Category: Guy Cohen

We’ve had an amazing bullish run, but there are now palpable early warning signs that this party needs and will take a rest soon.

Markets bounced quickly and suddenly last week. And that changes the outlook through the rest of the year…

We did have a more interesting week than I was expecting, but as I mentioned last week, I think there will be more fun to come in a while … and it could well be in the other direction.

With some notable exceptions, earnings have been pretty dull and I expect they will continue in that vein. Moribund earnings seasons are typically followed by moribund conditions.

As I review at least 200 stocks, the bullish setups aren’t as attractive looking as the bearish ones.

This could be a case of new leadership, which hauls the markets into bright new horizons, or it could be a sign of limited short-term upside (my hunch). 

As I go through my regular process, I see a market with more upside potential, but apart from the financials, other stocks are making rather heavy weather of things.

I’m surprised at the strength of last week’s bullishness. My guidance last week was that further upside was likely to be short term, and one week does qualify as short term.

The S&P is clinging on for all its worth around the range within which it has been trapped the last several months.

Over the past few weeks I’ve referred to the scarcity of good quality setups as one of my guides. In the last two weeks my main take has been that the market was not ready for a new upswing, and chaotically bouncing around the Key Levels was more likely.

The most likely scenario from here is that the FDIC will calm the situation in the next few days, but the market is now likely to test those January lows. If they fail, then the June lows will hove into view.

To take the best advantage of the markets, you need clarity with market timing as well as stock selection. This is where being a lion pays dividends. And right now is prime lion time.