The Nasdaq briefly touched a new high for the year last week, but then sold off and fell through important support levels. The S&P 500 and the Dow Jones Industrials are showing a bit stronger, and are still within their up trends that started last November. What to make of this? Here is the current… Continue reading Hanging on
Category: Market Commentary
Is investors’ money where their mouth is?
It is well known that moods, fear and greed drive the markets. So a number of “sentiment” indicators have been developed over the years, in an attempt to measure the mood of the market. There are indices like the VIX, which try to measure fear or greed on the basis of option premiums. Other sentiment… Continue reading Is investors’ money where their mouth is?
Solar Flares
Markets did not break down in the second week of our lunar Red period, and even recorded new highs. This is a sign of ongoing strength. What does that mean going forward? Let’s have a look at the chart for the Nasdaq (click for larger image): The market has closed right near the overhead resistance.… Continue reading Solar Flares
Three days delay
The market has clearly entered a consolidation phase. We did get several down days, but buyers emerged quickly and bid prices back up, which has resulted in a sideways move. With another week of lunar Red period to go we should remain cautious, but also start looking ahead to the upcoming lunar Green period. Here… Continue reading Three days delay
Will buyers appear?
Markets continued to march higher last week, but turned down on Friday, which was the first day of our lunar Red period. It looks like there will be more selling today, as stock markets around the world react nervously to the news of the proposed bailout terms in Cyprus. That story sets a precedent and… Continue reading Will buyers appear?
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