Thursday, February 08, 2018
Invest by Watching News? Accept These Pitfalls / InvestorEducation / Learning to Invest
Many investors "operate under the assumption that events dictate market movements." They don't.
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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
Peak Gold: 2017 Supply Flat As China Output Falls By 9% / Commodities / Gold and Silver 2018
– China gold production falls by 9% to 420.5t in 2017
– Chinese gold demand rose 4% to 953.3t in same period
– China is largest producer and accounts for 15% of global gold production
– China does not export gold. Increasing foreign gold acquisitions to meet demand
– Global gold production flat – 3,269t in ’17 from 3,263t in ’16, smallest increase since ’08
– Peak Gold is here: supply set to fall gradually while global demand remains robust
Thursday, February 08, 2018
Precious Metals, Stock Market, Volatility, and Bitcoin Price Predictions Video / Stock-Markets / Financial Markets 2018
Our articles, Technical Trading Mastery book, and 3 Hour Trading Video Course are designed for both traders and investors to explore the tools and techniques that discretionary and algorithmic traders need to profit in today’s competitive markets. Created with the serious trader and investor in mind – whether beginner or professional – our approach will put you on the path to win. Understanding market structure, trend identification, cycle analysis, volatility, volume, when and when to trade, position management, and how to put it all together so that you have a winning edge.
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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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Thursday, February 08, 2018
U.S. Dollar Appears to be Bottoming. Is this the End of the Commodities Rally? / Commodities / Commodities Trading
The U.S. dollar appears to be finding a floor at $0.885 after six weeks of sharp declines. What does that mean to commodity prices?
The "Big dollar" slid almost six percent since mid-December aiding many commodity prices to stage a strong rally.
Gold bounced up 8.4 percent, silver soared 10 percent and WTI roar upward by 15 percent.
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Thursday, February 08, 2018
VIDEO: Tree Protesters Occupy Sheffield Town Hall City Council Chamber / Local / Sheffield
At the end of Wednesdays monthly Sheffield city council meeting at about 8.30pm, about 20 tree protesters who had been watching the proceedings from the gallery came down and occupied the Council chamber, unfurling a banner "Show us the contract please" referring to the £2.2 billion PFI contract with Amey, and the protesters seating themselves where the Council leader and cabinet members were seated just minutes earlier. The police were called but as of writing have not taken any action as the occupation enters its 6th hour.
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Wednesday, February 07, 2018
Is The 37 Year Bullish US Treasury Bond Market Ending? / Interest-Rates / US Bonds
The bond market has enjoyed a strong bull market for nearly four decades with yields continuing to go lower. The bull market has been going on for so long that no current active fund manager can imagine what it looks like when interest rates were to be like the 1980s at 20%. If people in the 1980s started trading in their early thirties, they would have been almost 70 years old by now, so chances are they are not active in the market anymore.
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Wednesday, February 07, 2018
Oil Prices Ravaged By Financial Turmoil / Commodities / Crude Oil
Oil prices fell back suddenly over the last few trading sessions, dragged down by some forces beyond the oil market.
The steady decline of the U.S. dollar has helped drive up crude prices for weeks, but that came to an abrupt halt last week. A rebound for the greenback led to a steep decline in oil prices on Friday.
At the same time, sudden turmoil in the broader financial system also bled over into the oil market. Volatility in the stock market flared up on Friday, sparking the sharpest single-day upheaval in years.
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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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Wednesday, February 07, 2018
Stock Volatility is Computer Generated / Stock-Markets / Market Manipulation
The actual productive economy has very little in common with the erratic and substantial movement in equity pricing on the major exchanges. The conditions for conducting commerce have not appreciably changed in the last days to warrant a numerical drop of historic proportions. For the working class and the consumer market, the price of items did not see a major drop or rise in value in this latest turmoil. Lost in the confusion is that the professional speculators won't be playing a game of chance, they will execute their financial triggers based upon mathematical algorithms implemented at lightning speed by super computers. The days of the "specialists" making a market has been dead for years.
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Wednesday, February 07, 2018
US Stock Markets & Cryptos Crashing… Is This The Big One? / Currencies / BlockChain
After the 666 point drop on the 33rd day of the year on Friday, which I said likely was a signal that things were going into play, the Dow Jones Industrial Average (DJIA) lost as much as 1,597 points by mid-afternoon on Monday.
The Dow ended up closing down 1,175 points, or 4.6% which was the largest single-day decline for the blue-chip index on a points basis in history.
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Wednesday, February 07, 2018
Gold Nearing Cycle Bottom / Commodities / Gold and Silver 2018
In terms of time, a short-term secondary low is due for Gold here in the current timeframe, originally projected for the February 7th date, but with the normal plus or minus variance of a day or two in either direction. The current decline comes as a result of the 10, 20 and 34-day cycles, each of which have been pointing south off the 1370 swing top - and with the combination of the same at or into normal bottoming territory.
The chart below shows the smallest of the above waves - the nominal 10-day cycle - which is currently 13 days along from its last labeled trough, and thus is looking for a short-term bottom:
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Wednesday, February 07, 2018
The “Free Lunch Trade” Market Bubble Has Burst… What’s Next? / Stock-Markets / Financial Markets 2018
The markets just changed.
Few understand what happened to the financial system after 2008. What happened was that the debt based financial system began to implode as debt deflation took hold. The scary thing is that it wasn’t even a large amount of debt deflation.
Remember the 2008 Crisis? That time when everyone thought the world was literally going to end? It’s that small dip in the dotted line below:
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Wednesday, February 07, 2018
Stock Market Analysis: Baying for Blood / Stock-Markets / Financial Markets 2018
The wall street bear has woken up. The Dow Jones Industrial Average posted its largest-ever, single-day point decline and major indexes in the U.S., Europe and Asia gave up their gains for the year.The Dow briefly dropped nearly 1,600 points. Although it quickly pared losses, the blue-chip index closed down 1,175.21 points, or 4.6%, to 24345.75, its largest one-day percentage decline since August 2011.
At the time of writing the futures were further down to 2550 from the close of 2639. That is an important level of support. However we expect it to be tested.
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