Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.
Monday, February 08, 2021
When Will the Stock Market Party End? / Stock-Markets / Stock Market 2021
By: Michael_Pento
I’d like to explain why these already-stretched markets could crash by the start of the 3rd quarter. I’ve been warning over the past month, or about, that my Inflation/Deflation and Economic Cycle Model SM is forecasting a potential crash in equities around the start of Q3 this year. Of course, this timing could change and I would only take action in the portfolio if the Model validates this forecast to be correct. Nevertheless, here’s why the bubble we are currently riding higher in the portfolio could burst around that time.
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Sunday, February 07, 2021
Volatility Spike Shocks Markets – Resets Trend Systems / Stock-Markets / Volatility
By: Chris_Vermeulen
The recent volatility spike in the VIX prompted a very quick downturn in price levels across all US major Indexes over the past few trading days This sharp decline, although only lasting four trading days, prompted many systems to warn of a potentially much deeper price correction. As of the close of trading on Friday, January 29, 2021, it looked like a deep correction in price was setting up. Our proprietary BAN Trader Pro system also generated a “trend reset” trigger on Friday. This means our systems expected a change in trend, suggesting a bearish price trend was setting up, based on this spike in volatility and what appeared to be a moderately deep price trend.
VIX Hiccup Shocks Market Traders
The reality is that this downside trend move took place while a number of other factors were playing out. First, the Reddit group was targeting certain sectors/symbols in addition to the fact that the markets had already rallied a substantial amount since the November 2 election. This spike in the VIX index shocked a number of people and suggested a change in price trend.
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Friday, February 05, 2021
Stock Market Bears Losing The Battle / Stock-Markets / Stock Market 2021
By: Ricky_Wen
Monday's action retraced all losses from Friday as the Emini S&P 500 (ES) formed a double bottom during Sunday night at 3650 key level. The next two sessions will be pivotal in confirming whether it's risk on again or whether we need to wait a bit. Right now, bears are losing the battle before price action is back to neutral mode given the V-shape recovery into 61.8-78.6% retracement of the 3860s-3650s range.
The main takeaway is that this is healthy consolidation in the bigger picture because it allows the market to reset and take out some novices and shake the tree a bit. It clears out the newish traders that keep on buying calls and getting paid easily for the past few months. It ain’t gonna be as easy and simple as that going forward. At least not until price action confirms the stabilization/higher lows. During Sunday night, the market held the 3650s and formed a temporary double bottom setup. This was no surprise because we’ve been saying the 3650 area has been a key level for the past few weeks. It is the confluence of the January monthly lows.
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Friday, February 05, 2021
Did GameStop Mark the Stock Market Top? / Stock-Markets / Stock Market 2021
By: Stephen_McBride
“You do stocks, huh? I’m thinking about ploughing a few grand into GameStop. That thing’s going to the moon, bro!”
The guy on the treadmill next to me was clearly excited. Then he told me all about another opportunity as he wiped sweat off his face.
“The next Tesla,” he said, grinning from ear to ear. And he wasn’t the only one. I had at least four conversations about stocks at my local gym last week. (It’s not exactly a hotbed of investors. In fact, I’ve never talked about stocks there until recently).
Another guy told me he bought $5,000 worth of Royal Caribbean Cruises. Why? It “went down a lot.” And he thinks it’s a “lock” to bounce back.
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Friday, February 05, 2021
Stocks Need to Consolidate Now, And Gold Will Anyway / Stock-Markets / Financial Markets 2021
By: Submissions
After Monday‘s great rise, stocks continued without much of a pause yesterday too. Did they get ahead of themselves, or not really? And what about those correction calls, is the alarm over now? As said yesterday, the bulk of the correction in stocks, is over.
Is it clear skies ahead now? In my very first 2021 analysis 10 days ago, I‘ve called for a not so rosy February ahead. Last Friday, options expired with stocks taking a plunge, so the current month will get an optical boost. I am looking for higher prices, and no correction around the corner.
Gold is in a different situation, still basing and unable to keep intraday gains. Having predictably given up the silver short squeeze boost, the search for the local bottom in largely sideways price action continues. That‘s likely to be the case given that the dollar has stabilized and is peeking higher (before eventually moving to new lows, is still my call).
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Wednesday, February 03, 2021
Here’s What’s More Important than the Recent Reddit GameStop Mania / Stock-Markets / Financial Markets 2021
By: P_Radomski_CFA
GameStop! Reddit! Silver manipulation (that’s been discussed for over two decades)! It’s exciting but pay attention to these more important factors.
Is the above really the key thing that’s happening in the markets right now? No, it’s only the most interesting thing. I admit, what we’re seeing on the Internet right now is truly absorbing, but one should realize that it’s what used to happen multiple times in history. This time it’s simply more visible as the conversations and associated images are publicly available and widely distributed.
In yesterday’s intraday Alert , I commented on the issue of the likely implications of these cumulative purchases on the precious metals market as a whole and what difference they are likely to make over the course of the following months and weeks – next to none.
Well, there is one effect that I’m expecting to see. It’s the increased volatility during the following price declines – likely proportionate to what was so vigorously bought in the last few days.
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Wednesday, February 03, 2021
The Wolf is At the Door (Or How to Protect Yourself Against This Bubble) / Stock-Markets / Stock Market Valuations
By: Paul_Lamont
More than1 Trillion shares traded in speculative over-the-counter (pink sheets) stocks in December. In the options market, option trading by retail investors registered 46 million contracts in one day in early January. Reporters forBloomberg described events as "another day of euphoria" in "Day-Trader Heaven." Non-profitable tech companies have gone bonkers (see below).
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Wednesday, February 03, 2021
Why Next Wave of Margin Calls Will Be FAR More "Disruptive" Than in 2000 or 2007 / Stock-Markets / Stock Market 2021
By: EWI
"Can investors afford to borrow anymore?"
Financial history shows that every bear market has been followed by a bull market and vice versa.
So, the current bull market will end sooner or later.
The prior two bull market tops occurred in the years 2007 and 2000. One of the characteristics of each of those tops was investors' ramped up use of margin. In other words, market participants were borrowing heavily to buy stocks.
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Tuesday, February 02, 2021
Stock Market Bump in the Road? / Stock-Markets / Stock Market 2021
By: Andre_Gratian
Current Position of the Market
SPX Long-term trend: There is some good evidence that we are still in the bull market which started in 2009 and which could continue into the first quarter of 2021 before coming to an end.
SPX Intermediate trend: May continue until SPX reaches ~ 4150.
Analysis of the short-term trend is done daily with the help of hourly charts. They are important adjuncts to the analysis of daily and weekly charts which determine longer market trends.
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Tuesday, February 02, 2021
Stock Investment in 2021 — Finding the Best Stocks to Invest in / Stock-Markets / Stock Market 2021
By: Boris_Dzhingarov
Everyone wants to try their luck in the stock market. It gives them the chance to get some extra bucks that they can throw in their savings account. But the stock trading game is not an easy one to play. You have to be really strategic and resilient, and the stock market will be your cash cow.
As a beginner in stock trading, your biggest challenge is to find the best stocks to invest in. The stock market keeps changing every day. There is a wide range of investment opportunities to choose from. You have to pick the one that’s most profitable for you. But how exactly do you do that? Here is a quick guide to get you started.
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Saturday, January 30, 2021
VIX and Defensive Sectors React To Perceived Stock Market Trend Weakness / Stock-Markets / Stock Market 2021
By: Chris_Vermeulen
Since early November 2020, the VIX has continued to decline and consolidate near the 22 level. Late in December 2020 and beyond, the VIX started setting up series-high price spikes – which indicates a flagging downside pattern is setting up. You can see this setup across the recent VIX highs drawn in MAGENTA on the chart below. Additionally, the VIX has “stepped” higher – moving from lows near 19.50 to higher lows near 21.00. This upward stepping base is indicative of a shift in volatility.
VIX Sets Up Pennant/Flag Pattern
My research team and I interpret this data as a sign that trend weakness is starting to build after the strong rally that initiated in early November 2020. Although we have not seen any clear sign that the markets are about to reverse or decline, this move in the VIX is suggesting that volatility is increasing. The high price “breakout”, yesterday, in the VIX suggests the MAGENTA flag setup is nearing an Apex/breakout point.
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Friday, January 29, 2021
7 Must-Have Apps for Day Traders / Stock-Markets / Stock Index Trading
By: Submissions
The past few years have seen a series of changes take place. The most impactful of them all is the increase in the importance of the Internet in our lives. As everything is moving online, the popularity of online trading has also increased significantly. Today, most people interested in making money by buying and selling shares, stocks, equities, etc. prefer to carry out their operations online. The main reason behind this change is the rise in popularity of cryptocurrencies like Bitcoin.
The biggest advantage of online trading is that you can take part in the actions irrespective of your location if you have a mobile device and a healthy Internet connection. To make the process of online trading even easier for traders, developers have come up with several apps. You can use some of them to boost your market intelligence and trading profits. The section below talks about seven apps day traders must have on their phones.
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Thursday, January 28, 2021
Russell 2000 ETF Initiates New Stock Market Rally Trend / Stock-Markets / Stock Market 2021
By: Chris_Vermeulen
Last week my team and I alerted our readers to the current trends and shifting sectors that are getting hotter every day. Technology, Energy, Financials, Industrials and others are experiencing bullish trends we haven’t seen in years. The Russell 2000 ETF, URTY, is starting a new breakout uptrend just after our BAN Trader Pro system suggested the SPY may initiate a new bullish rally. You can read relevant research posts here: RECENT TRIGGERS IN THESE SECTORS SUGGEST US STOCK MARKETS MAY ENTER A RALLY PHASE and TECHNICAL TRADERS ARE USING THE BAN HOTLIST TRIGGERS WITH HUGE SUCCESS USING REGULAR ETFS, LEVERAGE ETFS, AND OPTIONS.
As we can see in the chart below, the Russell 2000 has been one of the top performers since just after the November 2020 elections. Originating a breakout trigger on November 3, near $43.46, and confirming a “New High Breakout” on November 9, near $51.37, the Russell 200 sector has been rallying very strongly over the past 60+ days. The current “New Price High” breakout suggests this rally may continue. Fibonacci price extensions show a peak may target levels near $125~$130 – nearly 20%+ higher than current prices.
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Wednesday, January 27, 2021
Stock Market Investors’ Limitless Risk Appetite / Stock-Markets / Stock Market 2021
By: Troy_Bombardia
Investors are buying anything and everything in a manner that’s reminiscent of the 1990s. The best stocks to buy these days: money-losing tech companies. The more losses, the better because growth is the name of the game. In the 1990s, profits didn’t matter. All that mattered was “eyeballs” and user growth.
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Tuesday, January 26, 2021
The End of the World History Stock Market Chart : Big Pattern = Big Move / Stock-Markets / Stock Market 2021
By: Rambus_Chartology
We hear so much negativity from both sides of the isle that if a Republican is elected to the presidency then everything is going to hell in a hand basket and if a Democrat is elected then you will be better off to find another country to live in because things will be so bad in the US you won’t want to live here anymore. Conspiracy theories are running so rampant right now that the average American doesn’t know what to believe.
Beside the stock markets giving me financial freedom it has also taught me how to think for myself which can be pretty tough these days. You’ve heard me say this a million times, “playing the stock market is a game of psychological warfare more than anything else.” A good example right now is how most members keep wanting to short the stock markets because everything they read says the markets can’t keep going up for a myriad reasons.
The Great Rescission that began in 2007 and lasted until early 2009, scarred many investors for a lifetime. I saw the same thing with my dad who grew up in the Great Depression. During the 1990’s bull market, which was the greatest bull market of all time at that time, he could never understand how the stock markets could keep going up because of all the fundamental reasons he thought should stop secular bull market dead in its tracks. We had some great debates on the direction of the markets but I wasn’t scarred emotionally by what happened in the Great Depression so I had an open mind and could view the charts with an objective point of view.
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Tuesday, January 26, 2021
Stock Market Recent Sector Triggers Suggest Stocks May Enter Rally Phase / Stock-Markets / Stock Market 2021
By: Chris_Vermeulen
Recently, our Best Asset Now (BAN) Hotlist generated a new trigger on the SPY chart. Typically, this type of trigger suggests the SPY is starting a new, potentially explosive, upside price rally. But what really interests us is the potential that the strongest sectoral ETFs may continue to see a much stronger upside price rally as a result of this new trigger.
Recent BAN SPY Trend Trigger
The strength of the BAN Hotlist is not the general market triggers it gives, such as the SPY, Dow Jones, or NASDAQ, but instead the ability to align these major market triggers with the strongest performing sectoral ETFs. This allows those using the Hotlist and BAN strategy to take advantage of the best-performing assets in the markets in any market trend. The new SPY trigger, seen on the chart below, suggests the US stock markets may be starting a new upside price trend, which will cause capital to rotate into different sectors. Our simple BAN Hotlist and strategy helps us identify these sectoral opportunities.
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Monday, January 25, 2021
Stock Market Intermediate Trend Intact / Stock-Markets / Stock Market 2021
By: Andre_Gratian
Current Position of the Market
SPX Long-term trend: There is some good evidence that we are still in the bull market which started in 2009 and which could continue into the first quarter of 2021 before coming to an end.
SPX Intermediate trend: May continue until SPX recaches 4150 in February.
Analysis of the short-term trend is done daily with the help of hourly charts. They are important adjuncts to the analysis of daily and weekly charts which determine longer market trends.
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Sunday, January 24, 2021
Stock Market: Why You Should Prepare for a Jump in Volatility / Stock-Markets / Stock Markets 2020
By: EWI
This volatility indicator "has made a series of higher lows" -- and it's not a good sign
Stock market volatility is like a roller-coaster ride -- extreme ups and downs.
However, unlike thrill-seeking roller-coaster riders who often rise from their seats after the ride with a smile, investors often exit with a frown.
That's because extreme volatility after a stock rally often ends with prices much lower.
Having said that, many investors -- even professionals -- do not anticipate a jump in volatility right now.
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Tuesday, January 19, 2021
How To Find Market Momentum Trades for Explosive Gains / Stock-Markets / Financial Markets 2021
By: Chris_Vermeulen
Every morning before the markets open I share my video chart analysis of the day’s price action in the indexes, metals, bonds, and more for members of the BAN Trader Pro service. Today we look at the futures of the major indexes, bonds, gold, silver, and miners. I review our open trades and I go through my BAN Hotlist in detail, showing members how to take advantage of the hottest sectors. Learn how we manage risk and implement our BAN (Best Asset Now) strategy to consistently beat the market.
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Monday, January 18, 2021
More Stock Market Speculative Signs, Energy Rebound, Commodities Breakout / Stock-Markets / Financial Markets 2021
By: Troy_Bombardia
More speculative signs
Speculative signs keep piling up. Contrarian investors and traders have focused on surging penny stocks and micro-cap stocks in recent days. The smallest of small cap stocks are now more than 40% above their 200 day moving average! The last time this happened was in February – March 2000, near the peak of the dot-com bubble.
*This is the Dow Jones Micro-Cap Index, which is the smallest 50% of the Wilshire 5000 index:
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