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Last week the major indices took another small step backwards. The S&P 500 lost 0.57%, the Dow fell 0.06%, and the Nasdaq declined 0.41%.



The decline deepened among all the major indices Monday as ongoing uncertainties around Chinese property developer Evergrande heightened. Evergrande faces a debt payment on its offshore bonds Thursday, so until some clarity is seen I would expect to see further volatility.



The S&P 500 has now witnessed a 4.4% decline since the closing highs back on September 2. So the 5% pullback everyone has been discussing over the past several weeks could come to fruition over the next few trading sessions.



To be more defensive, this week I am going to sell in-the-money calls to stay a bit on the safe side.

Despite some mid-week wobbles for stocks, especially in the growth sector, the market once again closed the week at new highs as the S&P 500 gained 1.9%, the Dow rallied 2.2% and the Nasdaq advanced by 2.3%.

Despite some mid-week wobbles for stocks, especially in the growth sector, the market once again closed the week at new highs as the S&P 500 gained 1.9%, the Dow rallied 2.2% and the Nasdaq advanced by 2.3%.

The previous weekend’s worry about a crash last Monday proved to be incorrect as the market had some early-week struggles, but those were at least in the short term washed away on Wednesday as the indexes exploded higher. By week’s end the S&P 500 had rallied 5.7%, the Dow had gained 5%, and the Nasdaq had rebounded by 7.3%.

The previous weekend’s worry about a crash last Monday proved to be incorrect as the market had some early-week struggles, but those were at least in the short term washed away on Wednesday as the indexes exploded higher. By week’s end the S&P 500 had rallied 5.7%, the Dow had gained 5%, and the Nasdaq had rebounded by 7.3%.

This week a number of Explorer stock retraced last week’s gains, with a major exception being the explosive 45% surge in Virgin Galactic (SPCE) on top of its previous week’s 25% surge. It appears that key test flights are forthcoming as well as more space mania and space ETFs.

Remain bullish, but pick your spots. Today was a very brutal day, but it hasn’t changed the evidence, at least not yet—our trend-following measures are still bullish and, along with the recent blastoff indicators, tell us the odds still favor higher prices ahead (though further short-term weakness wouldn’t shock us at all).

It’s been a great couple of weeks in the market, with the major indexes lifting nicely since the election and, more important, with leading growth stocks acting very well—while there have been some earnings wobbles, there’s been even more big rallies, with some stocks going into the stratosphere. It’s been a good couple of weeks, and with the evidence bullish, we are too—but we’re also keeping our feet on the ground, trimming some names on the way up and aiming to enter some fresher leaders, ideally on weakness.

After a rough few weeks, the market’s recent rally has been welcome, improving the overall evidence ... though not quite yet in a decisive manner, as the intermediate-term trend is mostly neutral (those close to a buy signal) and many stocks are still toying with resistance. That’s descriptive and not predictive, though, so we did do some buying today, though we’re starting small and will look to build if the buyers stay at it.

Tonight’s issue talks about all of our market thoughts and goes over all of our stocks (including some long-time holdings that are perking up), as well as reviewing a couple of industry groups that are showing intriguing strength after tough down periods.

Overall, we think trimming your stocks makes sense. Get rid of any stocks that break down, and taking some partial profits in winners is also a good idea. On the buy side, we’d keep it relatively light for now—it’s fine to take a small position or two, but you should be discerning given the market’s wobbles.

The market has gotten off to a fast start so far in 2018, with the big-cap indexes rising sharply (small-caps less so) and many individual stocks (including some of last year’s leaders that rested for the past five weeks) doing the same. That keeps the trends pointed up, so you should remain bullish.

Walt Disney Company (DIS) has its fingers in every corner of the entertainment business.

The headline-making meltdown in U.S. stock markets on Wednesday, when the Dow fell 3.2% and the S&P shed 3.3%, made it clear that investors aren’t just worried about emerging markets.

Ahead of a big week for the market, the S&P 500, Dow and Nasdaq all rose marginally last week.

While most active managers fail to beat their benchmarks, this hedge funder consistently knocks his investments out of the park. Here’s how.

0DTE options, or 0-days-to-expiration options, are highly risky, but if you’re planning on trading them there’s one risk you may not be considering.

Trim your sails. The market’s recent slide has cracked the intermediate-term uptrend, and while the overall bull market is still intact, chances are the market is going to need some time to correct and consolidate going forward.

You may be the kind of person who automatically genuflects when the name of Warren Buffett is mentioned, or not. My opinion of him has varied over the years. In my youth, I just couldn’t understand why someone who obviously doesn’t care about money would devote his life to making more of it. These days, knowing how little he is leaving to his family members and how little he even cares about which philanthropies will benefit from his wealth, I think I understand him a little better.

It’s important to pick your spots on the buy side—waiting for good entry points, going with stocks that have shown great buying during the past month.