Sunday, August 30, 2015

The Day the Stock Market Shook the Earth: Takeaways From the Dow’s 1,000-Point Drop / Stock-Markets / Stock Markets 2015

By: Investment_U

Matthew Carr writes: I was working from home that day.

My wife had just had surgery, and I was caring for her as she recovered. I was sitting in our main floor living room, answering emails. My wife was on the couch downstairs, watching TV.

All of a sudden, our dog Chloe came running into the room. She jumped up on the couch next to me and started licking my face. Seconds later, the house started shaking.

Sunday, August 30, 2015

Gold Seasonality And Average Intraday Price Movement / Commodities / Gold and Silver 2015

By: Jesse

It will be interesting to see how gold moves in the latter half of this year.

As for the intraday movement, the impact of the London - New York on the gold trade is hard to miss.

Sunday, August 30, 2015

Gold Price Rally Marked by Short Covering / Commodities / Gold and Silver 2015

By: Dan_Norcini

If there was ever any doubt that the majority of buying by the hedge fund category in the gold market over the past 3-4 weeks has been of the nature of short covering, this week’s COT should put that theory to rest.

Since the third week of July, the hedge fund category alone has covered or lifted 40,000 short positions. That against the addition of only 16,000 or so new long positions over the same time span. By a better than 2:1 margin, hedge funds have been covering shorts, not instituting fresh purchases of gold.

Sunday, August 30, 2015

Stock Market, GDX Rally Expected, Now What? / Stock-Markets / Stock Markets 2015

By: Brad_Gudgeon

Last time I wrote, I was expecting an important top in the stock market by the 28th and a minimum of 1985 SPX. We closed at 1988 Friday after tagging 1993. Gold stocks began to rally strongly Thursday into Friday as we hit the 8 TD/3 week low Wednesday at new lows. Now what?

We have the 12/13 TD low due Monday along with a 4 TD 1 TD low max; also a TLC low due then. My expectation is for a quick 57 point SPX drop possible early Monday down to 1930 (see chart below). This should bring down the mining stocks with it, but it should all be temporary. GDX could come down into the mid $13 area, but I expect we may see $17 by Sept 2. As for the stock market, I believe we may have one more up wave left to perhaps the 2014 SPX area pre-Labor Day.

Saturday, August 29, 2015

Aging Stocks Bull Market / Stock-Markets / Stock Markets 2015

By: Tony_Caldaro

The week started off at SPX 1971. On Monday, due to overnight selling, there was a huge gap down at the open to SPX 1875. Then after hitting SPX 1867 in the opening minutes the market rallied to 1954 into the early afternoon, and then headed lower again. Tuesday was quite volatile and ended at Monday’s low. Then the market gapped up on Wednesday and Thursday, closing the week’s 100 point opening gap and hitting SPX 1990. On Friday the SPX hit 1993, then ended the week at 1989. For the week the SPX/DOW were +1.00%, the NDX/NAZ were +2.85%, and the DJ World index was +0.30%. On the economic front positive reports outnumbered negative ones 11 to 3. On the uptick: Case-Shiller, the FHFA, new/pending home sales, consumer confidence, durable goods, Q2 GDP, personal income/spending, the PCE, plus weekly jobless claims were lower. On the downtick: the WLEI, the GDPN and consumer sentiment. Next week will be highlighted by the FED’s beige book, Payrolls and the ISMs. Best to your week!

Saturday, August 29, 2015

Economic Destabilization, Financial Meltdown and the Rigging of the Shanghai Stock Market? / Stock-Markets / Chinese Stock Market

By: Michel_Chossudovsky

The dramatic collapse of the Shanghai stock exchange has been presented to public opinion as the result of a spontaneous “market mechanism”, triggered by weaknesses in China’s economy.

The Western media consensus in chorus (WSJ, Bloomberg, Financial Times) portend that Chinese stocks tumbled due to “uncertainty” in response to recent data “suggesting a downturn in the world’s second-largest economy”.  

Saturday, August 29, 2015

Casino Capitalism - What’s ahead for China and the US / Stock-Markets / Financial Markets 2015

By: LewRockwell

Eric Margolis writes: My father, a New York financier, used to call dubious stocks or bonds, “Chinese paper.” Last week, we saw a blizzard of Chinese paper, both in China and around the world.

As manager of a sizeable investment portfolio (an unwelcome second job from my main work, journalism), I watched last week’s near death experience on world markets with a mixture of cynicism and alarm.

Saturday, August 29, 2015

Why Monday’s Stock Market Mayhem Was No Surprise / Stock-Markets / Stock Markets 2015

By: Investment_U

Anthony Summers writes: After a week of steady declines, investors woke up Monday morning to a huge sell-off as both the S&P and Dow dropped hugely in the early minutes of trading.

The Dow plummeted nearly 4% before seeing its largest intraday point swing ever. The spread between the high and low of the day? An astonishing 1,089 points.

Saturday, August 29, 2015

The Stocks You Should Be Buying After the Market Drop / Companies / Investing 2015

By: Investment_U

Sean Brodrick writes: If you’re looking for bargains after Monday’s market sell-off, take a look at cybersecurity. Few industries got sold as hard - and yet it has the best growth prospects.

That’s due to a worldwide surge in hacking from criminals and terrorists. After all, when it’s so easy to be a hacker and get away with it, anyone who wants to will be a hacker.

Saturday, August 29, 2015

Don't Let 'The Glidepath Illusion' Ruin Your Retirement / Personal_Finance / Pensions & Retirement

By: DailyWealth

Dan Ferris writes: The traditional notion of retirement says you should take bigger risks in the stock market when you're young.

You have more time to make up for losses than when you're older. As you age, you should take less and less risk, so you won't lose your retirement money... so the conventional wisdom goes.

Saturday, August 29, 2015

Stock Market New Range?.....Please Say It Isn't So / Stock-Markets / Stock Markets 2015

By: Jack_Steiman

Is everyone's nightmare about to realize yet again? Unfortunately, that may be the case. We may have seen the elevator move down one flight after nearly a year of being stuck on the same floor. The repair man finally got to work, but it seems he left the building a bit too soon. He thought he fixed the problem, but after a quick fix it didn't hold. We're possibly on, yet, another broken elevator to nowhere. The old boring-to-nowhere range was understood to be at 2134 down to 2040. Now the new range may be S&P 50 1900, or thereabouts, to 2040.

Saturday, August 29, 2015

Gold Shares Lows are Near / Commodities / Gold and Silver Stocks 2015

By: Aden_Forecast

As most of you know, many mining companies have fallen by over 90%. The HUI Gold Bugs index has fallen 83% since its 2011 peak in the second longest bear market in gold shares on record. It's fallen twice as much as gold's bear market loss of 43%.

But looking at the next two charts, both are saying the lows may already be in.

Friday, August 28, 2015

How I Learned to Stop Worrying and Love Market Fluctuations / InvestorEducation / Trader Psychology

By: John_Mauldin

Patrick Cox: Most of you know that my day job involves finding disruptive technologies for investors. Most of you also know that the stock market has recently taken a southward plunge.

When I was younger, I always wondered why big fluctuations in markets seemed to cause so many people so much anxiety and consternation. It’s not as if we don’t know that, historically, markets have always displayed big swings. Understanding this, it always seemed clear to me that a rational individual would not invest money in equities if that money might be needed in the short run.

Friday, August 28, 2015

Stocks Bear Markets and Interest Rate Hikes, Oh My! / Stock-Markets / Stocks Bear Market

By: Barry_M_Ferguson

The latest bear market has arrived and the Fed will raise the fed funds rate in September. There. It is written.

The conventional ‘bear market’ assumes two things. First, the major stock indices fall 20% from their recent highs. Two, there is a market. Both of these adages are now false in the new era.

Friday, August 28, 2015

China's Yuan Devaluation: Why It Was "Expected" / Currencies / China Currency Yuan

By: EWI

Why the yuan devaluation was not a "surprise" -- and what Elliott waves suggest for China's currency next

China's economy is slowing. Its stock market began to crash back in July. And, the volatility rocking financial markets has been widely linked to the recent yuan devaluations by China's central bank.

Friday, August 28, 2015

Stocks Go Nuts But the Question Remains – Will the Rally Stick? / Stock-Markets / Stock Markets 2015

By: ...

MoneyMorning.com Keith Fitz-Gerald writes: On the heels of Monday’s vicious 1,000+ point “dip” and Wednesday’s subsequent 619 point “rip ” higher, many investors are asking one question – will the rally stick?

The media certainly seems to think so:

…Relief Descends on US Stock Market with Best Rally Since 2011 – Bloomberg

…Dow, S&P Enjoy Biggest Percentage Gains in Four Years – MarketWatch

…Chinese Stock Index Jumps 5.3% as Asian Stocks Rise – Yahoo!Finance

Friday, August 28, 2015

Fed’s Stock Market Levitation is Failing / Stock-Markets / Stock Markets 2015

By: Zeal_LLC

The US stock markets just suffered an extraordinary plunge, shocking traders out of their complacency psychosis.  This cast the foundational premise behind recent years’ incredible stock-market levitation into serious doubt.  Traders are finally starting to question whether central banks can indeed manipulate stock markets higher indefinitely.  Any wavering in this faith has very bearish implications for stock prices.

Less than two weeks ago, the US’s flagship S&P 500 stock index (SPX) was up above 2100.  It finished August’s middle trading day just 1.3% below the latest record highs from late May.  At the time, the Wall Street analysts were overwhelmingly bullish and saw nothing but clear sailing ahead.  Predictions for the SPX ending this year above 2250 were ubiquitous, and retail investors were urged to aggressively buy stocks.

Friday, August 28, 2015

The Eight Energy Systems Driving The Stock Market Rout / Stock-Markets / Stock Markets 2015

By: Dan_Amerman

The energy systems which drove the global stock market rout have been building for months and years, and by the spring of this year, the danger flags were clearly flying. Indeed, as I wrote in May of 2015 in an analysis titled "A Financial "Perfect Storm" May Be Brewing" (link here):

"In the financial world at this very moment, we have eight different "weather systems" that are all developing in real time.

... if several of the more powerful components were to converge – and reinforce each other – then we could very rapidly reach the point of greatest financial instability that the world has seen since 2008."

Friday, August 28, 2015

Dow Theory Transports Daily Chart Positive Development / Stock-Markets / Stock Markets 2015

By: Marty_Chenard

For the Dow Theory enthusiast, below is a daily Transport chart as of yesterday's close. Note that it closed higher yesterday and it was above its 7700 resistance level. That was a positive.

Friday, August 28, 2015

Silver Sold, then Squeezed / Commodities / Gold and Silver 2015

By: Alasdair_Macleod

While gold consolidated its recent gains, silver was sold down this week along with other metals and energy. The whole commodity complex suffered badly in the stock-market fall-out, before a sharp bear-squeeze across commodity markets pushed silver, copper and oil sharply higher yesterday (Thursday). Silver is now down 6.8% on the year and gold 5%. Prices were slightly firmer this morning in Asian trade, before the European opening.