Looking at relative strength changes really helps to drive home underlying themes in the market. As I have been saying for several weeks, there are only a few sectors that have been going up — most sectors have been just treading water — and some sectors are completely falling apart. Here are some recent relative strength… [Read More] Relative Strength Signals Reveal Underlying Market Themes
Most Wall Street recommendations to buy are based on projected future revenues and/or projected future earnings. Projected. Or you could say, “predicted”. Ever notice that a stock will begin to drop (many times without any news), and people will begin to ask “why is XYZ dropping?” Then rumors begin to swirl that something might be… [Read More] Point And Figure Charts Can Lead to Cutting Your Losses Short
We’ve been saying for months to avoid real estate, financial, insurance, banking, and brokers. This past week, all of these sectors were taken behind the woodshed and slapped silly again. See, when you add up all of these sectors, we’re talking about a group that represents almost 1/3 of the S&P 500. So, of course… [Read More] Relative Strength : Citi Bank Under $10 per share?
One of Our Better Tools We’ve got a tool we rely on here at Mullooly Asset Management called “relative strength.” This tool simply tells us which investments are moving faster than the entire market, or moving slower than the entire market. Pretty powerful tool! That’s important – if we want to beat the market, we… [Read More] Relative Strength is One of the Better Tools
One of the best tools we have at our disposal is something called “relative strength.” Look, you can’t beat the market, unless the investments you own ARE beating the market. In other words, hanging onto something “just because” will always drag down your overall performance. We should not get “married” to a stock. Relative strength… [Read More] Relative Strength Can Help You Beat The Market
Several indicators I follow have flipped positive recently. That doesn’t mean I don’t want to run right out and invest every last dollar back into this market today. Here’s why: Financial stocks make up 20% of the S&P 500 Index. At 20%,financial stocks are the largest piece of the SP 500, one of the most… [Read More] A Bounce in Stocks Warrants Cautious Optimism