Friday, August 28, 2015

Stocks Go Nuts But the Question Remains – Will the Rally Stick? / Stock-Markets / Stock Markets 2015

By: ...

MoneyMorning.com Keith Fitz-Gerald writes: On the heels of Monday’s vicious 1,000+ point “dip” and Wednesday’s subsequent 619 point “rip ” higher, many investors are asking one question – will the rally stick?

The media certainly seems to think so:

…Relief Descends on US Stock Market with Best Rally Since 2011 – Bloomberg

…Dow, S&P Enjoy Biggest Percentage Gains in Four Years – MarketWatch

…Chinese Stock Index Jumps 5.3% as Asian Stocks Rise – Yahoo!Finance

Friday, August 28, 2015

Fed’s Stock Market Levitation is Failing / Stock-Markets / Stock Markets 2015

By: Zeal_LLC

The US stock markets just suffered an extraordinary plunge, shocking traders out of their complacency psychosis.  This cast the foundational premise behind recent years’ incredible stock-market levitation into serious doubt.  Traders are finally starting to question whether central banks can indeed manipulate stock markets higher indefinitely.  Any wavering in this faith has very bearish implications for stock prices.

Less than two weeks ago, the US’s flagship S&P 500 stock index (SPX) was up above 2100.  It finished August’s middle trading day just 1.3% below the latest record highs from late May.  At the time, the Wall Street analysts were overwhelmingly bullish and saw nothing but clear sailing ahead.  Predictions for the SPX ending this year above 2250 were ubiquitous, and retail investors were urged to aggressively buy stocks.

Friday, August 28, 2015

The Eight Energy Systems Driving The Stock Market Rout / Stock-Markets / Stock Markets 2015

By: Dan_Amerman

The energy systems which drove the global stock market rout have been building for months and years, and by the spring of this year, the danger flags were clearly flying. Indeed, as I wrote in May of 2015 in an analysis titled "A Financial "Perfect Storm" May Be Brewing" (link here):

"In the financial world at this very moment, we have eight different "weather systems" that are all developing in real time.

... if several of the more powerful components were to converge – and reinforce each other – then we could very rapidly reach the point of greatest financial instability that the world has seen since 2008."

Friday, August 28, 2015

Dow Theory Transports Daily Chart Positive Development / Stock-Markets / Stock Markets 2015

By: Marty_Chenard

For the Dow Theory enthusiast, below is a daily Transport chart as of yesterday's close. Note that it closed higher yesterday and it was above its 7700 resistance level. That was a positive.

Friday, August 28, 2015

Silver Sold, then Squeezed / Commodities / Gold and Silver 2015

By: Alasdair_Macleod

While gold consolidated its recent gains, silver was sold down this week along with other metals and energy. The whole commodity complex suffered badly in the stock-market fall-out, before a sharp bear-squeeze across commodity markets pushed silver, copper and oil sharply higher yesterday (Thursday). Silver is now down 6.8% on the year and gold 5%. Prices were slightly firmer this morning in Asian trade, before the European opening.

Friday, August 28, 2015

Is this it for U.S. Dollar Bulls? / Currencies / US Dollar

By: Ashraf_Laidi

US dollar bulls couldn't have asked for a better scenario -- Just as the USD index (basket of 6 currencies largely weighed vs EUR) was about to test a 3-month trendline support, the currency recovers. And just as EURUSD had broken above its 200-DMA for the first time in 13 months and above its 55-WMA for the first time in 12 months in a matter of 4 days, the single currency crashes back below these key levels later in the same week. But CAD, AUD, NZD and NOK have all outperformed USD thanks to a broad bounce in energy.

Friday, August 28, 2015

U.S. Economic Fundamentals 'Look Good' - Bullard of St. Louis Fed / Economics / US Economy

By: Bloomberg

St. Louis Federal Reserve President James Bullard spoke with Bloomberg's Brendan Greeley, Michael McKee and Tom Keene from the Jackson Hole economic symposium. He spoke about the outlook for monetary policy, the U.S. economy and recent market volatility. 

Bullard said that while world financial markets are volatile, U.S. fundamentals are good: "I'm not denying it's a volatile period. But let me say this. U.S. fundamentals look good….The key question for the committee, and no decisions have been made here, but the key question for the committee is would you want to change the outlook based on the volatility that we've seen over the last 10 days? And I think the answer is going to be not very much."

Friday, August 28, 2015

Stock Market Margin Calls Mount / Stock-Markets / Stock Markets 2015

By: Anthony_Cherniawski

I have been busy aligning the Wave structures among the various Indexes that we are following. Starting with the SPX, I believe that we are seeing a larger degree wave structure on the decline than on the way up. Because SPX has broken the 4-year trendline, it is possible that Primary Wave [1] or [A] may reach its target at 1650. Diamond and Broadening Top formations usually indicate targets for Wave (C) or (3). In this case there is not enough time for a fifth Intermediate Wave, I am becoming more certain that we will see an (A)-(B)-(C) Wave of Primary Wave [A] ending next week. After a 2-3 week retracement we may see a 5-Wave Primary [C] of Cycle Wave I ending in March, 2016.

Friday, August 28, 2015

Einstein, Physics, Gold and The Formula To End Economic Decay / Commodities / Gold and Silver 2015

By: GoldCore

We continue to have a wonderful dialogue with and frequent editorial submissions from readers and clients. Today, we have a thought provoking and important article that should greatly contribute to the debate on the merits of continuing to use artificial money.  David Bryan draws on the genius of Einstein and uses science as the basis for policies that would end economic decay and rejuvenate local and national economies and indeed the global economy.

Friday, August 28, 2015

The 10 Best Stocks for Options Trading Plays in This Market / Companies / Options & Warrants

By: ...

MoneyMorning.com Tom Gentile writes: The biggest market drop in recorded history on Monday… a wild end-of-day plummet on Tuesday… a huge up day on Wednesday… and more bullish action today?

Talk about opportunity!

Right now, the only real barrier to trading profits is a stock that doesn't move.

Friday, August 28, 2015

Economics of a Stock Market Crash / Stock-Markets / Stock Market Crash

By: Alasdair_Macleod

This month has seen something that happens not very often: it appears to be the early stages of a global stock market crash. For the moment investors are in shock, seeking reassurance and keenly intent on preserving their diminishing assets, instead of reflecting on the broader economic reasons behind it. To mainstream financial commentators, blame for a crash is always placed on remote factors, such as China’s financial crisis, and has little to do with events closer to home. Analysis of this sort is selective and badly misplaced. The purpose of this article is to provide an overview of the economic background to today’s markets as well as the likely consequences.

Friday, August 28, 2015

Currency Wars Detonate; Gold Refuses to Budge / Commodities / Gold and Silver 2015

By: Sol_Palha

The person who lives by hope will die by despair.
Italian Proverb

Over the years we have frequently stated that every that every major bull market will experience at least one back breaking correction. Usually the correction culminates with a 50% pullback from the highs. In the case of Gold, this would equate to a pullback to $960.  The precious metal’s sector had a splendid lope that began in 2003 and ended with spectacular dash in 2011.  To think that the Gold bull would continue unabated would be to put it mildly wishful thinking.  Sadly, many Gold bugs opted for this line of thought, rather than dealing with reality; the reality being that it was time for the entire sector to let out some steam.

Friday, August 28, 2015

Gold: Bullish in Real Terms, Bearish in Nominal Terms / Commodities / Gold and Silver 2015

By: Jordan_Roy_Byrne

Last week when we covered rebound targets in the precious metals sector we also discussed the importance of Gold’s performance in real terms. It can be a leading indicator for the sector at key turning points. Since then precious metals sold off in aggressive fashion alongside global equity markets. However, Gold against equities gained materially. This is something to keep an eye on as it hints that a trend change is boiling under the surface.

Friday, August 28, 2015

UK Immigration Crisis Hits New Record, Trending Towards Becoming a Catastrophe / Politics / Immigration

By: Nadeem_Walayat

Britain's Immigration crisis is fast trending towards becoming a catastrophe as the latest immigration statistics once more bring home the stark reality that the UK has no control over its borders as 5 years of Conservative government rhetoric of controlling immigration have yet again been revealed to be a case of "the emperor has no clothes", where rather than annual net immigration of in the tens of thousands as David Cameron promised at the start of his Premiership in 2010, instead net immigration has once more soared above the previous record high of 318,000 announced in May, to now 330,000.

The Conservative / Coalition governments failures to control immigration for the past 5 years have just marked a continuation of the Labour immigration catastrophe that set in motion a 15 year long immigration mega-trend for importation of over 8 million people (total immigration) where approx 90% of the adults were expected to vote Labour (90% on benefits such as tax credits).

Thursday, August 27, 2015

The Ultimate Cash-Management Guide / Personal_Finance / Savings Accounts

By: DailyWealth

Dr. David Eifrig writes: No one talks about how to manage your cash.

 

As regular readers know, we suggest holding cash in an emergency fund and in your portfolio. If you've followed our advice, you likely have tens, and maybe hundreds, of thousands of dollars in cash.

 

But you need to give some thought to where you put it...

Thursday, August 27, 2015

Why a Fed Rate Hike Could Be a Blessing for Gold Prices / Commodities / Gold and Silver 2015

By: The_Gold_Report

Like a true contrarian, Gold Newsletter publisher Brien Lundin looks beyond the headlines to understand what is really moving precious metals prices. He has concluded that the mainstream media may have it all wrong. Suspected anchors on the gold price such as an interest rate increase and devaluation of the yuan could actually be a rallying cry for commodities, he says in this interview with The Gold Report. And, he points to a baker's dozen of companies poised to take off when the arrows turn.

Thursday, August 27, 2015

Why Devaluing the Yuan Won't Help China's Economy / Economics / China Economy

By: Frank_Shostak

Earlier this month, the Chinese government decided to depreciate its currency on three consecutive occasions. On August 13, the price of the US dollar was trading at 6.413 — an increase of 3.3 percent against July. The key factor behind the central bank’s lowering of the yuan is a sharp decline in the growth momentum of exports with the yearly rate of growth falling to minus 8.3 percent in July from 2.8 percent in June.

Thursday, August 27, 2015

The Difference Between What Traders and Investors Should Do Now / Stock-Markets / Stock Markets 2015

By: Investment_U

Alexander Green writes:Over the last couple of weeks, the market has rallied, plunged and rallied again.

Should you buy into this craziness right now?  That depends on whether you consider yourself a trader or an investor.

There are a lot of opportunities out there right now for medium- to long-term investors. But it looks dicier for short-term traders.

Thursday, August 27, 2015

It’s Hard to Be Broke and Happy at the Same Time / Personal_Finance / Pensions & Retirement

By: Investment_U

Alexander Green writes: Editorial Note: There's no ignoring what's happening in the markets today. Global fears have sent U.S. stocks into a free fall. Of course, we're not going to pretend it's the best of times. But, as Alex has advised in the past, now is not the time to try and time the markets. In his words, "Nobody rings a bell at the top of the market. So the amateur lurches about and suddenly gets out... then finds that stocks keep going up without him." As we write, the Dow is already up 338 points from this morning's low. So keep that in mind as your fellow investors run screaming into the streets.

A new report from Bankrate.com reveals that more Americans than ever are saving nothing for retirement.

Thursday, August 27, 2015

Stock Market Trend & Trade Signal Of the Decade / Stock-Markets / Stock Markets 2015

By: Chris_Vermeulen

U.S. stocks closed lower Tuesday after a failed attempt to rally from the Dow’s worst 3-day point decline. It’s something I have not seen since the 2008 GLOBAL financial crisis.

The market had its first rally of the downtrend yesterday but it would be a BIG mistake to get bullish for new long-term investments at this point. The major trend is down. The odds favor that this is to be only the first phase of the decline. Today’s rally could take us to 1965 – 2040 level on the SP500. I will be taking short positions in the US markets soon.