Category: Stocks Bear Market
The analysis published under this category are as follows.Friday, June 27, 2008
Stocks Bear Market- Talking Heads Speak About Buying Opportunties? / Stock-Markets / Stocks Bear Market
What the heck does this mean? With the financial markets in the United States finally kicking into a full blown bear market, we know where the down is in ‘The Upside of Down'. Don't you love it when the talking heads on the financial TV channels still speak about the buying opportunities? They suggest buying the defensive stocks as they will decline less than the other sectors. What? Why would an ‘investor' want to buy something knowing it will go down, just not as much as the others? I have never understood that silly argument. The financial sector is tanking, the banks are tanking and one of ‘big three' auto companies is now selling at levels not seen since 1955.Read full article... Read full article...
Thursday, June 26, 2008
S&P 500 Stock Market Index Approaching Critical Test of March Low / Stock-Markets / Stocks Bear Market
The relentless selling pressure that has transpired since about 3 PM ET yesterday (Wednesday) despite some intense oversold readings and developing momentum divergences has started to convince me that the near-term chart work in the S&P 500, though still extremely important, may not be calling the directional shots any longer. In fact, the developing negativity of the very long term technical work may be the timeframe that IS CALLING -- and will continue to call -- the directional shots for the foreseeable future.Read full article... Read full article...
Thursday, June 26, 2008
Dow Jones Stock Market Index Threatening to Break Critical Support Level / Stock-Markets / Stocks Bear Market
Is the Party Over?For this week, access to much of Elliott Wave International's forecasts and chart work is free. Many traders and investors boldly proclaim that technical analysis, such as that provided by Elliott Wave and others, is akin to voodoo and advise investors to stick to the fundamentals. To which I reply: ignore technical indicators at your peril. Such avoidance/arrogance (you think you are so much smarter than the market) is particularly damaging to portfolios in two instances. One, when they involve macro themes which the names in your portfolio will be unable to escape. Two, when the change in trend only occurs after a long period of time: The longer the period before trend reversal or violation, the more powerful the potential effect on your investment.
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Friday, June 13, 2008
Stocks Secular Bear Market New Downleg Has Begun / Stock-Markets / Stocks Bear Market
The early summer weeks of June have not been kind to the US stock markets. Across June's initial 8 trading days, the flagship S&P 500 stock index lost 4.6% of its value. This is not a trivial move for America 's biggest and best elite companies, so stock traders are starting to sweat a bit.
As usual, Wall Street is generally pretty bullish despite the recent selling. It is largely perceived as a minor pullback within a big new bull upleg, a stellar buy-the-dips opportunity. But what if this is not the case? An alternative, and far-more ominous, interpretation of this past month's weakness suggests we could really be witnessing an awakening bear .
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Tuesday, May 27, 2008
How to Identify Stocks to Sell Short / InvestorEducation / Stocks Bear Market
Is the market over-valued? In this week's Outside the Box, one of my favorite global equity analyst's (and no stranger to regular readers), James Montier of Societe Generale does some very interesting analysis on the European and US markets and finds the number of stocks which make his list as possible for being a "short" is at very high levels. This is a remarkable read and re-enforces my view that we are in a "sell in May and go away" summer. This is really a great Outside the Box. Enjoy.Read full article... Read full article...
Thursday, May 22, 2008
The Stocks Stealth Bear Market / Stock-Markets / Stocks Bear Market
Last year, when the Dow was hovering near its all-time high of 14,198, I issued my forecast that the next big move in the stock market would be a sharp decline to 11,600.
On January 22 of this year, the Dow hit 11,634.82. Since then, it's been seesawing up and down, gyrating wildly, yet with an upward bias, reaching as high as 13,136.69 on May 19.
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Thursday, May 08, 2008
Stocks Bear Market Relief Rally is Weaker than Expected / Stock-Markets / Stocks Bear Market
The only thing remarkable about the recent rally in U.S. equities is how unremarkable it has been. To be sure, you would think that with the ‘worst' being ‘over' stocks would be able to mount a significant bounce. This hasn't been the case, at least not yet.Read full article... Read full article...
Thursday, May 01, 2008
A Good Reason To Sell Stock Market Investments- Taxes / Stock-Markets / Stocks Bear Market
Last month we stated: “we should expect rocket-launched (oh they've saved us) bear market rallies.” Since that time, the DJIA has had two separate blastoffs. That's all it took for investors to forget about the massive deflation that is happening in U.S. neighborhoods . We view the rise of the last two months as a breather before more serious selling takes hold. Goldman Sachs agrees and is warning ‘delusional' investors of a sell-off of “a further 15pc over the ‘near term.'” Warren Buffett has also recently stated “ the recession will be more severe than most expect. ”Read full article... Read full article...
Thursday, March 27, 2008
Stocks Bear Market Notes / Stock-Markets / Stocks Bear Market
There is an argument which might be put forward that, as the bad news is now known and, given that the market looks forward, the worst may be over and we have seen the lows in the industrial equity markets.
This view may well be right, but it is predicated on the assumption that all the bad news is known.
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Sunday, March 23, 2008
Stock Market Volatility Peaks Near Bear Market Lows / Stock-Markets / Stocks Bear Market
The good news is: It is likely last Monday's low will mark the low point for the next several weeks.
Short Term
Last Monday there were 477 new lows on the NASDAQ, about the same as there were near the lows of last August, but substantially fewer than the 877 at the January low. Every day for the remainder of the week had less than half as many new lows as Monday.
Thursday, March 20, 2008
Stocks Bear Market- How Bad Can It Get? / Stock-Markets / Stocks Bear Market
To beat the market you need to invest with the trend. The stock market is down and continues to fall almost every day. As of March 19, 2008 the DJIA is down 8.8% for the year, the NASDAQ is down 16.7%, the S&P 500 is down 11.6% and the Russell 2000 is down 13.3%. Most investors are looking at their portfolios and they are very unhappy. The initial problems with the mortgage market started this tumble. Will it continue to get worse and is it spilling over into other parts of the U.S. economy? So how bad can it get?Read full article... Read full article...
Friday, March 14, 2008
Big Daily SPX Stock Market Moves Indicative of Bear Markets / Stock-Markets / Stocks Bear Market
On Tuesday March 11th, the flagship S&P 500 (SPX) stock index rocketed 3.7% higher in a single trading day! This big rally proved a welcome respite for embattled stock traders. Not only did it nicely boost most sectors, but it temporarily dispelled the oppressive fog of fear billowing out of the mortgage markets.
While it was certainly a profitable day for me as a speculator, I found it far more interesting as a student of the markets. The catalyst for this particular surge as well as the extensive commentary on CNBC about how long it had been since we'd last seen a similar rally led me to ponder big SPX daily moves in general.
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Thursday, March 13, 2008
What Advice have the Big Wall Street Firms Given their Large Clients this Year ? / Stock-Markets / Stocks Bear Market
The answer: Sell on rallies.
Is that what has been happening this year?
The chart below provides the answer. This chart shows the New York Stock Exchange Up-Volume plotted against the Dow Jones Industrials on a 60 minute chart going back to the beginning of the year.
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Wednesday, March 12, 2008
How to Beat the Stock, US Dollar and Credit Market Bears / Stock-Markets / Stocks Bear Market
The recent action on Wall Street is enough to send shivers up the spine of even the biggest bull. Despite yesterday's Fed-induced rally, we have multiple bear markets closing in simultaneously, with everything from stocks to the U.S. dollar to the credit markets getting clawed to pieces.
But there is one sector that is still in a raging bull market — commodities. And the bearish action in the other markets could actually pump up commodities even more.
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Wednesday, March 12, 2008
Stock Market Leading Indicators: All Showing Major Weakness / Stock-Markets / Stocks Bear Market
The important key leading indicators on the Dow Jones Industrial Average have one item in common now that has not been shown before; they are all displaying weakness. This unified first signals that the U.S. bear market has now moved into a stronger phase and can be expected to show more of its teeth over the next 1-2 years.Read full article... Read full article...
Tuesday, March 11, 2008
Definitive Proof The Stock Market Bear Is Alive And Well / Stock-Markets / Stocks Bear Market
Well – so much for follow through. With the increase in volume in the stock market rally on Wednesday, yesterday's sell-off was a bit surprising, especially combined with the fact it was on declining volume. As mentioned yesterday however, price managers need to keep equities low going into the Fed meeting on March 11 th to justify more rate cuts, so it's not surprising to see the rally fail from this perspective. What more, it's important to note that not only do nominal rates need to fall further in aiding a failing credit cycle, but real rates need to fall more as well, meaning commodities need to cool off.Read full article... Read full article...
Tuesday, March 11, 2008
Stock Markets To Follow Housing and Unemployment Sharply Lower / Stock-Markets / Stocks Bear Market
BEWARE: The Ides of March, aka FIRESTORM!Volatility is opportunity and we are seeing it in spades. The markets are jumping and thus creating juicy opportunities for the prepared investor. Currencies, interest rates, stocks and commodities are roaring all over the place. The moves are big but in general quite ORDERLY. This is set to continue as far as the eye can see. It also provides you with a measuring stick to how well you and your investment advisors have done in preparing to capture these opportunities and not be harmed by them. Just look at your portfolio bottom line and that will tell you whether you and your advisors get an A for excellent, something less or even an F for failure. Take note!
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Sunday, March 09, 2008
Stock Market Technically Damaged: Is a Crash & Economic Depression Coming? / Stock-Markets / Stocks Bear Market
This week saw a new all-time low in the Dollar, new all-time highs in Gold and Oil, but the damage continues in stocks. There was a lot of technical damage done to stock averages Friday. We got confirmation of 18 month, very Bearish Head & Shoulders tops patterns in several indices, as prices completed their right shoulders and fell decisively below necklines. These patterns are huge, and the downside targets are 20 percent below where we stand now in several averages. In other words, these patterns are calling for a stock market crash. These patterns are saying that the Bear Market is nowhere near over .Read full article... Read full article...
Saturday, March 08, 2008
Stock Markets Set to Plunge to Depths Not Seen Since the 1990's / Stock-Markets / Stocks Bear Market
Super-Dangerous Dow-Gold Divergence - Gold's been going up and the Dow has been dropping for months, now. If this persists for more than maybe two more months, it can spell utter doom for global equities markets - and will cause a huge explosion in precious metals prices and shares.Read full article... Read full article...
Friday, March 07, 2008
Ominous S&P 500 Stock Market Chart- Warning of Oct 2002 Target / Stock-Markets / Stocks Bear Market
The very big picture of the S&P 500 chart -- (AMEX: SPY) for traders of the ETF -- shows the making of a giant double-top pattern that could be on the verge of downside acceleration that breaks the January low at 1270 and begins to fulfill its "natural potential" on the way towards a revisit of the 2002 low. Yes, that is an extreme forecast, but that is the look that this pattern exhibits. No, it will not happen in a straight line, and more than likely any decline in the SPX that violates the January 2008 low at 1270 will find support at the 50% support area of the entire 2002-2007 bull move, which is at 1174.00. Be that as it may, this is a very ominous longer-term chart picture.Read full article... Read full article...