Every August, the world's financial markets shift their attention from the centers of global commerce — New York, London, Tokyo — to a mountain valley in northwest Wyoming. On Friday, they will hear a speech by Federal Reserve Chairman Ben Bernanke.
Thursday, August 30, 2012
Wednesday, August 29, 2012
Tuesday, August 28, 2012
Monday, August 27, 2012
Buyers and Sellers on strike. There is absolutely no breadth in both directions. AAPL is the only stock keeping the market alive with the settlement against Samsung. For some perspective on the market action click on the link below.
Saturday, August 25, 2012
Tuesday, August 21, 2012
The major market indices hit key resistance levels and reversed course today. Today is the first major test for this weak rally. So far this rally has lacked in breadth. However, the market indicies were pushing higher lead by AAPL and GOOG. Even the darling stocks AAPL and GOOG reversed course today. AAPL and GOOG made all time highs before turning back. However, some of the stocks I bought on this weak rally viz. AMZN, TWTC, AFFY are all showing gains of 4% or more. The goal is to not let the winners turn into losers. Hopefully, today's action is a minor divergence from the continuation of this rally.
Tuesday, August 14, 2012
Wednesday, August 01, 2012
Lack of breadth doesn't bode well for the market. Once leading stocks are all breaking down or stalling. Market continues to be range bound. A healthy bull market is accompanied by a large number of stocks making moderate upward advances in price. A weakening bull market is characterized by a small number of stocks making large advances in price, giving the false appearance that all is well. This type of divergence often signals an end to the bull market. A similar interpretation applies to market bottoms, where the market index continues to decline while fewer stocks are declining.