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Range bound 2 month


Can the market convincingly break the two month range this week. The first attempt was a failure. But market bounced back from the pullback quickly.

The underlying breadth continues to deteriorate as lower and lower number of stocks continue to lead the advance.

The larger cap stocks continue to lead the action. But in last one week the small caps are showing some improvement in breadth.

This is not a market very conducive for breakout buying as many are failing.

In sector trends homebuilders look attractive, they are making new high after brief pullback and also have earnings growth to support further advance.


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Which stock will move big today

Fresh news creates fresh moves Stocks release news post and pre market. Analyst upgrades tend to happen in the morning. In earnings season ...

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Make this a habit

First thing in the morning spend few minutes developing Situational Awareness. Write it down. Make it a habit. It takes six weeks for a hab...

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What should you do today to improve your trading

Run your process loop... Process loops are series of well defined steps based on a setup. If you want to trade earnings, run earnings pro...

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Another bounce attempt

After a few days of pullback market is attempting a bounce. The selling was on big breadth so any recovery will need big breadth. If market...

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Situational Awareness

Situational Awareness (SA) is a US Air Force term coined during Vietnam war. It means pilot should always be proactively aware of their sur...

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Change in character

In last few months there has been a constant buying pressure on any weakness. The buying has not been strong enough to get big move going ....

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Eager pullback buyers

This market has had a bid underneath it for some time. Every pullback gets bought aggressively. We saw that yesterday where buyers wasted n...

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Hunt in the morning for Stocks in Play

Many stocks release news in the morning. Brokers upgrade/downgrade stocks. If you want to day trade or swing trade such moves spend at lea...

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Situational Awareness

Situational Awareness or SA is an aviation term. Pilots are trained to maintain SA all the time to ensure flight safety. SA concept was dev...

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A good rebound

A rebound in the index after job report induced gap down, at first was tentative, accelerated yesterday. This sets the market for another h...

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How to profit from earnings surprises

This week is the official start of a new earnings season. Alcoa will kick off the season. Over next 6 weeks bulk of the companies will decl...

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Resolution

The breadth divergence that was building up for few months is now resolving. Three back to back negative days have driven resulted in most ...

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Divergence

Divergence between small caps and large caps developing. But no big drop in breadth figures so far. Small caps continue to struggle while t...

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Small cap under pressure

12 days of gains on small cap stock index were wiped out yesterday. The market showed split personality with the larger stocks holding up w...

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Earnings season arriving

The market has been grinding higher for few months, now we are approaching earnings season. The earnings season always leads to some surpri...