Santa Fed

Santa-Fed came to town this week as the Federal Reserve announced in their Wednesday meeting that their bond buying program will be here in size and for the foreseeable future. The Fed has kept this program for most of the last ten years which has capped interest rates and robbed savers of safe income. Economists […]

Read More

Spring Fever

Cabin fever may come early this year as the coronavirus keeps many of us inside which means most of you can’t wait for spring. The Spring of 2021 will be known as the inoculation period (hopefully) from the coronavirus and a pivot to resuming a normal life. The price action in the stock market tells […]

Read More

Russell 2000

Breaking Out

The indices are breaking out to new highs despite the ongoing rise in new cases of the coronavirus. Stock markets are forward looking instruments which means they are messaging that 2021 will be a year of recovery for the global economies. More stocks are participating in this rally (good breadth) as sectors that have been […]

Read More

Chart of the S&P 500 Futures

Be Thankful for Change

The corner has been turned with the global pandemic as the vaccine calvary gallops towards defeating the coronavirus. I read that the first doses of the vaccine will be distributed in December with larger distributions projected in the April/May time period for the general population. Volatility metrics also kept declining this week which means the […]

Read More

S&P 500 Index NOV 2020

Here Comes 2021…..

We got a new high on the S&P 500 on Friday’s close which means the stock market is looking past the global pandemic and towards the recovery of 2021. On Monday, Pfizer and BioTech announced that their preliminary work on a vaccine was highly effective which means that we are turning the corner on this […]

Read More

S&P 500 Index - NOV 2020


The market gave an exhale of relief this week despite a Presidential winner not being official. Markets are more concerned about policies over personalities so if the Senate remains republican then gridlock will keep large legislative changes at bay. The government will need to help rebuild the economy in 2021 which will be a bi-partisan […]

Read More

S&P 500 Index - OCT 2020

Decision Time 2020

It is decision time for the S&P 500 and it is no surprise that the Presidential election coincides with a potential top given the policy divergence between the two candidates. If we ignore the politics and focus on the chart below, it looks as though the next move is going to be lower in the […]

Read More

Trends in the S&P 500

Swells of Uncertainty

The waves of uncertainty are washing ashore as the path to 2021 is unclear. On one hand we are experiencing an economic recovery but on the other is a second wave of coronavirus cases (overseas and domestic) that may reverse the economic recovery over the past few months. There are drug companies manufacturing a vaccine […]

Read More

The Fly

The Fly on Mike Pence’s head during the Vice-Presidential debate was the most exciting thing that happened this week. In turn, the S&P 500 continued its breakout from the falling wedge pattern in the chart below – a slow and steady climb. The technicals are not showing many negative signs and are indicating that a […]

Read More