By Lawrence G. McMillan
$SPX exceeded its early July highs today. That is a new high for this recovery rally that began in early June. As a result, the classic bullish pattern of higher highs and higher lows on $SPX has expanded and been strengthened by adding this new high (see Figure 1).
Equity-only put-call ratios remain strongly on buy signals. They continue to decline, and that is bullish for stocks.
Market breadth has been reasonably strong of late. Breath indicators are on buy signals, and they are modestly overbought.
By Lawrence G. McMillan
The Standard &Poor’s 500 Index traded right up to its recent highs today, continuing the rally that began in early June. However, for the most part, the rally has been accompanied by doubt from many areas of the investing community. As a result, by contrarian thinking, this market should have more room to go on the upside.
By Lawrence G. McMillan
The market sold off sharply on Tuesday when Fed Chairman Bernanke spoke, but then staged a strong reversal rally – closing hear the highs of the day. This continues the strong pattern on the $SPX chart, and we expect a successful challenge of the 1375 resistance area shortly.
Equity-only put-call ratios continue to decline, and that is bullish for stocks. They have not declined so far that they would be considered overbought. Therefore, these intermediate-term indicators are pointing strongly higher.
By Lawrence G. McMillan
In late June and early July, $SPX staged a strong upside breakout, taking the average to new relative highs (and most other major averages followed). This created the very bullish pattern of higher highs and higher lows on the $SPX chart, after the bottom in early June. As the market made these new relative highs, it became extremely overbought. $SPX has backed off about 50 points since July 3rd, alleviating that overbought condition.
Equity-only put-call ratios remain on buy signals.
By Lawrence G. McMillan
This article will describe some of the methodology that we use to select recommendations for this newsletter. Several subscribers have asked questions regarding how we go about this, so we’ll attempt to answer them by describing the processes that we use to recommend naked puts. In future issues, well address volatility skew positions, and even put-call ratio based trades.
By Lawrence G. McMillan
The stock market has now pulled back for five straight days. This came after a strong upside breakout.
On the surface, it is disappointing that the upside breakout momentum faded and gave way to this decline. However, the market was very overbought a week ago, and it was inevitable that a decline was to take place to alleviate that overbought condition. It is our viewpoint that this pullback is a healthy one, and it will lead to higher prices soon — certainly over the intermediate term.
By Lawrence G. McMillan
MORRISTOWN, N.J. (MarketWatch) — Three week ago, we wrote that strong buy signals were in place . For the most part, those buy signals remain in place today. Therefore we continue to look for higher prices ahead.
By Lawrence G. McMillan
In yet another display of the “nothing is ever my fault” philosophy, a class action lawsuit has been filed against VelocityShares and Credit Suisse on behalf of anyone who purchased the Daily 2x Long VIX Short-term ETNs (TVIX) from November 30, 2010, through March 22, 2012.
TVIX shares were first issued on November 30, 2010, so the lawsuit covers nearly the entire length of time that they have existed – from day 1 through the day that Credit Suisse began issuing new shares again (this past March).
By Lawrence G. McMillan
$SPX broke out on June 29th, and has since added togains, exceeding the early June highs. This creates the bullish pattern of higher highs and higher lows on its chart. $SPX could easily challenge resistance at 1390-1400 in the immediate future.
Equity-only put-call ratios remain on buy signals.
Market breadth was very strong again, and now the breadth indicators are on buy signals but are quite overbought.
By Lawrence G. McMillan
In a somewhat classic move, “everyone” was bearish and yet the market broke out to the upside. The most recent upside move kicked off in earnest last Friday, after yet another apparent agreement in Europe.
