Category: Stock Index Trading
The analysis published under this category are as follows.Friday, October 30, 2009
The Recession Has Ended! Has the Stocks Bull Market Also? / Stock-Markets / Stock Index Trading
The Great Recession has ended. Halleluiah! It was the worst recession in many ways since the Great D. Just imagine. After four straight negative quarters the economy recovered in the third quarter. Not only did it recover, but GDP rose 3.5% in the third quarter, even more than the consensus forecast of a gain of 3.2%.
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Friday, October 30, 2009
Rydex Stock Market Timers Bailing Out / Stock-Markets / Stock Index Trading
Figure 1 is a daily chart of the S&P500 with the amount of assets in the Rydex Money Market Fund in the lower panel.
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Friday, October 30, 2009
Can U.S. Q3 GDP re-ignite the S&P Rally? / Stock-Markets / Stock Index Trading
The Technical Trader’s view:
WEEKLY CHART
Technically, in the weekly chart, the market is under some strain through the influence of the Gap resistance 1110-1077.
Thursday, October 29, 2009
Celebrating Stock Market Bears Take a Major Hit / Stock-Markets / Stock Index Trading
Yesterday we get some strong volume and blow through the 50-day exponential moving average on the Nasdaq. We fall only a bit below on the S&P 500 (4 points) and hold above it on the Dow. We didn't have all 3 major indexes trading below the 50-day exponential moving averages and that's what you want to see if you believe the market is ready for deeper selling than has already occurred. In addition, you don't want to clear by as little as we did on the S&P 500 as that's not a true breakdown. 4/10th's of 1% is not sufficient to say it's all clear for the bears.
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Thursday, October 29, 2009
Modified Faber Model Stock Market Sell Signal / Stock-Markets / Stock Index Trading
Back on June 29, 2009, I presented research that improved the efficiency of the Faber market timing model for the S&P500 by some 50%. By efficiency I meant that the new and improved model made more money with less time in the market and with less draw down. The research can be found in this article, "Inflationary Pressures Are A Legitimate Concern".
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Wednesday, October 28, 2009
Stock Market Indices Breaking Below 50 Day Averages / Stock-Markets / Stock Index Trading
That's what we did today. Actually did a little dance as we bounced off of them first, just to make the bulls feel things weren't going to get out of hand. The market had been putting in negative divergences after negative divergence for quite a few months off the March lows. As the move matured we could see each poor divergence getting larger than the one before.
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Wednesday, October 28, 2009
Stock Market Indexes Do Not Tell the Tale of Damage / Stock-Markets / Stock Index Trading
First, pardon all the trading today - some days just require it. I'm already exhausted and its only 2 PM.
Second, we've been saying the indexes are not reflecting the carnage seen "underneath" - my watch lists are full of names in the $500M to $5B market cap space which is my sweet spot, and it looks like September 2008 . Here is a sampling of what is really happening when you move away from McDonalds, IBM, Walmart, and Microsoft.
Wednesday, October 28, 2009
Perfect Setup for a Big Stock Market Correction / Stock-Markets / Stock Index Trading
Since there’s no holy grail to analyze financial markets, the best approach is an eclectic one. So I incorporate as many tools as possible in my analysis, including: Fundamental valuations, macroeconomic models, monetary and fiscal policies, interest rate developments, sentiment and momentum indicators, and chart analysis.
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Wednesday, October 28, 2009
Stock Market Trend Depends on Liquidity Inflows and Outflows / Stock-Markets / Stock Index Trading
Our Long Term Liquidity Indicator is a measurement of Liquidity Injections flowing into the market.
- Liquidity Expansion means that money inflows are at an expansionary rate which drives the market up. Decelerating Expansion is when the rate of inflows are decreasing while still net positive.
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Wednesday, October 28, 2009
Stock Market Rydex Market Timers Reminds Me Of My Own Trading / Stock-Markets / Stock Index Trading
In a show of doing the same thing over and over again or as I like to call it - hitting your head on the wall until it hurts - the Rydex market timer continues to anticipate a bounce in the market. This reminds me of my own market follies --only kidding!!
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Wednesday, October 28, 2009
Stock Market Bears Dismantling the Rally Step by Step / Stock-Markets / Stock Index Trading
That's how the bears will have to do this. There is no straight down free fall into oblivion coming to a bear market near you. Step by step as we take on each level of support. We get there and get oversold. We bounce. We fall again and we bounce Usually on the third try we get through, but we have so many levels of support close by it's hard for the bears to gain any real momentum. 1080/1074/1060/1047. An average of approximately 1% between levels of strong support. Not exactly what the bears want to deal with but that's the game we're playing here. What's truly amazing is that each level puts up such a strong fight. Not a single one just goes away on the first try. That's how strong this bull market is.
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Tuesday, October 27, 2009
Cautious on SPX Stock Market Index / Stock-Markets / Stock Index Trading
Although the equity markets really are not doing much, I feel very uptight right now. Why? Take a look at the enclosed daily chart of the S&P 500. Let's notice that today marks the third session of weakness, and the decline has pressed slightly beneath the rising 20 DMA (now at 1070) AND, more importantly, is testing -- perhaps leaning against -- the Jul-Oct up trendline (1061.80).
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Tuesday, October 27, 2009
S&P Stock Market Index Has Topped Out for the Year / Stock-Markets / Stock Index Trading
Has the S&P Index Topped Out for the Year?
There is compelling evidence that we may have seen a top in the S&P index. In my new short video, I show you the evidence that I have found which may point to the fact that we are going to see a correction in this index.
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Tuesday, October 27, 2009
Bears Trying to Break the Stocks Bull Market / Stock-Markets / Stock Index Trading
Not exactly blowing the bull's house down but trying. A start. They were successful in at least taking the S&P 500 below 1074, and they did it without a gap down, although, that is actually the weakest way to do it because there's no wall of resistance directly above. However, props to the bears for finally getting things going their way. The bulls now have to find the right tonic of news, and fast, to get this market back over the 20-day exponential moving averages and above the S&P 500 gap or they're toast for a while. A gap down tomorrow morning would put a nail in the coffin of the bulls for at least the near term. A loss of support today followed by a gap down that holds tomorrow and it'll be a short all rallies market. The bears are now more in control than the bulls so set up your trades that way.
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Monday, October 26, 2009
Stock Markets Sudden Plunge on Obama Economic Policy News / Stock-Markets / Stock Index Trading
This morning's sudden sell off on no apparent news must have the Obama economic team in a furor. After 7 months of unrelenting buying, the stock market actually went down. It was a terrifying sell off as the S&P500 lost 2% of its value in less than 60 minutes. This put the 401 k's and IRA's of average Americans at risk. Something must be wrong. What that something was wasn't readily apparent, but the economist in chief was going to get to the bottom of it.
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Monday, October 26, 2009
Stock Market Intra-Day Reversal Special Report / Stock-Markets / Stock Index Trading
Today's intraday reversal in the equities markets follows a pattern that has been established of late of selling into rallies. Key support levels have been broken to the downside and without a late day recovery a close below those levels will likely usher in a significant pullback.
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Monday, October 26, 2009
Not Inflation Or Deflation Or Even Stagflation But Speculation / Stock-Markets / Stock Index Trading
Call it what you want, the primary condition our condition is in is not inflation, or deflation, or even stagflation for that matter, although it’s much closer than the other two definitions in describing the macro. Why would the term stagflation better describe macro-conditions? Answer: Because the mature state of globalization that guarantees us a constant state of overproduction moving forward, which depresses prices, is being countered by monetary inflation, which has increased certain prices, but primarily only those under government influence, leaving the rest of the economy sluggish. And it gets worse when one realizes our fiat currency monetary system is also mature from this perspective as well, with gambling now the backbone of non-government activities within aged economies (US, Europe, etc.), which cannot go on indefinitely.
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Monday, October 26, 2009
Stock Market Hits Major Resistance at Gap / Stock-Markets / Stock Index Trading
Update on the SPY's one year gap ...
It was just a little over 1 year ago, October 3rd. of 2008, when the SPY gapped down sharply. That gapped remained open until October 15th when it was finally closed.
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Sunday, October 25, 2009
Stock Market Indicators Are Screaming SELL, But... / Stock-Markets / Stock Index Trading
Current Position of the Market
SPX: Long-term trend - Down! The very-long-term cycles have taken over and if they make their lows when expected, the bear market which started in October 2007 should continue until 2014. This would imply that much lower prices lie ahead. This will not be a straight-down decline, but will consist of a series of intermediate-term rallies and declines until we have reached the low point.
Saturday, October 24, 2009
Lateral Stock Market... Negative Divergences Abound... / Stock-Markets / Stock Index Trading
Wouldn't it be nice if the stock market would actually do something! Lateral has been the way for quite some time now. Lots of head fakes both ways but when you study things, the past month or so has seen the market grind up and down due to opposing forces from both the bullish side and the bearish side of the ledger. The bulls can talk quite a bit about what's being reported from our Government. I'm not saying they're reporting the absolute truth. I'm just saying what's being reported. Most of the economic news is favorable these days. It tells us the worst of things has passed on by.
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