Category: Stock Markets 2014
The analysis published under this category are as follows.Monday, May 12, 2014
SPX Stocks Index Stalls Beneath Its Peak / Stock-Markets / Stock Markets 2014
What if SPX does not make a new high? This is my Wave Structure going into the weekend. The Dow made a new high today, but so far the SPX has not. This is indicative of (a defensive) rotation into the Blue Chips out of the momentum stocks.
What is interesting is that today is a highly charged Pivot Day. Should we see a turn down today or tomorrow without making a new high in SPX, we may see a setup for an explosive move to the downside.
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Monday, May 12, 2014
Stock Market Support and Resistance Levels / 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 (after this bull market is over), 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 - Probably tracing out an ending diagonal pattern.
Analysis of the short-term trend is done on a daily basis with the help of hourly charts. It is an important adjunct to the analysis of daily and weekly charts which discusses the course of longer market trends.
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Monday, May 12, 2014
Stocks Continue To Fluctuate, Will They Trend Up Or Top Out? / Stock-Markets / Stock Markets 2014
Briefly: In our opinion speculative long positions are still favored (with stop-loss at 1,850, S&P 500 index).
Our intraday outlook is bullish, and our short-term outlook remains neutral:
Intraday (next 24 hours) outlook: bullish
Short-term (next 1-2 weeks) outlook: neutral
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish
Monday, May 12, 2014
Stock Market on the Brink of a Sharp Correction? / Stock-Markets / Stock Markets 2014
In today's post I'm going to make the case for stocks moving down into a sharp correction over the next 4 weeks.
To begin we need to examine the last two intermediate cycles. Normally an intermediate cycle will run roughly 22 weeks. Well in our case the last two cycles were both stretched to 32 weeks by the Fed's QE3 programs. As you can see in the next chart both intermediate cycles had 4 smaller daily cycles embedded within them. This is pretty unusual as most intermediate cycles only have 2 or 3 daily cycles nested within. The market is now in desperate need of a short cycle to balance out these two long cycles.
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Monday, May 12, 2014
Stock Market Topping - The Commodities Inflation Has Begun / Stock-Markets / Stock Markets 2014
Just like the topping process in 2007/08 the rotation of inflation out of the stock market and into the commodity markets has begun.
Notice that since the first taper in December the stock market has stagnated and gone basically nowhere for the last 4 months. During that period inflation has begun to leak into the commodity markets. This is the same process that occurred as stocks topped in 2007/08.
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Sunday, May 11, 2014
Why the Stock Market Could Rise 74% in the Next Three Years / Stock-Markets / Stock Markets 2014
Marc Lichtenfeld writes: We had a bit of a scare in the markets last month. At one point, the S&P 500 fell more than 4%, causing some permabears to proudly proclaim that the "bubble" had burst.
Of course, they're not quite so vocal now that the market has rebounded and is back within 1% of its all-time high.
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Sunday, May 11, 2014
Why Hedge Funds Became Endangered Species / Stock-Markets / Stock Markets 2014
Long Illnesses End That Way
The history of the hedge funds isn't written. Attempts at explaining how they started always focus the late-1960s “fluttering heartbeat of modern capitalism”. Stock price volatility increased, and prices started declining, sometimes by a lot, as economic growth declined and inflation rose in several G7 countries. This is the 'classic explanation' why the funds emerged. The London Gold Pool panic of March 1968 is often cited as a key tipping point and date. After that, hedge funds had a rationale!
Saturday, May 10, 2014
More Upside Still Expected For Stocks SPX/SPY Before Aggressive Sell off / Stock-Markets / Stock Markets 2014
SPY
A new week, same outcome.
This seems to be same message every week, up down up down, if you are getting dizzy because of this price action you are not alone with those thoughts. I suspect the market is still currently in an ending diagonal for what I think is a 5th wave to complete a larger 5 wave advance from the Oct 2011 lows.
Saturday, May 10, 2014
Stock Market Awaits the Nasdaq / Stock-Markets / Stock Markets 2014
The US markets spent the entire week in a narrow range of SPX 1860 to 1889, which occurred between 10am Wednesday and noon Thursday. The low, in fact, was hit just before FED chair Yellen addressed Congress, and the high occurred right after she addressed the Senate. For the week the SPX/DOW were mixed, the NDX/NAZ were -1.1%, and the DJ World was -0.3%. Economic reports for the week were all positive: ISM services, consumer credit, wholesale inventories, the WLEI, the M1-multiplier, plus the trade deficit and weekly jobless claims improved. Next week we get Retail sales, the CPI/PPI, and the NY/Philly FED.
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Saturday, May 10, 2014
Stock Market Seesaw...Chop...Handle...Lateral...All The Same...Nauseating... / Stock-Markets / Stock Markets 2014
We can come up with many different ways to explain 2014. All the words in the title apply, and all those words equate to massive frustration for the average trader out there who hasn't been washed out of the game from the decline in froth stocks. Many have gone away, but those still surviving can't make sense of anything and are playing on emotion, which is never a good thing for the wallet. The market had the usual two days today wrapped in a single session with the S&P 500 near a break down and then near a break out.
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Saturday, May 10, 2014
Stock Market Small Daily Gain, Small Weekly Loss / Stock-Markets / Stock Markets 2014
Courtesy of Doug Short: The big market news today was the Dow’s achievement of record closing high. My preferred market gauge, the S&P 500, closed with a modest 0.15% gain but was down 0.14% for the week. The index tracked its futures and opened lower, hitting its -0.46% intraday low in the opening minutes. It struggled into weak positive territory during the lunch hour, oscillated around yesterday’s close to finish with at its intraday high.
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Saturday, May 10, 2014
Watch for Stock Market Sell Signals / Stock-Markets / Stock Markets 2014
SPX reversed back down beneath Short-term resistance at 1876.23. The balance of all the supports are just beneath this morning’s low at 1867.02. The Ending Diagonal Trendline is at 1865.00. Either the supports or the trendline may be used as the “sell signal.” Take your pick.
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Friday, May 09, 2014
Major Stock Market Selloff Looms / Stock-Markets / Stock Markets 2014
A major selloff is brewing in the lofty US stock markets, which have been grinding sideways for a couple months now. Momentum has faded despite selective positive earnings-season news and Janet Yellen’s jawboning. Stocks remain very overvalued, way too expensive for prudent investors to buy. And it’s been far too long since their last necessary and healthy correction to rebalance sentiment, so one is seriously overdue.
Last year’s extraordinary stock-market levitation has run out of steam. In the 15.7 months leading into early March 2014, the flagship S&P 500 stock index blasted 38.8% higher! Capital indiscriminately flooded into stocks regardless of fundamentals or valuations because the Federal Reserve was doing its darnedest to convince traders that it was effectively backstopping the stock markets. This bred extreme complacency.
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Friday, May 09, 2014
Two Worlds Collide: Financial and Political Manipulation Accepted / Stock-Markets / Stock Markets 2014
"Federal Reserve policy is at a crossroads facing unpleasant paths in all directions. Monetary policy around the world has reached the point where the contradictions embedded in years of market manipulation have left no choices that do not involve either contraction or catastrophic risk. Further monetary easing may precipitate a loss of confidence in money; policy tightening will restate the collapse in asset values that began in 2007. Only structural change in the U.S. economy, something outside the Fed's purview, can break this stalemate." [1] [The Death of Money: The Coming Collapse of the International Monetary System (2014) James Rickards]
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Thursday, May 08, 2014
Stock Market Critical Thinking / Stock-Markets / Stock Markets 2014
Dr. Steve Sjuggerud writes: Yesterday, I shared the "secret" to my success...
As I explained, this secret is not hard to understand or to put into action. And it works in both the markets and in life.
In short, the idea is to boil things down to the "One Critical Thing" – and invest accordingly.
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Thursday, May 08, 2014
Stock Market Indices Overbought, Ready to Decline / Stock-Markets / Stock Markets 2014
It seems like déjà vu all over again in the SPX. Today is a Trading Cycle Pivot day, so we should see a reversal very soon. The numerical pivot is 210.7 and today is day 211, so I don’t expect to see the retracement last.
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Thursday, May 08, 2014
Stock Market At Important Resistance - Will Uptrend Continue? / Stock-Markets / Stock Markets 2014
Briefly: In our opinion speculative long positions are still favored (with stop-loss at 1,850, S&P 500 index).
Our intraday outlook is bullish, and our short-term outlook remains neutral:
Intraday (next 24 hours) outlook: bullish
Short-term (next 1-2 weeks) outlook: neutral
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish
Thursday, May 08, 2014
Stock Market Wednesday Bounce / Stock-Markets / Stock Markets 2014
Courtesy of Doug Short: The US market faced a mix of news today: 1) The Nikkei plunged 2.93%, marking its first YoY decline since late October 2012, 2) Yellen testified before the Joint Economic Committee, and 3) Putin signals readiness to ease on Ukraine. The S&P 500, prompted by positive futures, opened higher but quickly sold off to its -0.42% intraday low. Thereafter Yellen’s testimony and some toning down of “Putinism” led the index higher in a couple of waves. It ended the day with a 0.56% gain, just fractionally off its 0.59% intraday high in the closing minutes.
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Thursday, May 08, 2014
Stock Market Bifurcation....Boredom....Froth Slaughtered....Sentiment Worsening Again... / Stock-Markets / Stock Markets 2014
When will the bifurcation end is the big question. The bigger question beyond that is when will the bifurcation cause a massive down move because bifurcation shows an unhealthy environment that usually leads to an entire market breakdown. That said, you see it and adapt. Maybe the bear market, which is occurring currently in froth stocks, will be all there is in terms of the correction. I'm waiting for the S&P 500 to lose its 50-day exponential moving average, but it hasn't yet and until it does the forecast remains dreary for froth and the Nasdaq, but partly sunny still for the S&P 500 and Dow.
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Wednesday, May 07, 2014
Stock Market Experiences A Bit of May Selling / Stock-Markets / Stock Markets 2014
Courtesy of Doug Short: Tuesday was a light day for economic news. The trade balance for March was down slightly more than expected, but not enough to contribute significantly to the Second Estimate of Q1 GDP. The S&P 500 opened fractionally lower and sold off to about the 1876 level, which provided support until after the lunch hour. It then sold off to a lower level and accelerated its losses in the final 20 minutes. The index closed at it -0.90% intraday low.
The popular press (e.g., Bloomberg and CNBC), always eager to explain the market, attributed today’s bad mood to AIG’s weak earnings, its stock losing 4.14%, and Twitter, its stock plunging 17.81% after a lockup expiration.
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