Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Saturday, May 24, 2014
Are Some Proven Stock Market Investment Strategies Too Simple To Accept? / Stock-Markets / Stock Markets 2014
As goes January so goes the year. Avoid the first two years of the Four-Year Presidential Cycle. Buy in the fall of the 2nd year of the presidential cycle and hold through to the end of the third year. Sell in May and re-enter in October.
Those are all strategies proven to out-perform the market over the long-term. Don’t take my word for it. But also don’t blame the messenger. I am only reporting what hundreds of exhaustive academic and independent studies have clearly shown since forever.
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Saturday, May 24, 2014
SPX Cycle Top - End of an Era? / Stock-Markets / Stock Markets 2014
SPX is up against its Cycle Top resistance and appears to have completed its retracement. It may be time for a Dynamic Sell Signal. The current high of 1899.05 is still short of the May 13 high of 1902.17. The pattern does not support a further rally.
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Friday, May 23, 2014
Energy Stocks No Bear Market Refuge / Stock-Markets / Stocks Bear Market
The lofty US stock markets have stalled out, looking more and more top-heavy with each passing day. This is spawning growing unease among prudent investors, who sense the long-overdue major selloff is nearing. Many are seeking shelter in sectors they hope will weather the storm. And energy stocks, with their lower valuations, are a leading one. Unfortunately history proves they too offer no refuge in stock bears.
The stock markets are topping, essentially grinding sideways near nominal record highs for the better part of 3 months now. The American S&P 500 benchmark stock index is now trading at incredibly high valuations between 23x to 26x trailing earnings, dangerously expensive. And after rocketing 180.5% higher over 5.2 years, this truly extraordinary bull market stocks have enjoyed is getting ominously long in the tooth.
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Friday, May 23, 2014
Money and Growth / Stock-Markets / Fiat Currency
The most common of all misconceptions today is that a weakening currency is fundamental to a healthy economy, or put another way, a strong currency is economically destructive. For decades this has been the fundamental belief of mainstream economists and the mainspring behind government policy. Even Switzerland, widely regarded as the leading exponent of non-interventionism, intervenes to keep the franc from rising against the euro.
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Friday, May 23, 2014
Stock Market 4-6% Pullback in S&P 500 Possible Soon / Stock-Markets / Stock Markets 2014
Brad Gudgeon writes: The stock market appears to be on the verge of a 4-6% pullback. All the cycles, wave analysis, technical analysis, sentiment and pattern analysis I analyze point to a quick downdraft over the coming days into early June.
As of this writing on Thursday, May 22, 2014, the S&P 500 appears to want to make a nominal new high above the old high of 1902. We could make that high on Friday and sell-off easily.
Friday, May 23, 2014
How Bad Will the 60-year Kress Cycle Bottom Be? / Stock-Markets / Cycles Analysis
One of the questions most commonly asked by investors is why the economy has been so sluggish in recent years despite the Fed’s efforts at stimulating it?
This question was recently asked of former Treasury Secretary Timothy Geithner by Time magazine. His answer was that Americans are still “still living with the scars” of the credit crisis, implying that the reason for the slow pace of recovery is more psychological than anything. His answer is unsatisfactory, however, since it obscures the deeper reason behind the slow growth era of the last few years.
Thursday, May 22, 2014
Stock Market Sour Surprise / Stock-Markets / Stock Markets 2014
Shah Gilani writes: On Monday, I explained why, when you’re considering investment ideas, you should always keep the bond market in mind. That’s because stocks and bonds are inextricably interconnected.
They’re inextricably interconnected because interest rates matter.
When expected relationships between stocks and bonds (interest rates) diverge, therefore, it’s important to take notice, try to understand what is happening, and consider what the divergences could portend for both stocks and bonds.
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Thursday, May 22, 2014
Stock Market Closer To All-Time High – Make Or Break Moment / Stock-Markets / Stock Markets 2014
Briefly: In our opinion speculative long positions are still favored (with stop-loss at 1,850, S&P 500 index).
Our intraday outlook is still bullish, and our short-term outlook remains neutral:
Intraday (next 24 hours) outlook: bullish
Short-term (next 1-2 weeks) outlook: neutral
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish
Thursday, May 22, 2014
Stock Market Chartology Mania / Stock-Markets / Stock Markets 2014
First I want to acknowledge how frustrating the markets have been over the last several months for most of you. There has been no clear cut trend in which one can just take a position and not get caught up in the chopping action the markets have been giving us. As I have said in the past the hardest part of trading is to get your initial position to stick before your sell/stop gets hit. If your a bear it’s two steps down and one step up and if your a bull it’s two steps forward and one step back. It’s that one step after you take your initial position that usually gets you if you don’t buy the exact high or low.
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Wednesday, May 21, 2014
The Smart Money Is Preparing for a Stock Market Correction / Stock-Markets / Stock Markets 2014
Marc Lichtenfeld writes: If you want a great stock to invest in, you should buy Crystal Ball Inc. (NYSE: BS) because it appears that in the past few weeks everyone on Wall Street is using one and they're all saying there is a big correction coming.
For the record, if you didn't get the joke, there is no stock called Crystal Ball Inc. I don't want any angry emails saying you couldn't find the stock.
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Wednesday, May 21, 2014
What My Stock-Market Warning Sign Is Saying Today / Stock-Markets / Stock Markets 2014
Dr. David Eifrig writes: Readers of Retirement Millionaire have made a fortune in this bull market...
Over the past five years, our average gain is 50%.
We've made such great gains by ignoring "doom and gloom" pessimists who would have you believe we're about to enter another depression. Instead, we've focused on facts, owned U.S. stocks, and we've made huge gains.
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Wednesday, May 21, 2014
Fractional-Reserve Banking: From Goldsmiths To Hedge Funds To…Chaos / Stock-Markets / Fiat Currency
Banking didn’t start out as a reckless, parasitical plaything of a moneyed and politically-connected aristocracy. In the beginning, in fact, bankers weren’t even bankers. They were jewelers and goldsmiths who had to maintain their inventory with vaults, guards etc., and offered storage services to others with valuables to protect. So the original banks were, in effect, very safe warehouses.
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Wednesday, May 21, 2014
Stock Market Rally Reversal Time! / Stock-Markets / Stock Markets 2014
SPX stopped its ramp at 1886.06, nominally higher than Monday’s high at 1886.00. It may go higher, but for practical purposes, the rally may already be done.
USD/JPY also rallied this morning from its new lows, but could not overcome its prior high. It appears to be out of gas and its influence fading.
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Wednesday, May 21, 2014
S&P 500 To Continue To The Downside / Stock-Markets / Stock Markets 2014
The US stocks turned bearish yesterday, which has been expected, as rally on the E-mini {{166|S&P 500}} had a corrective shape. The decline from 1884 was sharp, that also took out the lower trend line of a corrective channel. It suggests that move from 1858 is complete and that market will continue to the downside, beneath 1858 as long as 1884 is in place. Short-term resistance for current minor a-b-c rally comes in around 1875.
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Tuesday, May 20, 2014
The $12 Trillion Derivatives Ticking Time Bomb / Stock-Markets / Derivatives
Time and again, we’ve been told that the Great Crisis of 2008 has ended and that we’re in a recovery.
Indeed, earlier this year, we were even told by Fed Chair Janet Yellen that the Fed may in fact raise interest rates as early as next year.
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Tuesday, May 20, 2014
Gold, Stocks and Crude Oil Heading Lower / Stock-Markets / Financial Markets 2014
GOLD is moving sideways in 1268-1331 range for more than a month between two contracting trend-lines that make a shape of a triangle. We are looking at a running triangle in wave (b) that can be near completion as rise from 1276 is already in three legs that represents wave e), final leg in the pattern. With that in mind, traders should be aware of a bearish reversal down in wave (c) towards 1220/40 especially once 1277 and pattern support will give way.
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Tuesday, May 20, 2014
Stock Market New High and the Lindsay Forecast / Stock-Markets / Cycles Analysis
Last week's new high in the Dow puts the Lindsay forecast into flux. Long time readers know that the advance from the 2011 Sideways Movement was long ago recognized to be the fly in the ointment for forecasting the end of the bull market.
Quick Review: Sideways Movements (when the basic advance is unable to reach the time span of the 15year interval) are almost always topping formations. Lindsay identified only two instances (over the course of 200 years) which saw advances from this pattern, rather than declines, and this was seen again in 2011. The challenge is in knowing from where to count the next basic advance. After much vacillating, it was decided to count the current basic advance from the low on 12/19/11 due to the description Lindsay gave of the 1926 pattern.
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Monday, May 19, 2014
Stock Market Further Uncertainty As Indexes Gained On Friday, Will Uptrend Resume? / Stock-Markets / Stock Markets 2014
Briefly: In our opinion speculative long positions are still favored (with stop-loss at 1,850, S&P 500 index).
Our intraday outlook is still bullish, and our short-term outlook remains neutral:
Intraday (next 24 hours) outlook: bullish
Short-term (next 1-2 weeks) outlook: neutral
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish
Monday, May 19, 2014
Stock Market Too Late to be Bullish and Too Early to be Bearish / Stock-Markets / Stock Markets 2014
Current Position of the Market
SPX: Very Long-term trend - The very-long-term cycles are in their down phases, and if they make their lows when expected (after this bull market is over), there will be another steep decline into late 2014. However, the Fed policy of keeping interest rates low has severely curtailed the full downward pressure potential of the 40-yr and 120-yr cycles.
Intermediate trend - Probably tracing out an ending diagonal pattern.
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, May 18, 2014
First Quarter Doldrums Amp Up Stock Market Fear Factor / Stock-Markets / Stock Markets 2014
Shah Gilani writes: Based on preliminary first-quarter data, U.S. gross domestic product (GDP) growth is 0.1%.
That’s not much.
But then again, what do you expect for $3.4 trillion of Federal Reserve spending to boost the economy.
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