frankz

The selling so far this year has been non-stop.  Every breadth measure you look at is extremely oversold. The rubber band is stretched in the short-term, over the coming months and quarters, this could very well be the beginning of something bigger.  Make sure you have a plan.One of the most interesting breadth charts I just came across is the one that shows the percentage of stocks above their 20-day moving average.  That number stands at 5% right now. Since 2002, we have never closed anywhere close to this range on a monthly basis, which includes 2008-2009 debacle, 2010 flash [...]

The futures are tanking today again, the start of this year has been dismal.Many know that losses are inevitable, but a majority don't accept it and act like it's not supposed to happen.  You can't avoid losses.This small correction feels more brutal than any that we've had over the last couple of years, many think that this 2008 all over again. Maybe, it's a possibility, whatever.  The chart below shows how 2008 played out--in case you forgot.Live to fight another day.  All you have to find motivation for the future is look at what the market typically does after big [...]

Straight down is what the market has done so far this year.  The Nasdaq is down 9 out 10 days, -11% in a straight line, Small caps -12%, and -16% from the December highs.It’s all about survival here, survive until things settle down.  They always do.I’m big in communicating, especially during emotional, volatile times.If you want a second opinion, suggestions, feedback, etc. Call me 646-480-7463, Skype me: zorzor45. Work With MeStay Informed

We are starting the morning with the futures up 150 points; some mean reversion is kicking in.  After eight down days in a row for the Nasdaq, a complete meltdown in the Russell 2000, a bounce is to be expected and it's natural.  This dead cat bounce by no means says that we are out the woods, but even in the worse markets, the market will go up AND down not up or down.RUN, MKTX, SJM, APIC, are some of the stocks that I will be watching for long trades today, depending how we settle down after the open. You [...]

There's no doubt that tonight will be one of the most anticipated futures openings in a while.  The terrible start of the year has a lot of people anxious and nervous that this might be the beginning of something big like 2008.  Many either forget or disregard that the average intra-year decline since 2009 is roughly -15%, we are at -7% now, this falls within the norm so far.  Not every correction leads to one of the worse years in history. However, people love the doom and gloom.The best case for those playing a bounce is a 2.5%-3% gap down [...]

Read This Before You Call It QuitsThese Breadth Charts Say We Are Due For A BounceThese Vehicles Are Ticking Time BombsA Gap Down With Huge ConsequencesWork With MeStay Informed

The market is off to a rocky start this year, in the last six days, the S&P500 is down nearly -7%, the Russell 2000 -8.5%,  and the Nasdaq -8%.The news of the day again was China and billionaire investor George Soros, who said we might be in a 2008 situation again.  But the fact is that the average intra-year decline in the S&P500 in the last 35 years is roughly 14%.  Until we breach that mark then this all part of the game.With today's near 400 point decline in the Dow Jones, CNBC and Bloomberg both have a "Market in [...]

The market has started the year under pressure.  China has been a mess and now we hear that billionaire trader George Soros thinks that we might be in a 2008 situation all over again.During volatile times, a lot of investors tend to gravitate to a few volatility vehicles; TVIX, UVXY, VXX.  These vehicles are complicated, and most investors don’t understand them. The most frequently asked questions are; why is the VIX up 10% and the VXX is only up 2%? Now and then you can and will make a significant amount of money in them, but these vehicles are ticking [...]

WYNN Resorts to me is a stock of interest here in the short term.  The issues that company has faced and his facing in Macau are no secrets; the stock has suffered dramatically because of Macau. Since hitting a high of $250 in March of 2014, it's been all downhill since.Things got interesting in December when WYNN was removed from the Nasdaq 100, probably due to the stock's performance, but at the same time, Stephen Wynn (CEO, etc.) bought 1 million shares in the open market.The indices have a habit of removing stocks after the stocks have suffered huge drawdowns and [...]

Many blogs have written about how horrible breadth has been for the last year or so (including this one).  And, how F.A.N.G (Facebook, Amazon, Netflix, Google) single handily kept the SP500 afloat last year, which is true.  However, today the Russell 2000 traded down to the August 2014 panic lows but the amount of stocks trading above their 200-day moving average is well above the August levels as you can see in the chart below.  This could be viewed as a positive divergence.Work With MeStay Informed