Why We Have Seen the End of the S&P 500’s Bear Market Rally

Since the announcement from the Federal Reserve about tapering off quantitative easing, the key stock indices have been showing increased selling pressures. Just take a look at the chart of the S&P 500 below.   Chart courtesy of www.StockCharts.com The S&P 500 started 2013 with momentum to the upside. Investors bought in hopes that the index would continue to go…

We’re in a Breakout, But Is It Just
Another Bear Market Rally?

While we’ve had an uptick in manufacturing, retail, and housing starts, economic data are not strong enough to get investors to participate in the stock market. There remains a sense of gloom hanging over the economy with the very real possibility of a U.S. recession happening again next year. If this happens, then it’s fair to conclude that current stock…

Perfect Scene for Phase Three of Bear Market Rally in Stocks

They moved quickly… While I’ve been talking (maybe screaming) about getting out of U.S. government bonds because I think interest rates are headed higher, the folks at Pimco, who run the world’s biggest bond fund, took real action. Pacific Investment Management Co. (“Pimco” for short) eliminated all government-related debt from its flagship $237-billion Total Return Fund in February. In a…

Bear Market Rally: Happy Anniversary

Exactly two years ago today, at the depth of a severe recession not seen since the Great Depression, a bear market rally in stocks was born. Hard to believe, but two years ago, on March 9, 2009, the Dow Jones Industrial Average was trading at 6,440. Today, it trades 90% higher at 12,214. Those investors who were brave enough to…

Bear Market Rally in Stocks Alive and Well

There’s plenty for the stock market to be happy about this morning. After the market closed yesterday, the reported third-quarter profit for search engine giant Google Inc. (NASDAQ/GOOG) jumped 32% to $2.17 billion, as businesses are spending more on online advertising. Google’s profit beat the Street by a wide margin. Google stock jumped the most in two years overnight on…

Happy Anniversary Bear Market Rally

Time sure does have a way of passing us by quickly. One year ago this week, the Dow Jones Industrial Average fell to a 12-year low. The exact date was March 9, 2009, and the low recorded by the Dow Jones that day was 6,440.

Two Sectors Will Tell Fate of this Bear Market Rally

In my last PROFIT CONFIDENTIAL commentary, I described a simple methodology of calculating the likely level of stock market reactions (retracements) to preceding price changes. I had noted that, with the exception of the Canadian TSX Composite, all other North American stock indices had yet to retrace 38.2% of their 2007 to March 2009 losses.

Proof Stock Market Rally’s Just
an Old-fashioned Bear Trap

Just a few months ago, some economists were saying that the U.S. would escape the recession in Europe and the slowdown in China, to which I argued, “NOT A CHANCE.” About 40% of all profits earned by the S&P 500 companies come from overseas (source: Bloomberg; April 9, 2012). When you look at that percentage, we quickly see it is…

Small-caps Rally Out of Bear Market;
Time to Look at Buying Some

Small-cap stocks were the winners last year, advancing 25.28%, which was not a big surprise, as small companies generally perform better as the economy recovers from a recession. The small-cap Russell 2000 had been down over 26%, but with the stock market rally over since the beginning of October, small-cap stocks have rebounded out of their bear market, minimizing the…

The Correction Within the Current Bear
Market Rally: Will It End Soon?

And so the S&P 500 Index is trading right around a key resistance level of 1,220 and, if it can prove to hold above this level, this could be the breakout the market’s been needing. It’s been a tough go for the stock market over the last several weeks and we’re due for a little upside.

Huge Bearish Sentiment to
Propel Stock Market Rally

Loyal and long-term readers know I’m a contrarian investor at heart. When investors are selling in droves, I want to buy. Similarly, when investors are buying stocks as a herd, I’m selling. And this brings me to today’s very important issue.

A Lesson From History on the Pandemic Stock Market Rally

Technical Picture for the Stock Market Remains Bullish The first anniversary of when the World Health Organization designated the COVID-19 virus a global pandemic recently passed. The impact of the pandemic on the stock market was brutal and not seen since the market meltdown in 2008, which was triggered by the subprime mortgage crisis. Prior to this, there was the technology…

Marijuana Stocks Continue to Rally; It’s Not Too Late to Get in on the Gains

Marijuana Stocks Surge Going into 2021 It seems like pot stocks thrive the closer we get to the new year. We saw a late-stage surge in 2019, and the same thing is happening again. Of course, I don’t have to tell you that 2019 and 2020 are very different years. But here’s what I can tell you about cannabis stocks…

Three Stocks That Allow You to Take Advantage of Current Market Conditions

COVID-19 Stocks Show Limitless Promise It’s looking like 2020 is going to be something of a lost year. Having spent the past four or so months in a state of semi-perpetual lockdown (and with little hope of that lockdown totally lifting before 2021), many people’s plans have been put on hold due to the COVID-19 crisis. But not to be…

The No. 1 Thing to Silence Pot Stock Bears in 2020

Thinking About Pot Stocks in 2020? Read This Booming industries can still have skeptics. No matter how fast a company’s business is growing, it’s never quite possible to have only bullish sentiment surrounding it. For instance, when Apple Inc. (NASDAQ:AAPL) was capitalizing on the expanding smartphone industry, there were plenty of AAPL stock bears. And the bears were right for…

Tivity Health Inc Down 60% But Key Takeover Could Power Rally

Tivity Health Inc’s Game-changing Acquisition Is Underappreciated Stocks with major short positions could return huge gains if the short sellers are wrong. But if they are correct in their assessment, a heavily shorted stock could sell off. That’s the risk, but I don’t think that’s the case with Tivity Health Inc (NASDAQ:TVTY), where shorts represent about 33% of the float (at…

Veoneer Inc: AI Stock Could Rally 62%…& That’s Just to Start

Veoneer Inc: Vehicle AI Play Could Jump on Better Execution In my final editorial for the year, I dove into the trash heap face first and came up with a beaten-up vehicle artificial intelligence (AI) stock out of Sweden, the home of ABBA, the famous pop band from the 1970s. Veoneer Inc (NYSE:VNE) develops advanced driver-assistance systems (ADAS) and autonomous driving…

Marijuana News Today: Pressure Builds to Improve Canadian Marijuana Market & Help Pot Stocks

iStock.com/rgbspace Marijuana News Today The marijuana news today has us revisiting an old but persistent topic, the overbearing regulations on the Canadian legal marijuana market that have been hurting pot stocks. Another big voice has been added to this cause. The Toronto Star editorial board has come out in support of streamlining the licensing and regulatory process for cannabis companies—or…

Marijuana News Today: Pot Stocks Stage Huge Rally in June

iStock.com/Talaj Marijuana News Today The marijuana news today has pot investors salivating as shares continue to soar in June following a weak May for the industry. Meanwhile, opportunities continue to expand for U.S. pot stocks. First, the U.S. pot stocks and their growing presence in the market. To this day, the legal cannabis industry has largely been dominated by marijuana…