A word of caution from market breadth…

By | March 13th, 2017|Categories: Market Strategy Report|

Interesting configuration here.  NYSE advance/decline lines corroborated the March 1st high, but the relative strength of SPX versus equally weighted SPX is flashing a warning (Chart 1).  The long-term track record of SPXEW/SPX is mixed, but worth noting (Chart 2).  [...]

Louise Yamada: Trump Rally Reminiscent of 1994-1995 Breakout in Stocks

By | February 17th, 2017|Categories: Market Strategy Report|

Below is an excerpt from a recent interview with market strategist, Louise Yamada.   “The thing that was really intriguing about the post-Trump breakout in the market was that it moved us out of an entire 2-year consolidation. If you [...]

Do Fund Managers Eat Their Own Cooking?

By | February 14th, 2017|Categories: Market Strategy Report|

You guessed it… “The number of managers showing no faith in their process is staggering.”  Interesting study from Russel Kinnel at Morningstar Research: http://www.morningstar.com/products/pdf/MFIMWEOC0608.pdf  Further statistics reported by the Wall Street Journal are impressive, if not airtight:  [Mr. Kinnel] found [...]

Bull markets have a life of their own…

By | February 7th, 2017|Categories: Market Strategy Report|

For those attempting to interpret today’s rapid-fire political events, here’s an oldie but goodie from Robert Prechter, illustrating the tenuous connection between market action and exogenous events. http://www.socionomics.net/2004/05/the-stock-market-is-not-physics-part-i/ Whatever one may think of Prechter’s own forecasting ability, he certainly raises [...]

Narratives Gone Wild: Investing in the Post-Election World

By | January 26th, 2017|Categories: Market Strategy Report|

Warning. Investment “narratives” may be harmful to your financial health. An investment narrative is a market forecast based on a hypothetical chain of events. If X, then Y, and of course Z. Narratives are an important part of the investment [...]