One of the characteristics of a trending stock market is sector rotation. In a bull market not all sectors are necessarily trending higher and sectors are taking leadership in turns. This means that some are bound to outperform while the others are under performing. Sector rotation is a very important fuel of a bull market. So identifying sector rotation is crucial to be successful in the stock market. The phrase past performance is not an indication of future results is something that applies here very well!
We’ve seen increased volatility in the stock market this past week. I think that the reason could have been due to a rotation and not because a major top is forming just yet. Continue reading “From tech to financials and energy?”
There is so much pessimism in the market right now and it’s so hard to escape from it. It feels that if one is not bearish, then he must be missing something or he is just a blind bull. I know, there are problems in the world. But was there a time when everything was rosy?
Anyway, today I would like to write a post around a tweet of mine that brought quite a lot of attention. I wrote about the same topic on June the 3rd  and now I would like to add few thoughts to challenge you by asking what if we are in the first stage of a multi decade long bull market, similar to the ones that started in early 50s or 80s? Continue reading “Why are you so pessimistic?”
I didn’t write about the stock market for a while now and there is a good reason for that, there is nothing new – the market is still in a bull trend. So far there is little evidence to suggest this bull run is ending, but on the other hand I’m sure you’ve heard about the quote ‘risk happens fast’. So everyone is probably wondering what to do going forward.
In this post let me show you the pattern of the years that end with 7 as well as why this market is so similar to the market in 1995. Continue reading “A repeat of 1995 or years that end with 7 pattern?”
This week SPX closed at all time highs and it broke above it’s 3 months trading range. New all time highs is a characteristic we see in bull trends. Now the question is, can we see this move to be extended or rejected. In this post I would like to show you constructive signs based on DJTA, equally weighted SPX and XLF ETF. Continue reading “S&P 500 needs help from broader market participation”
Mentioned products: ED, SPX, EEM, EWZ, EXY,
This weekly overview I’d like to dedicate to Eurodollar bond futures and emerging markets. Few weeks ago I wrote that bonds could move higher (the opposite is true for rates); at that time I wrote about TLT ETF which is probably one of the most general bond products. Continue reading “Eurodollars & emerging markets to rip higher?”
Mentioned products: SPX, EuroStoxx, DAX30, CAC40, IBEX35, MIB40, GREK, EURGBP
I would like to dedicate this week’s weekly overview to Europe and French election because it’s quite important event for global political and economic situation and therefore for financial markets as well.
My question this week is, can Le Pen win and what are markets telling us? Continue reading “Can Le Pen win & could European equities start outperforming?”
Mentioned products: SPX, RUT, NDX, SX5E, AUDUSD, NZDUSD, CL, RBS
It’s so hard to write something really exciting in the equity indices space right now. Sure, I think we can expect another move higher some time, but are we first on a course to fill those nasty gaps with some choppy action? There are few proofs which could back this thesis. Continue reading “Weekly overview 30.04.2017”