Category: Stocks Bear Market
The analysis published under this category are as follows.Wednesday, October 28, 2009
Multi-Year Stock Market Top Could Be In / Stock-Markets / Stocks Bear Market
Professor David Waggoner posted the following chart yesterday on Minyanville that I think is worth noting.
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Tuesday, October 27, 2009
Stocks Almost at the End of the Rally Pattern / Stock-Markets / Stocks Bear Market
Do you see the rising bear?
I’ve show the below bearish rising wedge to my readers several times. If you’re unfamiliar with this chart pattern, it occurs when the trading range shrinks as stocks rise higher. Typically these patterns precede SHARP moves downward. For that reason it’s extremely important to note when they occur.
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Monday, October 26, 2009
Morgan Stanley Says Stock Market Rebound Rally in Last Stage; Prepare for Fallout from Tightening / Stock-Markets / Stocks Bear Market
These words from Morgan Stanley's chief European equity analyst, Teun Draaisma are particularly interesting as we (the collective) sit awash in a world of government intervention and central bank liquidity, while ignoring the fact it is not endless. Fascinating chart below as well.
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Monday, October 26, 2009
Calling a Stock Market Top / Stock-Markets / Stocks Bear Market
It ain’t over til it’s over, but as a speculating man, I’ve been betting that we’ve reached a market top in the U.S. and that that top may well be signaling the onset of a double dip U.S. recession in one to two quarters.
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Friday, October 23, 2009
Unexpected Stock and Commodity Market Moves Should Not Be Ignored / Stock-Markets / Stocks Bear Market
In the last two weeks, in Reflation Supported By Stocks, Commodities, and Oil, and Gold, Recessions, Bonds, and 1987, we hypothesized that recent bullish moves in gold, oil, and the CRB Index were evidence of successful "reflation" of asset prices via monetary and fiscal policy. This week, we can add copper and emerging markets to the bullish evidence list. From a fundamental perspective, the desire to hold copper is based on economic need (you want to make a product), and inflation protection (you want to own hard assets rather than paper currencies).
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Friday, October 23, 2009
Stock Market Rally Provides Investors An Incredible Opportunity to Sell into Strength / Stock-Markets / Stocks Bear Market
Curtain Call for Inflationary Run - The collapse of 2008 occurred because the US was clearly on an unsustainable path of excessive consumption and speculation, financed by credit. Debts are IOU’s with repayment terms, which means debtors must pay interest to creditors; borrowers therefore are on the hook for the principle as well as the interest, and the whole system falls apart when debtors are unable to pay because they 1) don’t produce anything, or 2) are denied new credit that becomes scarce when booms turn to bust.
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Monday, October 19, 2009
Stock Market Investors Warning, Three Moves You Will Not Regret Taking Now / Stock-Markets / Stocks Bear Market
Most investors are still nervous.
The S&P 500 has reached its highest point since September 2008. After that time though, it went on to fall 26% in two months.
Earnings season is in full swing. And with each report we see top line revenues and bottom line earnings are not rebounding nearly as fast as stocks have.
Sunday, October 18, 2009
Debt Spiral Financial Holocaust Fiat Currencies Zero Bound, the Next Down Leg / Stock-Markets / Stocks Bear Market
The demise of the G7 financial systems, currencies and economies continues to march along as incomes collapse. The social welfare states and their banking system’s Ponzi finance-based economies are BROKE, their obligations and promises irredeemable and unpayable.
A debt spiral is in full view, irreversible with policymakers unable or unwilling and opposed to making the changes required to CREATE PRIVATE SECTOR INCOME GROWTH and control SPENDING, and which must be done to avert the final CALAMITY.
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Friday, October 16, 2009
Stocks Primary Bear Trend About to Resume? / Stock-Markets / Stocks Bear Market
The chart below looks like it’s headed for overbought territory on the RSI and it the falling tops on the MACD seem to be signaling that the ratio might be about to pull back. By implication, either the Dow can be expected to pull back or the dollar index can be expected to rise, or both.
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Wednesday, October 14, 2009
Early Signals of a Maturing Stocks Bear Market Rally / Stock-Markets / Stocks Bear Market
In my last posting I mentioned that some important bellwether charts peaked on or prior to the first week of August, 2009.
A survey of daily price charts of 199 Global Fortune 500 non finance companies showed that 59% actually peaked on or prior to the first week of August. For Banks, Finance and Insurance stocks (74) this percentage actually increased to 64% This means a clear majority of these large companies, almost 2/3, refused to follow the main US indexes to new market highs up on average about 13% +.
Tuesday, October 13, 2009
Stock Market Rally Does Not Guarantee End to Bear Market / Stock-Markets / Stocks Bear Market
The S&P 500 Large Cap Index (SPX) has now risen 62% and the Dow 30 Industrials (INDU) has risen 53% from their respective March 2009 lows. Bear market rallies this large are probably a constant feature of major bear markets and do not in any way indicate on their own, that a rally of this type is in the early stages of a new bull market.
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Monday, October 12, 2009
What If This Stocks Bear Market Is Not Over? / Stock-Markets / Stocks Bear Market
Once again it seems like the gurus have a general consensus that the March lows are the final lows for this bear market. Since I am not in the prediction business, I will not say, but I will pose a question. What if they are wrong? It’s not like they haven’t been in the past. If they are wrong how bad could it get?
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Thursday, October 08, 2009
Kiss the New Stocks Bull Market Theory Good-bye / Stock-Markets / Stocks Bear Market
I’ve also been tracking the S&P 500 in relation to its 88-weekly moving average: THE definitive metric for what establishes a bull vs. bear market. As I said in the last two issues, if the S&P 500 breaks ABOVE the 88-weekly moving average and stays there, then YES, we’re in a new bull market. However, if it’s turned away and falls below the 88-weekly moving average… THEN LOOK OUT BELOW.
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Wednesday, October 07, 2009
Three Reasons Why The Stock Market is Doomed... / Stock-Markets / Stocks Bear Market
It never ceases to amaze me. After the market turns – even a little bit, as it has the past couple weeks – there seem to be no shortage of I-told-you-so analysts pushing over each other to loudly proclaim on CNBC that we "may" have had a top and there "may" be a pullback, and hand you an umbrella for yesterday's rain. Few tasks prove easier than predicting a 5-10% pullback when 3-4% has already occurred.Read full article... Read full article...
Wednesday, October 07, 2009
Why this is a Bear Market Bounce and Not a New Stocks Bull Market / Stock-Markets / Stocks Bear Market
My view that we are in a market bounce is now in the minority but I am still strongly convinced that this is the case for the following reasons:
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Wednesday, October 07, 2009
Stock Market Top, Were So Close! / Stock-Markets / Stocks Bear Market
I’ve shown the below chart several times before. It depicts the S&P 500’s performance since its March 2009 bottom. As you can see, the market has been carving out a near perfect rising bearish wedge: a rally in which the trading range becomes tighter and tighter the higher the market rallies.
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Wednesday, October 07, 2009
Gold Tit for Tat, Stocks Are Still A Lousy Investment / Stock-Markets / Stocks Bear Market
NOTE: This is a sort of tit-for-tat rebuttal of a classic hatchet piece on Gold as an investment class that recently appeared in the Wall Street Journal (see the article here). All plagiarism is intentional to show the ridiculousness of such articles and if you haven't read the original article, this rant may not make a whole lot of sense.
Tuesday, October 06, 2009
Stocks Bear Market Rally Will Soon Be Over / Stock-Markets / Stocks Bear Market
The bear market rally will soon be over. It rallied 1,300 Dow points that it should have. All the back up data as to why this is in process was included in the last issue. The rally induced many investors to stay long and they did recoup as much as 80% of their losses in some instances. Now it is time to exit and move into gold and silver shares. Probably the biggest key is that gold recently spent two weeks above $1,000 and we believe gold is prepared for a breakout that will take its price anywhere from $1,200 to $1,700 an ounce. Gold’s long-term reverse head and shoulders pattern, one of the most powerful patterns in charting is in a breakout mode.
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Tuesday, September 29, 2009
Stock Market Close to Major Turning Point / Stock-Markets / Stocks Bear Market
The daily chart of the Gold miners bullish percentage index (BPGDM) is shown below, with the HUI shown in green. In the past whenever the BPGDM reached 85 or higher, it was often associated with a top. At present the BPGDM has declined from 87 to 67, with an accompanying decline in the HUI. Full stochastics 1, 2 and 3 are shown below in order of descent, with the %K beneath the %D in stochastics 1 and 2. Based upon extrapolation of the trend, the potential downside could last for 3-4 weeks. Expect continued weakness in the gold stocks.
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Monday, September 28, 2009
Trade Wars Guarantee An End To The Stock Market Party / Stock-Markets / Stocks Bear Market
On one side of the formula we have the continued need for speed in monetary creation by whatever means, capably characterized by Doug Noland in his weekly commentary explaining that while it will all end badly, government largesse will likely get out of control before its all over. The point he is getting at here is that because of all it’s meddling, the government (and us) is locked in an inflation death grip it necessarily needs to keep building on or face implosion. So in essence, Doug is alluding to the risk of hyperinflation, or the closest we will ever come to it on a macro-scale. And he is perfectly correct in this accounting of our dire circumstances, and the eventual disastrous effects of all this government intervention to keep the bailout finance bubble growing. One day this thing is going to pop, like all bubbles do, and it will be game over for the global economy, US Dollar ($) hegemony, runaway socialism, and unchecked fiat currency regimes.
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