The evidence that inflation Is slowing Is mostly circumstantial.
For many traders this new reality has clashed with their entrenched understanding of risk.
Use it to your advantage or don't use it at all.
If you are looking at individual stocks you have to be wondering when the 'value' buyers will go to work.
We have, for lack of a better term, what acts to be a 'broken' market - both ways - because the volume is so thin.
This week is do-or-die for the market, as the bear and bulls continue their tug of war.
For several years, nobody listened to those of us who actually did know that there was a fairer way to treat the public.
It can be disturbing to see various names lose value quickly on no news, but here is a method to take advantage of such moves.
The market needs strong follow-through to prove that it is returning to health -- and we are not seeing that yet.
We are probably tuning up for a run right back to 2800 in the S&P 500 over the rest of the week.
I'm still optimistic about a decent rally before the end of the year.
There is no question this is dramatic and ugly action. The big question is what do we do at this point?
The retail sector is battered right now and that might be good news for stock pickers.
Biotech ETFs could mitigate risk amid the sector's volatility, and names such as Exelixis, ANI Pharmaceuticals and Progenics hold promise.
A debit call spread is one way to play the ETF; we also check in on Tesla and Weight Watchers.
If this train wreck happens, it could combine the worst elements of the last four stock market crashes.
Smaller stocks had outperformed large-caps for much of 2018, but now find themselves down for the year to date after a tough couple months.
It is the sort of negativity that produces capitulation.
One way to generate stable income and protect against rising interest rates is through a bond ladder.
There have been some solid earnings reports, but they haven't provided a boost to the broader market.
The biggest risk right now is the yuan level versus the dollar.
The Federal Reserve should, but likely won't, stop hiking rates before it inflicts more economic damage.
The other involves taking advantage of late-day rebalancing by ETFs.
Big-picture concerns are intensifying selling pressure, which favors bargain hunters in search of individual stocks.
After recent liquidation, it seems the risk-reward is on the downside for the dollar and U.S. bonds.
The analysis of time clusters is a key ingredient in anticipating when to make a trade.
I have geared my Transports allocation toward the rails this year.
The Dow Industrials in particular produced a solid spurt higher, but the average stock has underperformed the indices.
The market is anticipating higher rates and some inflation and that likely will matter at some point, but not yet.
Apply the lessons of that boring trading year to today's market.