Category: Stocks Bear Market
The analysis published under this category are as follows.Monday, August 22, 2011
Stock Market Dip Buyers Beware: Odds Favor Lower Lows in Stocks / Stock-Markets / Stocks Bear Market
Whether you rely on fundamentals, technicals, or a combination of both, investment analysis centers around looking at probabilistic future outcomes based on historic outcomes that occurred under similar circumstances. Given the weight of the fundamental and technical evidence we have in hand and in the context of history, the odds have shifted from favoring higher highs in stocks and risk assets to favoring lower lows. Until conditions improve, we will continue to err on the side of caution and treat the current market climate as unfavorable for intermediate to longer-term investing. We have minimal exposure to global stocks. We have positions in gold (GLD), silver (SLV), bonds (TLT), and cash.
Read full article... Read full article...
Sunday, August 21, 2011
Stocks Bear Market Begins / Stock-Markets / Stocks Bear Market
World markets have broken important support levels over the past three weeks. Global equity indexes have now fallen into a new bear market.
Fears about the spiraling European debt crises and a stalling US economy is largely the cause for the decline (Chart 1). Most indexes have already dropped 10% to 14% in August as investors run to safe havens. An additional 10% to 12% is expected by year end.
Read full article... Read full article...
Sunday, August 21, 2011
Nasty Stocks Bear Market Below S&P 1249 Continues / Stock-Markets / Stocks Bear Market
We look for defining moments that tell us something has changed. That what was once one trend is now another, although it's hard to see it initially. It's about trusting those technicals that tell you where one market ended and another began. S&P 500 1249 was that level. Losing it lost the up trend line off the March 2009 lows. It also meant losing huge horizontal support, and the bottom of the big triangle in place at the time. It opened the door to much lower prices potentially, and that potential has been filled. I don't think anyone would deny that. It's been ugly since we lost S&P 500 1249. Some short-term rallies along the way, but the trend has been to sell and sell hard almost on a daily basis. Some monster days lower of 4% plus. One day like that is unusual enough. Multiple days like that tell you something is terribly wrong economically.
Read full article... Read full article...
Sunday, August 21, 2011
The Stock Market Bear Lives On / Stock-Markets / Stocks Bear Market
Last weeks article was titled "setting up the next decline." I mentioned to readers that we could see a push higher towards the 1200ES area in the early part of the week, but I still suspected we would find a high in that area.
The market made it a little more frustrating that I wanted to see, but it eventually it came good, having put in 2 false breakouts, the 3rd attempt finally cracked lower, a what a move!, it finally made the effort that we put in looking for that 4th wave high all the more worth it.
Read full article... Read full article...
Friday, August 19, 2011
See Prechter's Stock Market "FREE FALL TERRITORY" Chart for Yourself / Stock-Markets / Stocks Bear Market
In the May 2008 issue of his monthly Elliott Wave Theorist, Robert Prechter showed this chart of the Dow Jones Industrials. As you can see, prices go back to the 1970s.
Read full article... Read full article...
Friday, August 19, 2011
Stock Market Sure Looks Like 2008 / Stock-Markets / Stocks Bear Market
"He observed that human emotions collectively had major impacts on the on stock prices and the patterns seen in the Stock Markets in general." ~ From a book on the teachings of Jesse Livermore
When you think of it in the short term markets are nothing more than a group of people trying to process data and understand what others are doing all under the stress of losing personal wealth. They are trying to solve a problem that in may ways is not solvable unless one can adapt. Similar to a group of Navy SEALs on a mission. They are successful only if they can adjust to the changing situation. There's a reason few are SEALs and few are successful in this business.
Read full article... Read full article...
Thursday, August 11, 2011
Stock Market History May Not Repeat, But It Always Rhymes / Stock-Markets / Stocks Bear Market
The last time we had a deflationary bear market low followed by a bull market was 1932-1937. When that bull market completed, the 1929-1932 bear market was still fresh in everyone’s minds. We reviewed the waves coming off the spring 1937 top and found a similar pattern to today’s market.
Read full article... Read full article...
Thursday, August 11, 2011
Stocks Bear Market Dow Theory Update / Stock-Markets / Stocks Bear Market
Ever since the rally out of the March 2009 low began, I’ve been saying that we have been in a bear market rally that should ultimately prove to separate Phase I from Phase II of a longer-term secular bear market. This view has not changed. Based on the overall evidence at hand, I continue to believe that we are operating in an environment much like that of the 1966 to 1974 secular bear market, with the advance out of the 1966 Phase I low being similar in nature to the rally out of the 2009 low.
Read full article... Read full article...
Wednesday, August 10, 2011
Return of the Stocks Bear Market, Do Central Bankers Lead or Follow the Market? / Stock-Markets / Stocks Bear Market
The bear market is back says Australian economist Steve Keen. I agree. Moreover, the recent action, including the rally, offers sufficient evidence. The biggest percentage gains in history have all been in bear market rallies.
Read full article... Read full article...
Monday, August 08, 2011
Stock Market Losers Club, Stay Out Until Dow Drops below 6000 / Stock-Markets / Stocks Bear Market
Investors were staggered yesterday. Stocks got walloped. Dow down 512 points.
Today, bond yields are falling… oil is below $86. London, Paris, Frankfurt – all down heavily. Only gold has resisted the general rout. It lost only $7 yesterday.
Read full article... Read full article...
Thursday, August 04, 2011
Stocks Bear, FED about to Make the Mistake of the Decade? / Stock-Markets / Stocks Bear Market
Just as I expected, when the market failed to rally on the debt ceiling resolution, panic set in. As I have been telling people the stock market is not dropping because politicians are debating whether or not to spend more money. They have a long record of raising the debt ceiling whenever it threatened to interfere with their spending spree. So the resolution to the debt ceiling was never in question. We knew from day one that Washington would add another trillion or so to the deficit without any real attempt to cut spending. The market has been in trouble since May because it is starting to price in the next recession.
Read full article... Read full article...
Tuesday, July 26, 2011
Stock Market Earnings Cycle Converging On The Horizon, Likely Down 2011, 2012 / Stock-Markets / Stocks Bear Market
This week’s Outside the Box is with an old friend to long-time readers, Ed Easterling of Crestmont Research. Ed is usually on the bullish side, but his research of late points to a few warning signs that say some cycle convergences may be pointing to problems. And that coincides with my macro concerns. As usual, lots of charts and data, but easy to read and understand. And, for those with stock market investments, very thought-provoking and timely.
Read full article... Read full article...
Friday, June 24, 2011
Stock Market Bear is Back, Deflation in Our Future / Stock-Markets / Stocks Bear Market
Make no mistake, the four-day rally we just saw was nothing more than short covering in front of the Fed meeting just in case Bernanke surprised us with QE3. As expected he confirmed that QE2 would end on schedule. The dollar rallied and the market sold off on the news.Read full article... Read full article...
Thursday, June 16, 2011
Stock Market Bear is Back and This Time it will be Much Worse / Stock-Markets / Stocks Bear Market
Don't let the perma bulls fool you, this is not a normal correction, and it has nothing to do with Greece or Spain. This is the beginnings of the next leg down in the secular bear market and the start of the next economic recession/depression. And this time it's going to be much much worse than it was in `08.
For months now I've been warning investors to get out of the general stock market. I was confident that once the dollar put in its three year cycle low the next deflationary period would begin and stocks would enter the third leg down in the secular bear market.
Read full article... Read full article...
Sunday, June 05, 2011
Stocks Bear Market is Not Over, Interview with a Value Investor / Stock-Markets / Stocks Bear Market
Inquiring minds are reading a Guru Focus Interview with Investor Arnold Van Den Berg, a value investor.
Read full article... Read full article...Guru Focus: You seem to believe that there will be high inflation risk in the coming years. What is the best strategy in this inflationary environment?
Sunday, June 05, 2011
Basis of the Stocks Bear Market Rally / Stock-Markets / Stocks Bear Market
Of late, I have been receiving questions asking how I can justify saying that the advance out of the March 2009 low is a bear market rally. After all, doesn't a rally of some 26 months have to be a bull market? No, it does not and I continue to believe that this is a bear market rally that will ultimately separate Phase I from Phase II of a much longer-term and ongoing secular bear market. I have addressed this topic before, but for some reason these questions are being asked again, so I will address them here again. The explanation that this is a bear market rally within a much longer-term secular bear market lies with the historical bull/bear market relationships, Dow theory phasing and values.
Read full article... Read full article...
Thursday, May 26, 2011
Charles Nenner and Harry Dent Stock Bear Market 2012 Cycle / Stock-Markets / Stocks Bear Market
Charles Nenner and Harry Dent Jr have both stood tall on their soap box and loudly proclaimed the Dow Jones is heading south to a new cycle low in 2012/13. We are going to watch this show closely, examining cycles in currencies, stocks, bonds and commodities to find supporting evidence as to the likelyhood of this scenario occurring. Our website will be live soon, so you can run your own cycles to construct your own conclusions. Read full article... Read full article...
Saturday, May 21, 2011
Stocks Bear Market Rally and Market Manipulation / Stock-Markets / Stocks Bear Market
As I have stated all along, my research suggests to me that the rally out of the March 2009 low has been a bear market rally. Nothing has occurred to change that point of view. In light of that view, I have received a number of e-mails asking about manipulation and if “they” could prevent such an event from happening.
Read full article... Read full article...
Wednesday, May 18, 2011
The Invisible Stock Bubble; Crash and Bear Market Ahead to S&P 400 / Stock-Markets / Stocks Bear Market
As measured by current earnings, the stock market does not seem hugely overpriced. The question is will those earnings hold up?
SmartMoney associate editor Jack Hough addresses the question in The Invisible Stock Bubble
Sunday, May 15, 2011
Compelling Evidence Extended Stocks Bear Market Rally To End / Stock-Markets / Stocks Bear Market
On November 26th 2010 I posted “My view still is that the rally in equity markets since March 2009, with its persistence of upward wedges and broadening top formations across such a broad range of financial entities and time frames, is compelling evidence of an extended bear market rally that will soon end.”In my last posting on January 24th 2011, I wrote that equity markets were overextended, with upward wedge patterns and broadening formations still predominating in most of the leading US and world equity market indices.
Read full article... Read full article...