I have often said that traders and investors have a short term memory when it comes to the stock market. Right now we are seeing signs that the same mistakes that led to the 2008 and 2001 market crash are being repeated. Take a look at this chart: The above…
The stock market’s “V-shaped” rally has done a good job of slaughtering any short sellers who expected a January crash. So far we have been right on our 7th February signal to go “long” stocks. However, if history repeats, based on data going back to 1928, we think we know…
Keep Your eye on today Friday February 7th. It will be a big day for the stock markets and could change everything… Before I explain why, let’s review what has been happening so far. This year stocks are down 5% since their peak in December. Both the Dow and S&P500…
As we enter a new year in 2014, I feel its important that I come clean with you about my bad calls in 2013. Most of the “experts” who make market predictions prefer not to look back and examine their calls. After all, the best way to forget a wrong…
A few nights ago I found something “strange”… I was looking through some charts of the stock market going back several years and decades back to the 1990s. I find this exercise both relaxing and stimulating as it trains my brain to spot patterns that repeat themselves. Spotting reliable patterns…
I have to admit that I, among many others, gave in to “herd mentality”. Originally I had set my mind that the Fed will taper in December, but a few days ago I changed my mind to a September taper instead. I got it wrong. No taper. So what happens…
It does not matter how many times we say it, but the investing public just does not get this! Money and wealth is NOT made in a “bull” market when stocks are rallying to new highs and when everyone including the media is excited about stocks. The only time you…
Here’s a question for you. What’s so special about a chart signal when one line crosses above another line? The answer is not much… Except when it occurs on the markets’s Volatility Index (VIX) – also known as the “Fear” index. Whenever this signal has occurred on the VIX “fear…
The McClellan Oscillator gives an “oversold” or “bottoming” signal for stock markets. This “oversold” signal is usually a reliable “long” or “buy” signal for stock markets. Take a look at this chart of the McClellan Oscillator and notice when it went below the (minus) -80 level: Now take a look…
According to reports (see video below) the smart money has reached a record net short position against the stock market (Dow and Nasdaq). But what will this mean for stocks? Will it result in the long-awaited correction in the stock market? Video will take a look at positions to short…