Category: Stock Markets 2020
The analysis published under this category are as follows.Monday, February 03, 2020
Stock Market Correction Continues / Stock-Markets / Stock Markets 2020
Current Position of the Market
SPX: Long-term trend – There are no signs that the bull market is over.
Intermediate trend – Limited correction underway.
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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Saturday, February 01, 2020
Stock Market Trend Forecast Outlook for 2020 / Stock-Markets / Stock Markets 2020
The first part of my overall stock market outlook for 2020 was posted at the start of January, now here is the full analysis that concludes in an overall forecast for the Dow into the end of 2020, a gauge against which to measure relative strength or weakness as the stock market trends through the year.
This analysis was first been made available to Patrons who support my work: Stock Market Trend Forecast Outlook for 2020
So for immediate first access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $3 per month. https://www.patreon.com/Nadeem_Walayat.
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Saturday, February 01, 2020
Stock Market Combination Topping Pattern Is Setting Up / Stock-Markets / Stock Markets 2020
Our research team has highlighted a number of technical and other factors that point to a very real potential of a major market top setting up across the global markets. We’ve highlighted a number of research articles over the past 30 to 45 days that clearly illustrate our interpretation of the US and global markets.
Our research team believes the Coronavirus outbreak in Wuhan china will cripple economic expansion and consumer economic activity in China and much of SE Asia over the next few weeks and months. If the virus spreads into India, it could quickly target large portions of India’s economic capabilities. We are very early into this potential pandemic event. The growth rates reported by China suggest only a 2~3% death rate, yet an almost exponential growth rate for the number of invested. It started off below 100 about 10+ days ago and is now almost ready to break 10k.
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Thursday, January 30, 2020
Are We Setting Up For A Stock Market Waterfall Selloff? / Stock-Markets / Stock Markets 2020
Most traders understand what a “Waterfall event” is if you’ve been trading for more than 3 years. Nearly every downside price reversion event initiates in a breakdown event (the first tier of the waterfall event) which is followed by additional deeper waterfall price collapses. Almost like price breaks lower, finds support, settles near support, then breaks lower targeting deeper price support levels.
SPY Daily Chart
This example SPY chart from October 2018 through December 2018 highlights this type of event almost perfectly. With each tier in the waterfall event, price searches for new support levels as price weakness drives price lower throughout each breakdown event. We’ve highlighted these breakdown events with the MAGENTA lines drawn on this chart.
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Tuesday, January 28, 2020
Is an Accommodative Fed Bullish for the Stock Market? / Stock-Markets / Stock Markets 2020
"In 2007-2008, the Fed cut rates 10 times, but the S&P 500 still declined 58%"
Many investors heed every utterance from the Federal Reserve, hoping they hear a clue about interest rates. They assume that a fall in interest rates means higher stock prices, while rising rates will push stocks lower.
First, Elliott Wave International's research shows that the Fed follows the bond market. It doesn't lead it.
Secondly, EWI's research reveals that stock prices have risen during trends of lower and higher rates. Likewise, there have been periods of falling stock prices during trends of lower and higher rates too. In other words, there is no consistent correlation between the trends of stocks and interest rates.
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Monday, January 27, 2020
Stock Market, Gold Black Swan Event Begins / Stock-Markets / Stock Markets 2020
As the Asian markets opened on late Sunday, traders expected a reactionary price move related to the threat of the Wuhan virus and the continued news of its spread. The US Dow Jones futures markets opened close to -225 points lower on Sunday afternoon and were nearly -300 points lower within the first 25 minutes of trading. Gold opened $10 higher and continued to rally to a level above $15 higher.
If this is early price activity, or a reactionary price move, related to fear of what may come, then the warnings signs are very clear that global traders and investors believe this virus outbreak may very well turn into a major Black Swan event.
Our research team believes a 5% to 8% rotation should be considered a normal reversion range where price may find immediate support and attempt to rally from these support levels. Anything beyond 10% may set up a much bigger price reversion event, something akin to a Black Swan event. Therefore, we are advising our friends and followers to take the necessary steps to protect your wealth and assets as this move continued to extend.
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Monday, January 27, 2020
US Presidential Cycle Stock Market Trend Forecast 2020 / Stock-Markets / Stock Markets 2020
During 2019 the Dow finally breached resistance along a series of sub 28k highs of the past 2 years that propelled the Dow towards 29k.
This video is part 5 of a series of 6 that concludes in an overall trend forecast into the end of 2020.
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Sunday, January 26, 2020
Stock Market Correction Review / Stock-Markets / Stock Markets 2020
Current Position of the Market
SPX: Long-term trend – There are no signs that the bull market is over.
Intermediate trend – Limited correction underway.
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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Friday, January 24, 2020
Stock Market January 2018 Repeats in 2020 – Yikes! / Stock-Markets / Stock Markets 2020
Our research team caught a very interesting price pattern that correlates with the Put/Call ratio. We are alerting our friends and followers with this research post of this exciting, yet unconfirmed, set up today.
In late 2017, the US stock market rallied from July through December with moderately low volatility throughout this span of time. Near the end of 2017, the US stock market price activity stalled, then began a renewed price rally in early 2018 (see the first BLUE & YELLOW BOX on the chart below). Then, in January 2018, a very broad market reversion event took place which ultimately resulted in a very broad market correction in October through December 2018 of just over 20%.
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Wednesday, January 22, 2020
Stocks Rise as Zombie Companies Proliferate / Stock-Markets / Stock Markets 2020
Share prices on the major US exchanges are hitting all-time highs at the same time that both the number and percentage of companies that do not make any money at all are rising.According to the Wall Street Journal, the percentage of publicly-traded companies in the U.S. that have lost money over the past 12 months has jumped close to 40% of all listed corporations--its highest level since the NASDAQ bubble and outside of post-recession periods.
In fact, 74% of Initial Public Offerings in 2019 didn’t make any money as opposed to just 25% in 1990—matching the total of money-losing ventures that IPOED at the height of the 2000 Dotcom mania. The percentage of all listed companies that have lost money for the past three years in a row has surged close to 30%; this compares with just over 10% for the trailing three years in the late 1990s.
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Monday, January 20, 2020
Risks to Global Economy is Balanced: Stock Market upside limited short term / Stock-Markets / Stock Markets 2020
The US equity market has now risen more than 10% since the index broke the ascending triangle at 3025.
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Sunday, January 19, 2020
Stock Market Final Thrust Review / Stock-Markets / Stock Markets 2020
Current Position of the Market
SPX: Long-term trend – There are no signs that the bull market is over.
Intermediate trend – Most likely near an intermediate top.
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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Sunday, January 19, 2020
Stock Market Trend Forecast 2020 - Trend Analysis - Video / Stock-Markets / Stock Markets 2020
During 2019 the Dow finally breached resistance along a series of sub 28k highs of the past 2 years that propelled the Dow towards 29k.
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Sunday, January 19, 2020
Stock Trade-of-the-Week: Dorchester Minerals (DMLP) / Stock-Markets / Stock Markets 2020
Company profile: Company profile: This company comes from energy sector, oil &gas industry of Nasdaq. Dorchester Minerals, L.P. engages in the acquisition, ownership, and administration of producing and nonproducing natural gas and crude oil royalty, net profits, and leasehold interests in the United States. The company's royalty properties consist of producing and nonproducing mineral, royalty, overriding royalty, net profits, and leasehold interests located in 574 counties and parishes in 25 states.
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Thursday, January 16, 2020
Stock Market and the US Presidential Election Cycle / Stock-Markets / Stock Markets 2020
The US Presidential cycle pattern has proved REMARKABLY ACCURATE for 2019, where the basic pattern for the US Presidential cycle is for a strong election year and post election year, followed by weak Mid-term then a strong pre-election year which is what we saw with 2019 as the chart from my September update illustrates. That implies to expect similar strength for 2020 as we had for 2019!
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Wednesday, January 15, 2020
Acceleration Mode for Stocks Bull Train / Stock-Markets / Stock Markets 2020
Monday’s session played out as a grind-up during the regular trading hours. Price action confirmed it was finished with the high-level consolidation structure, breaking out above last week’s high of around 3287. This meant acceleration mode for the bull train per our projections of 3280/3300 and beyond. The methodical upside grind closed at the dead highs signifying resilient strength and the same old higher lows and higher highs pattern on the micro.
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Tuesday, January 14, 2020
Stock Market Final Thrust / Stock-Markets / Stock Markets 2020
Current Position of the Market
SPX: Long-term trend – There are no signs that the bull market is over.
Intermediate trend – Most likely near an intermediate top.
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, January 13, 2020
Trumpism Stock Market and the crisis in American social equality / Stock-Markets / Stock Markets 2020
I recently read that the richest 100 people in the world own more than the poorest 4 billion. This article also pointed out that the purchasing power of the average American worker has significantly diminished over the last number of decades. Case in point; in order to simply keep pace with official inflation data, using 1980 as a benchmark year, the average entry level wage in the States should be in the region of 16 dollars an hour not the current $10.00 (approx). This is not surprising, technology and the diminished power of unionised labour are exposing one of the major weaknesses of liberal capitalism: the concentration of wealth. I believe that unless this issue is resolved, particularly in the United States of America, within the next decade, we possibly could see the steady demise of all liberal institutions and a slide towards hard socialism.
The one economist who identified this fatal flaw in orthodox liberal economic theory was Maynard Keynes. He recognised that society was a social organism and unless harmony was maintained the breakdown in the social contract between the haves and haves-nots would sunder everything. He recognised the fragility of it all that was his genius. He identified that the solution to the concentration of wealth was a strong and enlightened government that understood money. To counter the inevitable concentration of wealth that capitalism promoted Keynes understood the need for the active redistribution of capital. He tried his best all his life to educate the political elite that money should not be regarded as wealth but simply as a medium of exchange. He pointed out that there was no value in a factory churning out product, if folk did not have the money to purchase what was produced. He recognised that consumption was the essence of production, not production per se. He therefore advocated high taxation on those who were rich in order to transfer purchasing opportunity to those who were poor. These transfers he believed should take the form of government supported jobs, subsidized industries, socially supported infrastructural development and welfare for those who were sick, old or infirm. These policies were actually adopted by F. D. Roosevelt through his “New Deal” to successfully end the great depression.
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Saturday, January 11, 2020
The Crazy Stock Market Train to Bull Eternity / Stock-Markets / Stock Markets 2020
Once again I have to disclaim that at the moment (and for quite some time now) I hold not one single short position, in anything. I am only long US and global stocks. But also managing cash and portfolio balance as usual while feeling as though I’m playing a game of Musical Chairs while the music still plays (nothing nearly as good as Keith’s style, which has always resonated with me beyond most others).
I have to disclaim the bull positioning because book talkers tend to talk their book. My book is only long insofar as I have equity positions because in a manic up phase I have little interest in eroding the situation with short hedging. Besides, gold stocks are doing that balancing job right now and that balancing act has been working well since June.
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Thursday, January 09, 2020
The Stock Market is the Opiate of the Masses / Stock-Markets / Stock Markets 2020
Oh sure, the days of watching Jim Cramer mash buttons on his console with his sleeves rolled up to his armpits are pretty much over.And nobody really day trades anymore, except for masochists. And, despite a 10,000-point rise in the Dow since the election, nobody seems all that happy.
But the stock market is still the opiate of the masses.
I know this because anytime I go on Twitter, the financial pundits are tweeting about stocks. They usually don’t tweet about bonds or commodities or FX. I follow one or two oddballs that tweet about volatility.
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