Halfway Point

Monday’s S&P 500 lows 1553.25 became a short term potential support area, but if violated on a close anytime in the near future would be monumental to a bearish environment. The breakdown area of 1595 is a paramount resistance for the short term and intermediate term. Devastation is the word that bond fund managers are using to describe their two month debacle. The bonds have corrected almost 17 full points. The bonds technically have shown no resiliency on this decline. Therefore this is a Fed induced rally that probably will not hold for any length of time. Please note that we
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Erasing Gains

Such a bizarre environment where the strength of the market appears to be invincible and then slowly the market erodes. Monday’s complacency of the bulls is giving confidence that any declines are buys. Therefore look out, this is setting up for a rip to the downside. The FOMC started Tuesday. We are seeing how he is plotting his strategy as I believe he has more and more animosity building even within his own ranks regarding his failed QE program. I mentioned that it is failed because only the stock market has had a good year while the economy languishes and real
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Profitable Advisory Trade

It is important each day to assess the energy. A particular up day should have more plus tick than minus tick. The more the progression and prices upward, the more accompanying high plus tick should occur. This was not the case Monday as rare instances reached 500 but nothing excessive even with almost a 10 point gain. Therefore this market is running on fumes and that generally precedes hard price moves downward with heavy minus tick. An important aspect of the big picture is the fact that we made a lower low in prices on the bonds for 2013 but the
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Unemployment News

On Monday, the very critical S&P price area of 1620 probed, but once again Bernanke stepped in to save the day. The importance of the number will elevate further with today’s probe. The importance of a close below 1620 now will increase in credibility once it happens. It should end this upward move as it is a clear trend reversal which is probably why the Federal Reserve is defending it so vehemently. The bonds serve as the source of funds for the Federal Reserve to purchase stocks. The early morning saw a vibrant high energy unyielding rally that provided the source
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“Stock Market Wizard” Trading Seminar

MARK D. COOK “STOCK MARKET WIZARD” INVITATION TO THE AUGUST 4 DAY SEMINAR AUGUST 12, 13, 14 AND 15     It is my extreme pleasure to invite you to our August trading seminar. We limit the availability to 10people and we are sending this invitation in hopes that you will become one of those who take advantage of being one of those first 10 to respond positively. We offer the seminar at my trading facility. It is a four day seminar that will be held August 12, 13, 14 , and 15, 2013.   We will cover a business trading plan construction and will provide completed examples of
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14 Straight Days of Higher Lows for S&P 500

Each and every day the bonds have provided the source of fuel for the stock market. It has become blatant but nobody is ever investigated. This morning we saw a sizable rally before the NYSE opened and then the monies were pulled from the bonds to provide the fuel to push the S&Ps up 10 full points. The major difference on Monday was that  the bonds sacrificed themselves but not for the stock benefit. Bernanke may be changing his computer programs. The S&P 500 gains made above 1630 could be erased in one to two days as this market is having difficulties
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Up Up and Away

Keeping diaries have been healthy for not only information but for psychological balance. A market that has become this overextended has to be compared to other similar situations. I referred back to late 1999 into the 1st quarter of 2000. What will happen is a correction will materialize that will surprise all but a handful of old traders. I wrote a special advisory later in the week talking about some of these special events, but also notes that I have depicting my mental states in these types of extreme environments. The many years I have traded has taught me several things
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“Transparency”

The overall picture now enters what should be a different environment. The period typically between now and Memorial Day has selling pressure. We have not seen a down month in over 6 months and since the bonds finally had a 2 point correction on Friday the 3rd, which took 8 months to accomplish, I think the stocks should not be far behind. My complacency indicators I follow are reading the most bearish signs in years. The bonds reached our profit objective which demonstrates that patience and persistence will finally be rewarded especially in an overbought market place. After looking at the
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