Chart of the Week

Jason, from Sentimentrader.com, created what I thought was very savvy. Trying to find areas of fear to use as a contrarian. Below are the times that CNBC created a special report “market turmoil” segment that has basically set the bottom several times for the next few months there-after. Good chance we can get a bounce…

The NYSE Bullish Percent Index chart from Investors Intelligence is a much better way to look at the health and direction of the stock market than indexes such the S&P 500 or the Dow Jones Industrials since it is gives equal weight to all of the stocks on the NYSE based on whether each are…

In 2008, to stave off the worst financial crisis since the Great Depression, the Fed began a program of “quantitative easing” to save the economy, eventually buying trillions of dollars of government bonds and mortgage-backed securities to keep interest rates low. Now amidst strong economic growth the Fed has initiated a program of “quantitative tightening,”…

Jason Goepfest of Sentimentrader came out with this outstanding study last week and  I wanted to share it with you. While the market continues higher the participation has become narrow and traditionally a charctoristic of a top in the  stock market.

The dot com and housing bubbles of the recent past were marked by big increases in debt for those sectors, followed by sharp economic and market declines.  Today, debt is spread across many areas (See chart below). And that is extremely worrisome for the economy and the markets from a historical point of view.  For…