Category Archives: Momentum

U.S. Stock Market – Internal Momentum – 07/28/23

Stock market momentum can be measured two ways, externally or internally.  Momentum oscillators such as RSI and Stochastic are external indicators.  Internal momentum examines what’s happening under the surface of price – Advance/Decline lines and new highs/lows. This blogs looks at two internal indicators for the U.S. stock market.  52 – week highs and theContinue reading “U.S. Stock Market – Internal Momentum – 07/28/23”

Rising Long – Term Interest Rates – 07/27/23

The 07/26/23 blog “Money Goes Where it is Treated Best” noted that the FOMC raising short-term interest rates could cause stock fund managers to sell stocks in favor of a nearly risk-free return.   A rise in long-term interest rates/yields could be averse to stocks. The 07/08/23 blog “Examination of Long and Short-Term Interest Rates”  illustratedContinue reading “Rising Long – Term Interest Rates – 07/27/23”

Money Goes Where it is Treated Best

Today 07/26/23 the U.S. FOMC raised short-term interest rates by 25 basis points from 5.25% to 5.50%.  This increases the temptation of stock fund managers to sell a portion of their stock holdings and get a nearly risk-free return.  It’s possible this behavior has been occurring for several weeks which may explain why several S&PContinue reading “Money Goes Where it is Treated Best”

Tesla Inc. Massive Momentum Divergences

Tesla Inc. (TSLA) could be in the beginning of deep and sharp decline. Prior to TSLA’s all-time high in November 2021 it was a leading stock in the bull market that began in March 2020.  More recently since early 2023 TSLA has resumed its market leadership role.  If TSLA begins a large decline there’s aContinue reading “Tesla Inc. Massive Momentum Divergences”

Momentum and Sentiment Evidence – 07/21/23

Strong evidence from the dimensions of momentum and sentiment indicate an important U.S. stock market top may have been made on 07/20/23. The Dow Jones Industrial Average (DJI) on 07/20/23 was the only one of the three main U.S. stock indices to make a new post October 2022 rally high. The daily DJI, S&P 500Continue reading “Momentum and Sentiment Evidence – 07/21/23”

S&P 500 – Sector Analysis

State Street SPDR divides the S&P 500 into 11 – sector Exchange Traded Funds (ETF).  An examination of two of the sector ETF’s and one sub sector reveals insights to the broader U.S.  stock market and economy. The weekly Financial sector ETF – (XLF) and Technology sector ETF – (XLK) chart courtesy of Trading ViewContinue reading “S&P 500 – Sector Analysis”

Two U.S. Stock Indicators to Watch

Today 7/12/23 two of the three main U.S. stock indices moved to new post October 2022 rally highs.  The new highs came beyond the leeway time zone for the expected Spiral Calendar top due late June 2023 – illustrated in the 06/22/23 blog.   Today’s highs also invalidated Fibonacci price and time relationships shown in theContinue reading “Two U.S. Stock Indicators to Watch”

Examination of Long and Short – Term Interest Rates – 07/07/23

The 04/30/23 blog “Examination of Long and Short – Term Interest Rates – 04/28/23” noted the 30 – Year Treasury Yields (TYX) from its peak in October 2022 appeared to be forming an Elliott Wave – Horizontal Triangle.  The daily TYX chart courtesy of Trading View updates its action. On 07/07/23 TYX exceeded the peakContinue reading “Examination of Long and Short – Term Interest Rates – 07/07/23”