Morning Comment: Can the Fed Solve the Economic Problems With Liquidity This Time?


The golf courses here in the People’s Republic of Massachusetts finally re-opened this past weekend. It was funny. For the first time in history, husbands played golf with their friends on Mother’s Day. Previously, in order to preserve domestic tranquility, the only husbands who played golf on Mother’s Day were the ones whose wives were also golfers (and whose children had grown and moved away).

However, the coronavirus changed everything this year. In households in Massachusetts (and around the country) this past weekend, the conversation went something like this: Husband…”Honey, I’m thinking about playing golf on Sunday with my buddies.” Wife…”Yes, PLEASE, PLEASE, PLSEASE play golf with your buddies on Mother’s Day. I married your for better or for worse, but NOT for 24 hours a day!!!!!”……In other words, this year’s Mother’s Day gifts were much different than they have been in the past!

Anyway, after two down weeks, the stock market saw a gain last week. The stock market has been stuck in a sideways range over the past month, but it is now at the top-end of that range. So if it can rally further, it’s going to be bullish on a short-term basis…as it will negate a possible “head & shoulders” pattern on the S&P 500. Thus there are certainly reasons for investors to remain optimistic going forward.

Of course, on the flip side, there are always reasons to be skeptical about any rally…even in the best bull markets…so this one is no different. The biggest concern right now is the fact that this rally has been a narrow one…which has been well documented by ourselves and many others. However, it’s also concerning that volume has fell dramatically last week…when the stock market was rising towards the top-end of its recent sideways range. The average volume (in ...

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Morning Comment.....BABA: A leading indicator for future global growth?


The markets seem to come to a stand still yesterday…as the volume was even lower than Friday’s and the average volume of the past two days has been more than 25% below it two month average. The fact that the ...

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Morning Comment: Follow the (smart) money


The stock market got rocked pretty hard on Friday after several key companies reported earnings and tensions between the U.S. and China began to rise again. The 2.8% decline in the S&P 500 came on horrible breadth (17 to 1 ...

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Morning Comment: Beware of the "Rising Bearish Wedge"


The stock market saw a pull-back yesterday…which was not a big surprise given how much it had rallied over the previous five week…and how much it had shot-up on Wednesday. In other words, the market was getting extended on both ...

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QQQ's....An


After the close yesterday we highlighted how Amazon had seen an “outside-down” day….and that this kind of development is frequently a signal of exhaustion of a rally…especially when it comes after a strong/sharp rally. AMZN did fall another 2.6% today…and ...

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Amazon (AMZN): Ripe for a pull-back???


The stock market had another very nice rally today, but we just want to point out that Amazon (AMZN) actually finished the day in negative territory. In fact, all five of the big cap names that have accounted for large ...

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THE WEEKLY TOP 10


THE WEEKLY TOP 10


Table of Contents:

1) By far the most best item on the bullish side of the ledger? “Don’t fight the Fed.”

1a) If things turn down again, don’t blame the Fed.

2) So far, the stock ...

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Morning Comment: Suddenly Range-Bound


  • After retracing 50% of its decline, the S&P 500 index has suddenly become range-bound
  • Can Chevron (CVX) finally see a sustainable rally?
  • What does Invesco’s (IVZ) dividend cut tell us about the future?


After retracing 50% of its decline, the ...

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Morning Comment: More Holes in the Dike (Think Italy)


The S&P 500 has fallen almost 5% over the past two days and the DJIA has lost over 1,200 points, but after a 28% rally in less than a month, these are not the kind of numbers that will scare ...

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Morning Comment: So Many Holes in the Dike


We all know that the big story in the market place yesterday was the crash in WTI crude oil for May delivery. There is no question that there were some key technical issues that were involved, but the move into ...

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Morning Comment: Narrow Rallies Rarely Last Very Long.


Some very negative news on the economic front got most of the blame for yesterday’s 2% decline in the stock market yesterday, but given that the market had rallied 27% over just three weeks, it was getting ripe for a ...

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Morning Comment: Don't Chase the Rally at These Levels.


The stock market was able to regain about 2/3 of its early morning losses by the close yesterday…as the technology sector was able to rebound nicely during the day (after it declined in the morning on several ratings downgrades on ...

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