Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Tuesday, January 26, 2016
Clueless in Davos / Stock-Markets / Financial Markets 2016
Making their annual pilgrimage to the exclusive Swiss ski sanctuary of Davos last week, the world's political and financial elite once again gathered without having had the slightest idea of what was going on in the outside world. It appears that few of the attendees, if any, had any advance warning that 2016 would dawn with a global financial meltdown. The Dow Jones Industrials posted the worst 10 day start to a calendar year ever, and as of the market close of January 25, the Index is down almost 9% year-to-date, putting it squarely on track for the worst January ever. But now that the trouble that few of the international power posse had foreseen has descended, the ideas on how to deal with the crisis were harder to find in Davos than an $8.99 all-you-can-eat lunch buffet, with a free cocktail.
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Tuesday, January 26, 2016
Corporate Earnings Are Down, But Debt Keeps Rising… / Stock-Markets / Stock Markets 2016
I recently wrote to you about a number of factors that show the stock market saw a major top back in May 2015.The most glaring?
Small-cap stocks have diverged massively from large-cap since May. They’re down 24% while large-caps are down only 12%. This is the classic sign that the dumb money is pouring in and the smart money is leaving.
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Tuesday, January 26, 2016
Stock Market Bounce, But No Overlap / Stock-Markets / Financial Markets 2016
Good Morning!
SPX bounced in the Premarket, but did not overlap, which is a condition of a declining impulse. Confirmation of that would be
Evident only after the open. A gap down open would suggest Wave 3 may be underway.
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Tuesday, January 26, 2016
Stock Market Turnaround Tuesday? / Stock-Markets / Stock Markets 2016
The stock market indices started the week off mixed early on, and then they backed and filled, held support, and rallied by midday. The Nasdaq 100 made a new rally high, getting up just under 4270, while the S&P 500 could barely get back above the morning high. That loss of momentum and lack of confirmation led to an afternoon sell off, and a nasty one. The Nasdaq 100 went from 4216 to 4192 before bouncing, and closing at 4195, 3 points off its low. The S&P 500 dropped back from 1903 to 1976. and closed just a point off the low.
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Tuesday, January 26, 2016
Zero Follow-Through For The Bulls....Banks Under Severe Pressure....Oil Slammed Again / Stock-Markets / Stock Markets 2016
Friday is looking more and more as if it were simply one of those bear-market rally days from deeply oversold conditions. The only problem being it wasn't that great of an up day. The real powerful, bear-market rally days can be up 2.5% to 3% in a single day. Friday was nice, but far from that type of day thus it seemed as if more upside was likely short-term. Not to be. The market started out down some and tried to fight to green before the bears came in and took it back down. The market stayed down for the better part of the day, but what was most important was how we finished.
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Monday, January 25, 2016
Lifting Sanctions on Iran a Mixed Bag / Stock-Markets / Financial Markets 2016
From a financial perspective, the New Year has been anything but happy. As of January 20th, the S&P had fallen over 9% since the beginning of the year, to levels not seen since 2014,reflecting a loss of some $2 trillion in market value. Compounding matters was the 30% collapse in oil prices, which brought crude down to the lowest levels in 13 years. The New Year has also seen further evidence of recession in the U.S., which has appeared in a string of bad manufacturing service sector data.
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Monday, January 25, 2016
Money Mind Games, Futures, and the Future / Stock-Markets / Financial Markets 2016
“In markets, usually when you see massive buying and selling and people piling into trades, it is time to step back, get some perspective, and let the move play out before jumping in or out one way or the other. As we know, trades can get very crowded and almost too tempting to resist.” – Mind, Money & Markets, Dr. Janice Dorn, pg 47
“Reaction to the FOMC news was instant. Within a thousandth of a second, the move was already over. Trades in 8,000 NMS stocks. Nothing to buy after a few milliseconds.” – Buy All The Stocks Now!, Nanex Research, Sept 18, 2013
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Monday, January 25, 2016
Stock Market Premarket is Lower / Stock-Markets / Stock Markets 2016
SPX Premarket is down below 1900.00, eliminating possible round number support. It is still hard to say whether it has completed Wave 2 in its entirety or Wave [a] of 2, leaving a retest of the Cycle Bottom before rising in [c] of 2. Even it Wave 2 goes higher, taking profits and going short got the most of the rally with a small upside risk that may not last more than a day.
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Monday, January 25, 2016
Stock Market SP500 Above 1,900 Mark Again, New Uptrend or Just a Bounce? / 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. However, we decided to change our long-term outlook to neutral recently, following recent move down below medium-term lows:
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
Monday, January 25, 2016
Stock Market Bottoming Out or the Last Bull Standing? / Stock-Markets / Stock Markets 2016
The stock market has rallied to back over 16k on Friday, closing at 16,093, up 210 points on the day, which apparently according to the bear market doom and gloom growing consensus must be the first bear market counter-trend rally of 2016. Whilst my consistent view to the continence of many has been that the stock market is undergoing an extreme correction which this interim analysis seeks to evaluate ahead of my in-depth analysis and detailed trend forecast for probably the whole of the remainder of 2016.
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Monday, January 25, 2016
Leading indicator “Bonds” Suggests More Time before Stock Market Crash / Stock-Markets / Stock Markets 2016
Every crash was preceded with the 10 year minus the 3 month Bond Yields dropping towards the zero line. Although the equity markets have crashed, the bond markets are still not displaying any signs of panic. This tells us the market must continue to fall until the percent return is around the zero mark.
Thinking of this logically, it makes sense. Investors when scare start moving more and more of their capital in to safer investments, like bonds. Eventually there is a change in this perception, which occurs when bonds are not paying anything in return. That is when investors say enough is enough, and start taking risk and start moving back into the stock market.
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Monday, January 25, 2016
Counter Trend Rally in a Stocks Bear Market, GDX Low Near? / Stock-Markets / Stock Markets 2016
January 20th may have been an important intermediate bottom in the stock market, but the bear market is still growling. January 20th was exactly 100 trading days from the August 24th low. The 100 trading low has a variance of 15%. Oddly, the 16 TD low, which arrived on January 11 is still due in early February along with a Bradley turn (Feb 3-5). The next top of import is due January 25 with the moon in Leo/Virgo. It is also the 16 trading top +1 TD. Last moon cycles saw the market run down 8 TD's to the moon in Sag/Cap (due Feb 4th). January 26 and 27 have the moon in Virgo, so at least those days should be down. Feb 1 is another day which should be down based on the negative astros on Jan 29 and over the weekend.
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Monday, January 25, 2016
Where Is The Stock Market Turmoil Taking Us? - Audio / Stock-Markets / Stock Markets 2016
On Monday, stocks tanked around the world and so did oil, breaking $27. On Tuesday things looked better. Central banks were jawboning, with Mario Draghi making noises about intervening. The Chinese were also busy buying stocks. The true test is when the banks really start intervening and whether they will be able to reflate another cycle. At some point this strategy is bound to fail. Will it be now or the next time? That past couple of weeks have seen a very brutal bear market. If you look at the average stock, it has lost more than 20 percent. Sounds like a bear market in the making with tech stocks leading the way.
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Sunday, January 24, 2016
Stock Market Counter Trend Rally / Stock-Markets / Stock Markets 2016
Current Position of the Market
SPX: Long-term trend - Severe correction underway.
SPX: Intermediate trend - counter-trend rally!
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, January 24, 2016
Is the Stock Market Bottom In? / Stock-Markets / Stock Markets 2016
Stocks are rallying this morning.
They are not rallying because of a change in fundamentals.
They are not rallying because of a significant debt restructuring.
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Sunday, January 24, 2016
Financial Collapse 2016 - Could This Be “The Big One”? / Stock-Markets / Financial Crisis 2016
Everyone take a deep breath. This isn’t 2007 again. The banks aren’t loaded with $10 trillion in “toxic” mortgage-backed securities, the housing market hasn’t fallen off a cliff wiping out $8 trillion in home equity, and the world is not on the brink of another excruciating financial meltdown. The reason the markets have been gyrating so furiously for the last couple weeks is because stocks are vastly overpriced, corporate earnings are shrinking, and the Fed is threatening to take away the punch bowl. And to top it all off, a sizable number of investors have more skin in the game than they can afford, so they had to dump shares pronto to rebalance their portfolios.
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Sunday, January 24, 2016
Charting The Stock Market Crash - How Far Will The Bounce Get?... / Stock-Markets / Financial Crash
The purpose of this update is to define exactly where we are on the market clock, because if we know where we are, broadly speaking we will know where we are going.
Before going any further I want to point out that so far we have tracked this nascent market crash well, first looking for the market to cave in last Summer, in the Preparing for the Crash series, calling for the Biotech sector to plunge before Christmas in Biotech Inverse ETFs update – Perfect Entry Point for New Shorts, for China to crater at the end of December in the China update and more recently calling for a waterfall decline in the US stockmarket right at the start of the year in Broad US Stockmarket Still Perched Atop a Cliff
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Sunday, January 24, 2016
First Uptrend of Stocks Bear Market / Stock-Markets / Stocks Bear Market
The week started off at SPX 1880. After a Monday holiday the market gapped up to SPX 1901 on Tuesday, and then immediately headed lower. On Wednesday the market gapped down at the open, hit a new low for the downtrend at SPX 1812, and then began to rally. The rally continued through Thursday and Friday with the SPX clearing 1900, and ending the week at 1907. For the week the SPX/DOW gained 1.05%, the NDX/NAZ gained 2.60%, and the DJ World gained 0.90%. Economic reports for the week were mostly negative. On the uptick: existing homes sales and the Q4 GDP estimate. On the downtick: the NAHB, CPI, housing starts, building permits, leading indicators, the WLEI, the Philly FED, plus weekly jobless claims rose. Next week the FED meets Tuesday and Wednesday, and we get our first look at Q4 GDP.
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Saturday, January 23, 2016
Finally, Some Stock Market Buying....What Is It Telling Us?......Scenarios Discussed... / Stock-Markets / Stock Markets 2016
What's unique about the stock market is its unpredictable nature. We're always trying to understand the message being sent through the oscillators along with price action. What is it saying! It can be very confusing and always emotional. Is it only a correction within a bigger picture bull market that's still on going? Is this a counter-trend rally that will fail on a weekly basis below the uptrend line at 1935? Will it head fake well above 1935 only to close back below on a weekly basis? It's really hard to know what's taking place when the move off then top has never shown classic bear-market distribution on any of the key daily index charts.
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Saturday, January 23, 2016
Chronicle Of A Debt Foretold - When Central Banks Buy Equities / Stock-Markets / Stock Markets 2016
Critics of today’s fiat currency/fractional reserve banking world have (for what seems like forever) made the common sense point that when debt rises faster than cash flow, bad things are bound to happen. In every cycle since 1980 this has been dismissed by the vast majority who benefit from inflating bubbles — until the bubble bursts.
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