Q1 Earnings and the Dollar

Last week’s stock market volatility had more to do with quarter-end positioning and lack of liquidity/volumes than it did anything materially negative. The sell-off in biotech (and to a lesser extent semiconductors) probably isn’t going to be a repeat of the “momentum” sector-led pullback of April 2014. That said, Q1 earnings and the dollar are[…]

Will Yemen Hurt Markets?

Bombing and a potential invasion of Yemen by a Saudi-led coalition, shocked markets late Wednesday night /early Thursday morning, and that has sent oil prices to multi-week highs. But, while it produces scary headlines, the answer to the question of will Yemen hurt markets due to this military conflict is “not likely.” Well, at least[…]

Dow Theory About to Get Bearish

Dow Theory is widely looked at as the first “technical strategy” for reading market trends and whether stocks are in a bull or bear market cycle. The strategy uses both the Dow Industrials Index and the Dow Transports Index in harmony do decipher the current market trends simply based off “highs” and “lows.” Long story[…]

About That Biotech Selling

Stocks fell sharply yesterday, as a surprisingly strong bout of biotech selling acted as an anchor on an otherwise rudderless market. The biotech selling caused the S&P 500 to sink 1.46%, but the real damage to stocks was, logically, felt in biotechs. Wednesday trade started relatively fine, with the S&P 500 trading flat pre-market and[…]

FOMC Not a Bullish Game Changer

Last week’s much more dovish-than-expected FOMC statement, along with Fed chair Yellen’s presser, was a surprise tailwind on stocks. Yet we are still of the opinion that the latest Fed verbiage is not a bullish game changer, and that the S&P 500 Index isn’t about to embark on the next 100-point “melt up.” There are[…]