Trader’s Narrative

This was written yesterday but due to technical difficulties it is being published today:
The stock market has snapped back 6.5% from the lows at the end of June 2010. Most technical analysts are considering this nothing more than yet another short covering rally, fueled by earnings season and an overly pessimistic sentiment.
I thought I'd [...]

The following is a guest post by Charles H. Dow Award winner, Wayne Whaley (CTA) of Witter & Lester. If you would like to be privy to his daily market comments and model ratings via daily email, free of charge, email him at wayne[AT]witterlester.com with the subject title "ADD ME TO DAILY EMAIL".
Below are two [...]

Stepping back a bit to get some perspective on the equity market, we find the S&P 500 index having exited a one year long uptrending channel. Going by the simplest definition, the trend is now down. Obviously you would know that by looking at a short term chart but the technical criteria has now been [...]

Pandering to the peanut gallery, let's take a look at a few bearish arguments for equity markets right now. First up, a simple rate of change indicator from On the Money blog called the "Chart of the Century". This is simply the 10 day Rate of Change of the Dow Jones using a monthly interval.
ROC [...]

In a previous discussion about the battle royale between fundamentals and technicals, a reader challenged the idea that we are in a secular bear market by asking for a definition. That sounds like an interesting intellectual exercise so I'll put some thoughts together and share them with you next week.
In the meantime, it is a [...]