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Tag Archives: QQQ

THAT OLD WALL OF WORRY

They’re building it up again, brick by brick! On Wall Street, it’s said that “a bull market climbs a wall of worry.” For a while in January, I was concerned that the wall might come tumbling down. Fueled by 2003’s huge stock market gains, investor sentiment was bordering on euphoria.

STOPPED OUT

Our luck finally ran out on our QQQ hedges yesterday. Our first tranche of short sales, recommended at $26.30, was stopped out at $29 for approximately a 10% loss. The stock market clearly has the bit in its teeth here — and wants to run. However, we’re still in an area of heavy overhead resistance. Keep an eye on the S&P 500 index. Coming off the July lows last summer, the S&P traded as high as 965. If it can better that level on a closing basis in the next few days, I advise shutting down all hedges.

GOLD SPARKLES AGAIN

Wow! With the dollar plunging to a four-year low today, gold prices zoomed $9.80 an ounce on New York’s Comex to close at $364.40. That’s the Midas metal’s highest close in three months.

WHAT ARE THE BONDS SAYING?

Treasury bonds put on a fireworks show again today. Prices skyrocketed as the yield on the benchmark 10-year note plunged to 3.53%, the lowest since 1958. What’s going on here? Until a few days ago, the consensus was that bond prices were rising because the Federal Reserve, at its last meeting, implied that it might drive down money market interest rates even further. Some speculators were also betting that the Fed might buy long-dated securities in an effort to keep rates low across the entire maturity spectrum.

REACHING OUR LIMIT

The stock market continues on its merry way. With today’s action, the 20-day total of advancing NYSE stocks divided by decliners hit a 12-year high. That’s a mighty one-sided (overbought) market.

APOCALYPSE POSTPONED (A FEW DAYS)

Yesterday’s sharp stock market rally brings home a point known to every veteran investor: In the short term, the market can do anything. After a weak opening that seemed to hint at a signficiant breakdown, stock prices soared on news that President Bush plans to reappoint Alan Greenspan as Federal Reserve chairman in 2004.

STICK WITH YOUR SHORTS

Are the stock market’s bulls finally weakening? This morning’s downturn in the major indexes could be sending an important message.

SHORT 'EM!

As I write shortly before the market opens, the futures are pointing to an early burst of strength in the major stock indexes. Traders, take this as an opportunity to go short!

SHORT ‘EM!

As I write shortly before the market opens, the futures are pointing to an early burst of strength in the major stock indexes. Traders, take this as an opportunity to go short!