Category: Stocks Bear Market
The analysis published under this category are as follows.Thursday, June 04, 2009
S&P 500 Stock Market Trend Analysis and Forecast for June 2009 / Stock-Markets / Stocks Bear Market
Analyzing monthly stock market trends uses the S&P 500 charts to indicate important trend lines. Trend following is a proven strategy to beat the market and grow your stock portfolio. Technical analysis provides the tools to analyze and identify trends in the stock market. Since the S&P 500 trend line chart is the one used by professional traders for their analysis, it is important to understand how it is performing.
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Thursday, June 04, 2009
Stock Market Rally, Focusing on the Facts / Stock-Markets / Stocks Bear Market
There is no doubt that the equity markets have been rising in recent weeks. It would be foolish to argue with that fact. There is also no doubt that those who have “played” the rise will have made significant profits during the past few weeks. Indeed, according to the chart below – courtesy Bigcharts.com – the Dow Jones Industrials Index has risen by over 30%. To those who caught that particular wave: Well done!
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Wednesday, June 03, 2009
Stock Market June Gloom / Summer Rally / Stock-Markets / Stocks Bear Market
Two years ago, and some five months and 1000-pts away from the Dow's historic print high above 14K in October of 2007; we penned an article entitled June Swoon / Summer Rally.
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Wednesday, June 03, 2009
Four Stock Market Warnings to Watch / Stock-Markets / Stocks Bear Market
Tony Sagami writes: The TV experts are breathless again thanks to some triple-digit Dow Jones moves. Like a bunch of thirsty frat boys on a Friday night, the Wall Street crowd is so eager to throw a party that they’ll latch on to any good news as the start of a new bull market.
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Tuesday, June 02, 2009
False New Stocks Bull Market Signal From Coppock Curve Indicator? / Stock-Markets / Stocks Bear Market
I am seeing several articles in the main stream press and blogosphere regarding the "bullish signal" given by a technical indicator known as the Coppock Guide or Coppock Curve. As we can see in figure 1, a monthly chart of the Dow Jones Industrial Average (symbol: $DJIA), the Coppock Guide has turned up from a very low level. Thus according to the above referenced sources, this indicates a new bull market.
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Monday, June 01, 2009
Stocks Bear Market Rally, Debt Is Your Worst Enemy / Stock-Markets / Stocks Bear Market
Debt is your worst enemy right now – make no mistake about it. And the reasons for this understanding are plain for all to see, with the most profound being the next round of deleveraging might be just around the corner, meaning worsening asset price deflation would make it impossible for most to ever escape the debt death trap outside of a jubilee, which is the last thing our blood sucking financial institutions want. No, no, no. They are all for usury and kicking the little guy when he’s down however, with the most blatant example of this being credit card issuers (banks) jacking interest rates to exorbitant levels not just for those who miss a payment, but for everybody with an outstanding balance. What’s worse of course is this is being done in the face of a collapsing economy that greedy bankers are all too aware of, and despite evidence such policy could tip the economy over on its head.
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Monday, June 01, 2009
Stocks Bear Market Rally Consolidating Before the Rally Resumes / Stock-Markets / Stocks Bear Market
Current Position of the Market
SPX: Long-term trend - Down! The very-long-term cycles have taken over and if they make their lows when expected, the bear market which started in October 2007 should continue until 2012-2014. This would imply that much lower prices lie ahead.
SPX: Intermediate trend - Sideways! The counter-trend rally which started on March 6 is undergoing a consolidation which could last two or three more weeks, after which the bear market rally will continue.
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Sunday, May 31, 2009
Stock Market Investor Sentiment Intent on Crushing the Bears / Stock-Markets / Stocks Bear Market
There is no meaningful difference in the "Dumb Money" and "Smart Money" indicators from last week. The "dumb money" is extremely bullish, and their persistence is being rewarded as the major indices turned in winning performances for the month of May. The "smart money" is bearish but not to an extreme degree.
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Saturday, May 30, 2009
Stocks Bear Market Warning! Counter-Trend Moves Spark False Hopes / Stock-Markets / Stocks Bear Market
As the counter-trend moves continue, the optimism grows. William Peter Hamilton, the great Dow theorist who followed in the footsteps on Charles H. Dow, warned against allowing “the wish to father the thought.” Based on the technical and statistical work that I do, the data is telling me that pretty much all of the moves we have been seeing over the last 2 to 6 months, depending on which market you are looking at, are counter-trend moves. As a result of these counter-trend affairs, the powers that be continue to think that they have the problem under control. The average person on the street sees that the markets are rising and they too begin to think that the worst is behind us and that maybe the bail-outs and various stimulus packages are working.
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Thursday, May 28, 2009
Why the S&P 500 Stock Market Index Could Crash Another 50% / Stock-Markets / Stocks Bear Market
With the words “green shoots” and “bull market” getting more and more coverage in the mainstream financial press, it’s worth considering if this current market/ economy is actually improving. Personally I don’t know what data the folks at CNBC are looking at. Because to me, all signs point to further wealth destruction and great economic contraction to come in the months ahead.
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Wednesday, May 27, 2009
Interest Rate Flashing Strong Stock Market Sell Signals / Stock-Markets / Stocks Bear Market
Claus Vogt writes: One of the first lessons I learned in analyzing and forecasting the direction of the stock market was the extreme importance of interest rates. That’s because holding a stock gives you the right to part of a company’s future cash flow. And to determine the value of that cash flow back to today’s value, you need an accurate interest rate gauge.
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Tuesday, May 26, 2009
Stock Market Rally Over, Prepare for New Bear Market Lows / Stock-Markets / Stocks Bear Market
Fundamentally the rally in the broad stockmarket from early in March is viewed as being the result of a combination of media hype, wishful thinking and short covering, but there may be more to it than that - it would appear that a sizeable proportion of the TARP (Troubled Asset Relief Program) funds not thus far deployed have been used to drive up the stockmarkets in order to create a positive environment for the banks to issue secondary shares and thus raise equity. While this is perfectly understandable, it also means that once the banks have finished selling this stock to the public, or the market is simply exhausted by being soaked in this way, it is likely to go into reverse in a big way.
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Monday, May 25, 2009
Stock Market Trends Pattern Recognition Time / Stock-Markets / Stocks Bear Market
The dollar ($) is breaking down, and everybody is watching (including the Chinese), so it must be time to throw a deleveraging scare back into the market to affect a rally and support Treasuries. This is what the good conspiracy theorists are thinking right now. And you know what, not coincidentally this is actually the way things just might play out, looking like the markets are being managed right when it’s needed. In fact however, this time around price managers are getting a great deal of help from speculators who continue to bet wrong, where another rally in stocks (and test of support for the $) after a brief sell-off here would look like just what the doctor ordered from a price management perspective (equities must remain firm for re-inflation efforts to take hold), but in fact would be more the result of renewed bearish speculation within the context of our faulty and fraudulent market mechanisms.
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Sunday, May 24, 2009
Stocks Bear Market Primary Trend Intact / Stock-Markets / Stocks Bear Market
Here is the 200-day primary trend line of the S&P 500 showing its prolonged and continued downward movement (bear market condition) along with the position of four secondary trend lines that must move above the primary trend line before the primary trend changes slope from negative to positive.
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Saturday, May 23, 2009
Stocks Bull Market or Bear Trap? It’s Easy to See / Stock-Markets / Stocks Bear Market
There has been a large volume of press regarding the latest run-up in stock prices and whether this is a legitimate beginning of a trend, or a bear market trap. The answer is pretty simple and easy to see from the plot below:
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Friday, May 22, 2009
Stock Market Bottom? What Market Bottom? / Stock-Markets / Stocks Bear Market
Inquiring minds keep asking "Is The Bottom In?" Of course, no one knows for sure. However, I believe it is not, and one of the reasons is the complete collapse in S&P earnings.
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Friday, May 22, 2009
This is Not a Stocks Bull Market, Fresh Bear Market Lows Expected / Stock-Markets / Stocks Bear Market
How do you measure wealth generation?
- Average annual gains?
- Gains relative to an underlying index (the S&P 500)?
- Gains relative to inflation?
Thursday, May 21, 2009
The Sleepwalkers Stock Market Rally / Stock-Markets / Stocks Bear Market
Although well off their all-time highs, American stocks are now marginally up for the current year. In the past two months, the markets have recovered over 30 percent from last year's lows. But something just does not add up. In the first quarter of 2009, average U.S. corporate earnings were down over 30 percent. There is once again a serious disconnect between stock prices and economic reality. Perhaps these sleepwalking investors think that the 50 percent sell-off in 2008 was overdone and great bargains are now available. To believe this is to misunderstand the economic hurricane of last October, and the gaping holes in America's hull that it exposed.
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Wednesday, May 20, 2009
Get Out of the Stocks Bear Market Rally Now! / Stock-Markets / Stocks Bear Market
Claus Vogt writes: Long-term, financial markets are driven by fundamentals. And in the medium term, they’re driven by the business cycle. That’s why your analysis should always start with both of these.
Right now, the stock market’s fundamentals are undeniably dire …
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Wednesday, May 20, 2009
Timing of the Next Stocks Bear Market Primary Down Leg / Stock-Markets / Stocks Bear Market
In summary, it looks like the current upward technical reaction in the Primary Bear Market can be expected to suck more investors into the markets for another couple of months. Within 3 to 6 months from now the equity markets seem likely to resume their Primary Bear Trend.
This morning, when I was scrolling through the charts trying to get a feel for the mood of the market, I constructed the chart below (courtesy stockcharts.com):
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