Trader’s Narrative

Last Monday I gave the heads up on the financial sector because its bullish percent index was at an extreme low. In the following days both the sector and the bullish percent index continued to fall.
In fact, the financial sector bullish percent index fell to below 26. A level which it had only seen in […]

Just a few months ago everyone was wringing their hands over the Chinese stock market (myself included).
With Greenspan chiming in to join the chorus of “bubble” talk, everyone was expecting it to implode at any minute. So what happened?
Nothing.
In fact, the Chinese market is going strong (see graph below). This is remarkable considering that […]

Looking at the percentage of stocks above their 50 day moving average is a quick and dirty way to find out where the market stands in the medium to short term. Looking at the percentage above 200 day moving average provides a much broader perspective.
Line In The Sand
The 200 day moving average is like the […]

On Friday’s 1pm conference all, Bear Stearns (BSC) CFO, Sam Molinaro, said:
These times are pretty significant in the fixed income market. It’s as been as bad as I’ve seen it in 22 years. The fixed income market environment we’ve seen in the last eight weeks has been pretty extreme. So, yes, we would make that […]

According to research from Lowry’s, important market bottoms are formed when we see 90% of the points and volume in the market decline, followed by the reverse (90% move up). These are called 90-90 days for short. Read Lowry’s full report (Charles Dow Award section, titled “Identifying Bear Market Bottoms & New Bull Markets”).
On July […]