Stocks

Seeing that the earnings slate is light, this week we focus on certain stocks to watch during uncertain times. If you are jittery and risk-averse, we have two safer (boring) stocks, plus one tech stock that has shown great relative strength compared to its peers. Let’s do a deep dive into all three. American International Group (AIG) Insurance stocks have done quite well in the current volatile environment. As inflation fears mount, it’s ironic that an...

We wrote about the American Association of Individual Investors (AAII) poll results a few weeks ago. Since then the bearish activity on the chart has broken a record for the poll. Since the poll’s inception in 1987 we have never seen four weeks in a row of bearish readings above 55%. We are now at bearish extremes for this indicator. Remember that sentiment, which this poll measures, is contrarian. This means that when market participants...

The Zweig Breadth Thrust is best known for its bullish reversal signals, which capture a material increase in upside participation. There is, however, more to the indicator because traders can also use the “setup” period to identify oversold conditions. This report will explain the original Zweig Breadth Thrust and show how these signals work. Note that our breadth models turned bearish in mid March and the major index ETFs triggered long-term downtrend signals. I am...

After reaching an all-time around $540 in mid-February, the Nasdaq 100 ETF (QQQ) dropped almost 14% to make a new swing low around $467.  With the S&P 500 and Nasdaq bouncing nicely this week, investors are struggling to differentiate between a bearish dead-cat bounce and a bullish full recovery.   There was no question that valuations had become incredibly rich going into the end of 2024, so some sort of corrective move was widely anticipated in...

You already know about diversification. You’ve set your investment goals, picked a benchmark, and decided on the weighting of your allocations. Now, it’s come down to selecting the assets—stocks or ETFs—to build your portfolio. As a long-term investor with moderate risk tolerance, how might you build a portfolio to withstand market drawdowns and weather the business cycle? There are many ways to do this. Here are a few ideas to consider. S&P Sectors: How Are...