Coolhand's Market Analysis

Last week, I said I was leaning bullish for the new week as downside pressure was not particularly worrisome. I also pointed out that breadth and liquidity remained bullish along with the smart money at NAAIM. For the week, the C and S funds were up moderately, but the I fund was down a bit.



The S&P 500 rallied sharply last Monday to a fresh all-time high, but then reversed sharply on Tuesday with modestly dips again on Wednesday and Thursday. ...

It looks like volatility is back again, though for how long I don't know. Tuesday's selling pressure took back the bulk of Monday's gains, though the DWCPF gave them back and bit more. There didn't appear to be any real reason for the reversal, but there doesn't always have to be one.



Price on the S&P 500 did not quite fill that last gap created by Monday's rally. Momentum has turned back down again.

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In my last blog, I said I was neutral heading into the new week and thought that volatility might become a bit more prevalent after the previous week's wild action. It might not have been a particularly volatile week, but it was neutral as the EFA was virtually unchanged, the DWCPF was moderately lower and the S&P 500 posted a modest gain.



Volume was way up on Friday, but it was options expiration, so it's not unusual in that context. Momentum ...

The Comey probe was one of the bigger stories last week, although the UK vote is up there in importance too. In spite of anything the MSM says, Trump came out looking pretty good. Over in the UK, things got much more dicey. Now, I don't want to do a political analysis, but there is no question that politics ties in with Central Bank activity (and its innumerable rabbit holes). And that means it can and often does have a profound effect of the stock market (global). Friday's wild action is indicative ...

Disappointing jobs report? No problem. That should help keep interest rates low for the time being. Certainly our F fund is in agreement with that perspective as it remains in full bull mode.

I was bullish for last week, but cautioned we could see some weakness should the market need to gather some strength before pushing higher. And that's largely what we saw as the first half of the week was saw some moderate selling pressure, but the last 2 days erased those losses and then some ...