If only every year was like 2019 for the S&P 500 (SPX). For the year, the benchmark index failed to achieve a 30% gain, but most investors are rather satisfied with the 28.88% return and looking forward to the New Year. A quick look back on the last decade (2010s) shows that the market had…
Sometimes, a market in retreat is a good thing, warranted and even desired. I would suggest that all these descriptive terms characterize present market conditions based on several factors, but more prominently overbought breadth indicators also recognized as market internals. From the S&P 500’s daily Relative Strength Index (RSI) tipping above 80 to the number…
Welcome to this week’s State of the Markets with Wayne Nelson and Seth Golden. Please click the following link to review the SOTM video. We are in the midst of a full-blown, melt-up, Santa Claus rally into year-end and now within 19 S&P 500 points of achieving a 30% gain in 2019. We discuss the probabilities of a market pullback near-term,…
Once again and with the defined Santa Claus rally in full effect, the major averages finished higher on Monday. The Dow Jones Industrial Average (DJIA) led the way with a gain of nearly 100 points or up .34 percent. The S&P 500 (SPX) was up nearly 3 points with another record close and the Nasdaq…
The following is an excerpt from our December 15, 2019 Research Report: “With market breadth/internals still found with strength and now the most impactful binary event having been tranquilized, so to speak, a melt-up into year-end is the most probable outcome. To be clear, this is the most probable outcome, but it is by no…
Welcome to this week’s State of the Markets with Wayne Nelson, Seth Golden and our special interview guest Michael Listman. Please click the following link to review the SOTM video/interview. This week we had the pleasure of interviewing Michael Listman, (UVXYTrader on Twitter) who specializes in trading Volatility and Volatility Exchange Traded Products (ETP). In addition to the interview, please review…
This article first appeared at Wall Street Journal: By Gunjan Banerji Updated Dec. 18, 2019 4:19 pm ET Options traders are paying up for bets that would profit if the S&P 500’s record run came to a halt. Renewed optimism about the domestic economy and a preliminary trade pact between the U.S. and China have…
Before we get started with today’s daily market dispatch, I wanted to remind our readers about something we discussed in the Finom Group Trading Room on Tuesday. The following chart from Tom McClellan identifies the S&P 500 this year against the S&P 500 in 1995. The two are taking a very similar path. Why are…
What happens when the threat from the ongoing trade war abates? Naturally, the melt-up ensues. This is not to discount the the surge in the S&P 500 since October, but rather to highlight the seasonal trends that suggest the last couple of weeks in December are usually found with the major averages advancing. The Dow…
The trading week that was ended in a manner that many may have not anticipated. As we read this week’s Research Report, we can’t help but to recall the setup for the trading week that was found with some anxiety surrounding the December 15 tariffs. Investors had a choice to make at the beginning of…
