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 negative). The volume, however, was quite low. The composite volume was less than 4bn shares for the first time since late February. However, a good part of that low reading had to do with the fact that the vast majority of the global markets were closed on Friday. Of the major markets, only Japan and London were open…so it’s not a surprise that the volume here in the U.S. dropped significantly. Still, the fact that the decline came on very low volume is something that can give the bulls some solace.

The futures are trading lower again this morning…as the tensions between the U.S. and China have only grown due to threats of tariffs from the Trump Administration and/or threats of a reconsideration of “Phase One” of the trade deal…….However, the comments from Warren Buffet (and his actions…AND his inactions…of the past few months) has got to be having an impact as well. Yes, he did say that he believes that nothing can stop America…and that “America will prevail again”. He also said that the fact that his cash position is not even higher is something that should be seen as constructive. However, he also said that investors should avoid investing money in stocks that they’ll need soon.

More importantly, Mr. Buffett did not invest money during the more than 30% decline in the stock market in Q1. His cash position actually grew to $137bn dollars and he spent just $3.5bn buying shares of his company and other companies in Q1. He spend $1.8bn buying the shares of Berkshire (which ...

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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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Morning Comment: The Retailers & Housing Stocks Should Be The Important Indicators


After a very disappointing day on Tuesday (when the market dropped over 3% from its intraday highs), the stock market bounced-back quite nicely yesterday. The S&P 500 rallied 3.4% and finished on its highs of the day for the second ...

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Morning Comment: The morphing of the coronavirus.


By the time we reached midday yesterday…and the stock market was up 10% from last Friday’s close…it seemed like the bullish talk within the market place had begun to grow. In other words, the number of people who (like us) ...

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