Trader’s Narrative

While there are some undeniable indications of an overbought market right now, the bull market that started in March 2009 seems to be intact. Those indicators are of course mostly of the sentimental variety. We looked at the Hulbert Newsletter sentiment for the general market and the Nasdaq in particular yesterday.
Today the results of the […]

Usually sequels don’t live up to the hype but this may just be an exception. If the $600 billion (soon to be more) QE2 from the Federal Reserve wasn’t clear enough, Bernanke’s Op-ed piece in the Washington Post trumpeted his strategy of inflating asset prices in a “Hail Mary” pass to produce real economic growth.
Wall […]

A few days ago I mentioned that the market is setting up for a correction in the short term. Since then the market has been going sideways but the S&P 500 index also printed a very bearish upside down hammer candlestick on Monday.
Today I wanted to take a look at the market internals through the […]

The stock market has been in rally mode since the start of September. Since then the S&P 500 has gained 13%, very close to the ~15% it gained from the early February 2010 lows until mid-April 2010. With that has come a few breadth signals that the rally is getting tired and may need to […]

What a difference a week makes. Just seven days ago I wrote about how the cumulative advance decline line of the S&P 500 index was not keeping up with the index itself. This, I argued was a cautionary sign that the rally did not have the support of most of the constituents of the major […]