Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Wednesday, August 20, 2014
Stock Market Mirror Image Pattern / Stock-Markets / Stock Markets 2014
In the preserved, written work of George Lindsay, Lindsay makes several references to an approach he calls “mirror image”. Unfortunately, the most he ever wrote was that he had never explained it in writing but hoped to someday. If he did, it has been lost to time. This is why the topic has not appeared in any of my three books about his work.
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Tuesday, August 19, 2014
Market Bubbles, Bubbles Everywhere / Stock-Markets / Liquidity Bubble
The difference between genius and stupidity is that genius has its limits.
– Albert Einstein
Genius is a rising stock market.
– John Kenneth Galbraith
Any plan conceived in moderation must fail when circumstances are set in extremes.
– Prince Metternich
Tuesday, August 19, 2014
Stock Market Strong Start to Jackson Hole Week / Stock-Markets / Stock Markets 2014
The S&P 500 rallied at the open and drifted higher to its 0.87% intraday high during the lunch hour. It then traded in a narrow range to its 0.85% close. The popular press attributes the gain to reduced tensions in Ukraine. It also comes in advance of potential Fed signals in Wednesday’s release of the FOMC minutes for their July meeting and more significantly, from the Fed’s Jackson Hole summit that starts on Thursday. The index is up 6.67% year-to-date and only 0.82% off its record close.
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Monday, August 18, 2014
Why Short Stock Traders Are Losing Money This Week / Stock-Markets / Stock Markets 2014
One thing I have talked about several times which cannot be understated is that is the tendency for investors to believe that complex trading ideas and automated trading systems are better than simple, logical ones.
At first thought this notion is completely understandable. After all, if an idea is fairly simple, how could it possibly be "a secret" and investors not using it yet?
Monday, August 18, 2014
Stock Market Rally May be Complete / Stock-Markets / Stock Markets 2014
Minute Wave [c] now appears to be complete at the top of its trend channel. In Cycle measure, the Minor Wave 1 decline took 60 hours to its 1911.45 low, while Minor Wave 2 has taken 56 (55.9) hours. We’ll have a better indication of the completeness of the retracement after SPX declines beneath its 50-day Moving Average at 1958.72 and the bottom trendline of its trading channel at 1948.00.
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Monday, August 18, 2014
Understand and Profit from Surging European Volatility / Stock-Markets / Financial Markets 2014
Peter Krauth writes: With the Ukraine conflict advancing to new and dangerous territory, Russia refuses to take Western sanctions lying down.
Led by autocrat Putin, the former Soviet nation is striking back, and as of mid-day Friday the blows remained primarily economic.
And that's where I want to focus today...
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Monday, August 18, 2014
Stock Market New Highs Less Certain / Stock-Markets / Stock Markets 2014
Current Position of the Market
SPX: Very Long-term trend - The very-long-term cycles are in their down phases, and if they make their lows when expected, there will be another steep decline into late 2014. However, the Fed policy of keeping interest rates low has severely curtailed the full downward pressure potential of the 40-yr and 120-yr cycles.
Intermediate trend - Correction appears to be over.
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 discusses the course of longer market trends.
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Monday, August 18, 2014
German Stock Market DAX About To Drop / Stock-Markets / European Stock Markets
The German index, the DAX, has been Europe's shining light in recent years. But thats about to change if my analysis is correct. Let's proceed with a top down approach beginning with the yearly chart to put it all in perspective.
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Monday, August 18, 2014
Stay on Board - Stock Market Big Picture / Stock-Markets / Stock Markets 2014
BIG PICTURE - Over the past few weeks, geo-political tensions have increased in various parts of the world and we have also experienced a sovereign debt default. Despite these developments, the majority of the stock markets have held up relatively well and so far, we have not witnessed any panic-fueled liquidation of assets.
Although this can change, we are inclined to believe that these 'events' will not derail the primary uptrend in equities; and if anything, changes in the monetary landscape will bring about the next prolonged bear market.
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Sunday, August 17, 2014
India BSE SENSEX The Party Is Over In Bombay / Stock-Markets / India
The Indian stock exchange, the BSE SENSEX, seems relatively neglected compared to its more famous counterparts in the US and UK. But with a country in excess of 1 billion people, I feel it should garner more respect on the world stage. Based in Mumbai, the home town of the great Sachin Tendulkar, this index has smashed it out of the park in recent years. Let's take a look using a bottom up approach beginning with the daily chart.
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Sunday, August 17, 2014
HFT Rats Find New Targets Even as They Flee Banks / Stock-Markets / HFT
Shah Gilani writes: Rats are fleeing their listing ships.
Of course, that’s not surprising.
The Financial Times reported yesterday that high-frequency traders are leaving investment banks for hedge funds, prop trading houses and their own startups.
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Sunday, August 17, 2014
Stock Market Uptrend Looks Underway / Stock-Markets / Stock Markets 2014
The market opened the week with a gap up to SPX 1945, pulled back to 1928 by tuesday, then gapped up twice more during the week to hit 1964 on friday. Then some geopolitical news spooked the market and it sold off to SPX 1942 before rebounding in the afternoon. For the week the SPX/DOW 0.95%, the NDX/NAZ were +2.40%, and the DJ World index rose 1.65%. On the economic front positive reports were slightly more than negative ones. On the uptick: business inventories, export prices, the PPI, industrial production, capacity utilization and the budget deficit improved. On the downtick: the NY FED, consumer sentiment, the WLEI and weekly jobless claims rose. Next week we get the FOMC minutes, reports on Housing, Jackson Hole, Wy., and Leading indicators.
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Saturday, August 16, 2014
Stock Market Ukraine-Triggered Volatility, But a Flat Finish / Stock-Markets / Stock Markets 2014
Courtesy of Doug Short: Today was a busy one for economic updates: the Producer Price Index, Industrial Production and Consumer Sentiment. But the market was primarily focused on the international scene — most notably the conflict in Ukraine. The S&P 500 rose at the open, hitting its 0.45% intraday high an hour later. The breaking news from Europe then sent the index into a sharp nosedive to its -0.70% intraday low shortly before noon. It slowly slogged its way back to an essentially flat finish, down -0.01% for the day. On a brighter note, the index was up 1.22% for the week.
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Saturday, August 16, 2014
Stock Market Gap To Gap...Hit The Top...Reversal....Nothing For Either Side / Stock-Markets / Stock Markets 2014
The market came off the bottom with a series of gap ups as it back tested lost 20- and 50-day exponential moving averages. The big question was would those moving averages get taken back out or would those levels act as a wall of resistance, cascading the market back down once hit. We got through the moving averages, and hit the 197.00 SPY gap. That is where the market rejected the move higher with Ukraine/Russia the catalyst to get things moving back down intraday. At the same time that news came out, we also saw the short-term sixty-minute RSI's hit extreme levels of overbought with some readings as high as 80.
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Saturday, August 16, 2014
Stock Market Investors Conditioned To Catch The Falling Knife / Stock-Markets / Stock Markets 2014
That’s not a bad metaphor to work with. “Conditioned to catch the falling knife”. The expression comes from the investment world, but it describes a much larger world today pretty accurately.
Investors use it to describe people who see a stock fall, rapidly, from for instance $50 to $20, call the low, and decide it’s a good buy, only to be stuck with huge losses (the knife that cuts their hand) as it goes down all the way to 25 cents.
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Friday, August 15, 2014
The Most Hated Stocks Bull Market / Stock-Markets / Stock Markets 2014
BIG PICTURE – The ongoing bull market is over 5 years old and both the Dow Jones Industrial Average and the S&P500 Index have climbed to record highs. Yet, the vast majority of retail investors are still not convinced and many are waiting for the elusive stock market crash!
Despite the fact that this primary uptrend has tacked on impressive gains, it remains one of the most hated bull markets in recorded history. If you follow the mainstream financial print media, you may have seen that many prominent publications have recently called this stock market a ‘bubble’! In fact, the very same magazines have doubted the durability of this bull market since its very inception.
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Thursday, August 14, 2014
Russian Bear Rattles Stock Markets, but Plunge Protection Team Rides to the Rescue / Stock-Markets / Stock Markets 2014
Investing is an inherently risky business with lots of uncertainties. At any given moment, the bullets can fly from any direction, and at a bare minimum, the investor hopes to emerge unscathed from the battlefield. But of course, the goal of investing is not just to break-even, but to earn a sizeable profit in the marketplace. And for the past 5-½ years, there has been no better way to maximize gains, than sticking with the traditional “Buy-and-Hold” strategy. It requires a lot of patience, a lack of emotion, and a firmly held belief that the Federal Reserve and its central bank allies will always bail you out of a difficult position.
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Thursday, August 14, 2014
More Bad News is Good News for the Stocks Bulls / Stock-Markets / Stock Markets 2014
Europe is not growing.
Italy, Romania and Cyprus are in Recession (2 consecutive negative quarters) and Belgium dropped 75%, Czech 100% (to zero), Germany down 130%, Latvia down 85%, Hungary down 30%, Poland down 45%… These are NOT GOOD numbers!
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Thursday, August 14, 2014
Gold, Silver, Dow and VIX Market Updates / Stock-Markets / Financial Markets 2014
Since my last report on gold and silver, both commodities have bounced from their lows. Does that mean the pullback low is in? Yes and no. Gold looks safe while silver looks shaky. Let’s examine both commodities price charts.
Let’s begin with gold.
Thursday, August 14, 2014
Dangerous Investor Choices - Black Swans on Final Approach / Stock-Markets / Financial Markets 2014
There are several potential disasters that could disrupt the financial and political status quo, much like what happened after an Archduke was shot 100 years ago.
Brutal Facts: From Simon Black regarding the experiences of US Navy Pilot James Stockdale in captivity in the "Hanoi Hilton" in the late 1960s.
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