Kudrna's Stock Market Talk

The markets were mixed this past week with slight gains in the large-caps, but small-caps took a beating. (more…)

With a shortened week, we still made small gains, but I’m growing more cautious as the days go by. We have not seen the bears gain any sustained control, but I find it hard to believe we can keep moving much higher without at least a mild pullback to relieve some pressure. (more…)

A warning flare was shot on Wednesday as the markets took a day of punishment. Surprising to most, even though it has been the norm recently, was how we recovered Thursday and Friday as if Wednesday never happened. This recovery has converted many cautious bulls to overly optimistic ones. (more…)

Referencing the weekly homework and stock radar, I am highlighting a few of the charts below for potential trades in undervalued stocks.

As expected, The “Greece is saved” theme continued yet again.  Stocks bounced back on Monday as Greece finally approved austerity plans late Sunday. The next test for the plan is a vote on Wednesday from the European finance ministers.  They will vote to approve the bill.  (more…)

Last week was the first week of 2012 that the markets closed lower than they started. The modest move lower did little to remedy the majority of extended stocks. For most of the week, any weakness was quickly bought by anxious dip-buyers and only until Friday did we actually receive true weakness. However, even that weakness was contained as many market players were positioned for a much deeper pullback.  That, in itself, may have been a reason the pullback was contained as many were prepared. (more…)

A new year begins and 2011 is old news, regardless if it was good or bad.  You must forget about it either way. If you had a bad year, learn from it and make 2012 better.  If you had a good year, figure out why it wasn’t better and don’t be overly confident/reckless going into 2012.  This will help ensure you have better odds of repeat success. This is the time to wipe the slate clean and focus on the upcoming 2012 performance.  This is not about what you did in the past, this is what you can do for me now. Short-term memory, forget the past outside the lessons learned.  (more…)

Right down Santa Claus Lane.  The big man has finally arrived and the markets have rewarded the bulls with profits this past week.  Light volume has continued, but the bulls have remained in control throughout the week.  Bonds have finally sold off, fueling the surge higher in equities.  The enthusiasm and optimism has increased, but this is no time to blindly buy without a plan.  What Santa has giveth, he can taketh away at any time.   (more…)

Santa may be late this year, if he comes at all. The anticipated Santa Claus rally that many were looking for has now seemingly become a myth that will not come true. I’ve noticed other traders have performed some research and they say typically the Santa Claus rally is active for the last five trading days of the year into the first two of the new year. After another week of flat action, the bulls are growing more cautious and less optimistic this rally will take place. (more…)

Over the past week, sentiment has gone from invincibly bullish to cautiously neutral.  Once again, the markets have begun worrying about the EU situation, as we have come to expect. After tentative action starting Tuesday, the markets rebounded on Friday after fluff headlines that an EU agreement is in place. Unfortunately, the agreement still does nothing to truly remedy the situation, but you wouldn’t know that from Friday’s strong action. (more…)

Breakdown: I bought the KOG March 7.5 Puts for $0.65 (more…)