Category: Stock Markets 2018
The analysis published under this category are as follows.Saturday, February 10, 2018
Lot of Stock Market Damage to Be Caused before New the Fed Chief Will React / Stock-Markets / Stock Markets 2018
Mike Gleason: It is my privilege now to welcome in Axel Merk, President and Chief Investment Officer of Merk Investments and author of the book Sustainable Wealth. Axel is a highly sought-after guest at financial conferences and on news outlets throughout the world, and it's great to have him back on with us.
Axel, it's a real pleasure to speak with you again, and thanks for joining us.
Axel Merk: Oh, it's good to be with you.
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Saturday, February 10, 2018
Never Give Up Your Short Position in a Stocks Bear Market.... / Stock-Markets / Stock Markets 2018
This morning’s action in the SPX was both fascinating and informative. I had suggested a bounce that might go to the Cycle Bottom resistance at 2627.12. It didn’t even make it. Wave [a] went to 2619.47, then reversed down to make a new low at 2563.49 in Wave [b]. Wave [c] was stopped close to the neckline, which I had also mentioned as another resistance point. In my opinion, that validates the Head & Shoulders formation as is. This is called an irregular correction, but since Wave [c] is barely visible, it may be referred to as a “running correction.”
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Saturday, February 10, 2018
Stock Market Selling Unleashed! / Stock-Markets / Stock Markets 2018
The unnaturally-tranquil stock markets suddenly plunged over this past week. Volatility skyrocketed out of the blue and shattered years of artificial calm conjured by extreme central-bank distortions. This was a huge shock to the legions of hyper-complacent traders, who are realizing stocks don’t rally forever. With stock selling unleashed again, herd psychology will start shifting back to bearish which will fuel lots more selling.
As a contrarian student of the markets, I watched stocks’ recent mania-blowoff surge in stunned disbelief. On fundamental, technical, and sentimental fronts, the stock markets were as or more extreme than their last major bull-market toppings in March 2000 and October 2007! I outlined all this in an essay on these hyper-risky stock markets on 2017’s final trading day. The ominous writing was on the wall for all willing to see.
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Friday, February 09, 2018
Stock Market Buy or Sell? This Insight May Help You Decide / Stock-Markets / Stock Markets 2018
It’s a tough decision. We’d like to help by showing you some unconventional market evidence.
By February of this year, investors had almost forgotten what stock market volatility looked like.
And then something unprecedented happened. On Monday, Feb. 5, the DJIA closed 1,175 points down, the biggest single-day drop in the index's history. Since then, stocks have been going haywire.
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Friday, February 09, 2018
Stock Market Technical Analysis / Stock-Markets / Stock Markets 2018
This week’s “flash crash” has inflicted some technical “damage” on the market but nothing too serious, for the moment. However, some caution is warranted.
To gauge where the markets go from here I believe it important to focus on how the Dow Transport Index behaves, as it is the weaker of the two main Dow Indices. (As was the case in 1998 and 1999, just before the tech crash of 2000). Currently it is trying to consolidate around its 100 Daily Moving Average but I suspect new lows will be tested before too long. Remember technical analysis 101: “when significant moving averages become points of resistance rather than points of support you are in a bearish trend.”
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Friday, February 09, 2018
Wells Fargo WFC Remains Bullish / Stock-Markets / Stock Markets 2018
Wells Fargo (NYSE: WFC) is the world’s second-largest bank by market capitalization and the third largest bank in the U.S. by assets.
Last week, the Bank was fined $185M by the FED for ‘widespread illegal practices’ because of the recent fake accounts scandal and it was banned from growing until it convinces authorities it’s addressing shortcomings.
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Friday, February 09, 2018
Stock Market Roller Coaster Crash Ride Down to Dow Forecast 23,000 / Stock-Markets / Stock Markets 2018
The stock market like a roller coaster rockets higher one day only to plunge lower the next. That is what this week has been like, a roller coaster ride. Starting the week with a Monday late session 1175 point plunge, bouncing Tuesday by 570 points to 24,912. Taking a breather on Wednesday by closing steady at 24,893, then plunged once more yesterday (Thursday) by over 1000 points, closing at 23,860, with the Dow now down over 10% from its 2018 high.
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Friday, February 09, 2018
What Is Stock Market Volatility Telling Us Now? / Stock-Markets / Stock Markets 2018
In my last article, ‘Plunge Protection Team Spotted Atop Mt. Everest’ - 02/02/18, I warned readers that the Plunge Protection Team was again active. I posted the article on my blog www.bmfinvest.blogspot.com. This article was published as well on the site www.marketoracle.co.uk and almost nowhere else. Let me say ‘kudos’ to the marketoracle.co.uk publisher Nadeem Walayat for not only having the guts to publish the truth but also the expertise to understand what is happening. I start everyday with a thorough reading of the articles published on marketoracle.co.uk as it is one of the few sites where writers like myself are given a forum. Almost all the other supposed ‘investment’ sites are filled with powder puff CNBC kind of stuff. I can assure readers that if they are not reading articles posted on marketoracle.co.uk, they are not getting a complete idea of important information.
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Thursday, February 08, 2018
The Most Important Trendlines For Stock Investors / Stock-Markets / Stock Markets 2018
The bond market has done the Fed’s job for it.
The reality is that the Fed is way behind the curve. True, the Fed is raising rates, but it is not raising them fast enough. The market was CLEARLY in a parabolic rise based on the fact financial conditions were too loose.
So what happened?
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Thursday, February 08, 2018
A Shot Across The Bow for Stock Market Investors / Stock-Markets / Stock Markets 2018
Investor complacency was rife. Since January 2016 investors have not experienced any significant corrective action on equity markets. Volatility had been unprecedentedly subdued. The “short vol” trade was a slam-dunk that lured in many investors, most of whom did not understand the risks of trading volatility.
Over the past week, complacent investors who forgot that equity markets remain a risky asset received a brutal wake-up call. A 3000 point wipe-out on the Dow over a couple days was not expected by anyone, to say the least. Dip-buyers who have become accustomed to buying the -10 point intraday pull-backs on the S&P 500 got reacquainted with the notion of stop-losses. Those gambling in the volatility products hopefully understand now that the VIX is not an asset class and benefits no one. Indeed, the VIX can – and did – double in value. For an inverse VIX ETF, well that means the product goes to zero. And that is just what the Velocity Shares Inverse VIX fund (XIV) did this past week. Many inverse VIX ETNs were halted. In our daily market update for February 8, we warn of another class of ETFs that may also in turn implode in the event of extreme price movements.
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Thursday, February 08, 2018
Three Truths about Stock Market Sell-Off Gold Investors Should Know / Stock-Markets / Stock Markets 2018
Until recently, the financial press was reporting confidence in the global economy in 2018. Participants at the World Economic Forum in Davos were full of optimism and they outdid each other in upgrading their forecasts. One week later, the global stock market plunged, making analysts stupefied. “As equities tumbled, gold should shine”, almost everyone thought. But that’s not what we saw. What really happened, then?
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Thursday, February 08, 2018
Stock Market Struggle Begins to Avert the Decline / Stock-Markets / Stock Markets 2018
SPX futures are struggling to take back the losses that occurred just after the bell yesterday. That puts the fair market value at about 12 points below the close. There may be a bounce, but it may not last.
At 7:00 am ZeroHedge wrote, “U.S. stock index futures turn negative in an illiquid, volatile session as investor sentiment has yet to stabilize amid doubts whether the U.S. equity selloff is over as yields remain just south of the critical 2.85% level. S&P E-mini contracts slid 0.1%, while the VIX is up 1% to 28.1 after 2 days of declines. Including fair value, the Dow is expected to have an implied open of over 200 points lower while the S&P will open around 2,665.”
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Thursday, February 08, 2018
Stock Market, Gold and Silver Gold Consolidation Time (The Easy Trade has Ended) / Stock-Markets / Stock Markets 2018
Before we look at todays charts I would like to reiterate once more that we have traded one of the best bull markets runs in history. There was hardly a time over the last year or so that the stock markets were down more than 2 or 3 days in a row. It seemed like everyday I would log on to Stock Charts in the morning the SPX would always be up 3 to 5 points. It was just a steady move higher with little volatility.
Last Friday that nice gentle uptrend we had grown accustomed to came to an exciting climax. What we are experiencing right now is the beginning of some volatility that is going to take some time to get back under control. Think of dropping a super ball off the top of the Empire State building. First you get a really big bounce followed by a big decline then another bounce that is less strong with the next bounce getting weaker. At some point the initial volatility will be reduced back into normal price action.
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Thursday, February 08, 2018
Stock Market Retracements Calculated / Stock-Markets / Stock Markets 2018
SPX made a 48.5% retracement at 2727.67 this morning. The extension stayed within the confines of the Broadening Wedge that I had pointed out yesterday. This morning appears to be a “run the stops” exercise since the SPX volume was tepid and the only way to get liquidity was to force the sale of those who had entered short yesterday. I do not use stop losses for that reason.
Unfortunately, investors are being told that this correction is healthy and a buying opportunity. Goldman Sachs appears to be “talking its book.”
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Wednesday, February 07, 2018
The Stock Market Is Giving You A Huge Opportunity / Stock-Markets / Stock Markets 2018
Over a week ago, in my analysis to my members, I noted that, ideally, I was looking for the market to pullback and test the 2800SPX region. And, the market certainly dropped down to the 2800 region, but also broke the 2796SPX support upon which I was focused. That had me begin to focus on the 2700SPX region of support. And, today, we dropped and broke my next level of support at 2700SPX. But, this is the pullback I have been looking for over the last several months which had not materialized. Now, it has come in with a bang.
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Wednesday, February 07, 2018
Three Trades For This Wild Stock Market / Stock-Markets / Stock Markets 2018
It has been an emotional ride for most traders since stocks started to sell off last Friday in a big way. This crash we just experienced is VERY much like the Aug 2015 crash. Price and volatility both have parabolic price movements that could either make you a lot of money or lose a bundle depending on where your money was positioned.
This post is to quickly share three recent trades we have taken one of them (REALLY BAD) and what to expect in the markets moving forward.
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Tuesday, February 06, 2018
Stock Market Wild Ride About to Get Wilder... / Stock-Markets / Stock Markets 2018
SPX had a wild morning after the excitement of the overnight market. I left yesterday’s Fib scale on the chart to help tell us what is happening in a fast moving market.
The Wave 1 low was at 2638.17, where I left the bottom of the Fib scale
The Wave [a] high was only 2698.65. You can see the top of the hourly bar there.
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Tuesday, February 06, 2018
Dow Stock Market Crash Dow Forcast Target - Video / Stock-Markets / Stock Markets 2018
The Dow crashed by 4.6% on Monday, closing down 1175 points at 24,345, the largest one day points drop in the Dow's stock market history, wiping out ALL of the gains for 2018 in just a couple of trading days. With bullish sentiment now turning to Fear of what could follow now that the Trump Bubble appears to have finally burst! Especially given the fact that the stock market was falling INTO yesterdays close which implies a continuation of the sell off when Wall Street opens later today (Tuesday).....
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Tuesday, February 06, 2018
Is Stock Market Short Volatility Contained Or A Canary? / Stock-Markets / Stock Markets 2018
On Janet Yellen’s last day as Fed boss the markets suffered their worst percentage loss in 20-months. Yesterday, on Jerome Powell’s first day as Fed Chairman, the VIX spiked by its largest amount on record and the Dow suffered its largest single day point drop ever (and 100th worst percentage drop in history). Intent on showering us with some logic as prices rain lower, the media tells us that last week’s jobs report is responsible for the ongoing collapse. But what the majority of the mainstream media and Wall Street (or the heads that talk their book in the mainstream) neglects to mention is that for the last 8+ years we have been living in a risk devoid wasteland of rigged prices, thanks in the large part to the Fed.
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Tuesday, February 06, 2018
Trump Bubble Bursts, Stock Market Panic Dow 1175 Point Crash Analysis / Stock-Markets / Stock Markets 2018
The Dow crashed by 4.6% on Monday, closing down 1175 points at 24,345, the largest one day points drop in the Dow's stock market history, wiping out ALL of the gains for 2018 in just a couple of trading days. With bullish sentiment now turning to Fear of what could follow now that the Trump Bubble has finally burst! Especially given the fact that the stock market was falling INTO the close which implies a continuation of the sell off when Wall Street opens later today (Tuesday).
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