Category: Stock Markets 2014
The analysis published under this category are as follows.Friday, June 27, 2014
Nothing Threatens This Stocks Bull Market / Stock-Markets / Stock Markets 2014
Michael A. Robinson Writes: With U.S. stocks at all-time highs, folks are wondering where prices can go from here. After all, U.S. growth is still anemic, the Federal Reserve is rolling back its market assistance and corporate profits aren’t all they could be.
Granted, there will be periodic corrections and unpleasant events that will “shock” the markets into temporary downturns.
But I believe the conditions now in place could foster a bull market that could last 18 to 20 years.
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Thursday, June 26, 2014
Bad GDP Data? Stock Market Doesn’t Care / Stock-Markets / Stock Markets 2014
Today’s 3rd Estimate of Q1 GDP shocked to the downside, but the GDP is backward looking, and the market couldn’t care less. The S&P 500 hit its -0.13% intraday low two minutes into the session and then began its fairly steady recovery to its 0.56% intraday high about 15 minutes before the close. A bit of selling in the final minutes trimmed the gain to 0.49%. The index is now a mere 0.17% off its record close on Friday.
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Thursday, June 26, 2014
Stock Market Right Back Up... / Stock-Markets / Stock Markets 2014
A reversal to the reversal. Why not. When all seemed ripe for big selling we didn't see any today, although we tried early on for sure. A small gap down that had a chance to at least run somewhat lower. No large gap down suggested today wouldn't be terrible, which I spoke about early on in the morning update, but there was hope that we could move lower throughout the day. It just didn't happen. Why? Hard to say other than the usual. Folks are still looking to buy when there's some decent weakness, and in this market, weakness is about 1% lower.
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Wednesday, June 25, 2014
Stock Market Down Day with Increased Volatility / Stock-Markets / Stock Markets 2014
Courtesy of Doug Short. Yesterday I pointed out that the last two S&P 500 sessions had the second and third smallest intraday ranges in two decades. Well today that changed. The intraday range (0.28% to -0.73%) increased to 1.02%, which is the 72nd percentile of the year so far. The index closed off its late-day low for a decline of 0.64%.
With tomorrow’s Durable Goods Orders and the 3rd Estimate of Q1 GDP (which is expected to be revised downward), we may see some additional volatility.
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Monday, June 23, 2014
Stock Market at a Minor Top? / Stock-Markets / Stock Markets 2014
Current Position of the Market
SPX: Very Long-term trend - The very-long-term cycles are in their down phases, and if they make their lows when expected, there will be another steep decline into late 2014. However, the Fed policy of keeping interest rates low has severely curtailed the full downward pressure potential of the 40-yr and 120-yr cycles.
Intermediate trend - May be tracing out an ending diagonal pattern.
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Sunday, June 22, 2014
Stock Market Primary III Wave Continues / Stock-Markets / Stock Markets 2014
The bull market made news highs this week, after the FOMC meeting, statement, and press conference. For the week the SPX/DOW were +1.3%, the NDX/NAZ were +1.0%, and the DJ World index was +1.0%. On the economic front positive reports continue to outpace negative ones. On the uptick: the NY/Philly FED, industrial production, the NAHB, the CPI, leading indicators, and weekly jobless claims improved. On the downtick: housing starts, building permits, and the WLEI. Next week we get reports on Q1 GDP, Personal income/spending, and the PCE.
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Sunday, June 22, 2014
Stock Market Complacency - Quiet Quad Witch / Stock-Markets / Stock Markets 2014
Today was a quad witch in stock option expiration and the day was very quiet with low volatility.
Next week there is not much in the way of new economic news, with the third iteration of 1Q GDP coming out.
Saturday, June 21, 2014
Stock Market Rally Refuses to Die / Stock-Markets / Stock Markets 2014
I'll keep this brief this weekend as there really is very little, if anything, to add to what I have been talking about for weeks, if not months. The market is somehow finding a way to hang in there against all the odds. The froth and greed are ramping higher by the day as the market hangs tough. Yet, through all this greed and froth the market doesn't fall. It should get crushed, yet it doesn't. We have had exceptions to the rule historically. In the bear market of 2007 we had a bull-bear spread of -22%. Maybe we need +50 this time to get a top in. No one knows, but in the end, it's always about one thing in the short-term and that one thing, of course, is price. Nothing else. PRICE! What is price doing and how are those oscillators responding is all we care about. Nothing else.
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Friday, June 20, 2014
Is VIX Beckoning The Stock Market Bear? / Stock-Markets / Stock Markets 2014
The FOMC issued guidance at its Wednesday policy meeting to the effect that interest rates would remain low into the foreseeable future. It further lowered the pace of its monthly asset purchases by $10 billion to $35 billion per month. The Fed also said it expects the unemployment rate to range between 6.0% and 6.1% for the rest of the year, which is slightly lower than its previous projection.
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Tuesday, June 17, 2014
Stock Market SP500 Looking For 2000 / Stock-Markets / Stock Markets 2014
S&P500 accelerated to the upside this month with increasing volume and momentum. In fact, move from 1858 is very strong, so based on personality we think it was wave three of a five waves in progress in blue wave (5). As such, we expect even more upside in coming days; market may reach levels around 1980/2000.
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Tuesday, June 17, 2014
Stock Market Fractional Gain to Start the Week / Stock-Markets / Stock Markets 2014
Courtesy of Doug Short:Against the backdrop of conflict in Iraq, this morning’s economic news was upbeat. The Empire State Manufacturing Index surprised to the upside and the Fed’s much broader Industrial Production series also beat expectations. The S&P 500 hit its -0.27% intraday low seconds after the opening bell. I then did sine wave during the first half of the day making nearly equidistant arcs below and above Friday’s closing price. The trading range tightened in the afternoon, and a dip into the red early in final hour created a bit of suspense for market watchers. But the index quickly recovered and closed the day with a modest 0.08% gain.
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Tuesday, June 17, 2014
Stock Market Grinding / Stock-Markets / Stock Markets 2014
The worst possible scenario is upon is for now. Grinding is not necessarily a precursor to a large move lower, which we know has to come to unwind froth. Grinding can last an incredibly long time and frustrate everyone. Markets are very good at that as we know all too well these past few months. We are grinding because we are full in terms of bulls, but we are seeing fear in the hearts of bears as shorting has not worked for them for quite some time. I guess you could say they're tired of being burned over and over again. Who can blame them. The bears need a bit of bravery to get the ball rolling down. Without any real bad news out there regarding our economy, and with the Fed Yellen reassuring everyone they're in control, thus, no worries needed, it's hard for the bears to find that bit of bravery they so sorely need.
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Monday, June 16, 2014
Stock Market Short-Term Uncertainty, Is Correction Over? / Stock-Markets / Stock Markets 2014
Briefly: In our opinion speculative long positions are still favored (with stop-loss at 1,910, S&P 500 index).
Our intraday outlook is neutral, and our short-term outlook remains bullish:
Intraday (next 24 hours) outlook: neutral
Short-term (next 1-2 weeks) outlook: bullish
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish
Monday, June 16, 2014
Stock Market Minor Correction Underway / Stock-Markets / Stock Markets 2014
Current Position of the Market
SPX: Very Long-term trend - The very-long-term cycles are in their down phases, and if they make their lows when expected, there will be another steep decline into late 2014. However, the Fed policy of keeping interest rates low has severely curtailed the full downward pressure potential of the 40-yr and 120-yr cycles.
Intermediate trend - May be tracing out an ending diagonal pattern.
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Saturday, June 14, 2014
Stock Market SPX Uptrend to Resume Shortly / Stock-Markets / Stock Markets 2014
After hitting an all time high right at the OEW 1956 pivot at noon Monday, the market went into pullback mode for the rest of the week. For the week the SPX/DOW were -0.8%, the NDX/NAZ were -0.4%, and the DJ World index lost 0.3%. On the economic front, positive reports edged out negative ones for the week. On the uptick: business/wholesale inventories, retail sales, export prices, the monetary base, plus the budget deficit improved. On the downtick: the PPI, the WLEI, consumer sentiment, plus weekly jobless claims rose. Next week should be a busy one. Besides the FOMC meeting Tues/Wed, we have Options expiration Friday, plus reports on Capacity utilization and Housing. Best to your week!
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Saturday, June 14, 2014
Stock Market Ugly Weekly Charts...Still No Reversal.....Froth Remains Extremely High.. / Stock-Markets / Stock Markets 2014
The market is trying to find a way to hang in there. Yes, there was a bit of selling this week, but not much to talk about. Not nearly as much as many would expect considering how many problems the market is currently facing. The bears are somewhat in disbelief that the market hasn't fallen under the weight of froth alone. Gap downs get bought up. The bears are acting almost fearful of getting involved due to the markets inability to find sellers when things look really bad for the bulls. So, the week came and went, and in the end, the bears feel a drop better about things, but I don't think they feel satisfied. Maybe fearful, but definitely not satisfied.
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Saturday, June 14, 2014
Stock Investors Worry about the Second Quarter, Q1 is History / Stock-Markets / Stock Markets 2014
Here is what we know.
The economy has been slowing since last fall, when the impressive 3rd quarter GDP growth of 4.1% slowed to only 2.6% in the fourth quarter.
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Friday, June 13, 2014
Stocks Bull Market Topping / Stock-Markets / Stock Markets 2014
The US stock markets’ Fed-driven melt-up has accelerated again in recent weeks, with a string of new nominal record highs. This has reignited truly extraordinary levels of greed, euphoria, and complacency. But for traders who have witnessed past bull toppings, there is an ominous sense of deja vu. It turns out this past year’s strong stock-market action nearly perfectly matches that leading into the last bull-market top in 2007.
This shouldn’t be surprising at all, as topping signs abound. The flagship S&P 500 stock index (symbol SPX, but trades as the mighty SPY ETF) has blasted an astounding 188.4% higher in the 63 months since today’s cyclical bull was born in despair in March 2009. For the second half of this entire duration, the last 32 months, the SPX and SPY have not seen a single 10%+ correction. This has bred euphoria.
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Friday, June 13, 2014
Stock Market Volatility Grinds to a Halt / Stock-Markets / Stock Markets 2014
There is uneasiness across a number of markets with moment-to-moment volatility grinding almost to a halt. It contributes to a feeling that this is the calm before a storm. It is not unusual for there to be a summer lull, or for one market to suffer disinterest relative to another, but the current situation across the whole range of capital markets should be a major concern.
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Thursday, June 12, 2014
Stock Market Pause In A Trend Or Topping Pattern? / Stock-Markets / Stock Markets 2014
Briefly: In our opinion speculative long positions are still favored (with stop-loss at 1,910, S&P 500 index).
Our intraday outlook is neutral, and our short-term outlook remains bullish:
Intraday (next 24 hours) outlook: neutral
Short-term (next 1-2 weeks) outlook: bullish
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish