Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Tuesday, January 05, 2016
Pento's Market Predictions for 2016 / Stock-Markets / Financial Markets 2016
2015 was a year where nearly every asset class failed to provide any returns at all. If fact, the S&P 500 hasn't gone anywhere in about the past 400 days. An analysis of that Index's performance at the end of the 3rd quarter by S&P Capital IQ showed that over 250 stocks were down more than 20% from their 2015 highs and 25% of the S&P 500 Index had plummeted more than 30%.
The 30-year Treasury bond has fallen over 2.0%, cash in money market accounts have returned just +0.11% (so after taxes and inflation your return was solidly negative), and the CRB index is down nearly 25%.
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Tuesday, January 05, 2016
SPX Opening Weak. Will the Decline Resume? / Stock-Markets / Stock Markets 2016
Good Morning!
SPX appears to be struggling below yesterday’s close in the Premarket. Although anything can happen with HFTs, we may expect to see a resumption of the decline below the Cycle Bottom at 2007.99. Chinese intervention in their market failed to break the rout in the overnight markets.
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Tuesday, January 05, 2016
Stock Market 2016 Further to Fall - Video / Stock-Markets / Stock Markets 2016
I think the 7 year cycle low still has unfinished business. One way or another, either through a normal stair stepping down correction, or a market crash if the government continues to intervene in the markets, stocks still need to fall further before the next leg of the bull market can begin.
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Tuesday, January 05, 2016
SPX May Have a Completed Reversal Pattern / Stock-Markets / Stock Markets 2016
SPX made a perfect five-wave decline and (thus far) a 25% retracement. If SPX is in a Wave C decline, that is all it needs to be complete. The shape of the fractal is intriguing, implying that Wave [iii] may have a minimum target of 1795.00…
The market may have been saved by a $2-3 billion late-day bid out of nowhere. If this is the beginning of Wave C, the retracement may be finished already. Otherwise, I would suggest a target at the 38.2% retracement at 2024.63 at the open tomorrow.
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Tuesday, January 05, 2016
Yellen Comes Down The Chimney / Stock-Markets / Financial Markets 2016
You heard it from Janet Yellen. “Economic expansions (and by extension bull markets) don’t die of old age.” That’s true. But they do die from excess, policy mistakes and Wall St Stoopid.
Seven years of zero interest rates have created plenty of capital misallocation, mal-investment and yield chasing. We’ve seen some minor debacles in the high yield space this month. Nothing earth shattering but certainly disquieting. Big problems often start small and go unnoticed until the tsunami is on the horizon. Keep an eye on bonds. The credit market funds a large percentage of the buying underpinned the bull market. We’ve got a problem if it stops.
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Tuesday, January 05, 2016
Manufacturing Hits The Global Stock Markets... / Stock-Markets / Stock Markets 2016
The market futures were up a bit early last night. The S&P 500 was up about six points, while the Nasdaq was flashing upward action by fifteen points. A nice way to start the new year after a poor 2015. The last two days of the year 2015 were nasty, thus, the bulls were looking for something positive to break the chain of poor-trading action. The good news didn't last long as China reported news on their manufacturing front, and it was ugly to say the least. Ugly to the tune of being down between seven and eight percent.
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Monday, January 04, 2016
Stock Market Melt Down at Hand? / Stock-Markets / Stock Markets 2016
Over the weekend I had written that I believed the market would go up first before dropping. I had based that on the normal Mercury retrograde topping action of the past. I also warned that the market was acting screwy too and the unexpected may happen, especially in light of recent events and the horrible astros this week. My subscribers were warned over the weekend that if the market fell hard Monday, the meltdown scenario would likely be in play for the week.
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Monday, January 04, 2016
All Stock Market Indicators Are On a "Confirmed Sell" Signal / Stock-Markets / Stock Markets 2016
I’m switching over to the daily charts to add perspective to the view.
SPX has now declined beneath all visible supports after testing the 2-hour Cycle Bottom. SPX has been coiling since the beginning of November. It now appears that SPX is completing its first impulsive (5-wave) decline. If you draw a trendline from 1074.00 (October 4, 2011) to August 24, 2015 at 1867.01, we may find support at that trendline near 1970.00.
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Monday, January 04, 2016
China’s Slow-Motion Stock Market Sleight Of Hand Shatters / Stock-Markets / Chinese Stock Market
The Chinese stock markets broke through 2 circuit breakers today, breakers that were introduced only a few months ago in response to the market selloff, triggered by a surprise yuan devaluation, in August. The first breaker, at -5%, forced a 15-minute trading halt. The second one, at -7%, halted trading for the rest of the day.
For many people, today’s bust can’t have been a huge surprise, because it’s been known for some time that a ban on stock sales by parties holding a 5% or larger stake in a company, is set to expire on Friday. Beijing may panic again before that date, but it can’t force stakeholders to hold on to large portfolios forever either.
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Monday, January 04, 2016
The Incredible Commodities - Stock Market Divergence and What it Portends... / Stock-Markets / Stock Markets 2016
As we approach the end of the year we are going to review one of the most extraordinary divergences that we have witnessed in modern times. This is very important because once you grasp the magnitude of this divergence and what it implies, you will be able to position yourself to firstly avoid harm and secondly capitalize on a reversion to the mean of this divergence, which, because it is so extreme, looks inevitable.
The divergence that we are referring to is the collapse of the Commodity sector in recent years, as the broad stockmarket has continued to ascend into the stratosphere.
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Monday, January 04, 2016
Stock Market Probable Gap Down / Stock-Markets / Stock Markets 2016
Good Morning and Happy New Year!
What a way to start off the year. The SPX Premarket appears to have gapped down to challenge the 2-hour Cycle Bottom support at 2011.42. It appears the cash market may open beneath that support. However, there could be an attempted bounce there, should support hold. Should the decline break through and exceed the prior lows, the damage may be severe, since there is no visible support to the Head & Shoulders neckline near 1880.00.
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Monday, January 04, 2016
Stock Market 2016, This Time Isn't Different / Stock-Markets / Stock Markets 2016
Last year ended with a whimper on Wall Street. The S&P 500 was down 1% for the year, down 4% from its all-time high in May, and no higher than it was 13 months ago at the end of QE3. The Wall Street shysters and their mainstream media mouthpieces declare 2016 to be a rebound year, with stocks again delivering double digit returns. When haven’t they touted great future returns. They touted them in 2000 and 2007 too. No one earning their paycheck on Wall Street or on CNBC will point out the most obvious speculative bubble in history. John Hussman has been pointing it out for the last two years as the Fed created bubble has grown ever larger. Those still embracing the bubble will sit down to a banquet of consequences in 2016.
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Monday, January 04, 2016
Stock Market More Correction Ahead / Stock-Markets / Stock Markets 2016
Current Position of the Market
SPX: Long-term trend - Still a Bull Market
SPX: Intermediate trend - The index may have made a secondary top at the 2116 level and started another decline of intermediate duration.
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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Monday, January 04, 2016
Wild Swings in Markets Likely to Continue / Stock-Markets / Financial Markets 2016
Our attention this week will be more to the cycles and planets than to the charts. Last weekend, we were looking for a 4/8 stock market cycle low due early in the week followed by a possible top either December 29 or 30th and then weakness for the rest of the week. December 25th had a Bradley turn with Uranus turning stationary/direct, and December 29th the moon was in Leo/Virgo, where oft times peaks have occurred. With the moon in Virgo and Saturn in Sagittarius, the set up was there for an end of year drop (and a 4/12 TD low).
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Sunday, January 03, 2016
Will 2016 Bring Another 2008-Type Financial Crash? / Stock-Markets / Financial Crisis 2016
The world is lurching towards another Crash.
Japan, which has been ground zero for Keynesian insanity, is back in technical recession. This comes after the Bank of Japan launched the single largest QE program in history: a QE program equal to 25% of GDP launched in April 2013.
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Sunday, January 03, 2016
More Ominous Economic and Market Charts For 2016 / Stock-Markets / Financial Markets 2016
If 2015 was the year in which no investment strategy worked , 2016 is looking like the year in which all economic policies fail. Already, at what should be the blow-off peak of a long expansion, US corporate profits are instead rolling over:
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Saturday, January 02, 2016
Will 2016 Be the End of the Current Skyscraper Boom? / Stock-Markets / Financial Markets 2016
Mark Thornton writes: With more financing in place, the world’s tallest skyscraper is moving forward.
Recent media reports indicate that the final segment of financing has been obtained for the $1.2 billion Jeddah Tower project in Saudi Arabia. This is the financing that would be necessary to bring the project to record heights. Media reports also show that the structure has risen to more than seventy-five meters (246 feet) and construction is proceeding at an uninterrupted pace.
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Saturday, January 02, 2016
7 Market Predictions for 2016: Gold, Energy, Stocks, Bitcoin / Stock-Markets / Financial Markets 2016
Despite my hesitation in writing another piece like this, people seem to love prediction articles. It used to be an easier task to simply identify and go with the trends, but so much is now up to the whims of central planners that it is nearly impossible to have much accuracy. These are just my best guesses and I will make sure to revisit them in another 12 months to see how well they held up. Here are my seven predictions for 2016:
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Saturday, January 02, 2016
Stock Market Risk On? Risk Off? Find Out Where Your Money Lies / Stock-Markets / Stock Markets 2016
A peek at the new free report from the editors of our Financial Forecast Service
It's almost Christmas, "the hap-happiest season of all." Yet, here's a sobering fact for U.S. investors: S&P 500 stocks are actually lower now than at the end of last year (chart: Google Finance):
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Friday, January 01, 2016
Stocks Bull Market Continues With 9% Risk / Stock-Markets / Stock Markets 2016
A choppy week to end the year. The market started Monday at SPX 2061. After a gap down opening on Monday, and drop to SPX 2044, the market rallied to 2082 with a gap up opening on Tuesday. Wednesday and Thursday were all downhill, aided by a gap down opening Thursday, and the market ended the week at SPX 2044. For the week the SPX/DOW lost 0.75%, the NDX/NAZ lost 0.70%, and the DJ World lost 0.60%. Economic reports for the week were light and negative. On the downtick: the WLEI, Chicago PMI, pending homes sales and the weekly jobless claims were higher. On the uptick: consumer confidence. Next week’s reports will be highlighted by the FOMC minutes, monthly Payrolls, and the ISMs. Happy New Year!
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