Sentiment Extremes Warn of Likely Correction In US Equities

One of my favorite indicators for identifying potential corrections in the stock market has just triggered the 4th extreme reading of below 0.60 on the Put-to-Call Ratio in what I refer to as a cluster of readings (a series of sub 0.60 readings that occur in relative close proximity without a substantial correction while the […]

Short Interest on Leading Stocks At Multi-year Lows

Short sellers are often vilified by the mainstream media, CEO’s of publicly traded companies & many institutional money managers which are forced, by prospectus or other security selection parameters, to maintain only long-side exposure to the market. I won’t go into all the benefits that short sellers provide, such as liquidity and sniffing out corporate […]

Mutual Fund Outflows Warn Of Another Major Leg Down in Equities

On the chart below, I plotted the month-end values of the S&P 500 against the Domestic (U.S.) Long-term Equity-Only Mutual Fund Flows. Although we don’t have the data for the October month end yet, the first two weekly reporting periods (Oct 7th & Oct 14th) for Domestic Equity Funds have seen net outflows of -$1.31 […]

DAVE: Good Food, Great Chart.

DAVE (Famous Dave’s of America) looks to offer an objective long entry on any break above 12.75, which will have taken the stock over that purple minor downtrend line on this 120-minute period chart. R1 & R2 are the first key resistance levels where active traders might opt to book quick profits while the official […]

Financials Poised For Another 8-10% Downside

Shortly after closing out the previous FAS short trade for a 29% gain in exactly one month, with a nearly perfectly timed exit on the morning the big August 24th meltdown, FAS (3x long financial ETF) was once again posted as a new short setup in this post last week & went on to trigger […]

AAPL: The Anatomy Of A Bear Market, Part I

I was asked if I had any updates to share on AAPL (Apple Inc) and figured that as the world’s largest publicly traded company & one of (usually THE) most widely held stocks, my thoughts on Apple were worth sharing. In doing so, we’ll begin with a look at the recent technical developments over the […]

US Equities Testing Major Support

The Wilshire 5000, which is the most representative index of the entire US stock market, is currently testing the bottom of the this long-standing 2015 trading range. Based on the technical developments over the last several months+, a downside resolution in the near future appears to be the most probably outcome. As highlighted on this […]

AAPL Approaching Critical Support

AAPL (Apple Inc) has now fallen to horizontal support where a reaction (i.e.- bounce and/or consolidation) is certainly possible although I have no interest in trying to play a bounce in the stock. In fact, I am short the QQQ’s (in which AAPL is by far the largest component) and with both the intermediate & […]
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