Category: Stock Markets 2016
The analysis published under this category are as follows.Thursday, May 12, 2016
Investing 101: Be Patient When Markets Are Looking For A Trend / Stock-Markets / Stock Markets 2016
There is nothing as powerful as a market that is trending. Think of the U.S. stock market in 2013/2014, or gold in 2010/2011. For short sellers, the crude oil market in 2015 was a wet dream.
What we currently see, however, is a neutral market. There is no trend, and that is by far THE most difficult thing to deal with, at least for the majority of investors. In a trendless environment, investors feel the need to “do something”. When you think about logically, you will conclude that it is better to give trendless markets time so they can choose a direction. While that is correct in theory, it appears not as simple in reality. Does that sound familiar?
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Wednesday, May 11, 2016
BBC Global 30 Index signalling That Stocks Bull Market is Not Over / Stock-Markets / Stock Markets 2016
All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved. Sun TzuThis index gives one an idea of how the global economy is doing; it combines the economic information of 30 of the world’s largest companies. If it is faring badly, then it’s a signal that the global economy is not holding up well.
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Wednesday, May 11, 2016
CBOE Stock Market Volatility Index / Stock-Markets / Stock Markets 2016
The VIX gave up 0.98 points last week to close at 14.72 after peaking on the expected short-term cycle high on Wednesday. Since March, the VIX has been turned back by resistance at 16.40 several times highlighting the importance of this level. A breakout from 16.40 will be very bearish for equities. Last Friday was an expected 34-day cycle low. The weekly Coppock is very oversold warning of a tradable rally in the VIX (bearish equities).
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Tuesday, May 10, 2016
SPX May Have Fulfilled its Retracement Requirements / Stock-Markets / Stock Markets 2016
SPX has challenged its hourly mid-Cycle resistance at 2078.02 and pulled back. It has now completed 94 hours at 1100 hours from the April 20 high at 2111.04. An interesting Cycle measure comes up here. It is 3.1416 X 30 hours = 94.25 hours. This suggests the rally may be over at or near 1115 hours. The European market closes at 1130, so there may be some linkage between markets.
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Tuesday, May 10, 2016
Stock Market Dance.....Stochastic's Favorable... / Stock-Markets / Stock Markets 2016
The market has pulled back from very overbought conditions and has done so in a way that has allowed all the daily RSI's on the key index charts to unwind to oversold. While not always the case, when that does happen in an existing bull market the trend usually heads back to the up side. Not always as you can stay oversold, such as what happened in January, but that is rare.
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Monday, May 09, 2016
Stock Market Next Leg Down / Stock-Markets / Stock Markets 2016
SPX turned down minutes after 10:00 am, completing exactly 86 hours in its reversal pattern (waves 1-2) off the April 20 high. This is encouraging, since it implies an order in the timing of the waves.
The next segment (Waves 3-4) may take 30.1 hours, suggesting the next retracement high may be near noon on Friday. The final decline (wave 5) may take 12.9 hours, taking a total of 43 hours from this morning’s high and likely to end near 11:00 am on Tuesday. The total decline from top to bottom may take 129 hours, or near 18.5 days (4.3 squared).
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Monday, May 09, 2016
Is The Most Hated Stocks Bull Market Ready to Crumble? / Stock-Markets / Stock Markets 2016
"A young man is a theory; an old man is a fact." ~ Edgar Watson Howe
The first answer that comes to one's mind is yes, as this economic recovery has been nothing but an illusion. The unemployment rate might have dropped, but the way the BLS (Bureau of Labour Statistics) calculates this figure is questionable at best. They conveniently do not include individuals who have stopped looking for a job in their calculation. Mind you, many of these people stopped looking for a job; not because they no longer want to work, but after trying a countless number of times without success, they simply gave up and assumed they would never land a job. The majority of the new jobs created are low paying jobs and in many cases, they are only part time jobs.
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Monday, May 09, 2016
Stocks Extended Their Short-Term Downtrend But Will They Continue Lower? / Stock-Markets / Stock Markets 2016
Briefly: In our opinion, no speculative positions are justified.
Our intraday outlook is neutral, and our short-term outlook is neutral. Our medium-term outlook remains bearish, as the S&P 500 index extends its lower highs, lower lows sequence:
Intraday outlook (next 24 hours): neutral
Short-term outlook (next 1-2 weeks): neutral
Medium-term outlook (next 1-3 months): bearish
Long-term outlook (next year): neutral
Sunday, May 08, 2016
Stock Market First Support Level Tested / Stock-Markets / Stock Markets 2016
Current Position of the Market
SPX Long-term trend: The beginning of a lengthy correction is most likely underway!
SPX Intermediate trend: Correcting.
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 discuss longer market trends.
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Sunday, May 08, 2016
American Billionaire Warns To Get Out of the Stock Markets and Run To Gold / Stock-Markets / Stock Markets 2016
Billionaire trader, Stanley Druckenmiller, recently stated that the current situation in the global economy is similar to the situation on the eve of the crisis of 2008.
At the Ira Sohn Investment Conference in New York, he said, “The bull market is exhausting itself… The Fed has borrowed from future consumption more than ever before. It is the least data dependent Fed in history. This is the longest deviation from historical norms in terms of Fed dovishness than I have ever seen in my career.”
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Sunday, May 08, 2016
SPX Downtrend Probably Underway / Stock-Markets / Stock Markets 2016
The week started out at SPX 2065. After a higher open and rally to SPX 2083 on Monday the market sold off for the rest of the week. Aided by two gap down openings the market hit SPX 2039 on Friday. Then it rallied to end the week at SPX 2057. For the week the SPX/DOW lost 0.30%, and the NDX/NAZ lost 0.55%. Economic reports for the week were mixed. On the downtick: ISM manufacturing, the ADP, monthly Payrolls, Q2 GDP est., and weekly jobless claims increased. On the uptick: construction spending, factory orders, ISM services, consumer credit, long term investor sentiment, and the trade deficit narrowed. Next week’s reports will be highlighted by the PPI, Retail sales, and Business/Wholesale inventories.
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Saturday, May 07, 2016
Poor Jobs....Daily Stochastic's Oversold......2043 Breaches But Holds.....Shocker! / Stock-Markets / Stock Markets 2016
Another interesting bull-market day as there still seems to be nothing that can take this market down with any force. As a reminder, I have spoken about how we still haven't seen any major distribution off tops on any of the key, daily index charts. That's the first big hint that something bad is beginning to take place.
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Saturday, May 07, 2016
SPX, NDX Reversal Pattern Has Formed / Stock-Markets / Stock Markets 2016
An impulse-with-retracement (reversal pattern) appears to be in its final formation. The retracement may go to mid-cycle resistance at 2066.99 before resuming the decline, but may be stopped at the 4.5-year trendline. This is a perfect setup for a flash crash to begin on Monday.
The NDX formed a 9-wave decline (impulsive), so it is in agreement with the SPX.
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Saturday, May 07, 2016
Stock Market ‘Counter Trend Rally’ is Now Completing! / Stock-Markets / Stock Markets 2016
Last Friday, April 29th, 2016, the U.S. Indexes were very bearish as price clearly broke below the 20 day moving average then rebounded back up to test that level and was rejected and sold into.
The chart below shows the market bullish and bearish momentum and price action. The momentum of these markets has now shifted away from being ‘bullish’. It is currently struggling to find support and hold up. Do not expect new highs on the SPX and I feel its beginning its ‘bearish reversal’ (topping phase) before making a new leg down.
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Friday, May 06, 2016
Stock Market Critical SPX Support May be Lost / Stock-Markets / Stock Markets 2016
SPX declined beneath both the 50-day Moving average at 2043.67 and the December close at 2043.74. This may be a lethal combination for the bulls, since both are critical supports to lose and may not be regained.
ZeroHedge reports, “Well that escalated quickly.. After 3 VIX-smash saves this week, the selling pressure won (for now) as a dead-cat-bounce after the dismal jobs data has sent S&P 500 back into the red for 2016 (joining Nasdaq and Small Caps) with Dow and Trannies getting close...
The bounce is dead...”
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Friday, May 06, 2016
US Jobs Report punches SPX beneath the 50-day Moving Average / Stock-Markets / Stock Markets 2016
The SPX Premarket appears to have fallen beneath the 50-day Moving Average.
The mover is the huge monthly payrolls miss. ZeroHedge reports, “It appears that the Fed is now officially "one and done" because the only indicator that until recently "confirmed" a "strong recovery", non-farm payrolls, just had a major stumble.
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Thursday, May 05, 2016
Stocks Extended Their Short-Term Downtrend But Will They Continue Lower? / Stock-Markets / Stock Markets 2016
Briefly: In our opinion, no speculative positions are justified.
Our intraday outlook is neutral, and our short-term outlook is neutral. Our medium-term outlook remains bearish, as the S&P 500 index extends its lower highs, lower lows sequence:
Intraday outlook (next 24 hours): neutral
Short-term outlook (next 1-2 weeks): neutral
Medium-term outlook (next 1-3 months): bearish
Long-term outlook (next year): neutral
Thursday, May 05, 2016
Stock Market Holding On By A Thread... / Stock-Markets / Stock Markets 2016
The Nasdaq has long ago broken down below all key, exponential moving averages. Bad action there, but this has been an S&P 500 bull market for the most part the last year plus. The Nasdaq has been performing poorly due to those higher beta, higher P/E stocks the big money wants nothing to do with. Priceline Inc. (PCLN) was down 100+ today on their earnings report. No mercy anywhere if you have higher P/E stocks. The big boys and girls want lower beta. They want lower P/E and they want lower risk.
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Wednesday, May 04, 2016
Dow Stocks Bull Not Ready to Crash Yet / Stock-Markets / Stock Markets 2016
Have patience. All things are difficult before they become easy. SaadiOkay, okay, we have heard it before; this market should crash, everything is fake, etc. We are as we have spoken many times over the past two years in a new paradigm. Reality is being recreated; this entire economic recovery is a hoax but despite this, the markets have soared higher. What gives? If you manipulate the data, you can control the outcome, and that’s what has been done throughout this so-called economic recovery phase. Hence, there is no point in looking at the markets through old lenses, because the playing field has changed. The only thing you can focus on now is price and market psychology.
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Wednesday, May 04, 2016
Stocks may "cut loose" after supports are passed / Stock-Markets / Stock Markets 2016
SPX took all morning to successfully decline through the 4.5-year trendline and retest it. There are two probable paths it may take from here. First, it may complete an impulse at the 50-day Moving Average at 2037.73 and retest the trendline again. Or it may break the 50-day support and 2-hour cycle Bottom at 2026.17 while continuing its decline, as the Wave structure in the chart implies.
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