Morning Comment: Keeping Your Head While Others are Losing Theirs



We definitely saw signs of capitulation yesterday…more than we saw on Tuesday. Not only was breadth similarly horrible (32 to 1 negative on the S&P 500 and 10 to 1 negative on the NYSE Composite Index), but we finally got the huge jump in volume to well over 5bn shares. As we said Wednesday morning, it usually takes a jump in the composite volume to over 5bn shares to signal that a “wash-out” move is taking place.

However, the sixty four thousand dollar question is…when does the “capitulation/wash-out” move end? It doesn’t look like it ended at the last night’s close. The S&P 500 futures are trading 23 points lower this morning as we write. However, from the 4:00 close for the cash market…until the 4:15 close for futures, those S&P 500 futures sold-off ANOTHER 20 points. Therefore, the futures are really telling us that the S&P cash index is going to open 43 point in negative territory. We do need to point out that the futures are all over the place this morning, so these numbers can (and almost certainly will) change between now and the opening. However, we just want to make sure everybody knows that one thing won’t change: No matter where the futures are trading between now and 9:30, you’ll have to subtract 20 points from that number to give you an idea of where the S&P will really open this morning.

It looked like the “wash-out” move took place midday yesterday…when the S&P jumped a whopping 90 points…but as we all know, the market rolled-back over and took back all of those 90 points…and then some. Given the signs of capitulation we got yesterday, the “capitulation/wash-out” move could complete itself this morning. However, if it doesn’t, things could get incredibly ...

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(Quick) Midday Comment: Another Leg Higher For Gold???


It’s still early in the trading day, but gold is breaking above its closing highsfrom January 31st in a fairly significant manner. In other words, it could sell-off later in the day and close below its highs of $1 ...

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Morning Comment: What if AAPL Breaks Below Support?


AAPL announced last night that they will miss their quarterly revenue target due to the coronavirus…and that “it will be a slower return to normal” as well……..The decline in AAPL is not a disaster…as it is trading only 3 ...

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Morning Comment....Friday Declines...TSLA Still VERY Overbought


  • Will the “Friday decline” begin a day early this week?
  • China finally admits to under-reporting the extent of the coronavirus.
  • The starting point of the coronavirus is MUCH different than SARS & H1N1. (That’s important.)
  • TSLA announces $2bn stock offing…at ...
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Can FedEx (FDX) Finally Breakout?


Whether FDX can break meaningfully above its 200 day moving average or not should be very important for the stock (and UPS as well).


Ten days ago, we highlighted how UPS had become very oversold…and thus had become ripe for ...

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Morning Comment: Use Some Common Sense!


  • Stock investors need to be using more common sense right now.
  • If they do that, they'll turn more cautious.


We saw an headline this morning that read, “Futures unchanged over concerns about the coronavirus.” CONCERNS…WHAT CONCERNS??? The stock ...

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Morning Comment: TSLA...MSFT.


  • More good news out of China (this time on trade)…is helping the stock market again this morning.
  • Bond and commodities are telling a slightly different story, but it’s not a major concern yet.
  • “Forced buying” led to a parabolic ...
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UPS....Very Oversold Near-Term.



We believe investors need to be very careful on this week's bounce in the stock market, but if there is one stock that looks like it’s getting washed out on a technical basis, it’s UPS. So this one is ...

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The Weekly Top 10: Key Support Levels? Look at the 50 day moving averages.


Below you will find an abbreviated version of this week's edition of my financial newsletter, "The Maley Report." I give the full "Table of Contents"...and the "Short Versions" of our first 3 bullet points from this weekend (along ...

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Morning Comment: Netflix (NFLX) at a Key Technical Juncture


We continue to get a lot of earnings reports…so although the broad stock market did not do much yesterday, some individual stocks did see some big moves. One of those was Netflix (NFLX)…which fell over 3.5% after they ...

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JNJ Testing Key Resistance


The healthcare group continues to do well…and the recent rally has taken one big cap name from this group up to a key technical juncture: Johnson & Johnson (JNJ). Back in the fall, JNJ was able to successfully test its ...

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Morning Comment: How Far Can Liquidity Take Us?


  • New uncertainties have developed in the market place.
  • However, the last round of “uncertainty” didn’t cause any problems, so complacency is high.
  • This rally is liquidity fueled, not fundamentally fueled (just ask Drunkenmiller & Tepper).
  • The Fed knows they’re creating ...
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