Category: Stocks Bear Market
The analysis published under this category are as follows.Tuesday, October 04, 2011
How to Get Rich in a Stocks Bear Market / Stock-Markets / Stocks Bear Market
Shah Gilani writes: To most investors, just surviving a bear market is more important than finding the next jet-fueled growth stock.
But I want to let you in on a secret: Rather than just trying to survive, investors can actually thrive in bear markets. In fact, I make a lot more money a lot faster in bear markets than I do in bull markets.
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Thursday, September 29, 2011
Stocks Bear Markets Are Cunning Beasts / Stock-Markets / Stocks Bear Market
Bear markets are cunning beasts.
Don't get me wrong -- we are not in the bear market territory yet. At least, not officially.
An "official" bear market begins when the stocks indexes decline 20%. The DJIA's decline from the May 2, 2011 high to the September 21 low is about 17%. Close, but no cigar.
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Sunday, September 25, 2011
Bull Bear Market Phases, Dow Theory Update / Stock-Markets / Stocks Bear Market
According to Dow theory, both bull and bear markets have three phases. Between each of these phases there are important counter-trend moves. Our Dow theory founding fathers explained that these counter-trend moves are misleading and tend to be taken as a continuation of the previous long-term secular trend. Based on the longer-term phasing and value aspects of Dow theory, the evidence continues to suggest that the last great bull market began at the December 1974 low and peaked in October 2007. This data also continues to suggest that the decline into the March 2009 low was merely the Phase I decline and that the rally out of the March 2009 low serves to separate Phase I from Phase II of a much longer-term secular bear market.
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Monday, September 19, 2011
Protect Yourself From the Obama Stocks Bear Market / Stock-Markets / Stocks Bear Market
Keith Fitz-Gerald writes: I just finished a battery of media appearances on Fox Business, Bloomberg, BNN and CNBC Asia, and without exception I was asked about two things: President Barack Obama's jobs bill and the U.S. Federal Reserve's "QE3."
The first thing investors and analysts alike want to know is whether or not the president's jobs bill will work. The answer to that question is "no" - not as it stands, anyway.
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Sunday, September 18, 2011
Tick Tock, Tick Tock Goes Nasty New Cyclical Stocks Bear Market / Stock-Markets / Stocks Bear Market
I remain convinced that a nasty new cyclical bear market in common equities has begun. Now that Germany's stock market ($DAX) has dropped 35% from its May peak, there is little point in Wall Street trying to pretend that this is "just another correction/buying opportunity." The US stock markets have held up better than most, but this is about to change in my opinion. In fact, it was Germany that held up much better than the US in late 2007/early 2008, only to play catch-up later once the bear market really got rolling. Now, the crisis is centered in Europe (for now), so Germany and the US get to reverse their roles relative to the prior cyclical bear market of 2007-9.
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Friday, September 16, 2011
Triple Top Forming in U.S. Stock Market, Robert Prechter Explains / Stock-Markets / Stocks Bear Market
This excerpt from the special video issue of the August Elliott Wave Theorist brings you Bob Prechter’s analysis of the triple top that has been forming in the U.S. stock market over the past 12 years. Watch as Bob himself explains what this pattern means for you and the markets.
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Saturday, September 10, 2011
Prepare For A Recession and Stocks Bear Market! / Stock-Markets / Stocks Bear Market
Brace yourself for a recession.Central banks around the world seem to be doing so, making little effort to prevent it this time around, resigned to letting the business cycle play out.
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Thursday, September 08, 2011
Stocks Bear Market Rally May Not have Ended / Stock-Markets / Stocks Bear Market
The post March 2009 closing high for the Industrials occurred on April 29th at 12,810.54 and for the Transports that high occurred on July 7th at 5,618.25. This in turn left a Dow theory non-confirmation in place. This was then followed by a close below the March 2011 secondary low points on August 4th. As a result of this close, a Dow theory primary trend change occurred. This is the first such occurrence since the bear market rally out of the March 2009 lows began and I do not take this development lightly. But, at the same time, based on other technical factors, I also have to question this trend change.
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Tuesday, September 06, 2011
Logical Case for a 49% Stock Market Crash / Bear Market / Stock-Markets / Stocks Bear Market
With an apparent acceleration of the debt crisis in Europe and a prolonged budget fight set to continue in the United States, we have bear market drivers in place from a fundamental perspective. On Monday, two-year Greek notes traded at 50% of face value; the yield on 10-year Italian bonds rose another 27 basis points. Angela Merkel’s party lost weekend elections in Germany, which brings into question public support for more bailouts in Europe.
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Sunday, September 04, 2011
Stock Market Big Picture / Stock-Markets / Stocks Bear Market
What started off as a promising week for the equity markets ends mixed in the US: SPX/DOW -0.3%, and the NDX/NAZ +0.2%. In between, the market gapped up monday morning from friday’s SPX 1177 close. Then hit SPX 1231 on wednesday only to gap down friday ending the week at SPX 1174. Economic reports continued to be slanted to the downside. On the upswing: personal income/spending, PCE prices, the Case-Shiller index, factory orders, auto sales, the m1-multiplier, and jobless claims improved. On the downswing: pending home sales, construction spending the Chicago PMI, ISM manufacturing, the ADP index, monthly Payrolls, the monetary base, the WLEI, and consumer confidence plunged. Asian markets gained 1.9%, European markets gained 1.7%, the Commodity equity group gained 3.7%, and the DJ World index rose 1.6%. Next week we have the FED’s Beige book, ISM services, and Consumer credit.
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Sunday, September 04, 2011
Why Economic Recession and Stocks Bear Market May Be Inescapable! / Stock-Markets / Stocks Bear Market
Note to Fed Chairman Ben Bernanke:
It’s happening, Ben. Your assurances of an economic recovery in the 2nd half are in the wind, blown away by the continuing string of terrible economic reports. The next recession is probably already underway!
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Wednesday, August 31, 2011
Stocks Bear Market Investing, Tepid Interest in QE2 Winners Raises Questions About QE3 / Stock-Markets / Stocks Bear Market
The Federal Reserve printed money in 2009 and bailed out the stock market. The Federal Reserve printed money in 2010 and bailed out the stock market. As the financial markets anticipate the next Fed statement due to be released on September 21, the markets are again teetering on the edge of a deflationary abyss.
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Wednesday, August 31, 2011
Stocks Bear Market Rally Has Begun / Stock-Markets / Stocks Bear Market
I've been warning bears for a couple of weeks that the market was due for an aggressive bear market rally. That rally has clearly begun.
I have often referenced the Rubber Band theory in my nightly reports. For those not in the know, the rubber band theory is nothing more than the tendency for any market to regress to the mean. And the further a market is stretched away from the mean the more violent the snap back tends to be once the pressure is released.
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Saturday, August 27, 2011
Stock Market Intermediate Signals Still Pointing Down! / Stock-Markets / Stocks Bear Market
To put today's upmove in a larger perspective -- certainly larger than my 1-minute or 4-hours chart analytics, let's have a look at my updated weekly pattern and moving average analytics in the cash SPX.
Only twice in the last 11 years (2000 & 2007) have ALL of my directional moving averages turned down into a negative crossing, which subsequently confirmed that an acute, intermediate-term bear phase was underway. In 2000, after the downside MA inflection point, the SPX declined from 1380 to 768 (-45%), and in 2007 the SPX declined from 1475 to 666.79 (-55%).
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Thursday, August 25, 2011
The Stock Market's Dumbest Rally of All Time / Stock-Markets / Stocks Bear Market
"Without the destructive power of the banks, hedge funds and other investment companies, the world would not be where it is today — at the edge of an abyss." Der Spiegel, "The Destructive Power of the Financial Markets"
Tuesday's 322 point surge on the Dow Jones must rank among the dumbest rallies of all time. The proximate trigger for the triple-digit moonshot was the feint hope that Fed chairman Ben Bernanke might pull another rabbit out of his hat at his Jackson Hole confab and announce another round of his bond purchasing program called Quantitative Easing.
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Wednesday, August 24, 2011
Marc Faber Stock Market S&P Index Won’t Surpass 2011 1,370 High / Stock-Markets / Stocks Bear Market
Marc Faber, publisher of the Gloom, Boom & Doom report, appeared on Bloomberg Television’s “Street Smart” with Carol Massar and Matt Miller today.
Speaking from Sao Paolo, Brazil, Faber said that the S&P won’t surpass the 2011 high of 1,370 and that investors are “better off in equities than bonds.” Faber also said that keeping money in cash in 10-Years is a “disaster.”
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Wednesday, August 24, 2011
Dow:Gold Ratio & the Secular Stocks Bear Market / Stock-Markets / Stocks Bear Market
As I have been warning investors for many months, stocks have now entered stage III of the secular bear market. Gold on the other hand is now in the final parabolic phase of a 2 1/2 year C wave advance.
My best guess was that we would see a Dow:gold ratio of between 5-6 before this C wave ended. The ratio was at 5.71 as of today. For reasons explained in the nightly reports I think we may still have a little further to go on the downside for stocks and a little further upside in gold. So it's entirely possible that we could see a Dow gold ratio of 1:5 before the trends reverse.
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Tuesday, August 23, 2011
Another Stock Market "Lost Decade" Coming Up; Boomer Retirement Headwinds / Stock-Markets / Stocks Bear Market
Inquiring minds are digging into a Federal Reserve Bank of San Francisco report that models equity prices and P/E ratios based on demographics. The outlook is not promising to say the least.
Interestingly, the report matches articles I wrote earlier this year based on cycles, not demographics.
Tuesday, August 23, 2011
Beginning of Classic Stock Market Break Down / Stock-Markets / Stocks Bear Market
Based on the chart below (courtesy Bigcharts.com) we have just witnessed the beginning of a classic breakdown.
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Monday, August 22, 2011
Global Stocks Bear Market Is Upon Us / Stock-Markets / Stocks Bear Market
Or At Least Knocking On The Door... QVM Clients:
The attached letter provides charts showing evidence that we are in, or nearly in, a global bear market for stocks.
Important news events that will impact the coming week are:
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