Written by Forrest The Nasdaq 100 (QQQ) has made new all-time highs on the heels of Coinbase direct listing on April 14th. Coinbase is currently the most popular exchange for buying crypto and has attracted a large amount of popularity and hype before it releases as market analysts throw out wildly different estimates ranging from $20 to $100 + billion. When it comes to new stock releases, from our perspective, the best plan is to
Written by Forrest Monday the Economic Modern Family which consists of 1 index and 5 key sectors showed mixed signals as half of the Family closed down for the day. Currently, the Russell 2000 (IWM), Biotech (IBB) and Semiconductors (SMH) are down with Transportation (IYT), Retail (XRT), and Regional Banks (KRE) up on the day. With SMH lingering in all-time high territory, IWM and IBB are the most worrisome of the bunch, as both sit
Written by Forrest Last week’s focus was the Russel 2000 (IWM), Transportation ETF (IYT), and Semiconductors ETF (SMH). IWM has shown us general market direction and sentiment as it contains 2000 small cap U.S companies. IYT is the backbone or demand side of the economy as the U.S opens with the increasing vaccine deployment. Then comes SMH, which has been involved in this year’s tech boom, but also in one of this year’s biggest supply
Written by Forrest The FOMC Minutes report released Wednesday stated little to no change. Rates will stay low until 2023 and the monthly $120-Billion bond buying program will stay in place. The Fed has been hesitant to change any fiscal policy as it has been very attentive to the economic recovery. However, this has worried some investors that believe hefty spending will increase inflation. Currently, the inflation rate is set to rise to around 2%
Written by Forrest Monday, we talked about the momentum in the Transportation (IYT) and Semiconductors (SMH) sectors, which showed strength when compared to the Russell 2000 (IWM). Tuesday, IYT closed near Monday’s low making it a potential bearish engulfing day. Meanwhile, SMH failed to clear resistance at $258.59. Additionally, because IWM (as mentioned on Monday) has weak momentum, the market might need more convincing to move upward. This is where the infrastructure plan could help
Written by Forrest SMH and IYT are the strongest members of the Economic Modern Family as they are both in a bullish phase in price and in momentum. We are measuring momentum based on MarketGauges proprietary indicator RealMotion. RealMotion was designed to show hidden strength/weakness in a security based on momentum. Additionally, the Economic Modern Family was created as an easy way to view the condition of the overall market as well as spot upcoming
Written by Forrest Thursday, both the Russell 2000 (IWM) and the Nasdaq 100 (QQQ) cleared major resistance levels from the 50-day moving average. In many traders/investors’ minds this has opened the bullish flood gates with new highs in view. Additionally, the High Yield Bond ETF JNK is holding over its 50-DMA. In the past we have watched JNK as an indicator for investors risk appetite in the market. JNK moving up/holding supports the market as
Written by Forrest Last Thursday, the retail sector ETF XRT opened near its 50-Day moving average. It closed with a large range on increased volume which was a good sign of strength. Though it has not made a decent sized move since then, it has been holding its current price level. Another factor is the transportation sector (IYT), which made another new all-time high Tuesday. IYTs strength helps the retail sector because if the movement
Written by Forrest Last Friday the Russell 2000 (IWM) index and Semiconductors (SMH) cleared their 50-Day moving average. From a technical standpoint this looked as though the rally would continue into Monday. At least that is what traders/investors were hoping for when they bought near Fridays close. Monday’s price action turned out quite different. So, was it wrong for people to expect the market to open higher Monday? Not necessarily. Although we all trade with
Written by Forrest Mish’s Economic Modern Family is made up of 5 key sectors and 1 index. Each member has been specifically chosen to help investors/traders navigate the market by giving an easy way to see emerging trends and important price levels. The Family consists of: Granddad Russell 2000 (IWM) Granny Retail (XRT) Transportation (IYT) Prodigal Son Regional Banks (KRE) Brother Biotech (IBB) Sister Semiconductors (SMH) Friday, IYT broke to new all-time highs. Additionally, IYT
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