I keep reading that we are in the 7th year of a Bull Market. I don't buy it! Why? Because we have been in a Bear Market for the past year. Although the S&P 500 didn't correct by the popular "Bear Market definition" of -20%, the majority of stocks got decimated beneath the surface. Energy stocks corrected -50%, Biotech -40%, Financials -25%, and Small and Mid Cap stocks -25% over the past year. In addition, [...]

In the past two years, the S&P 500 has essentially gone nowhere, frustrating the majority of investors. We have seen three "V bottoms" (shown in the chart below) where the market shoots down about -10% (resulting in losses), only to grind right back up as if nothing happened. Also, beneath the surface, many sectors corrected significantly during the past two years: Energy -50%, Biotech -40%, and Small Caps -25%. With regards to traders, many are [...]

The market has bounced nicely the past two days after the Brexit selloff. Now, here's the biggest question on traders' minds: Is this just a normal oversold bounce before the market heads lower? Or was the Brexit selloff just an overreaction and a non-event before we go higher? Of course, no one knows the answer to this question, but there is one thing which continues to favor the Bulls: During every selloff over the past [...]

I always keep an open mind when it comes to the stock market. I look at the positive and negative signs and adjust my client's investment levels accordingly. I was fairly constructive on the market coming into last week, mainly because the price action was very strong. Unfortunately, the Brexit vote caught many people off guard (including myself) and I was forced to reduce exposure for my clients. Let's review the current signs: NEGATIVES: 1) [...]

Back in December 2012, there was non-stop talk about the Fiscal Cliff. Everyone was on edge and the market would experience sudden movements on any headline or politician commenting about the year-end vote. When the vote passed, the market gapped up +2.5% on January 2, 2013 and didn't look back. So many fund managers were left in the dust because they raised cash ahead of the event and waited for a pullback which never came. [...]

I stick to my call that the Dow will reach 20,000 by year-end. Do I think it will be a straight line up? Of course not. Will we see shakeouts, pullbacks and quick corrections along the way? Absolutely. However, since I made the call (around Dow 17,500), the market has been very resilient, especially considering all the negative headlines: Terror attacks in Brussels, Fed speakers hinting at a rate hike as soon as April, and [...]