Daily Gains Letter

Key Stock Indices

Key stock indices are the main barometers of the market’s health. The key stock indices are the ones that most investors pay attention to when trying to understand where the market stands. For the U.S., the key stock indices include the Dow Jones Industrial Average and the S&P 500. But the key stock indices can also include sub-groups that are crucial to a healthy market, such as the Dow Jones Transportation Index. In every country, there are key stock indices that one can follow to better understand the health of that country’s market.


Is This the Discount Sale Investors Have Been Waiting For?



Discount Sale Investors Have Been Waiting ForOctober has provided the usual bouts of anxiety that have characterized the month in past years. I warned that we could see volatility and so far, this has been the case. From small-cap stocks to world-class blue-chip companies, we are seeing some selling capitulation emerge in the stock market. All of the major key stock indices are below their respective 50-day and 200-day moving averages (MAs). As I said in a recent commentary, the chart risk is high. Bearish investor sentiment continues to grip the stock market. We saw 354 new lows on the NYSE on Friday, followed by 308 new lo ... Read More



How to Navigate Through This Chaotic Market



Some Strategy Suggestions for Market ChaosIf you are a bit anxious toward the stock market, I don’t blame you. In fact, I have been through this type of scenario on numerous occasions, including the meltdowns in 1987, 2000, and 2008. The key is to not panic and immediately run for the exits; emotion in trading never works. This is also not the time to get too comfortable in the stock market. It’s clear the stock market risk has intensified across the board after the sell-off on Tuesday that saw the DOW close lower for the ninth time over the last 12 sessions and fall below its 50-day moving average (MA). The index is now only ano ... Read More



Stock Market: Institutions Moving in Opposite Direction of Investors



Institutions Telling Investors to Ease OffAs we move towards the end of July, trading in the stock market continues to be murky and filled with obstacles and uncertainties. The S&P 500 is holding on to a small gain this year, but there’s still a sense of nervousness among investors in the stock market. While the small-cap stocks segment of the stock market continues to be apprehensive, and with a slightly bearish bias with the Russell 2000 being negative on the year so far, I’m also seeing some warning signs emerging from the broader stock market and blue chip stocks. The S&P 500 continues to fall short on numerous occ ... Read More



The Red Flag I’m Seeing in Stocks Right Now



Why Massive Capital Infusion from Retail Investors Is a Red FlagIn my previous article, I talked about the vulnerability of stocks at this time, a disappointing economy, and what will likely be disappointing earnings. On the weekend, I was thinking back to 2000, when the stock market came crashing down after a sizzling but unwarranted run-up in technology stocks and initial public offerings (IPOs). It wasn’t pretty, and while I don’t believe the stock market is priming for another major sell-off right now, I’m still nervous. The DOW recovered to 17,000 on Monday, but if it fails to hold again, I would b ... Read More



Investors Causing Massive Shifts in Growth Stocks



Key Stock Indices Soon DisappointYou can’t deny it: there are outright signs of stress on the key stock indices. We see investors are worried, and they just don’t like risk. We see huge selling in the growth stocks, with names like Amazon.com, Inc. (NASDAQ/AMZN) and Twitter, Inc. (NYSE/TWTR); they are witnessing a huge sell-off and are now in bear market territory. The biotechnology sector is getting slammed—investors are hitting the bid and running for the exit. With all this happening, one question comes to mind: what happens next? Growth stocks can act as a leading indicator of what’s next for the markets. Are key stock indice ... Read More