Written by Forrest Crist-Ruiz Earnings season has taken the stage for the next couple of weeks as the market steadies itself for another move higher. Of course, another push higher means that companies will need to outperform or show signs of continued growth into the fourth quarter. So far, the financial sector has started with a bang of better than anticipated earnings leaving a pleasant taste in investors' mouths as they load up on their

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

I am sure by now you and your family are feeling the effects of rising inflation.  It has manifested itself in just about every aspect of American life…rising food costs, building supplies, housing costs, energy and most of all, good ole’ bacon.  What is going on? The truest definition of inflation is when demand outstrips supply.   Inflation is insidious and affects all parts of society but has no greater impact than on lower and middle

Written by Forrest Crist-Ruiz As seen on the above chart, two of the major indices including the S&P 500 (SPY) and the Dow Jones (DIA) cleared prior resistance from their 50-Day moving averages (DMA). On the other hand, the Russell 2000 (IWM) has resistance near $230 and the Nasdaq 100 (QQQ) has overhead resistance from its 50-DMA at $369.39. With that said, the recent market action has been enforced by strong bank earnings and consumer

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

After a brief market pause, we got a pullback from short term oversold levels and saw stocks resume their upward trend, partially fueled by a much narrower, large-cap stock rally. This leaves the major indexes stuck between their 50 and 200-day moving averages and in warning phases. We also saw commodities (especially Natural Gas, Oil, and some soft commodities) and Crypto Currencies all continue their upward ascent with the latter making huge one day moves

Written by Forrest Crist-Ruiz For the past year, the Fed has stuck to its guns on the idea that supply-chain disruptions are causing a short-term increase in inflation, and that in 2022 inflation will decrease towards their 2% target. However, with continuous news of job shortages, shipping problems, rising food costs, and more, it doesn’t look as though inflation is going away anytime soon. On top of that, the Core Consumer Price Index, which the

The stock market is currently in an extremely bullish mode fueled by a "bubble" inside the market that's unsustainable and unpredictably bullish. Like any bubble… The heights to which it will push stock prices are unpredictable. However, unlike most bubbles… It may be predictable. This is the third time that this specific type of bubble has developed since 2000.In each of the last two occurrences, there has been an identifiable tipping point at which this

Equity markets closed negative for the month of September led by the NASDAQ 100 (-5.5%) as US markets finally broke a multi-month winning streak. Meanwhile the US dollar continued to outperform it peers. In fact, it appears that investors prefer it  over the Chinese Yuan even though the US could default on its debt obligations. Bucking the selloff is DBA (Soft commodities). Currently it is the most explosive looking chart if it can clear recent

Written by Forrest Crist-Ruiz Monday, we talked about specific sectors weakening as they teetered on the edge of support from their major moving averages. The main three were Transportation (IYT), Retail (XRT), and Semiconductors (SMH). It just so happens that these sectors perfectly align with the holiday season as people begin to do what they do best, consume and buy more stuff. Having said that, this should boost transportation along with tech and retail stores

Every four years a simple time frame defined by the date of the presidential election creates an Election Range in most markets, ETFs, sectors and individual stocks. This Election Range defines inflection points that enable you to anticipate when the market will trend higher or lower in a meaningful way. Anticipating which direction the market will move is simple, and very powerful for identifying big trend trades. Below you’ll find an instructional video explaining the

Last week began with fears on an Evergrande (China’s leading property developer) debt default fueling a technically damaging gap down. The Monday morning gap put the SPY and QQQ well below their 50-day moving averages (DMA), the IWM well under its 200-DMA, and China’s large-cap ETF (FXI) at a new 52-week low. Global equity markets recovered quickly with the US equity benchmarks leading, and more specifically led by Grandpa Russel (IWM), which closed up +2.79%

Written by Forrest Crist-Ruiz Monday, the major indices attempted a reversal of Friday's price action but failed. This created another late-day selloff. Does this mean we should prepare ourselves for another move lower or does the market have support to lean on through the coming week? To get a quick but in-depth market picture, we like to use Mish’s Economic Modern Family which consists of 5 key sectors and one major index. Starting with the

When a leading market sector sells off hard, traders should take note to avoid getting surprised by a broader market sell-off. Even better than simply noticing an important sector reversing, would be to be to anticipate the move in time to avoid it or profit from it.On Monday, the Semiconductor ETF (SMH), a recent market leader, was one of the hardest hit sectors in the market’s decline. In this post you’ll discover how you could

Stocks were mostly weaker, led by the S&P 500 and the Nasdaq 100 which were both down about -0.8 % on the week. Several things are looming over the market… like the debt ceiling needing to be raised, which is no sure thing considering the bickering on Capitol Hill. Another longer-term issue that was revealed this week is that members of the Federal Reserve have potentially been trading their stock portfolios ahead of major policy