Stock market correction or something worse?

As the US stock market corrects… US indexes are largely intact, and that includes NDX, even as everybody hates Tech now. SOX is intact too, but as we’ve noted for weeks in NFTRH, was vulnerable to correction of its own overbought excesses (especially by the sexiest Semi leaders like NVDA and AMD). SPX is nose diving for a test of its SMA 200 and so … Continue reading Stock market correction or something worse?

You can bet a lot of eyes are on this ‘W’ pattern

Small Caps (IWM) are at a technical decision point And that decision is between breakdown or a hold of the daily trends of the SMA 50 (intermediate) and SMA 200 (major). This market seems to revel in keeping players in suspense (ref. the Copper/Gold ratio and other as yet undecided macro indicators). I would think that a loss of the small caps would not be … Continue reading You can bet a lot of eyes are on this ‘W’ pattern

Small caps at critical support

Small Cap (Russell 2000) iShares is at important support The chart of IWM implies that the correction needs to end sooner rather than later or some markets are going to go in the dumper (many global markets, esp. those vulnerable to a strong dollar, already are). Interesting, since January is traditionally thought of as ‘small cap’ month. For “best of breed” top down analysis of … Continue reading Small caps at critical support

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NFTRH+; A US Stock Market ‘Pair’ Trade (Short & Long)

Reference the RUT-SPX chart that is shown each week in NFTRH.  We have followed the Russell 2000 leading the S&P 500 for all of 2016 and yet, it is approaching a potential limit point here at the top of the post-2013 downtrend channel.  While RUT-SPX could get another surge and hit the top of the channel, I am going to use a short against IWM … Continue reading NFTRH+; A US Stock Market ‘Pair’ Trade (Short & Long)

About Those Small Caps

During the early December correction that set the stage for the Santa rally, we (being NFTRH) watched the Russell 2000, which had actually been relatively weak as it floundered below resistance at around 1150. It then smashed through that resistance and joined the other indexes in bullish territory.  It has since taken up leadership in what seems almost too logical a manner, considering that this … Continue reading About Those Small Caps