Stock Market Commentary Archive
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The State of the Markets
I can visualize people in CNBC spelling doom and gloom. It is very simple actually, the market is in consolidation waiting for news about the debt ceiling (see charts below). I assume it will be back and forth until August 2 and then we will see. If I were you I would be hedging my [...] -
Interesting Stocks for July 26, 2011 – Toga Edition
I studied some interesting charts that came from the systems I trade. The stock market is undecided and may move sideways until next week when the debt ceiling debacle will be resolved. SLH: Solera is in a consolidation that is near completion. Triangles can break up or down very violently. Solera Holdings, Inc. is a [...] -
The World is Coming to an End. Why am I not Afraid?
The stock market is stealing everybody’s earnings lately (even mine). The stock market slump has been fast and brutal. Its current six week decline is the longest since 2001 and that is saying a lot. I will be watching the SP-500 1250 levels. If that level does not hold I will become a perma-bear and [...] -
Stock Market Efficiency
According to investment theory, the markets are efficient. By efficient it is meant that all the information related to an equity is known by all investors and the price paid in the market is the correct price. In addition, arbitrage does not exist as all investors that see the arbitrage will trade to take advantage [...] -
50% Retracement in the Stock Market Indexes is Possible
There is synergy in all the indexes. As shown in the following charts, there seems to be agreement between the 50% retracement line and areas of support. We guess that is where we are headed. A month ago we saw problems but we were way too early to go short. The indexes broke the ascending [...] -
Smoke and Mirrors
The stock market proved one thing today: It needs more buying force to power through May 2010 resistance levels. Before we go all cumbaya about today’s gain, we wait patiently… Tomorrow will be another day. We will be watching. Fin Picture source -
Something is Off
A quick stock market note: The FAZ (triple short financial etf) is down and the overall market is down. There is some strange disconnect there. We warned about churning in some recent post. We guess that with the financial leadership missing, the market could correct. The market needed a breather anyway. Tighten your stops and [...] -
Interesting Stocks for 10/8/2010 – A Hint of a Correction
We see some churning in some stocks that we are studying. For example, AmBev (ABV) seems to be stuck around 130 and cannot seem to penetrate it (disclosure: we own ABV in our paper and real money accounts +20% gain). Other stocks are stalling or correcting. We are still long the market and we will [...] -
Interesting Stocks for September 1, 2010 – Finance Class Edition
We like the following two stocks as longs even though going long in this environment may be considered suicidal. CIB: Bancolombia S.A. (Bancolombia or the Bank) is a full-service financial institution that provides a range of banking products and services to a diversified individual and corporate customer base throughout Colombia, as well as in other [...] -
Interesting Stocks for 8/24/2010 – Back to MBA School Edition.
Back to school sucks when you have to wake up at 4:00 am. Oh well. We are in the business of making money for you. How that POTash is working for you? CRM: Salesforce.com, Inc. is a provider of enterprise cloud computing applications. It provides a customer and collaboration relationship management (CRM), service to businesses [...]