Dow Jones Industrials Led Lower By the “Dive Five”.

The Dow Jones Is Price Weighted, Giving Certain Components Disproportionate Influence. The Dow Jones Industrial Average (Dow) is the oldest and most prestigious stock index.  It’s methodology of calculation is also one of the strangest.  While nearly all indexes are market capitalization weighted, the Dow is “Price” weighted. Price weighting means that a $30 component […]

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Stock Markets Bounce Hard Above the “Waterfall Zone”.

High Intraday Volatility Makes for Treacherous Trading. The last two weeks of stock market trading have made for great “theatre” but not much else.  A terrific spectator event was the 1000 point intraday trading range in the Dow Jones Industrial Average (Dow) on Monday, October 29th, 2018.  Eerily, exactly 91 years earlier, the Dow was […]

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Parabolic Collapse for Stocks Dead Ahead?

Parabolic Collapse for Stocks Dead Ahead? Bear Market Rallies are sharp, short, and usually retrace about 30% to 50% of the preceding decline, please see: “Characteristics Of A Bear Market Rally” (https://markonomics101.com/2018/10/17/characteristics-of-bear-market-rallies/).  Sound familiar?  Typically, they last no more than a day or two.  If you blink, you might miss it completely. Bear market rallies […]

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Tipping Point (Part 2): The Four Horsemen Of The Nasdaq Collapse

Tipping Point (Part 2): The Four Horsemen Of The Nasdaq Collapse. Trending markets are typically characterized by “Uniformity”, or the tendency for gains or losses to be spread fairly evenly across a broad number of the market’s components.  At an Inflection Point, a higher proportion of issues begin to participate with the new Emerging Trend […]

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