“To realize that you do not understand is a virtue; Not to realize that you do not understand is a defect” ~ Lao Tzu

The markets are ready to dive off a cliff. Or maybe it just feels that way.

daniel / Tag: ETF, ETF-trading, IWP, KBE, KBW, PIIGS, QTEC, XOP / 0 Comments

Scott Martindale

Market volatility continues, with the Dow gapping down under 10,000 to start the day today before recovering nicely by the close. Most of the major indexes are still below their 200-day moving averages, but interestingly, the Nasdaq 100 (QQQQ) and the Russell 2000 (IWM) actually closed above theirs. I see this as bullish.

Unfortunately, the dismal attitude we conveyed last week, was fulfilled with one of the worst weeks the market has had in some time.  The S&P 500 has fallen almost 15% from its April highs and is now below all of its moving averages, including the 200-day moving average.

david / Tag: CBEH, CRUS, CSTR, MDF, sectors / 0 Comments

"Prophecy is a good line of business, but it is full of risks."
--  Mark Twain

Back around 2000 years ago, the Greeks consulted the Delphic Oracle on
everything from important matters of public policy to personal affairs. The Oracle had a pretty decent reputation for seeing into the future, aided, no doubt, by the generous intake of hallucinogenic vapors she reputedly inhaled.

daniel / Tag: ETF, ETF-trading, exchange-traded-funds, IWP, KBE, QTEK, XOP / 0 Comments

Good judgment comes from experience, and a lot of that comes from bad judgment. “   -- Will Rogers


daniel / Tag: ETF, long/short, volatility / 0 Comments

Scott Martindale

The stock market’s technical “topping formation” finally manifested in a correction in early May, and it resumed over the past several days. The 20-day moving average that had provided consistent support during the methodical rally has proven to be formidable resistance (along with the converging 50-day).

Confusion continues to reign across the global marketplace. If there's no safe place to invest, does that mean you should invest nowhere? Or should you invest where it's relatively safe?

To put things into perspective, let's start with the backdrop to last week's market behavior.

david / Tag: AWH, IPXL, RGR, YZC / 0 Comments

It was a wild ride last week and perhaps the worst week the markets have seen since we began publishing this newsletter in 2004.  But today the bulls stampeded and the shorts ran for cover as the S&P 500 gained +4.4% for the day!

david / Tag: COF, NEM, RFMD, sectors, XEC / 0 Comments

“However beautiful the strategy, you should occasionally look at the results.”
Winston Churchill

The last several market days have been nothing if not a white-knuckle thrill ride. Wherever you stood in the markets last Thursday, a queasy feeling was guaranteed if you happened to be watching the Dow’s plunge down the thousand-point abyss. It snapped back like a bungee cord, and the final three hundred-point loss almost felt like a win.

daniel / Tag: ETF, ETF-trading, volatility / 0 Comments

david / Tag: ABC, EZPW, GS, sectors, SNDK, UFPT / 0 Comments