Saturday, August 29, 2015
The Stocks You Should Be Buying After the Market Drop / Companies / Investing 2015
Sean Brodrick writes: If you’re looking for bargains after Monday’s market sell-off, take a look at cybersecurity. Few industries got sold as hard - and yet it has the best growth prospects.
That’s due to a worldwide surge in hacking from criminals and terrorists. After all, when it’s so easy to be a hacker and get away with it, anyone who wants to will be a hacker.
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Saturday, August 29, 2015
Don't Let 'The Glidepath Illusion' Ruin Your Retirement / Personal_Finance / Pensions & Retirement
Dan Ferris writes: The traditional notion of retirement says you should take bigger risks in the stock market when you're young.
You have more time to make up for losses than when you're older. As you age, you should take less and less risk, so you won't lose your retirement money... so the conventional wisdom goes.
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Saturday, August 29, 2015
Stock Market New Range?.....Please Say It Isn't So / Stock-Markets / Stock Markets 2015
Is everyone's nightmare about to realize yet again? Unfortunately, that may be the case. We may have seen the elevator move down one flight after nearly a year of being stuck on the same floor. The repair man finally got to work, but it seems he left the building a bit too soon. He thought he fixed the problem, but after a quick fix it didn't hold. We're possibly on, yet, another broken elevator to nowhere. The old boring-to-nowhere range was understood to be at 2134 down to 2040. Now the new range may be S&P 50 1900, or thereabouts, to 2040.
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Saturday, August 29, 2015
Gold Shares Lows are Near / Commodities / Gold and Silver Stocks 2015
As most of you know, many mining companies have fallen by over 90%. The HUI Gold Bugs index has fallen 83% since its 2011 peak in the second longest bear market in gold shares on record. It's fallen twice as much as gold's bear market loss of 43%.
But looking at the next two charts, both are saying the lows may already be in.
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Friday, August 28, 2015
How I Learned to Stop Worrying and Love Market Fluctuations / InvestorEducation / Trader Psychology
Patrick Cox: Most of you know that my day job involves finding disruptive technologies for investors. Most of you also know that the stock market has recently taken a southward plunge.
When I was younger, I always wondered why big fluctuations in markets seemed to cause so many people so much anxiety and consternation. It’s not as if we don’t know that, historically, markets have always displayed big swings. Understanding this, it always seemed clear to me that a rational individual would not invest money in equities if that money might be needed in the short run.
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Friday, August 28, 2015
Stocks Bear Markets and Interest Rate Hikes, Oh My! / Stock-Markets / Stocks Bear Market
The latest bear market has arrived and the Fed will raise the fed funds rate in September. There. It is written.
The conventional ‘bear market’ assumes two things. First, the major stock indices fall 20% from their recent highs. Two, there is a market. Both of these adages are now false in the new era.
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Friday, August 28, 2015
China's Yuan Devaluation: Why It Was "Expected" / Currencies / China Currency Yuan
Why the yuan devaluation was not a "surprise" -- and what Elliott waves suggest for China's currency next
China's economy is slowing. Its stock market began to crash back in July. And, the volatility rocking financial markets has been widely linked to the recent yuan devaluations by China's central bank.
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Friday, August 28, 2015
Stocks Go Nuts But the Question Remains – Will the Rally Stick? / Stock-Markets / Stock Markets 2015
MoneyMorning.com Keith Fitz-Gerald writes: On the heels of Monday’s vicious 1,000+ point “dip” and Wednesday’s subsequent 619 point “rip ” higher, many investors are asking one question – will the rally stick?
The media certainly seems to think so:
…Relief Descends on US Stock Market with Best Rally Since 2011 – Bloomberg
…Dow, S&P Enjoy Biggest Percentage Gains in Four Years – MarketWatch
…Chinese Stock Index Jumps 5.3% as Asian Stocks Rise – Yahoo!Finance
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Friday, August 28, 2015
Fed’s Stock Market Levitation is Failing / Stock-Markets / Stock Markets 2015
The US stock markets just suffered an extraordinary plunge, shocking traders out of their complacency psychosis. This cast the foundational premise behind recent years’ incredible stock-market levitation into serious doubt. Traders are finally starting to question whether central banks can indeed manipulate stock markets higher indefinitely. Any wavering in this faith has very bearish implications for stock prices.
Less than two weeks ago, the US’s flagship S&P 500 stock index (SPX) was up above 2100. It finished August’s middle trading day just 1.3% below the latest record highs from late May. At the time, the Wall Street analysts were overwhelmingly bullish and saw nothing but clear sailing ahead. Predictions for the SPX ending this year above 2250 were ubiquitous, and retail investors were urged to aggressively buy stocks.
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Friday, August 28, 2015
The Eight Energy Systems Driving The Stock Market Rout / Stock-Markets / Stock Markets 2015
The energy systems which drove the global stock market rout have been building for months and years, and by the spring of this year, the danger flags were clearly flying. Indeed, as I wrote in May of 2015 in an analysis titled "A Financial "Perfect Storm" May Be Brewing" (link here):
"In the financial world at this very moment, we have eight different "weather systems" that are all developing in real time.
... if several of the more powerful components were to converge – and reinforce each other – then we could very rapidly reach the point of greatest financial instability that the world has seen since 2008."
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Friday, August 28, 2015
Dow Theory Transports Daily Chart Positive Development / Stock-Markets / Stock Markets 2015
For the Dow Theory enthusiast, below is a daily Transport chart as of yesterday's close. Note that it closed higher yesterday and it was above its 7700 resistance level. That was a positive.
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Friday, August 28, 2015
Silver Sold, then Squeezed / Commodities / Gold and Silver 2015
While gold consolidated its recent gains, silver was sold down this week along with other metals and energy. The whole commodity complex suffered badly in the stock-market fall-out, before a sharp bear-squeeze across commodity markets pushed silver, copper and oil sharply higher yesterday (Thursday). Silver is now down 6.8% on the year and gold 5%. Prices were slightly firmer this morning in Asian trade, before the European opening.
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Friday, August 28, 2015
Is this it for U.S. Dollar Bulls? / Currencies / US Dollar
US dollar bulls couldn't have asked for a better scenario -- Just as the USD index (basket of 6 currencies largely weighed vs EUR) was about to test a 3-month trendline support, the currency recovers. And just as EURUSD had broken above its 200-DMA for the first time in 13 months and above its 55-WMA for the first time in 12 months in a matter of 4 days, the single currency crashes back below these key levels later in the same week. But CAD, AUD, NZD and NOK have all outperformed USD thanks to a broad bounce in energy.
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Friday, August 28, 2015
U.S. Economic Fundamentals 'Look Good' - Bullard of St. Louis Fed / Economics / US Economy
St. Louis Federal Reserve President James Bullard spoke with Bloomberg's Brendan Greeley, Michael McKee and Tom Keene from the Jackson Hole economic symposium. He spoke about the outlook for monetary policy, the U.S. economy and recent market volatility.
Bullard said that while world financial markets are volatile, U.S. fundamentals are good: "I'm not denying it's a volatile period. But let me say this. U.S. fundamentals look good….The key question for the committee, and no decisions have been made here, but the key question for the committee is would you want to change the outlook based on the volatility that we've seen over the last 10 days? And I think the answer is going to be not very much."
Friday, August 28, 2015
Stock Market Margin Calls Mount / Stock-Markets / Stock Markets 2015
I have been busy aligning the Wave structures among the various Indexes that we are following. Starting with the SPX, I believe that we are seeing a larger degree wave structure on the decline than on the way up. Because SPX has broken the 4-year trendline, it is possible that Primary Wave [1] or [A] may reach its target at 1650. Diamond and Broadening Top formations usually indicate targets for Wave (C) or (3). In this case there is not enough time for a fifth Intermediate Wave, I am becoming more certain that we will see an (A)-(B)-(C) Wave of Primary Wave [A] ending next week. After a 2-3 week retracement we may see a 5-Wave Primary [C] of Cycle Wave I ending in March, 2016.
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Friday, August 28, 2015
Einstein, Physics, Gold and The Formula To End Economic Decay / Commodities / Gold and Silver 2015
We continue to have a wonderful dialogue with and frequent editorial submissions from readers and clients. Today, we have a thought provoking and important article that should greatly contribute to the debate on the merits of continuing to use artificial money. David Bryan draws on the genius of Einstein and uses science as the basis for policies that would end economic decay and rejuvenate local and national economies and indeed the global economy.
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Friday, August 28, 2015
The 10 Best Stocks for Options Trading Plays in This Market / Companies / Options & Warrants
MoneyMorning.com Tom Gentile writes: The biggest market drop in recorded history on Monday… a wild end-of-day plummet on Tuesday… a huge up day on Wednesday… and more bullish action today?
Talk about opportunity!
Right now, the only real barrier to trading profits is a stock that doesn't move.
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Friday, August 28, 2015
Economics of a Stock Market Crash / Stock-Markets / Stock Market Crash
This month has seen something that happens not very often: it appears to be the early stages of a global stock market crash. For the moment investors are in shock, seeking reassurance and keenly intent on preserving their diminishing assets, instead of reflecting on the broader economic reasons behind it. To mainstream financial commentators, blame for a crash is always placed on remote factors, such as China’s financial crisis, and has little to do with events closer to home. Analysis of this sort is selective and badly misplaced. The purpose of this article is to provide an overview of the economic background to today’s markets as well as the likely consequences.
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Friday, August 28, 2015
Currency Wars Detonate; Gold Refuses to Budge / Commodities / Gold and Silver 2015
The person who lives by hope will die by despair.
Italian Proverb
Over the years we have frequently stated that every that every major bull market will experience at least one back breaking correction. Usually the correction culminates with a 50% pullback from the highs. In the case of Gold, this would equate to a pullback to $960. The precious metal’s sector had a splendid lope that began in 2003 and ended with spectacular dash in 2011. To think that the Gold bull would continue unabated would be to put it mildly wishful thinking. Sadly, many Gold bugs opted for this line of thought, rather than dealing with reality; the reality being that it was time for the entire sector to let out some steam.
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Friday, August 28, 2015
Gold: Bullish in Real Terms, Bearish in Nominal Terms / Commodities / Gold and Silver 2015
Last week when we covered rebound targets in the precious metals sector we also discussed the importance of Gold’s performance in real terms. It can be a leading indicator for the sector at key turning points. Since then precious metals sold off in aggressive fashion alongside global equity markets. However, Gold against equities gained materially. This is something to keep an eye on as it hints that a trend change is boiling under the surface.
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