Stocks have been flat for 17 months while earnings are declining.
A growing economy is not necessarily bullish — see for yourself. If a strong economy means a strong stock market, then stocks should have continued higher in 2007 when GDP expanded at 2.7%, unemployment was 4.6% and Consumer confidence was very strong, . They didn’t, instead the Dow fell more than 50% over the next year and a half:
Since July of 2014 the big cap stocks have continued to make new highs as investors dump more and more money into the stock market. Overall bullishness on the stock market is now at extremely high levels which typically happen before a major stock market correction and sometimes start a full blown bear market.
Leonardo Fibonacci (aka. Leonardo of Pisa) was the son of a merchant and well educated in the use of numbers while keeping his father’s books but in those days all of Europe used “Roman Numerals” and calculations were difficult. Leonardo was instrumental in bringing the Arabic numeral that we use today to Europe. But although […]
Stock market performance is often attributed to supposedly predictable seasonal fluctuations, but there are many economists who regard this as taking a far too broad look at movements. They say you can find a pattern in almost anything at the right level of detail, but whether it’s a relevant signal or not is another matter […]
The bearish case is beginning to make more and more sense. In my recent NASDAQ ROC stock commentary I warned that based on age alone the bull market is getting “long of tooth” and could generate a sell signal soon. And then we had Obama’s Comments Worry Stock Bulls showing how recent rhetoric by the President […]
After seeing stocks drop over 50% in both the 2000-2003 and 2007-2009 bear markets, investors are understandably hesitant to redeploy their hard-earned money back into stocks. Given the up and down nature of the markets over the last three years, many assume a major peak in stocks must be right around the corner. Is there […]
We know that rising interest rates are bad for bonds and gold and are considered good for stocks but in today’s article Chris Ciovacco looks at the effect rapidly rising interest rates can have on the stock market in the near future. ~Tim McMahon,editor 1994 Scenario: Market’s Worst Nightmare Spike in Rates Could Spook Stocks […]
Which Works Best — GPS or Road Map? (Part 1) Trading with Elliott wave analysis By Elliott Wave International Some of the best stories about global positioning systems (GPS’s) are the weird detours they sometimes recommend to drivers. Just like some of the weird detours that financial markets can make you take when you think […]
In this article from Chris Ciovacco, the Chief Investment Officer for Ciovacco Capital Management, LLC we take a look at where the market is and where it is going. ~Tim McMahon, editor Bears in Control Until Charts Improve From a fundamental perspective, the markets have much to worry about with excessive debt in the United States […]