Aloha friends. We’ve seen a lot these past two weeks in Hawaii from snorkeling with sea turtles and swimming in waterfalls on Maui to the southernmost point in the U.S. and Kilauea Caldera on the Big Island, then to surfing Hanalei Bay and hiking the Na Pali Coast in Kauai and now Waikiki Beach on Oahu for the last leg of the trip. We will be heading to Pearl Harbor National Memorial and Banzai Pipeline before heading home. We joke ...
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Our outlook for the full year remains clearly bullish, more in line with the best cast scenario of our Annual Forecast in the January 2021 issue. S&P 500 is already up about 17% so far this year at the end of July. Our updated outlook is for S&P 500 to finish the year in the 4500-4600 range or even higher, but we do anticipate the rally to pause over the next 2-3 months during the worst two ...
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The rotation back into tech and growth stocks has picked up momentum on the prospects that recent rampant inflation fears are a bit overblown. The retreat in Treasury bond yields and the more tranquil bond market suggests the spike in prices is more transitory than the extremes some market observers and investors have been suggesting. In turn, NASDAQ’s midyear rally appears to be running ahead of schedule.
We remain in the transitory inflation camp. Sure it will likely ...
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Stocks have gone virtually nowhere since Stock Trader’s Almanac April 22 Best Six Months MACD Seasonal Sell Signal. Trading volume has already begun to slowdown as it tends to do from Memorial Day to Labor Day in what we refer to as the summer doldrums. This reduction in trading volume (page 48, STA 2021) both contributes to and is emblematic of seasonal market weakness during the Worst Six Months May-October (page 147, STA 2021) and the Worst Four Months July-October ...
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Seasonality remains back to normal and it appears from all our observations that it will continue to track historical patterns for the remainder of the year. April’s solid returns across the board led by S&P 500 (up 5.2%) and NASDAQ (up 5.4%) and new highs for DJIA, S&P 500 and NASDAQ capped off a banner Best Six Months. DJIA is up 27.8%, S&P 500 is up 27.9%, NASDAQ is up 28.0% and the Russell 2000 is up an amazing 47.3% ...
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The last month of our “Best Six Months” is now upon us. So it’s the perfect time to provide a refresher for longtime readers and primer for those that have recently joined us. We do not simply “Sell in May and go away.” We employ a more nuanced and subtle approach to how we implement our Best & Worst Months Switching Strategies detailed in the annual Stock Trader’s Almanac and on www.stocktradersalmanac.com. We are
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31
MAR
2021
Unfortunately the February weakness we warned about last issue began to materialize mid-month and accelerated into month-end. The “excuse du jour” is rising bond yields as the 10-Year Treasury climbed above 1.5%. The reaction to the 10-Year yield moving above 1.5% could be a little overblown. It’s barely back to pre-Covid levels. Perhaps it’s more a sign of a healthy economy and rising inflation expectations, which is precisely what the Fed has been trying to foster. We’re not overly concerned ...
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It’s been a dynamic six weeks since we made our Annual Forecast for 2021 and volatility spiked the last week of January as the merry Gen Z traders made on run on the shorts of the old guard on Wall Street. Robinhood Markets and other trading apps and services and online communities used by younger up-and-coming retail traders were able to organize en masse and create an old-fashioned short squeeze. You’ve got to hand it to ...
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Global pandemic was certainly not in our forecast last year and neither was the economic shutdown that came with it. Covid-19 has dramatically changed the world, the economy and the market forever. Some industries are still struggling, while others have adapted and changed. The “stay-at-home” economy stocks, technology in general and biotech industries are having a major impact that has been keeping the economy humming along and the market rallying to new highs.
Our outlook is bullish for next year. Covid ...
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Stocks have been on the rise since the late-October lows in prototypical market seasonality fashion, though NASDAQ has lagged a bit. Honestly, NASDAQ tech stocks deserve a break, they have carried the market for months now as they have driven and supported the stay-at-home economy. This rotation into the reopening-economy big cap stocks and the new highs in the Russell 2000 small caps, which are more domestic-based firms, is encouraging.
The Russell 2000 index of small cap stocks is on a ...
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