Category Archives: Momentum

On 01/22/21 the Nasdaq Composite (IXIC) made a new all-time high which was not confirmed by the S&P 500 (SPX) and the Dow Jones Industrial Average (DJI), a bearish divergence.  I call this a “Rule of the majority” signal, meaning the true trend is with the two non-confirming indices. This signal can occur at minor,Continue reading “Nasdaq New High Non-Confirmation”

Today 01/21/21 the S&P 500 (SPX) made a marginal new all-time high. While doing this both external and internal momentum indicators gave clear bearish signals. The daily SPX chart courtesy of Trading View illustrates external momentum indicators. The daily RSI now has a double bearish divergence.  The daily MACD has bearish divergences on lines andContinue reading “Bearish Momentum for US Stocks”

From  March 2009 to January 2010 the S&P 500 (SPX) had a growth rate of 72.5%. Projecting that portion of the secular bull market kickoff phase to the supposed termination phase that began in March 2020 targeted SPX 3781. The daily SPX chart courtesy of Trading View illustrates bearish momentum divergences. Today 01/06/21 the SPXContinue reading “S&P 500 Target Reached – Take Profits and Go Short”

Throughout most of 2020 Zoom Video Communications Inc. (ZM) had outperform the US stock market. Its spectacular upside performance made it not only a market leader but also a star of the bull run.  That situation change after 10/19/20 which was the all-time high for ZM.  The first ZM post was on 10/15/20 “Additional ElliottContinue reading “The Message of Zoom’s Underperformance”

On 12/04/20 all three main US stock indices made new all-time highs which is a bullish momentum signal.  Additionally, underneath the surface the number of new 52 – week highs for both the New York Stock Exchange (NYSE) and the Nasdaq Composite registered bullish signals. The 09/05/20 post “NYSE-New – 52 – Week Highs” illustratedContinue reading “Bullish Booster Shot for US Stocks”

The 09/08/20 post “NYSE – New – 52 – Week Highs” illustrated the history of NYSE 52 – week highs of the secular bull market in US stocks since March 2009.  Separating the bull market into five phases showed that the maximum number of NYSE – new 52 – week highs occurred in phase 2. Continue reading “NYSE – New – 52 – Week Highs – Update”

The 11/08/20 post  “Zoom Update” noted that Zoom Video Communications Inc. (ZM) had broken below an important support level.  The post also noted a recommendation to go long would require abundant evidence.  ZM lacked enough evidence and no recommendation to buy ZM was issued. Since 11/08/20 ZM has continued to decline, while the S&P 500Continue reading “Zoom Update – Part Two”

11/09/20 a one quarter add on position to Pfizer Inc. (PFE) was made at the opening price of 41.86.  The 11/09/20 post “Pfizer Up on Vaccine Announcement” recommended a stop loss on this position at a move below 38.20 which occurred today.  The total decline was 8.8%, the loss for the one quarter position wasContinue reading “Pfizer Update”

 The  09/17/20 post “Pfizer Bullish Opportunity” recommended buying Pfizer (PFE) on speculation that they could be the first of nine companies to develop a Coronavirus vaccine.  Today 11/09/20 PFE announced that they had a Coronavirus vaccine.  PFE surged on the news. On 10/19/20 the post “Pfizer Pushing Higher” recommended adding one quarter of the originalContinue reading “Pfizer Up on Vaccine Announcement”