been a bit underwhelming and that uncertainty appeared to have crept back into the market. By Tuesday morning, traders began to realize that Trump may have over-tweeted the trade ...

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Is Uncertainty Back In The Mix So Soon?

While it may sound strange, perhaps the best word to describe the market action on Monday is, disappointing. Yes, the Dow Jones Industrial Average popped 288 points. The S&P 500 gained 1.1%. The NASDAQ 100 surged 1.5%. And ...

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The NEW Daily Decision for 12.3.18 - Fears Fading Away As Santa Loads His Sleigh


The State of the Markets:

Unless you've been living in a cave or don't have access to a TV, computer, smart phone, or even a newspaper, you likely know that Presidents Xi Jingping and Donald Trump laid the ...

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Fears Fading Away As Santa Loads His Sleigh

Unless you've been living in a cave or don't have access to a TV, computer, smart phone, or even a newspaper, you likely know that Presidents Xi Jingping and Donald Trump laid the groundwork for a trade deal ...

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The NEW Daily Decision for 11.30.18


Today's Portfolio Review

The G20 meeting presents a quandary here. While this week's clarity from the Fed represents a significant improvement in the near-term environment, the potential for bad news from the Trump/Xi dinner could easily push ...

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The NEW Daily Decision for 11.29.18 - One Worry Removed


The State of the Markets:

It didn't take the news-reading algos long to find what they were looking for in Jerome Powell's speech yesterday. And to his credit, the Fed Chairman didn't make it difficult for either ...

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One Worry Removed

It didn't take the news-reading algos long to find what they were looking for in Jerome Powell's speech yesterday. And to his credit, the Fed Chairman didn't make it difficult for either the computers or mere mortal ...

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Is Some Hope Creeping In?

Don't look now fans, but there might be some hope creeping into the stock market. With just 23 trading days left in the year, there seems to be some hope that we've seen the bottom of the recent ...

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2018: A Tough Row To Hoe

For most investors, 2018 is turning out to be a tough row to hoe. Suddenly, nobody is talking about global synchronized growth, low inflation, the benefits of tax cuts, and 20% earnings growth. No, all that is now so 2017 ...

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