Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Monday, May 09, 2016
Stock Market Next Leg Down / Stock-Markets / Stock Markets 2016
SPX turned down minutes after 10:00 am, completing exactly 86 hours in its reversal pattern (waves 1-2) off the April 20 high. This is encouraging, since it implies an order in the timing of the waves.
The next segment (Waves 3-4) may take 30.1 hours, suggesting the next retracement high may be near noon on Friday. The final decline (wave 5) may take 12.9 hours, taking a total of 43 hours from this morning’s high and likely to end near 11:00 am on Tuesday. The total decline from top to bottom may take 129 hours, or near 18.5 days (4.3 squared).
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Monday, May 09, 2016
Is The Most Hated Stocks Bull Market Ready to Crumble? / Stock-Markets / Stock Markets 2016
"A young man is a theory; an old man is a fact." ~ Edgar Watson Howe
The first answer that comes to one's mind is yes, as this economic recovery has been nothing but an illusion. The unemployment rate might have dropped, but the way the BLS (Bureau of Labour Statistics) calculates this figure is questionable at best. They conveniently do not include individuals who have stopped looking for a job in their calculation. Mind you, many of these people stopped looking for a job; not because they no longer want to work, but after trying a countless number of times without success, they simply gave up and assumed they would never land a job. The majority of the new jobs created are low paying jobs and in many cases, they are only part time jobs.
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Monday, May 09, 2016
Stock Market Crash! This Is How Bad It Really Is! / Stock-Markets / Financial Crash
The 1929 Dow crash marked the start of the infamous Great Depression. We currently have a repeat of the pattern that led to that great crash in 1929. This pattern is basically a huge stock market rally (after a period of stagnation) that is driven by a huge expansion of the money supply (or credit expansion). See the chart below (Dow chart from stockcharts.com):
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Monday, May 09, 2016
Stocks Extended Their Short-Term Downtrend But Will They Continue Lower? / Stock-Markets / Stock Markets 2016
Briefly: In our opinion, no speculative positions are justified.
Our intraday outlook is neutral, and our short-term outlook is neutral. Our medium-term outlook remains bearish, as the S&P 500 index extends its lower highs, lower lows sequence:
Intraday outlook (next 24 hours): neutral
Short-term outlook (next 1-2 weeks): neutral
Medium-term outlook (next 1-3 months): bearish
Long-term outlook (next year): neutral
Sunday, May 08, 2016
Stock Market First Support Level Tested / Stock-Markets / Stock Markets 2016
Current Position of the Market
SPX Long-term trend: The beginning of a lengthy correction is most likely underway!
SPX Intermediate trend: Correcting.
Analysis of the short-term trend is done on a daily basis with the help of hourly charts. It is an important adjunct to the analysis of daily and weekly charts which discuss longer market trends.
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Sunday, May 08, 2016
Euro Technical Analysis and the BrExit Vote / Stock-Markets / Euro
The Euro remains locked in a big consolidation phase and with the Brexit vote coming up I thought I’d take another look. Let’s look at one scenario on the daily chart that I think has some good potential going forward.Read full article... Read full article...
Sunday, May 08, 2016
American Billionaire Warns To Get Out of the Stock Markets and Run To Gold / Stock-Markets / Stock Markets 2016
Billionaire trader, Stanley Druckenmiller, recently stated that the current situation in the global economy is similar to the situation on the eve of the crisis of 2008.
At the Ira Sohn Investment Conference in New York, he said, “The bull market is exhausting itself… The Fed has borrowed from future consumption more than ever before. It is the least data dependent Fed in history. This is the longest deviation from historical norms in terms of Fed dovishness than I have ever seen in my career.”
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Sunday, May 08, 2016
Mining Share, Gold, Stock Market Forecast / Stock-Markets / Financial Markets 2016
The stock market, as measured by the S&P 500, reached its 115 trading cycle top the third week of April. The next important cycle low is due on July 5th. The SPX is in process of making a head and shoulders top, and should continue higher into the mid-point of the Mercury Retrograde Cycle around May 11th. My target price is 2080. Friday was the new moon low, but also a top for the precious metals complex.
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Sunday, May 08, 2016
SPX Downtrend Probably Underway / Stock-Markets / Stock Markets 2016
The week started out at SPX 2065. After a higher open and rally to SPX 2083 on Monday the market sold off for the rest of the week. Aided by two gap down openings the market hit SPX 2039 on Friday. Then it rallied to end the week at SPX 2057. For the week the SPX/DOW lost 0.30%, and the NDX/NAZ lost 0.55%. Economic reports for the week were mixed. On the downtick: ISM manufacturing, the ADP, monthly Payrolls, Q2 GDP est., and weekly jobless claims increased. On the uptick: construction spending, factory orders, ISM services, consumer credit, long term investor sentiment, and the trade deficit narrowed. Next week’s reports will be highlighted by the PPI, Retail sales, and Business/Wholesale inventories.
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Sunday, May 08, 2016
Weekend Charts: $SPX, $NYAD, $NYA, $INDU, $MID, $RUT, $FTSE, $CAC, $DAX, and $NIKK / Stock-Markets / Financial Markets 2016
I like the odds that Friday marked the bottom of the daily cycle and half intermediate cycle decline. The next daily cycle should be right translated as well and rally at least into the second week of June before the market starts to get nervous about the Brexit and we get another corrective move.
At this point there is virtually no doubt that the 7 year cycle correction is finished and the next phase of this QE driven bull market is beginning.
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Saturday, May 07, 2016
Poor Jobs....Daily Stochastic's Oversold......2043 Breaches But Holds.....Shocker! / Stock-Markets / Stock Markets 2016
Another interesting bull-market day as there still seems to be nothing that can take this market down with any force. As a reminder, I have spoken about how we still haven't seen any major distribution off tops on any of the key, daily index charts. That's the first big hint that something bad is beginning to take place.
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Saturday, May 07, 2016
SPX, NDX Reversal Pattern Has Formed / Stock-Markets / Stock Markets 2016
An impulse-with-retracement (reversal pattern) appears to be in its final formation. The retracement may go to mid-cycle resistance at 2066.99 before resuming the decline, but may be stopped at the 4.5-year trendline. This is a perfect setup for a flash crash to begin on Monday.
The NDX formed a 9-wave decline (impulsive), so it is in agreement with the SPX.
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Saturday, May 07, 2016
Wall Street Is Falling Off A Cliff, And The Bottom Is A Long Way Down / Stock-Markets / Financial Crisis 2016
For the past 50 or so years, the quickest way for a sharp young sociopath to get rich has been to join an investment bank or hedge fund. The former were riding a “regulatory capture” gravy train that became ever-more-lucrative as new government agencies morphed into subsidiaries of Wall Street. Hedge funds, meanwhile, were surfing the wave of easy money that inevitably results from putting banks in charge of interest rates and government spending.
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Saturday, May 07, 2016
Stock Market ‘Counter Trend Rally’ is Now Completing! / Stock-Markets / Stock Markets 2016
Last Friday, April 29th, 2016, the U.S. Indexes were very bearish as price clearly broke below the 20 day moving average then rebounded back up to test that level and was rejected and sold into.
The chart below shows the market bullish and bearish momentum and price action. The momentum of these markets has now shifted away from being ‘bullish’. It is currently struggling to find support and hold up. Do not expect new highs on the SPX and I feel its beginning its ‘bearish reversal’ (topping phase) before making a new leg down.
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Friday, May 06, 2016
Stock Market Critical SPX Support May be Lost / Stock-Markets / Stock Markets 2016
SPX declined beneath both the 50-day Moving average at 2043.67 and the December close at 2043.74. This may be a lethal combination for the bulls, since both are critical supports to lose and may not be regained.
ZeroHedge reports, “Well that escalated quickly.. After 3 VIX-smash saves this week, the selling pressure won (for now) as a dead-cat-bounce after the dismal jobs data has sent S&P 500 back into the red for 2016 (joining Nasdaq and Small Caps) with Dow and Trannies getting close...
The bounce is dead...”
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Friday, May 06, 2016
US Jobs Report punches SPX beneath the 50-day Moving Average / Stock-Markets / Stock Markets 2016
The SPX Premarket appears to have fallen beneath the 50-day Moving Average.
The mover is the huge monthly payrolls miss. ZeroHedge reports, “It appears that the Fed is now officially "one and done" because the only indicator that until recently "confirmed" a "strong recovery", non-farm payrolls, just had a major stumble.
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Friday, May 06, 2016
Markets At Crossroads: Huge Moves Brewing In Stocks And Gold / Stock-Markets / Financial Markets 2016
Markets arrived at crossroads, and big moves are around the corner.
Seldom have we seen so many assets and indicators at decision points simultaneously! We see stocks, gold, and the U.S. dollar trading at extremely important levels, all in conjunction. Note that this is not according to technical analysis, but our intermarket analysis and chart patterns.
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Friday, May 06, 2016
Stock Market Getting Ready for the Next Flash Crash / Stock-Markets / Financial Crash
Making sense out of the Wave pattern has been a mind bender. I keep reminding myself, “There is order here. I just have to find it!” The decline since 1500 hours on Monday is not an impulse as I had originally expected.
What I have come up with is a truncated Wave (ii) scenario for today’s move. This may be otherwise known as a “running” Wave (ii), since Wave c has been effectively stopped by the 4.5-year trendline.
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Thursday, May 05, 2016
Central Planners Versus Contrarian Logic / Stock-Markets / Financial Markets 2016
"For every action, there is an equal and opposite reaction" - Newton's Third Law, The Physics Classroom
Since the Great Recession, anyone following financial history and markets knows that this period of intervention and debt has surpassed everything seen in history prior to the events of 2007-2009. For every pull back in "risk on" assets, there have been actions to make sure equity markets went higher or back to previous highs, the lead example worldwide being US equity markets.
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Thursday, May 05, 2016
Stocks Extended Their Short-Term Downtrend But Will They Continue Lower? / Stock-Markets / Stock Markets 2016
Briefly: In our opinion, no speculative positions are justified.
Our intraday outlook is neutral, and our short-term outlook is neutral. Our medium-term outlook remains bearish, as the S&P 500 index extends its lower highs, lower lows sequence:
Intraday outlook (next 24 hours): neutral
Short-term outlook (next 1-2 weeks): neutral
Medium-term outlook (next 1-3 months): bearish
Long-term outlook (next year): neutral