Weekly Market Update: Sideways

The market ended mixed last week. Three indicators are in the red with the Dow performing better than the NYSE. That is a defensive sign as the DOW is blue chips with stability. It's possible we are going to move sideways for a little while.

Some interesting reading:

• DecisionPoint Weekly Wrap 
• Dr. Wish is looking to see what happens with QQQ this week. Will the uptrend continue or will it break down?
• Fear and Greed index is at neutral
• Investor's Business Daily (IBD) - a look at the week to come and stories on Amazon's purchase of Whole Foods and the DOW moving up. 

Let's see what the charts tell us this week.

Weekly Market Update - Tech Stocks Pull Back

This week we saw the NasDaq pull back. Two of the indicators went red:

1. NYSE AD vs NYSE 52 HL Differential
2. Divergence: DJIA vs NYSE A-D 

Dr. Wish has a nice post about the pull back. Bloody Fridays often lead to Bloody Monday Opens.

Let's see what happens today. Honestly, we are due for some sort of pull-back. That's why I like protective stop losses and calculating risk prior to entering into a position. 

Weekly Stock Market Update: Full Steam Ahead

Stocks continue to advance and all indicators are green, with the exception of the dividend ratio on the Dow, but I think that indicator may need adjusting for the era we are in with low interest rates.

If we take a step back and look at the markets from a macro view and use the 10 month moving average (MA) compared to the 30 month exponential moving average (EMA) on each of the major indexes, we can see a nice picture of where we are. When the 30 EMA crosses over the 10 MA it is bad news, however it the shorter term MA is above the longer EMA, then it is good news. You can see we've been in good news territory for awhile. 

This can be a great tool to signal when to get out and when to get back in. Look at the circled cross overs in the chart of the DOW.

From an emotional perspective, it feels like we are in overbought territory, but until the indicators change, I am in.

Weekly Stock Market Update: Uptrend with some signs of Weakness

The market signals continue to be positive for the most part. The NYSE and Dow both threw signals of possible weakness this week, however, the market has been shrugging off any negativity in the last couple of months so we need to wait and see if the trend will continue.

Have you seen the debate about avocado toast? I find the whole debate rather amusing and I think in some cases people are missing the point. The point being it is very easy to spend a lot of money on small items that when you step back and look at the cost from an annual basis, can add up to a sizable sum. In this case, I don't think it's fair to pick on the millennials. I see a fair number of people from my generation (gen-x) spending money every day on breakfast and lunch, and beer and wine. Yes, we own homes but we were not saddled with the amount of college loan debt as our children. In our case, we are putting off retirement or not saving for retirement with our daily purchase of breakfast and lunch, easily $15 - $20 a day.

My advice? Follow David Bach's approach. Save first with an automatic transfer, then allocate a set amount for important things like catnip! Be choosy, don't blindly spend all your money on silly stuff. This applies to all of us, not just millennials. Now, you'll have to excuse me, I'm going to make some avocado toast. Yum.

California-Avocado-Toast-Three-Ways

Weekly Stock Market Update: Continued Uptrend

With the exception of the NYSE vs. Dow, the indicators are continuing in their upward trend. 

Scott Galloway has this very interesting analysis for FAAG on youtube in his talk titled Oligopoly of FAAG (Facebook, Amazon, Apple, and Google) in Media, Advertisement and Tech.


All four are in a stage 2 accumulation stage. Are they taking over the world?

Weekly Market Update: All trends are positive

The indicators are all positive. The market wants to go higher. Let's look at each.  As you can see they are all in positive territory and appears to have shrugged off the little, teeny-tiny dip from last week.

http://www.barrons.com/public/page/9_0210-trddiary.html

Weekly Stock Market Update: Climbing the Wall of Worry

With the French election fears appearing to abate, the stock market rallied yesterday. All my indicators, save the interest rate, are still green. This could be a bounce.