Written by Mish Schneider For the moment, the stock market continues to defy the notion that inflation or slower economic growth is hurting US businesses. Corporate earnings have slightly underperformed, but the stock market has continued on a trajectory upwards since the middle of July. Technology (XLK) was today's best performing sector, logging 2.66% daily gains, and is one of the best sectors driving this market. With technology leading the way, it is no surprise

In May of 2021 I outlined a dangerous condition of excessive margin debt that looked remarkably similar to only two other periods in the last 3 decades – 2000 and 2007. You may recall that both of those periods didn’t end well for the bulls. At the time of the post, however, the rate of margin debt growth was at record levels and still growing, and as I noted at the time… While margin debt

The investment markets have whimpered into August after a huge record-breaking stock market rally in July, encouraged by declining long-term interest rates. Why? What’s next? We’ve heard many explanations, including “digesting the gains” to a “period of consolidation” to “that must have been a bear market rally. Friends of ours frequently comment that they like the tone and tenor of these Market Outlooks, especially since last fall when we began consistently warning our readers to

Written by Mish Schneider Investing in an inflationary environment can be challenging. The markets have been volatile, but stocks have trended steadily higher with corporate earnings. In stagflation, cash and bonds are usually below the rate of inflation, while certain stocks might not fare much better. It is important to invest into assets that will keep up with the rate of inflation. The US economy is in a state of stagflation and it's been that

Attention day traders and swing traders (options traders too)... There’s a very effective calculated price level that can be used to anticipate intra-day breakouts and reversals in stocks, ETFs, and indexes when you use it correctly. For example, when you combine this price level with MarketGauge’s Opening Range trading tactics… You can easily identify the very reliable trade setup that I review in the video below. This pattern can be used as a trade setup

It was a good week and an exceptionally good month in the markets. The S&P 500 was up 9.1%. This was the best July since 1939. Conversely, it came on the heels of the 3rd worst June ever, down 8.4%. We have continually illuminated for you that the market is made up of three important inputs. A change, positive or negative in any of these inputs, can result in the market rallying or taking a

As impressive as the global stock rally was last week, gold and silver's remarkable performance on Friday did not generate many financial headlines. Still, their one-day individual parabolic rise merits closer attention. Could this be a new trend or just a one-day wonder? Using the Gold ETF (GLD) as a proxy for returns, the price surged much higher on Friday, July 29. Furthermore, after the Fed raised interest rates, the iShares Silver Trust (SLV) also

Yesterday the market gapped higher after testing important support levels the day before. With the markets sitting at very pivotal inflection points in their long-term trends, this was a perfect opportunity to use MarketGauge’s Opening Range tactics to determine whether or not the gap was an indication of a market bottom and trade it accordingly. In this video, I review how to use the Opening Range to: Anticipate the general market’s direction Use it to

It was a positive week in both the stock and bond markets as investors stepped back in. Earnings reports in some sectors (financials) were not as weak as some expected, and there continues to be interim cooling of inflation (gas down the past month). Also, Bank of America’s Global Fund Manager survey shows extreme bearish sentiment readings, a contrarian indicator. Growth stocks (especially consumer discretionary and technology) outperformed value (especially energy related stocks, the big

The stock market rally continued to show strength into Friday moving decisively higher on the week. Big tech and many other sectors shrugged off a post-Fed pullback plus some earlier in the week, bad earnings and poor guidance from Wal-Mart, Meta, and Qualcomm to mention a few. With Amazon, Apple, Microsoft all doing “better than feared”, even the “R” word could not stop the train in the indices, junk bonds and most sectors. Apple, considered

Last week was a wild week in the cryptocurrency market. Sentiment has quickly changed from 50/50 bullish vs. bearish to almost entirely bullish in just the last 10 days. This is indicative of the significance that non-technical factors can have in the price action of cryptos. On the other hand, technical analysis of recent market action spells out clear trade opportunities that investor sentiment may ignore. Similar to the S&P 500 (SPY) being commonly used

Economic news drives Wall Street especially updated critical data points pertaining to inflation, earnings, and interest rates. It has been a week of negative news on most of these fronts. Monday thru Wednesday, the stock market drifted lower on anticipated bad news on inflation. Hawkish rhetoric from a few Federal Reserve Governors exacerbated the situation. Wednesday morning the latest on CPI was released and rose by 1.3% for June. The numbers also indicated that the

Powell and crew raised the rates by .75 BPS in an attempt to continue the fight against inflation. He even said, “Another unusually large increase in rates could appropriate, it depends on data.” However, the market heard something different. Sure, we rallied pre FOMC and continued to rally thereafter. The market at this point hears that Powell didn’t go 1.00 BPS ergo is more concerned about the economy rather than inflation. In other words, no

When you know how to read market action with the Opening Range you can see when and how another market is influencing your trades (for better or worse)! Put another way; you can also see when inter-market relationships are “working” or changing. For example… On Friday, the QQQ got off to a very bullish start when it gapped higher out of a consolidation pattern on its 50-day moving average. It looked like a perfect setup

Are we in a recession? If not, when will we be? Is it the right time to go back into the stock market? Have interest rates stopped increasing for now? Will my food costs continue to climb? These are just a few frightening questions confronting Americans and investors today. The leading economic indicators are all over the place. Daily, forecasters claim that we have probably started a recession (NOT) and that Energy prices will continue