What is a Simple Moving Average? Investopedia.com defines a simple moving average (SMA) as: “A simple, or arithmetic, moving average that is calculated by adding the closing price of the security for a number of time periods and then dividing this total by the number of time periods. Short-term averages respond quickly to changes in the…
Once again, we are entering a very split tape as investors sold leaders (tech stocks) and bought laggards for the second straight week. The Nasdaq and Nasdaq 100, which were leading the market for all of 2017, fell last week as the Dow Jones Industrial Average hit a fresh record high. So far, this still…
The Perils of Chasing Hot Stocks People love hot stocks! You know, those names that are making big gains on strong volume… That land at the top of what’s trending on Twitter and StockTwits. The names that ultimately attract crowds of speculators cheering for it to soar higher! Invariably what happens..? People chase…
Something important happened on Friday… when big investors dumped tech stocks (leaders) they bought the laggards! (small-caps and other under-performing sectors such as biotechs, retail, and financials, just to name a few). For now, this points toward rotation and with rotation comes new/emerging opportunities… As they say, follow the money! In the short term,…