Wednesday, August 05, 2015
Submerging Stock Markets / Stock-Markets / Stock Markets 2015
This week's commentary takes a look at emerging markets but first a review of the most recent Hybrid Lindsay forecast for the Dow Industrials index.
The July 14 commentary mentioned the official forecast for a low in the period July 24-31 but also explained why "a tradable low is very close". Indeed, last week's low was seen that day. The next forecast-high generated by the Hybrid Lindsay model is expected late in the week of August 10 or early during the week of August 17.
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Tuesday, August 04, 2015
Why This Stocks Bubble Is Actually WORSE Than the Internet Tech Bubble / Stock-Markets / Liquidity Bubble
I’ve been invited to speak on many media outlets lately, hammering on and on about how this is another bubble. Worse, an artificial one!
A bubble occurs naturally when market forces converge. Trends come together and make the markets so hot that everyone starts piling in.
But it’s one thing when investors speculate on the fundamentals like demographics, rising technology, and falling interest rates. For example, like in 1925 to 1929, and 1995 to 1999.
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Tuesday, August 04, 2015
Gold Investing: Use the Cockroach Strategy / Commodities / Gold and Silver 2015
Gold: the monetary metal that central bankers, politicians, and Too-Big-To-Fail bankers publicly hate.
The Cockroach Strategy: A cynical but depressingly accurate view of politics that can assist your investment decisions. It assumes the following:
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Tuesday, August 04, 2015
Is Gold Doomed? / Commodities / Gold and Silver 2015
After gold declined to a 5-year low, the message is that gold is doomed. Is it really true?In the past few weeks, the price of gold has suffered a significant decline, indicated by multiple technical signals and triggered by China's disappointing disclosure of its official gold reserves on July 17 and the following heavy selling in the Asian market. Gold bullion dropped by 6 percent in July, significantly deteriorating the market sentiment toward the yellow metal. Indeed, the sentiment indexes fell to record lows.
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Tuesday, August 04, 2015
Treasury Positioning at Odds with Fed Interet Rate Hike / Interest-Rates / US Interest Rates
Why is positioning in US 10-year treasury notes at its most bullish levels in 27 years despite several FOMC members calling for at least one rate hike this year? The latest positioning figures from the CFTC show longs exceeding shorts by 65,642 contracts, the biggest net long position since May 2013. Such growing bullishness on the 10-year treasury is consistent with the 5-week decline in bond yields, which coincided with plunging oil prices.
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Tuesday, August 04, 2015
I’m Ready for a Stocks Bear Market. Are You? / Stock-Markets / Stocks Bear Market
Increasingly concerned about the markets, I’ve taken more aggressive action than in 2007, the last time I soured on the equity markets. Let me explain why and what I’m doing to try to profit from what may lie ahead.
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Tuesday, August 04, 2015
Gold Sentiment Is Just Ugly / Commodities / Gold and Silver 2015
The headlines are dramatic, ugly and depressing to anyone who holds gold right now. Broad market sentiment has shifted from disdain and dismissive to highly negative. Hedge funds are shorting gold aggressively, hedge funds that own gold are being “outed”. The market pundits are are sticking the proverbial knife in and twisting it with glee. The Financial Times published an interesting article over the weekend.
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Tuesday, August 04, 2015
Cutthroat Competition for UK One-year Fixed Rate Savings Bond / Personal_Finance / Savings Accounts
Over the past few years savers have had little to be cheerful about; however, research form Moneyfacts.co.uk can reveal that the savings market is once again showing signs of life.
Now that new banks are stepping onto the scene and competing for savers’ cash, Moneyfacts.co.uk has seen rates for one-year fixed rate bonds increase for one of the first times since the Funding for Lending scheme was introduced.
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Tuesday, August 04, 2015
Top 6 Myths Driving Oil Prices Down / Commodities / Crude Oil
"Whoever would overthrow the liberty of a nation must begin by subduing the freeness of speech." ~ Benjamin Franklin, Silence Dogood, The Busy-Body, and Early Writings
I start with that quote because once the media, as well as politicians for that matter, have no accountability for actions or words then liberty will dissolve. Over the last few weeks I have witnessed another litany of lies that the media insists on putting forth. They come in the form of statements presented as facts to sway opinion while others are opinions quoted by others. Either way, the bias in talking down oil prices, reinforcing the "glut" that is fueled in part by misleading EIA and IEA data, is readily apparent.
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Tuesday, August 04, 2015
Is This Stocks Bull Market Summit? / Stock-Markets / Stock Markets 2015
The primary uptrend in common stocks began in March 2009, so this bull-market is now over 6 years old. The bull-market on Wall Street was unleashed by the Federal Reserve's unprecedented QE program and it is not a coincidence that its momentum waned around the same time America's central bank stopped buying bonds.
You will recall that over the past several months, we repeatedly stated that the stock market's breadth was getting narrower and that not all sectors were participating in the festivities. Accordingly, we positioned our managed portfolios in the strongest areas and sectors of the market.
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Tuesday, August 04, 2015
AAPL Breaking Down.... Stock Market Is Not.... / Companies / Apple
The stock market is proving once again that the biggest of all leaders can break down, yet still hang in there as the bigger theme of rotation continues onward. Apple Inc. (AAPL) is in very bad shape technically, but the market is hanging very tough. This has happened before when AAPL declined into the upper three hundreds before its split. The stock fell apart but the market did not. AAPL is a drag and isn't helping the market here, but this market has remained resilient, because as one sector or key stock goes into a bear, another is coming out of it and start to perform better.
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Tuesday, August 04, 2015
EURUSD: An Ending Diagonal Triangle in Action / Currencies / Euro
See how beautifully recent trading in the euro followed a high-confidence Elliott wave pattern
Remember how during the time of the Greek bailout a couple of weeks ago, the euro didn't seem to "know" which way to go next? There is a reason for that, says The Wall Street Journal -- carry trade:
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Tuesday, August 04, 2015
How to Build Consistent Trading Success / InvestorEducation / Learn to Trade
EWI's senior analyst Jeffrey Kennedy shares with you practical advice on what it takes to improve the quality of your trades.
You've heard it all before:
- If you want to trade using Elliott wave analysis, to succeed you first need to understand its rules and guidelines.
- You need a clearly defined trading strategy (what? when? how? etc.) and the discipline to follow it.
- Additionally, your long-term success depends on adequate capitalization, money management skills and emotional self-control.
Tuesday, August 04, 2015
Gold is Still a Falling Knife: Why I Remain Bearish in the Short Term / Commodities / Gold and Silver 2015
Precious metals showed bullish technical signs in early 2015, including gold making a higher low at $1,141 versus the November 2014 low of $1,130. However, in late May gold failed to make a higher high, which was a pivot point and signal that lower prices could be ahead. This bearish signal was confirmed on July 20th, when gold dropped below both the 2014 and 2015 low and we published an article stating our bearish short-term outlook. Prices have continued to slide since then, with gold down another 4% and mining stocks falling by nearly 14%.
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Tuesday, August 04, 2015
Crude Oil Price at Levels Not Seen Since March / Commodities / Crude Oil
Trading position (short-term; our opinion): Short positions with a stop-loss order at $65.23 are justified from the risk/reward perspective.
On Friday, crude oil declined sharply after news that production among OPEC members in July pushed supply at the oil cartel to its highest level in seven years. In this environment, light crude lost 3.45% and re-tested the Jul low. Where will oil bears take the commodity in the coming days?
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Tuesday, August 04, 2015
Investment Silver Demand Draining COMEX Vaults / Commodities / Gold and Silver 2015
If there are words to characterize the precious metals markets for July, it would be “divergences” and “shortages.” There was heavy selling in the leveraged futures market and extraordinary buying demand and shortages in physical coins, rounds, and bars.
Despite turmoil surrounding Greece and a huge sell-off in Chinese equities, traders dumped wheelbarrow loads of paper gold and silver. The expected safe-haven buying was concentrated entirely in physical bullion. Spot prices fell relentlessly during the month.
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Tuesday, August 04, 2015
The Troika Loan Shark Stock Market Rally / Stock-Markets / Stock Markets 2015
July has turned out to be a very volatile month for stocks, whether Asia, Europe, US, or worldwide. Every time it appeared that something from the real world of finance and economics might create at least another 10% “correction” from all time high readings in US stocks, “someone” was there to make certain that investors and traders - especially in Europe, Japan, and the US - saw no lasting impact from the events in China and Greece with their own investments.
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Tuesday, August 04, 2015
Plan for Surviving Gold's Summer of Discontent / Commodities / Gold and Silver 2015
While Randall Abramson, CEO and portfolio manager with Toronto-based Trapeze Asset Management, freely admits that we are living through the summer of discontent in "Commodityland," he says investors should step back and look at commodities, especially gold, from a macroeconomic and historical perspective. In this interview with The Gold Report, Abramson discusses the magnet he expects to pull gold to around $1,400/oz inside 12 months, and he also offers some of his favorite names in the gold space.
The Gold Report: July 13–20 was an unusual week in the gold market. In a May newsletter to Trapeze Asset Management clients, you argued that the glass is "half full" for investors given current macroeconomic signals. Much water has traveled under the bridge since. Has your view changed?
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Monday, August 03, 2015
Stock Market SPX Triggers Sell Signal / Stock-Markets / Stock Markets 2015
SPX has now crossed below both the 50-day Moving Average and the 2-hour mid-Cycle support at 2097.72. SPX is back on an aggressive sell that becomes a confirmed sell below the 200-day Moving Average at 2069.43.
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Monday, August 03, 2015
The Gold Investment Demand Juggernaut / Commodities / Gold and Silver 2015
Whenever the mainstream media decides to undertake one of its periodic attacks on gold and gold ownership, it almost always begins by laying out gold's long history as a proven inflation hedge. It then proceeds to explain that inflation is not a problem at the present, and, as a result, no one with any common sense would bother to own it. This argument is a set-up – a pretext meant to confuse investor thinking and redirect interest away from the one investment vehicle likely to do them some good in these uncertain times.
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