Coronavirus and Stock Market Volatility

Good afternoon. This market update was initially supposed to go out sometime Monday, but my wife and I ended up traveling on Monday to be with my oldest son and his wife for the birth of their second child (our second grandchild). Mom and the baby are doing great and...

Possible Year End Breakout

Yesterday, Federal Reserve Chairman Jerome Powell put a damper on any talk of a recession that still lingered in the media. Here is the quote from the Yahoo Finance article linked below. “In principle, there’s no reason why it can’t last,” Powell told the House Budget...

Inverted Yield Curve

The last few weeks, financial news talking heads have been beating the drum about recession possibilities due to an inverted yield curve. While I suspect there might be political reasons for their commentary, I want to address some of the factors surrounding an...

Stock Market Commentary 2-19-2019

This post is a little more technical than usual, so I apologize if it’s kind of nerdy. Using the S&P 500 as a proxy for the stock market, we can see that the price has bounced off the December lows very well. It still has some work to do before it starts...

Stock Market Commentary 1-30-2019

In the last 4 weeks, we have seen a pretty sharp rebound in the S&P 500 since its December lows. To think that it would retest its lows or at least retrace below the 2500 mark, would not be out of the realm of possibility. Frankly, that is typically what happens...

Stock Market Commentary 12-20-2018

Christmas Scrooge As you might be aware, the Fed raised rates .25% yesterday just as they said they would. They also hinted that they would raise rates again in 2019 at least two more times. The market was hoping for something a little more dovish and when that didn’t...

Stock Market Commentary 12-18-2018

Fed Meeting Tomorrow Tomorrow the Fed meeting takes place and the outcome could have a significant impact on the stock market. In early 2016 the Fed backed off their hawkish stance and the S&P 500 rebounded and trended up into January of this year around 35% (See...

Market Summary December 6, 2018

As I mentioned in my last post, the current lows of the S&P 500 are still above the lows we saw last February. To begin a downtrend we would need to begin seeing lower lows and that has not happened so far. That could certainly still occur, and the probabilities...

Market Commentary – November 27, 2018

Consolidation or Higher Highs, Higher Lows? As I’ve mentioned before, there are times when the stock market goes through periods of consolidation, meaning that it moves sideways for a period of time. In the chart below this is illustrated in the time frame of...

Market Commentary 8-21-2018

I closed my last post by writing that I thought there was more evidence to show that we have moved out of a long-term consolidation phase and into a long-term uptrend. Today we will look at information that supports that idea by first looking at The Value Line...