Kudrna's Stock Market Talk

The trend continues and bonds sold off this week helping fuel more upside gains in the stock market. As noted in last week’s homework, a weekly trend has developed in bonds as they strengthen one week only to sell off the next week. That would mean if the trend continues, bonds will strengthen once again this week which could limit upside gains or even create a stock market pullback. (more…)

Our first full week of the new year and even with some red flags, we ended the week slightly higher.  The Europe crisis has shown its face once again and Friday saw a list of credit downgrades dominate the headlines all day long.  Even as I write this days later, you can find articles galore discussing that topic.  The situation is not pretty, but these downgrades should not come as a shock.  (more…)

For the first week of 2012, it was not a bad week at all.  The action wasn’t overly impressive for the bulls, but considering most were expecting a pullback, the bulls held strong. The question everyone is pondering is whether we will have some sort of pullback or are we going to continue to rise.  Friday may have hinted at more upside in the short-term, but we may need bonds to sell-off faster for this to happen. (more…)

Referencing the weekly stock radar, I am highlighting a few of the charts below for potential trades.  Bonds finally started to sell-off today and combined with the Santa Claus rally that historically has positive seasonality which ends after the second trading day of the year (tomorrow), we have a boost in equities to start 2012.  The problem was the gap-up started the day with a pullback from the highs for the rest of the day.  This is a continuous problem as of late that stocks gap-up or gap-down then drift the rest of the day.   It is seemingly an ideal strategy to short after a gap-up for a day trade, but that is not my preferred style of making money. (more…)