Morning Comment: DON'T BLAME THE FED for today's weakness!


We’ll start by saying that if it turns out be true that President Trump played a large role in getting the Big 10 to reinstate their football season, the election in over! Given how important college football is to the people of Michigan, Ohio, Pennsylvania, Indiana, Iowa, Illinois, Minnesota and Wisconsin...if the President is the reason they got their season back, he’ll win EVERY state in a landslide!

Okay, we’re not serious about that last comment...but we ARE serious about our next comment: Stop blaming the Fed for yesterday’s reversal in the stock market and this morning’s decline in the futures!!! We are hearing some ridiculous explanations this morning as to why the Fed is to blame. In reality, they could not have been more dovish yesterday. So the real reason we’re seeing some renewed weakness is because the market was already ripe for another leg in the recent decline...and nobody wanted to sell anything in front of the Fed’s announcement. Now that the Fed is behind them, they’re starting to take profits once again.

As we have been saying for two weeks now, whenever the stock market gets to the kind of extremes it reached in early September...in terms of being overbought and overvalued...it always declines in several waves...to work-off those extreme conditions! Therefore, we predicted that this week’s bounce would only be a very short-lived one...and we’d see another “wave” lower before this decline found a bottom. In other words, what is taking place right now is nothing more than the normal (and healthy) process that we always go through after the stock market reaches the extremes it did in late August/very-early September!

Yes, there are always a bunch of propeller heads...who never worked on a trading desk...who always try to come up with some sort of ...

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Morning Comment.....FDX: GREAT quarter, but VERY overbought....Stewart Cink.



The stock market gave back some of its midday gains late in the afternoon yesterday...after APPL slipped well off of its highs for the day and the dollar bounced back into positive territory for the day. However the stock market ...

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THE WEEKLY TOP 10



THE WEEKLY TOP 10


Table of Contents:

1) The “artificial” moves actually started in Q4 of last year (after the repo debacle).

2) When the market reaches the kinds of extremes it did in Aug, it takes time to work ...

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Morning Comment: Too early to "buy on weakness"



  • The "internals" during yesterday's rally were mediocre.
  • The call buying in AAPL was huge yesterday, so very little froth has been wrung out of the market. (Many mega-cap tech stocks are still quite overbought on an intermediate-term basis.)
  • It's usually ...
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Morning Comment: Watch Friday's intraday lows, they're KEY support


The U.S. futures are trading significantly lower this morning as the tech stocks (especially the mega-cap tech names) are under pressure once again. Our stance on this situation is a lot different than most. Many people are saying that it’s ...

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THE WEEKLY TOP 10

THE WEEKLY TOP 10


Table of Contents:

1) The sell-off in the stock market likely has more room to run.

2) An explanation of what has taken place in the options market this summer.

3) We’ll need more downside follow-through ...

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Morning Comment....Caveat Emptor


It has been a very different kind of year for the stock market and this week has been no different...as the week before Labor Day weekend has not been the normal boring week we usually see in the market place. ...

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Morning Comment.....Tom Seaver: An


Well, we finally got some good breadth on a strong day in the stock market...as the advancers vs. decliners were 11 to 1 positive on the S&P 500 index yesterday! It was strange that the breadth was only 1.4 to ...

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Morning Comment: Germany's DAX trying to breakout


Back in 1999, every once in a while we would jokingly exclaim, “The stock market will never go down again in our lifetime!” We did said that because it seemed like the stock market would rise every day no matter ...

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Morning Comment: Suckers.....TRAN.....Trump sets the


  • Don’t follow the suckers. In other words, don’t buy the mega-cap tech stocks up at these levels. They’re now ripe for a powerful decline.
  • The Transports have played catch-up quite nicely, but they’re getting overbought on a near-term basis.
  • Love ...
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Morning Comment:


When I was in high school, the only sport that had a very early “pre-season” was football. (Some people called it “double sessions”...we called it “hell week.”) The other sports started before school got going as well, but not as ...

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THE WEEKLY TOP 10



THE WEEKLY TOP 10


Table of Contents:

1) We were wrong about August, but that does not deter our caution about September.

2) Chairman Powell’s comments last week were expected. Kaplan’s comments were quite telling.

3) An extended narrow rally ...

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