Category: Financial Crash
The analysis published under this category are as follows.Tuesday, October 23, 2012
Lessons From Stock Market Crash Black Monday / Stock-Markets / Financial Crash
25 years ago, on another Monday in late October, the financial world seemed to disintegrate in a heartbeat. Though the 205 point drop in the Dow last Friday (the technical anniversary of the '87 Crash) was somewhat reminiscent of its 108-point drop on Friday, October 16, 1987, the real action in '87 was on the Monday that followed. And while this Monday is not nearly as black, it is important that we use the opportunity to recall the circumstances that nearly sent the stock market into cardiac arrest.
Read full article... Read full article...
Monday, October 22, 2012
Markets Breaking Supports, Stock Market Waterfall Drop Ahead? / Stock-Markets / Financial Crash
-- Using the 10-week moving average as support, VIX staged a breakout above its two previous highs. It found resistance at its 40-week moving average, which produced a brief respite late on Friday. Once above the 40-day resistance, VIX has a shot at Cycle Top resistance at 34.07 and possibly much higher.
Read full article... Read full article...
Sunday, October 21, 2012
Thoughts on the Anniversary of the Stock Market Crash of 1987 / Stock-Markets / Financial Crash
Friday was the anniversary of the Crash of '87. As I recall it occurred on a 'Black Monday' after a 'Blue Friday' in which the DJIA lost 100 points for the first time I believe. The markets were wobbly.
It is hard to remember exactly what happened in the market that day except in the retrospect in which I have studied it in detail. But I remember vividly how I heard about what was happening that day.
Read full article... Read full article...
Saturday, October 20, 2012
QE3 and Coming Economic Crash / Economics / Financial Crash
Why monetarist theory is flawed
Federal Reserve Chairman Ben Bernanke really means it this time.
He will rescue the economy.
Read full article... Read full article...
Friday, October 19, 2012
Stock Market Crash Panic Starts Here / Stock-Markets / Financial Crash
NDX has crossed its Crash Trigger at 2760 and is about to exceed its prior low. That means the crash or panic starts here with the NDX. The bears have been so beaten up that there aren’t any left, well, hardly anyone. Everyone has a bullish count for the market but virtually no one is aware of the implications of the Broadening Formations. Well, this one is triggered.
Read full article... Read full article...
Tuesday, October 16, 2012
Unless We Act, High-Frequency Trading Will Crash the Markets / Stock-Markets / Financial Crash
Shah Gilani writes: High-frequency trading isn't illegal. But the way it is practiced today, it should be.
That's because high-frequency trading, or HFT, doesn't add to market liquidity, stability or efficiency -- but it could cause a catastrophic market crash.
Read full article... Read full article...
Monday, October 15, 2012
The Coming Stock Market Flash Crash / Stock-Markets / Financial Crash
Shah Gilani writes: According to high-frequency traders and their backers, the super-fast, computer-driven stock trading desks that employ HFT are a benefit to investors and exchanges here in the U.S. and wherever they ply their trades.
But that's not true.
In fact, if you know exactly what high-frequency traders actually do and how they do it, you'll know what the SEC hasn't figured out, namely what caused the May 2010 Flash Crash.
Read full article... Read full article...
Sunday, October 14, 2012
Don't Ignore Financial Tsunami Signs, Conquer the Crash Lessons / Stock-Markets / Financial Crash
If you're a passenger aboard a ship in deep water, you can't detect a tsunami; the swells are indistinguishable from regular ocean waves. Wave lengths can be hundreds of miles long, but only when this energy reaches shallow water does the mammoth tsunami wall form -- and can wash over anything in its path.
Read full article... Read full article...
Friday, October 12, 2012
Financial Tsunami Heading To Shore Has Been Building for 80 Years! / Stock-Markets / Financial Crash
If you're a passenger aboard a ship in deep water, you can't detect a tsunami; the swells are indistinguishable from regular ocean waves. Wave lengths can be hundreds of miles long, but only when this energy reaches shallow water does the mammoth tsunami wall form -- and can wash over anything in its path.
Read full article... Read full article...
Friday, October 12, 2012
Stock Market Crash Starts Here / Stock-Markets / Financial Crash
Well, folks, it appears that the market is going full circle. Sunday is day 1,314 from the March 9, 2009 low. Obviously the market cannot bottom on Sunday, but it appears that the crash scenario is getting more and more serious. The Head & Shoulders neckline at 1430.75 and the Orthodox Broadening Top trendline await us just below current levels.
Read full article... Read full article...
Wednesday, October 10, 2012
Are Businesses Quietly Preparing for a Financial Apocalypse? / Stock-Markets / Financial Crash
Dan Steinhart, Casey Research writes: US corporations are sitting on more cash than at any point since World War 2.
That's without including banks. I'm only talking about nonfinancial corporations – the ones that sell goods and services and make the economy go.
Read full article... Read full article...
Tuesday, October 09, 2012
Stock Market Sitting on the Precipice / Stock-Markets / Financial Crash
The SPX is sitting at Short-term support at the close. My model suggests a very powerful move is in the offing, in which the next target may be as low as mid-Cycle support at 1373.79 before the next bounce back, possibly to the 50-day moving average at 1423.77. Once 1373.79 is crossed the second time, the crash may be underway. The Broadening Wedge at 1320.00 may only enhance the decline, since most Broadening Wedges don’t call for a bounce, while the Orthodox Broadening Tops do.
Read full article... Read full article...
Tuesday, October 09, 2012
Financial Crash, Economic Crash, We Have Been Warned! / Stock-Markets / Financial Crash
Bernanke gave his “helicopter” speech in which he made reference to a “helicopter drop of money.” But the critical point in his speech was:
Read full article... Read full article...“U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in term of goods and services, which is equivalent to raising the prices in dollars of those goods and services.”
Tuesday, October 02, 2012
Stock Market Panic Scenario Developing / Stock-Markets / Financial Crash
Good Morning!
The Scenario that I discussed last night is playing out. Remember, this formation is comprised of zigzags, or a-b-c waves. This morning’s pop is a B wave. We will have confirmation of that once SPX declines below 1440.98.
This decline will be the wake-up call, but many will fall back asleep when a strong 61.8% retracement from the 50-day moving average (1413.99) back to mid-cycle resistance at 1450.45 follows.
Read full article... Read full article...
Tuesday, September 18, 2012
Prepare for Stock Market Crash 2013 / Stock-Markets / Financial Crash
Jonathan Yates writes: The market has surged in recent action, but these gains haven't eradicated the chances of a stock market crash in 2013.
Global markets are up on news that central banks will deliver more stimulus measures, such as QE3 in the United States.
Read full article... Read full article...
Tuesday, September 18, 2012
Stock Market Pop and Drop Crash Pattern / Stock-Markets / Financial Crash
It appears that the SPX (cash) is in an a – Triangle b – c pattern that may lend itself to a pop to at least 1465, or possibly higher. This will give the SPX enough elevation to break through support, which is just beneath the Triangle formation (and the cause of the bottom trendline). I think that 1465.23 is resistance, but there may be an attempt to rise above it. No matter. The decline that follows will then have enough strength to “punch through.”
Read full article... Read full article...
Friday, September 07, 2012
Progression of Stock Market Top, Crash Formations / Stock-Markets / Financial Crash
SPX shows a well-formed Orthodox Broadening Top formation that may have a few points left to complete point 5. As it stands, it is already overbought and has the minimum requirements for a completed formation. The trading bands have squeezed together suggesting a violent transition is at hand.
Once the SPX declines below 1395, there is a good possibility of a bounce from the 50-day moving average (point 6) back to mid-Cycle resistance at 1410.27 (point 7), then a very dramatic decline to its average target of 1074.15, its 2011 low.
Read full article... Read full article...
Tuesday, July 31, 2012
Planets Align for Stock Market Crash / Stock-Markets / Financial Crash
David Zeiler writes: Of all the tools one might use to predict a stock market crash in 2013, planetary alignments and solar particles are not, for most people, the first options that spring to mind.
But market analyst Arch Crawford has applied his arcane "astro indicators" for 35 years with surprising success.
Read full article... Read full article...
Sunday, July 29, 2012
Why the Financial System Could Collapse / Stock-Markets / Financial Crash
In order to understand why we’re at risk of the financial system collapsing, you first need to understand how the global banking system works. When you or I buy an asset (say a house, or shares in a stock, or a Treasury bond), we do so because we’re looking to increase our wealth through either capital gains or through the income that asset will pay us in exchange for us parking our capital there.
Read full article... Read full article...
Friday, July 27, 2012
Draghi Just Pulled Out His Bazooka… How Long Before the Stock Market Crash? / Stock-Markets / Financial Crash
Yesterday, the markets exploded higher on ECB President Mario Draghi’s comments that the ECB stands by ready to do whatever is needed to hold the EU together
We’ve seen this exact same game plan before in 2008 when Hank Paulson claimed that getting a blank check from Congress to battle the US banking Crisis would be like having a bazooka: the markets would be shocked and awed back into functioning properly.
Read full article... Read full article...