Skip to main content

Strong Technical Trend in Stock Likely to Continue


The weekend just got away from me once again so I apologize for my tardiness in publishing this week’s letter.  Instead of writing another diatribe on why I think the economy remains strong I thought it might be more instructive to share a link to a video about how strong the technical trend in stocks are.
The video is from Chris Ciovacco on You Tube.  He is completely unbiased and always focuses on the probabilities of what could happen.  He keeps it very simple but the message in this week’s video is particularly poingiant.  This is one of my resources that help me keep a pulse on the probably direction of the trend in stocks.  Enjoy!
https://www.youtube.com/watch?v=TbUQMbv9Xa8&t=2s

Respectfully,
Mark Bern, CFA

Comments

Post a Comment

Popular posts from this blog

Concerned About Yield Curve?

by Mark Bern, CFA If you watch financial network TV or read what financial gurus have to say on the Internet you can expect to hear a lot about the yield curve in the coming months.  The fact is it will have everyone worried about the possibility of another recession.  Why?  In every instance when the yield curve inverted in modern history (since the Great Depression) when the yield curve inverted it was followed by a recession in the U.S. that began sometime between six and 24 months after the inversion occurred.  What is the yield curve?   It is the spread (or difference) between the 10-year Treasury note and the 2-year Treasury note yields (market interest rates).   When the 2-year note yield is higher than the 10-year note yield the curve is said to be inverted.   The reasoning is simple: investors should expect to be paid a higher yield for holding a security that has a longer term to duration because so much can happen over the longer tim...
Post a Comment
Read more

Stock Prices Becoming More Reasonable

by Mark Bern, CFA Stocks are near record highs.   Over the last few weeks stock prices have been almost flat.   Over the same period, companies have been reporting double-digit earnings increases.   The result is that multiples like the P/E ratio have been contracting bringing stock values down from nose bleed levels closer to the long-term average.   Interest rates are still historically low, justifying higher than normal valuations.   Inflation is heating up a little but not getting out of control.   Economic growth in the U.S. remains strong and wages are beginning to rise at a better clip.   These are all good signs. The trade war worries may be overblown, especially when considering the impact on the average U.S. household may eventually rise to around $300 per year.   Even if the President decides to raise the tariff on all goods coming out of China to 25% instead of 10%, the additional cost to the average American household is likel...
Post a Comment
Read more