Friday, September 04, 2015
The Stocks Bear Market Everyone Saw Coming / Stock-Markets / Stocks Bear Market
The title lets you know where this article is going. For such a routine correction in the US stock market, the Psych/Sentiment backdrop has gotten way out of whack. Do some analysis on Rydex Bull/Bear fund allocations among investors and you will find a historic knee jerk reaction into bear funds over bull funds (by those who still use Rydex funds).
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Friday, September 04, 2015
Why September’s Stock Market Volatility Is a Huge Opportunity for Options Traders / Stock-Markets / Options & Warrants
It’s no secret that I think this volatility will continue, at least in the short-term, and the best way to weather the storm is to make sure you’ve got options in your portfolio.
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Friday, September 04, 2015
What IF Gold is Just in a Great Big Bull Consolidation Pattern ? / Commodities / Gold and Silver 2015
The gold charts which are showing gold is at a critical level right here. Below is the daily chart for gold that shows its comb triangle / H&S consolidation pattern. I have shown you on the precious metals indexes the same combo consolidation pattern. The only real difference is the PM stock indexes reached their respective price objectives while gold has yet to reach its. So there is a big divergence between the Pm stocks and the metal. This counter trend rally that started at the August low finally ran into some serious resistance as shown by the red circle.
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Thursday, September 03, 2015
Stock Market Chokin’ on the Splinters / Stock-Markets / Stock Markets 2015
It’s been a tough couple of weeks.
I keep a mostly hedged book, long and short, so it’s rare that I get my head caved in on every position at the same time. But that’s pretty much what has happened. My shorts haven’t worked because they’re either rate-sensitive or Canadian banks. Meanwhile the longs, which include a lot of emerging markets—well, you know what has happened with those.
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Thursday, September 03, 2015
ECB Preempts Fed Inaction, PBOC Action / Interest-Rates / ECB Interest Rates
The ECB succeeded in weakening the euro and bund yields with an aggressive downgrade of 2015-2017 forecasts for GDP and CPI, while announcing an increase in the issue share limit of bonds included in QE purchases to 33% from 25%. The increased limit means the ECB can buy a higher share of an individual nation's bond issue, giving it more freedom of concentration in particular issues.
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Thursday, September 03, 2015
This Stock Market VIX Chart Should Blow Your Mind / Stock-Markets / Stock Markets 2015
Price volatility in stocks and other instruments has been stunning the past few weeks. The VIX chart from the August 28 Elliott Wave Short Term Update puts the massive moves in perspective:
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Thursday, September 03, 2015
Eurodystopia: A Future Divided / Politics / European Union
This is a rerun of an article I wrote on August 10, 2012. It seems to have regained quite a bit of relevance in recent days. I was thinking earlier today, how can I write about finance when Europe continues to offend people’s, and humanity’s, most basic dignity the way it does, but it does. It gets more incomprehensible by the hour, what happens there. But it does.
So here’s a different view, 50+ years old, of what Europe could, and perhaps should, have been, instead of the sad and amoral place it has become. Just for perspective.
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Thursday, September 03, 2015
The Student Loan Crisis Is Mounting / Interest-Rates / Student Finances
Addison Quale writes: "You need a college degree to succeed in America." This idea has become so commonplace that the right to higher education is now a core issue in most political platforms. What if a young person cannot afford a college degree? The "obvious" answer from politicians on both sides of the aisle is that the government should subsidize them. Very few are brave enough to ask the far more important question: "At what cost?"
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Thursday, September 03, 2015
Stock Market Prepares for the Next Decline / Stock-Markets / Stock Markets 2015
Good Morning!
After reviewing the charts, I have come to the conclusion that we may be seeing a Leading Diagonal Wave (1) in the SPX and other major indexes. Note that both Waves 1 and 3 fit the [a]-[b]-[c] pattern better than an impulse because of overlap in Wave 1 and the Triangle [b] in Wave 3. We have already seen Waves [a] and [b] in Wave 5 with a large Wave [c] decline to go.
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Thursday, September 03, 2015
The Next Financial Crisis May Already be Unfolding / Stock-Markets / Financial Markets 2015
Stefan Gleason writes: Is an epic financial meltdown about to commence? Predictions that a crash will occur in the fall of 2015 have been gaining traction. They are bolstered by some of the market events of this summer, which suggest that something big is indeed unfolding.
In August, the Chinese devalued the yuan, setting off volatility in currency, commodity, and equity markets worldwide. The U.S. stock market suffered its worst slide in four years, with the Dow Jones Industrial Average falling through major support levels. Crude oil prices careened below $40 per barrel.
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Thursday, September 03, 2015
Marc Faber Warns “No Safe Assets Anymore” So “Focus On Precious Metals” / Commodities / Gold and Silver 2015
DAILY PRICES
Today’s Gold Prices: USD1130.05, EUR 1005.88 and GBP 739.63 per ounce.
Yesterday’s Gold Prices: USD 1140.00, EUR 1010.73 and GBP 746.46 per ounce.
(LBMA AM)
Thursday, September 03, 2015
Europe Rethinks the Schengen Agreement / Politics / European Union
Forecast
- Rising immigration and fragile economic recovery in Europe will reduce political support for the Schengen Agreement, which eliminates border controls among member states.
- The Schengen Agreement will likely be reformed to make room for countries to tighten their border controls more frequently.
- Friction between Schengen members and other countries will remain, as will tension within the bloc itself.
Thursday, September 03, 2015
BP Oil Company Moves past Mistakes But Still Feeling Price Pinch / Companies / Oil Companies
Major oil Company BP (LSE: BP) has found itself in an uncertain position the past few years. Under pressure from both outside and within, the company has managed to stay relatively stable considering the shakeup in the industry. Now, despite the current economic downturn facing the oil industry and a disappointing second quarter, the oil giant is finally able to look more towards improving future prospects. A recent settlement in their ongoing case with the United States Federal Government and state governments as well as a relatively solid balance sheet paired with their diversified corporate structure have combined to create a potentially positive long-term outlook for investors seeking long-term potential. However, the short-term outlook must acknowledge the inherent industry risks.Read full article... Read full article...
Thursday, September 03, 2015
EU Migration Crisis and Population Density, Why Cameron is Right, England Really is Full / Politics / Immigration
In the wake of Germany's announcement to take upto 800,000 refugees this year and images of dead refugees washed up on the shores of Turkey, David Cameron and the UK government are coming under intense pressure to change their stance on refugee migration that continues relentlessly as each bordering nation acts to funnel over one hundred thousand migrants each month northwards towards destinations such as Germany and Britain.
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Thursday, September 03, 2015
Stock Market Return to Crisis: Things Keep Getting Worse / Stock-Markets / Stock Markets 2015
The virus that spread to stock markets around the world and nearly destroyed the global financial system in 2008 has reemerged with a vengeance sending global equities deep into the red and wiping out more than $5 trillion in market capitalization in less than two weeks. On Tuesday, before the opening bell, major market index futures in the US plunged more than 400 points signaling another violent day of selling ahead. Worries that a slowdown in China will impact global growth pushed Asian and European markets deep into negative territory while US futures indicate that the Dow Jones is headed for its ninth triple-digit day in ten sessions. The deluge of bad news has battered confidence in the Fed and “sent global equities to their worst monthly slump in more than three years”. Millions of Mom and Pop investors have sold out already and are headed for the exits. Here’s a recap from Bloomberg:
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Thursday, September 03, 2015
Stock Market Eleven Crazy Days — Many More Coming / Stock-Markets / Stock Markets 2015
Twelve months ago the world was happily sailing along in the Great Moderation, with financial markets that moved gracefully higher most of the time but even in their rare negative moments didn’t cause too much angst. The eleven trading days leading up to September 3 saw not a single triple-digit move on the Dow, and only three down sessions.
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Thursday, September 03, 2015
Dow Theory Stock Market Sell Signal Examined / Stock-Markets / Dow Theory
The article below argues that the Dow will rise after its current “correction” because it rose following the two previous corrections. But this time around both Industrials and Transports have fallen to lower lows. On those previous two occasions this did not happen.
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Thursday, September 03, 2015
Crude Oil Price Sinking or Rebounding? / Commodities / Crude Oil
Trading position (short-term; our opinion): No speculative positions are justified from the risk/reward perspective.
On Tuesday, crude oil reversed and declined sharply as weak Chinese data weighed on investors' sentiment. As a result, the commodity approached support levels, but will they encourage oil bulls to act in the coming days?
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Thursday, September 03, 2015
How OPEC’s Attempt to Save Face Affects the Crude Oil Market / Commodities / Crude Oil
Well, that somebody is OPEC, and there is much more behind this development, leading to today’s discussion.
In its monthly report released on Monday, OPEC indicated it is now willing to discuss production levels with other non-OPEC countries. This is the first indication that the low crude oil price environment has been creating serious problems inside the cartel.
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Thursday, September 03, 2015
Crude Oil Price Forecast 2015 and 2016 - Video / Commodities / Crude Oil
The crude oil price has relentlessly trended lower all year to an unimaginably low price low of $37 of just a few days ago, falling from $100 a year ago. The severe bear market has not only caught many market commentators off guard but has had a devastating impact on several major economies that are heavily reliant on high oil prices such as Russia, the gulf states, and other emerging markets reliant on their energy sector tax revenues to finance state spending and of course Britain's very own Scotland that a year ago was toying with idea of committing social and economic suicide (independence referendum).
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