Lombardi: Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986

stock market risk

Why the Money-Driven Fed Rally Is Impressive

By | April 16, 2013

Money-Driven Fed Rally Is ImpressiveThis market is on steroids. The Federal Reserve is the dealer and the market participants are the buyers. This is a particularly dangerous stock market risk.

So it’s not a surprise to see stocks go up and up without any signs of a pending correction. You really want to see a market adjustment, especially during a bull market rally.

Yet the fact is that the market is pushing higher to … Read More

Don’t Be Fooled by the Dow’s Recent Record-Highs

By | March 13, 2013

Don’t Be Fooled by the Dow’sI will be first to say that this is a difficult market to play, and it’s certainly full of stock market risk. On one hand, the Dow Jones Industrial Average eclipsed a new record last week when the blue chips index surged to an all-time new record high of 14,413, easily blowing away the previous mark of 14,164 achieved on October 9, 2007. But my trading sense is telling me … Read More

The Potential Market-altering Events in the Fourth Quarter

By | October 3, 2012

Potential Market-altering EventsWe are entering the always intriguing fourth quarter, during which I expect to see some major surprises that could alter the current investment and political climates and increase the stock market risk.

The Dow Jones Industrial Average and the S&P 500 have recorded four straight months of gains, yet the stock market risk remains high, given the strong advance this year. Blue chips and large-cap stocks showed decent buying in … Read More

Get Ready for Some Action in the Second Half

By | July 5, 2012

Stock Market Second HalfWe are at the mid-point of the year, and so far it seems like a rollercoaster ride driven by heightened stock market risk. We had a stellar January, followed by some softness in February and March. April and May, followed by losses, but we saw some oversold buying in June. The key stock indices are still down from the end of the first quarter, and with many unknowns and stock … Read More

Market Risk Update: No May Flowers for Stocks

By | May 16, 2012

market correctionThe stock market risk is high right now. Maybe you should take a vacation from investing.

As an investor, you should be aware that the six-month period from May to October has been historically the worst-performing months for stocks, according to the Stock Trader’s Almanac. And so far, this stock market risk and historical pattern appears to be staying true to form.

The charts continue to be bearish. I … Read More

Financial Reports

January: It’s All About the Bulls,
Mining Stocks…and Market Risk

By | January 30, 2012

With only two sessions remaining in January, the month delivered strong returns in the stock market. And, while the advance has been strong to begin the year, you might recall that a similar start in 2011 ended in a mixed trading year. While investor sentiment is bullish and breadth is positive, the lack of mass market participation is worrisome and opens up stocks to downside risk.

The charts of the … Read More

Why Do All Markets Go Down Together?

By | December 15, 2011

As we just completed the December meeting of the Federal Reserve, the continued market sell-off accelerated. This was following the previous week’s European Summit, which was supposed to alleviate concerns about the eurozone. Neither the Fed nor the summit in Europe changed the market view that the situation is in crisis mode.

Trading Opportunities: Why Nothing
Looks Great at this Time

By | November 21, 2011

It’s a crazy trading environment out there. Whether you are in bank stocks, gold stocks, silver stocks, or even cyclical stocks, the stock market risk is high at this time, as we just completed a volatile week of trading. The European debt crisis is keeping buyers on the sidelines and waiting for something magical to happen. The economic recovery is showing improvement here, but, with a high unemployment rate and declining home prices, it will continue to be a difficult path.

Stock Market Risk Just Keeps
Climbing Higher

By | November 10, 2011

There was a stock market correction on Wednesday following a mini rally that drove some impressive upward gains in four of five sessions. I feel there is too much relaxation in the market, with traders ignoring the higher stock market risk.

Market Risk: Why Upside Moves Will Not Be Easy

By | November 2, 2011

October was one of the best months for the stock market in history in spite of the market risk. Everyone was buying and it didn’t matter if it was technology, industrial, or some new never-heard-before-technology. Everything went up, which is why we are now facing some selling pressure.

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