Category: Stocks Bear Market
The analysis published under this category are as follows.Monday, February 02, 2009
Dangerous Time to Stay Invested in the Stock Market / Stock-Markets / Stocks Bear Market
The terrible price action in the stock market raises the question, ‘are we on the right track expecting seasonals and the multiple post-crash historical patterns that have proven reliable in forecasting higher prices moving forward from here to repeat; or, is the market condition so far advanced that these things are known by the investing population, potentially altering the outcome?' This, in essence, is the question of the hour all good speculators are asking themselves right now.Read full article... Read full article...
Monday, February 02, 2009
Stock Markets at Major Bear Tipping Point: Protect Your Wealth / Stock-Markets / Stocks Bear Market
2008 and 2009: Years of return OF capital, not necessarily return ON capital. We are close to a major turning point in the stock market and during the weekend I considered very carefully what action to take.
Clients may recall that there is a greater than 90% correlation between all major stock markets. So, whether this is the FTSE in London, or the DAX in Frankfurt or the Nikkei in Tokyo, the movement in stock prices has been almost identical. For us, the S&P is the leader of world markets. Hence we focus on it rather than, for example, our own FTSE100. Look at the following chart of the S&P 500.
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Friday, January 30, 2009
Stock Market Investors Becoming Overly Complacent and Gold Update / Stock-Markets / Stocks Bear Market
A routine I have always kept to is listening to market news on the radio every morning. Recently it has felt as if the morning market news has morphed into the morning job losses report. It is no longer tracked on a monthly or weekly basis but rather the consortium of job cut announcements have been a routine part of the morning news. This Thursday morning, we were confronted with 12,000 jobs cuts lead by Eastman Kodak, Wednesday brought us 15,000, Tuesday 11,500 and kicking off the week on Monday we recorded 71,000 jobs losses.Read full article... Read full article...
Wednesday, January 28, 2009
Catching the Stocks Bear Market Elliott Wave / Stock-Markets / Stocks Bear Market
When we last spoke you discussed how you use investor sentiment indicators ("dumb money") and institutional volume indicators ("smart money") in your analysis. But we'd like to understand more about your third component -- technical analysis -- specifically Elliott Wave?Read full article... Read full article...
Monday, January 26, 2009
How to React to the Bad Stock Market News / Stock-Markets / Stocks Bear Market
We had a lot of new people join the site earlier this month and I've been getting lots of emails and questions from them. One thing that stands out though is a lot of people asking about news items. For instance going into last week I had someone email and ask about the earnings for airline stocks. They wanted to know if they should buy or sell because of the earnings. How to game the news so to speak.Read full article... Read full article...
Monday, January 26, 2009
Stocks Bear Market Imminent Intermediate Term Low / 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 - We are testing the former lows. They look as if they are going to hold, but ...!
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Saturday, January 24, 2009
Dow Jones Index Stocks Bear Market Update / Stock-Markets / Stocks Bear Market
Last week we took a close look at the November low, and reviewed the price action since then relative to extremely short-term trading tactics. Later in this piece, after taking a retrospective look back at the Transportation average, we will explore some merits and challenges associated with executing medium-term speculative strategies. The small chart plots three months of daily closes for the Dow Jones Industrials. It shows that the move up toward the January high was clearly corrective.Read full article... Read full article...
Thursday, January 22, 2009
Worst Stocks Bear Market for 200 Years! / Stock-Markets / Stocks Bear Market
We have featured the work of Wharton Finance Professor Jeremy Siegel on a number of occasions and are doing so again to get some badly needed perspective on what is, by all objective accounts, a very confusing current market picture.
Siegel's work has both adherents and detractors, but it's hard to argue with his data. His most famous work may be the following bit of pictorial pulchritude:
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Wednesday, January 21, 2009
Fear Trumps Obama Hope As Dow Jones Plunges Below 8,000 / Stock-Markets / Stocks Bear Market
The public euphoria surrounding Obama's big day out failed to lift equities. The regional banks were laggards and a drag on the S&P while chip stocks led the NASDAQ's fall. Take State Street bank for example, who were meant to be one of the “safe” plays in financials. Despite better earnings they finished down 59% after a shambolic investor call in which it became apparent that they had a major issue with off balance sheet vehicles. If taken back on the balance sheet it would cost $23bn in unrealised losses on bonds.Read full article... Read full article...
Monday, January 19, 2009
A Nasty Bear Market, Watch China's Shanghai Stock Market Index / Stock-Markets / Stocks Bear Market
In every nasty bear market comes a point where you have to rally for a while. It does NOT mean the market is in good shape. It does NOT mean the ultimate bottom is in. Nothing is straight down. So is this market ready for some type of rally that can last a while and not just collapse right out? The title tonight says it all. The Shanghai market had been leading up but has now been in a wedge that is basing out. It looks ready to turn up and make the move and should this happen, it should lead our markets higher for a while to give everyone some needed relief. The chart is included in tonight's newsletter. If China rocks some we should go along for the ride and there's technical reasons for that as well.Read full article... Read full article...
Friday, January 16, 2009
Farrell's Rule #2 U.S. Stocks Won't Bottom Before 2011, 25% Below End 2008 / Stock-Markets / Stocks Bear Market
Farrell's Rule # 2: "Excesses of stock prices above the long-term average are invariably followed by excesses of an equal magnitude below".
So what is the long-term average?
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Thursday, January 15, 2009
Ouch! Stock Market Takes It On The Chin / Stock-Markets / Stocks Bear Market
All things considered, the beating stocks took yesterday was quite expected. It seemed clear that support was going to be breached on the indexes. As shown on the charts below, there is one last line of defense for the Dow Jones Industrial and the S&P 500 before reaching the lows. Notice also, that volume has been picking up over the last several days. That is not a good sign for the bulls.Read full article... Read full article...
Wednesday, January 14, 2009
The Stock Markets Next Move / Stock-Markets / Stocks Bear Market
Despite the recent sell-off in the market, when all is said and done, the S&P 500 is still caught in a range between 850 and 950. As I mentioned at the beginning of the week, if 850 is breached, the retest of the November low will likely occur. The longer the index stays in this trading range, the more significant a breakout in either direction.Read full article... Read full article...
Sunday, January 11, 2009
Stock Market Correction Targets Retest of the Lows / 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 - An intermediate low may have been reached in November, but this remains to be confirmed. There is good possibility that January 2009 will bring a new low, or at least a test of the lows.
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Sunday, January 11, 2009
Stock Market Ready For The Breakdown... / Stock-Markets / Stocks Bear Market
The wedges are hanging on by a hair. Horrific late action tells us the likelihood is for a break down out of those wedges we've been showing you and moving back towards a retest of the old lows over time with bounces along the way. Some have already broken and some are about to. You'll see that on the charts sent with this newsletter. It looks bad folks. I guess the hope for the bulls is that we'll get another successful retest of those lows. The divergences on a move down lower will put in positive divergences but any bounce better be good or we're headed for something we all don't want to think about.Read full article... Read full article...
Saturday, January 10, 2009
Stock Market Investors Don't Buy The Hype / Stock-Markets / Stocks Bear Market
Historically, bear markets have run approximately one-third the duration of the preceding bull market. From my perspective, the last bull market began at the 1974 low and tried to conclude at the 2000 top. But, as I have said many times before, the powers that be would not let nature take its course. As a result, they created the largest credit bubble in history, not to mention the housing and commodity bubbles, all in an effort to save the stock market. This resulted in what I view as the last gasp up into the 1974 to 2007 bull market top and I believe that the correction of that bull market likely has a lot further to go.Read full article... Read full article...
Thursday, January 08, 2009
Stocks Bear Market, Setting the Bull Trap / Stock-Markets / Stocks Bear Market
Recently I sent you an Outside the Box from Paul McCulley who supports the government and Fed activity (in general) in the current economic crisis. Today we look at an opposing view from Bennet Sedacca of Atlantic Advisors. He asks some very interesting questions like:
Shouldn't the consumer, after decades of over-consumption, be allowed to digest the over-indebtedness and save, rather than be encouraged to take risk?
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Sunday, January 04, 2009
Investor Sentiment Indicator Says Sell into Bear Market Rally / Stock-Markets / Stocks Bear Market
This is the fourth week in a row where the "dumb money" is neutral and the "smart money" is bearish, and this is not a scenario that is generally supportive of higher prices especially with prices on the S&P500 under their 40 week moving average. The ideal situation for higher equity prices would be for the "smart money" to be bullish and the "dumb money" bearish (i.e., bull signal).Read full article... Read full article...
Monday, December 29, 2008
Stock Market Investor Sentiment: Sell Into Strength / Stock-Markets / Stocks Bear Market
This is the third week in a row where the "dumb money" is neutral and the "smart money" is bearish, and this is not a scenario that is generally supportive of higher prices especially with prices on the S&P500 under their 40 week moving average. The ideal situation for higher equity prices would be for the "smart money" to be bullish and the "dumb money" bearish (i.e., bull signal).Read full article... Read full article...
Monday, December 29, 2008
Martin Armstrong and the Stocks Bear Market / Stock-Markets / Stocks Bear Market
Armstrong's “It's just time” - A friend was kind enough to send me the following link to an article dated October 10 th 2008, written by Martin Armstrong. http://www.scribd.com/.. For those who have never heard of him, Armstrong is possibly the most knowledgeable man on the planet regarding the subject of cycles as they apply to social behaviour. He developed a complex forecasting model – based on fractal natural cycles (cycles within cycles within cycles) – which was so accurate according to Armstrong that it came to the attention of the CIA who sought to acquire ownership of and control over it. As Armstrong tells it, when he turned the CIA down they contrived to ensure that he was sidelined and they took his computer anyway, which led to his source code self-destructing when it was tampered with.Read full article... Read full article...