Trader’s Narrative

Last week there was a lot of chatter about a technical formation called a ‘golden cross’ which is considered to have bullish implications. This is when a short term moving average (usually a simple 50 day MA) crosses from below to rise higher than the long term moving average (usually a simple 200 MA). Because […]

Some are comparing the current bear market to the brutal one we saw in the 1930’s, so here’s a chart comparing this rally (so far) to the bear market rallies back then:

Source: Chart of the Day
To be honest, I don’t really like the Dow Jones Index so I’ve plotted the point at which the current […]

Yesterday’s Fast Money had an interview with Paul Desmond, president of Lowry Research:

He mentions the 90% downside volume we saw accompany Monday’s decline as well as the anemic volume behind the higher prices since April 2009 as reasons he thinks that this is not a real bull market.
Desmond thinks that we are heading lower and […]

The spring rally that started on March 9th 2009 took the Standard & Poor’s 500 Index 37% higher by May 8th (almost two months exactly). Since then we’ve been bobbing and weaving, first lower, then higher but really not going anywhere:

It could just be that we have no come into areas of resistance which last […]

Often it seems our analysis of the markets are like children looking at ants through a magnifying glass. So once in a while it is always useful to take a step back and get a long term perspective. The chart below shows the inflation adjusted Dow Jones Industrial Average since 1925.
There are a lot […]