I’m a creature of deeply-ingrained habits. Up at 5. Asleep at 10. Repeat. Being in a strange place, nice as it is, four time zones ahead, can throw me for a loop. That’s why I’m sitting on the floor at midnight composing a post about Monday’s index action. Trust me, being on a plane and watching the unchecked mayhem from above the Atlantic is not something I want to make a habit.
It could easily be argued, and most folks would, that the market is in a total steady-as-she-goes state of affairs, occasional tidbits of excitement like Sunday night notwithstanding. One glance at the NASDAQ 100 and its trio of moving averages shows the very picture of reliable, consistent gains with hardly a bobble in the behavior of the 50-, 100-, and 200-day exponential moving averages. Just buy it and forget it!
There continues to be some real rot under the floorboards, however. The once-mighty semiconductor index has truly slumped, and it has cut below its symmetric triangle. Incidentally, AMD, a major component, reports on Tuesday.
The Dow 20 Transportation Index also has utterly fizzled out from its bullish breakout. These charts are subtle clues that not all is as well as it may seem.
I also like the look of the Dow 15 Utility Index, which has re-entered its channel, having cut under its small reversal pattern in pink.
After all, if You from ten years ago looked at the chart below and were told it was a small company that had gone up 800% in just the past four months, you’d be curious how many forms of cancer they had cured. “Oh, no, don’t misunderstand, this is a speculative nuclear power energy firm that will provide electricity for artificial intelligence servers” You reply, “Oh, umm, well, does it at least have a really cool name?”
“Oklo!”
Anyway, I remain in a dozen bearish positions and will await the next series of federal announcements, court-blockages, retractions, shutdowns, tariffs, and delays. This is going to be chaos until further notice.
