Hey Market Pilot,So here we are, wrapping up 2021. For as much as 2020 was weird, we at least had an exceptionally fun time with an incredible market. With the world settling into a relatively new normal for 2021, the market shifted and has been very difficult to pin down.  There are big changes happening in the economy which I believe are spurring the shift in the market and I don’t believe we will be seeing anything close to the same action we saw in 2020. Instead, it appears money … Read more

Hey Market Pilot, Welcome back to the final stretch of the year. It was certainly a turbulent few weeks leading up to the Christmas holiday, especially with that gap down on December 20. That gap down appeared to be what set the hook for a short-covering rally and the Santa Rally everyone was wondering about. That gap down really put into question the direction of the market and based on the nearly vertical move of the S&P 500 (SPY), it seems a lot of traders had to change their minds … Read more

Hey Market Pilot, Merry Christmas and Happy Holidays! I hope you all are enjoying whatever special time you prefer to celebrate. I wish that were the market right now, with us in the middle of a Santa Claus rally, but the most we have gotten so far is some bouncing. Right now, the markets are not great for swing traders so there is a high likelihood that you are not doing much trading. This could be great timing, as it turns out, to go spend extra time with the family, … Read more

Hey Market Pilot, We continue to see the markets work themselves lower on the back of significant news and economic developments. Omicron (a Covid-19 variant) seems to be getting politicians panicked again and talk of lockdowns is increasing. The “Build Back Better” plan is on hold. Tapering has doubled. And there will most likely be three interest rate increases next year. Despite the crazy pop last week from the Federal Open Market Committee (FOMC) minutes, the market has not been doing well and the internals have been communicating that for … Read more

Hey Market Pilot, Wednesday was Federal Open Market Committee (FOMC) day and the market was apparently waiting with bated breath for what members had to say. While they did double the size of the tapering, the rest of the statement was largely dovish. They communicated that they were willing to be accommodative based on what the market and economy needed due to Covid-19 and whatever path the virus might take. The market apparently took this as a good sign and promptly moved to the upside. Just before the report, I … Read more

Hey Market Pilot, The market pullback from the other week also pulled down a lot of tickers. Now that might have been a surprise coming from some of the stronger stocks, but I am going to show you a strong point of the Moxie Indicator™ that can prepare you for such a move. The “Inverse Trampoline” setup is when price is over the 50 simple moving average (SMA) while the Moxie Indicator™ is below zero, on whatever time frame you are looking at. It can either be a great short … Read more

Hey Market Pilot, I’m having trouble finding good names to trade. Poor breadth is probably the reason. I’m looking at how many stocks are over moving averages such as their 20, 50, or 200 daily simple moving average (SMA). This reveal the current condition of the market beneath what the index says. Right now, I believe the indexes are masking what is really happening out there due to how the indexes are weighted. Weighting means that an index like the S&P 500 (SPY) or the Nasdaq (QQQ) can be moved … Read more

Hey Market Pilot, Ever since the S&P 500 (SPY) crossed over its daily 50 simple moving average (SMA) on its last run-up which started a few weeks ago, I had been saying that price would eventually test that daily 50 SMA. It took some time, but the move finally happened last week. However, instead of it being a pullback to support an uptrend, it looked more like a bull run that was stopped in its tracks. There was definitive destruction last week. Something changed. Things broke. Where price would normally … Read more

Hey Market Pilot, I don’t think it is much of a surprise to most of us to hear that Omicron, a new Covid-19 variant, has made it to the shores of America. By the time we discovered and heard about it from Africa, it was already on the other continents. It was simply a matter of detecting it. The markets are not liking the one-two-three punch of non-transient inflation, and now Omicron in the U.S. The S&P 500 (SPY) has been dropping straight to its daily 50 simple moving average … Read more

Hey Market Pilot, Last week I wrote about how the S&P 500 (SPY) finally got under its hourly 50 simple moving average (SMA) with the hourly Moxie Indicator™ below zero. This is the negative setup that I was expecting for the markets to move lower, but I didn’t expect it to happen on the day after Thanksgiving. Usually, that Friday is a lazy day in the markets as most traders are busy digesting the previous night’s meal and taking it easy since it is also a shortened market day. But … Read more