Global stock markets started off the new year with a bang. U.S. stock indexes exploded to record highs for the best start in years. Foreign stock benchmarks did the same, including the FTSE All World Stock Index which also hit a new record. New records were set in North America, Europe, and Asia and in both developed and emerging markets. So what's there not to like? Well, there is one thing...

The stock market is never 100% bullish with all stocks participating in an uptrend. There are always some holdouts and pockets of weakness, but the broader market can continue higher as long as the pockets of strength are greater than the pockets of weakness. The percentage of stocks above the 200-day EMA is a great way to measure internal strength and this indicator has remained strong...

Oil trades have had a big beautiful run from June into early January. The commodity related stocks have also run since August. But there are some relative strength relationships we need to see break out to launch the next phase of stock runs. Within the energy space, the recent flare-up in Natural Gas prices appeared as NYMEX traders felt the cold come in. Oil has been a persistent bull

HAPPY NEW YEAR! In my first Trading Places blog article of 2018, "Here's One Chart That Screams BUY As We Begin 2018", I highlighted my favorite relative chart in the Current Outlook section. It's one of the biggest reasons why I believe 2018 will simply be an...

Earnings for 2017 Q3 will be finalized soon, but on a preliminary basis the S&P 500 has a P/E of 25, which is extremely overvalued. The chart below shows the S&P 500 Index (black line) in relation to where it would be if it were undervalued (P/E 10 - green line), fair value (P/E 15 - blue line), or overvalued (P/E 20 - red line). Price moved well above that range over two years ago,

Ultimately, the U.S. stock market lives and dies by the performance of its economy and how that translates into earnings growth of U.S. companies. Nearly every economic report that we've seen of late has been strong or strengthening. The number of companies that are performing well on their top and bottom lines has been growing. It's evidenced by the number of stocks that we...

Over 25 years of full-time trading, it's been my experience that, as an investor, one moves ahead by looking back. In other words, reviewing my 2017 Trading Journal will improve my 2018 results. Indeed, the tenth and final stage of Stock Market Mastery is to Revisit, Retune and Refine. It's a proven discipline that keeps on giving year after year. Having just reviewed my 2017 journal over the...