Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Thursday, June 21, 2018
Trump’s Trade Tariffs Undermining America’s Economic Future / Stock-Markets / Stock Markets 2018
As President Trump is again suspending the opportunity for trade compromise, new US tariffs are not only alienating US allies and partners but undermining America’s own future prospects.On Monday, US President Donald Trump threatened to impose a new 10 percent tariff on $200 billion of Chinese goods. That will not only re-escalate the trade war with China but contribute to new risks of collateral damage to the US economy.
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Wednesday, June 20, 2018
The Fed’s “Inflation Target” is Impoverishing American Workers / Stock-Markets / Stock Markets 2018
At one time, the Federal Reserve’s sole mandate was to maintain stable prices and to “fight inflation.” To the Fed, the financial press, and most everyone else “inflation” means rising prices instead of its original and true definition as an increase in the money supply. Rising prices are a consequence – a very painful consequence – of money printing.
Naturally, the Fed and all other central bankers prefer the definition of inflation as a rise in prices which insidiously hides the fact that they, being the issuers of currency, are the real culprit for increased prices.
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Wednesday, June 20, 2018
Warning All Investors: Global Stock Market Are Shifting Away From US Price Correlation / Stock-Markets / Global Stock Markets
Well over a month ago we warned our followers of a “capital market shift” that was taking place in the global markets. Nearly 3 months before that time, we warned that China’s economy was about to enter a sustained economic downtrend cycle that could be dangerous to the global markets. Today, we offer further evidence that the global markets are, in fact, shifting away from a price correlation to the US stock market and this move could be a warning sign that emerging markets and global markets could lead the world into an extended stagflation cycle.
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Wednesday, June 20, 2018
Dow Fell 6 days in a Row. EXTREMELY Bullish Medium & Long term Sign for Stocks / Stock-Markets / Stock Markets 2018
The Dow Jones has gone down 6 days in a row. This is the first time in 15 months in which the Dow has fallen 6 consecutive days. But more importantly, the Dow has fallen 6 consecutive days while remaining above its 200 daily moving average.
In other words, this is the first time in a long time in which the Dow has fallen consistently.
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Wednesday, June 20, 2018
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Tuesday, June 19, 2018
Stock Market’s Short Term Downside Will be Limited / Stock-Markets / Stock Markets 2018
Over the past 2 weeks I said that the stock market would face some short term downside (i.e. would swing sideways or fall a little). So far I’ve been right. The stock market has gone down a little bit (see S&P 500).
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Tuesday, June 19, 2018
Trump A Bull in a China Shop / Stock-Markets / Stock Markets 2018
In light of the developing trade war between the US and China, let’s review the all-important Semiconductor sector and in particular, the Semi Equipment segment, which is a key economic early bird (and canary in a coal mine).
Various sectors took hits on Friday as Trump moved forward with Tariffs on China. But most of those sectors and industries are follow-on aspects of the economic cycle, which got its start when the early bird chirped in early 2013.
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Monday, June 18, 2018
US Majors Flush Out A Major Pivot Low and What’s Next / Stock-Markets / Financial Markets 2018
Closing out a big week in the markets, we see the US markets rotating a bit lower after a number of news events. Some of these were very positive and others were negative. The take away from last week can be condensed into the following:
_ The US Dollar strengthened all week and shot up above $120 near the end of the week
_ Crude Oil tanked on Friday – falling nearly 3% to just below $65.00 ppb
_ EURUSD fell nearly 2% on QE concerns in Europe as well as trade issues that are mounting
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Monday, June 18, 2018
Stock Market Consolidating in an Uptrend / Stock-Markets / Stock Markets 2018
Current Position of the Market
SPX: Long-term trend – The bull market is continuing with a top expected in the low 3000s.
Intermediate trend – The intermediate correction from 2873 has ended and we are in a new intermediate uptrend which should take SPX to a new all-time high.
Monday, June 18, 2018
Russell Has Gone Up 7 Weeks in a Row. EXTREMELY Bullish for Stocks / Stock-Markets / Stock Markets 2018
Last week I published a study demonstrating what happens to the stock market when the Russell 2000 (small caps) index goes up 6 weeks in a row. The Russell has extended that streak to 7 weeks in a row.
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Monday, June 18, 2018
What Happens Next to Stocks when Tech Massively Outperforms Utilities and Consumer Staples / Stock-Markets / Sector Analysis
The tech sector has massively outperformed the utilities and consumer staples sectors over the past year.
- The S&P 500 Information technology sector is up 33%…
- While the Utilities sector is down -8%….
- While the Consumer Staples sector is down -8%
Some people see this as a bearish sign for the stock market because “tech is in a bubble”.
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Saturday, June 16, 2018
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Friday, June 15, 2018
Is This a Big Sign of a Big Stock Market Turn? / Stock-Markets / Stock Markets 2018
Financial legislation might mean something different than most investors believes it means
A stock market warning has just developed for those who are bullish.
Here's what I'm talking about (CNBC, May 22):
The House voted May 22 to pass the biggest rollback of financial regulations since the global financial crisis.
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Thursday, June 14, 2018
Stock Market Topping Pattern or Just Pause Before Going Higher? / Stock-Markets / Stock Markets 2018
It was all about the FOMC Rate Decision release on Wednesday, and stocks' initial reaction to that news was slightly negative. The broad stock market extended its short-term consolidation along the resistance level. Will the uptrend continue or is this some topping pattern ahead of downward reversal? There are still two possible medium-term scenarios.
The U.S. stock market indexes lost between -0.1% and -0.5% on Wednesday, as investors reacted to the Fed's interest rate hike announcement. The S&P 500 index is still close to its mid-March local high of around 2,800. It currently trades 3.4% below January's 26th record high of 2,872.87. The Dow Jones Industrial Average lost 0.5%, and the technology Nasdaq Composite lost 0.1% yesterday.
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Thursday, June 14, 2018
Is the ECB Ending QE a Good Thing? Markets Think So / Stock-Markets / Financial Markets 2018
SPX finally made its Master Cycle high at 11:30 am at 2791.47, just 10 points shy of its March 13 high. Nevertheless, this counts best as the “top” of Wave [2]. SPX futures put in an overnight high of 2789.00 but have eased down. The decline from the top so far is miniscule, so any (short) positions taken here would be considered to be aggressive.
Should the Orthodox Broadening Top be accurate, the next target would be “point 6” near 2570.00. The Ending Diagonal agrees, since a break of the lower trendline near 2740.00 may send the SPX to its target at 2553.80. This would give the SPX a clear break of its 200-day Moving Average at 2652.40.
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Thursday, June 14, 2018
Yield Curve Continues to Flatten. A Bullish Sign for the Stock Market / Stock-Markets / Stock Markets 2018
The Treasury yield curve continues to flatten. The 10 year yield – 2 year yield is now at 0.39%. Or as the bears would have you believe, “the Fed is about to end the economy and stock market”.
Facts and data disagree.
This is the first time in the current economic expansion cycle in which the yield curve flattened to 40 basis points (0.4%). As you can see, the yield curve still needs to flatten a lot more before a recession and bear market begins.
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Thursday, June 14, 2018
Stock Market Near Another Top? / Stock-Markets / Stock Markets 2018
According to the Gann astro/cycles and my wave counts, we are near another important top. Ideally, this top should occur on June 14/15. The next possible cycle low is due sometime between June 28/29 and July 3/5 depending on the count and final top. My preferred count has the S&P 500 moving down into July 3/5 to a slightly higher high than the 2553 mark tagged on April 2. The alternate has a much lower drop going down into the 2460’s by June 28/29. The ideal top this week is a minimum 2805 SPX.When the market fell in February, it readjusted the normally dominant 20 week cycle, which is now due toward the end of June or early July. The Gann 64/128 TD lows remain the same, due in early July. At any rate, we should see a nice summer rally out of the expected drop. Major cycles are due to top on August 19th one month and fall into mid November and even January-February 2019.
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Wednesday, June 13, 2018
What Happens to Stocks, Forex, Commodities, and Bonds When the Fed Hikes Rates / Stock-Markets / Financial Markets 2018
The Fed is expected to hike interest rates today. As I’ve demonstrated in a previous study, the U.S. stock market has a tendency to fall a little after rate hikes in the current rate hike cycle.
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Tuesday, June 12, 2018
What Happens Next to Stocks when Russell Goes up 6 Weeks in a Row / Stock-Markets / Stock Markets 2018
Small cap stocks (Russell 2000 Index) continues to lead the stock market higher.
As I demonstrated in a study last week, the Russell leading the S&P 500 is a medium term bullish sign for the stock market.
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Tuesday, June 12, 2018
Stock Market Eying Extension Into March Highs / Stock-Markets / Stock Markets 2018
High Odds that Low of Year Confirmed
The first week of June was fairly easy to navigate and trade as the bullish pattern took a couple extra weeks of high level consolidation to finally complete its course. It really started with the breakout on Monday June 4 above the key 2742 level to confirm that the bull train is ready for the immediate breakout to accelerate above the prior two weeks’ worth of consolidation range (2742 vs.2700/2675). On the next day, the bull train grinded up a little and held above the 2742 breakout level to trap in more market participants for the high odds of a trend week.