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GE (Monthly)

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JC Penney Versus Amazon

JC Penney reached a 35-year low today.  If you bought the stock in 1972 at its IPO you would be down over 55%.  Amazon?  Slightly different story: 


Amazon’s total return since it went public in 1997:  50,145%

JC Penney total return since Amazon went public:  -91%

Innovate or die.

Hat tip Charlie Bilello


Small Caps

– small caps continue to display a topping pattern.  Support 1350.

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What Would 1929 Look Like Now?

If 2017 is 1929, like many a ultra bearish analyst is predicting, the Dow Jones 30 Industrials would have to fall to 1989 levels wiping out 28 years of gains in the process:


If this scenario were to play out, a major bear market in equities would be the least of our worries.

Hat tip Michael Batnick

Read the whole thing:


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There Are No Bears

short interest

Short interest explained:  A short interest is the quantity of stock shares that investors have sold short but not yet covered or closed out. Short interest is a market-sentiment indicator that tells whether investors think a stock’s price is likely to fall. It can also be compared over time to examine changes in investor sentiment.  Investors use short interest to make predictions about the direction a particular stock is headed, and to measure the bullishness or bearishness of investors’ sentiment toward the market as a whole. Short interest can be expressed as a percentage by dividing the number of shares sold short by the total number of outstanding shares. For example, 3% short interest means 3% of the outstanding shares are held short. Short interest can be expressed as the number of shares sold short but not yet covered or closed out. Short interest data is widely and easily available online.

While short interest in the S&P 500 companies hovers near historical lows, bullish sentiment among S&P 500 Index futures traders, as measured by net long positions, is running extremely high.  As contrarians we would much rather see a reverse of these two readings.  This, of course, does not mean stocks will soon head lower but it is an indication the rather high level of investor complacency of late.
Hat tip
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As Money Managers and Traders, the mission of our Blog and Radio Show is to go on record and further educate our readers and listeners in technical analysis and proper money management across all asset classes.

Our methods are not the traditional advice you hear repeated and repackaged over and over again, but that’s exactly the point and the reason why we know how to advance and prosper in every kind of market.

To Your Success,

Doug & Gary