When the stock market peaked in late January, many hypothesized it was the beginning of a long-term bear market. As shown in the S&P 500 monthly chart below, stocks posted red months in February and March, and went on to post gains for five consecutive months. The green months in April, May, June, July, and August mean the S&P 500 posted gains in 11 of the last 13 months.
Is Gold on the Verge of a Bottom?
August 30, 2018 by Leave a Comment
From 2017 until now the Gold chart shows another 75% price retracement from recent highs once again. This second 75% retracement could be a massive bottom formation setting up in Gold and could be a huge “wash-out” low price. We believe this unique retracement is indicative of a massive price breakout over the next year or so as the price of gold is forming what Stan Weinstein calls a Stage 1 Accumulation.
Charts Say Stocks Could Rise For 10-15 Years
August 1, 2018 by Leave a Comment
With busy lives and a constant barrage of new information, many investors have a somewhat limited view of history from a financial markets/economic/political perspective. Albert Einstein reminds us of the benefits of taking a step back to review the bigger picture in a longer-term historical context:
“Somebody who only reads newspapers and at best books of contemporary authors looks to me like an extremely nearsighted person who scorns eyeglasses. He is completely dependent on the prejudices and fashions of his times, since he never gets to see or hear anything else.” Albert Einstein
Latest Economic Data Doesn’t Align with Yield Curve Fears
July 5, 2018 by Leave a Comment
According to numerous articles, a flattening yield curve nearing the zero boundary is a major red flag for stocks and the economy. But…
The Stock Market Big Picture
June 20, 2018 by Leave a Comment
One of the keys to making more prudent and rational decisions is to look at more than just the red screen in front of us, which represents only one timeframe (the shortest). It can also be helpful to think in extremes.
Using Longer Timeframes To Combat Volatility Fatigue
June 14, 2018 by Leave a Comment
A December 2016 video covered an extremely rare signal that occurred in 1982 and 2016. Since then, markets have reacted in a bullish manner, meaning we have no reason to doubt the long-term signal that occurred at the end of 2016. Therefore, it may be helpful to understand the stock market’s volatility profile between 1983 and 1985.
Recent Breakouts Say a Lot about Markets and Economy
May 2, 2018 by Leave a Comment
When investors are confident about future economic outcomes, they tend to prefer growth-oriented XLY (consumer discretionary) over defensive-oriented XLP (consumer staples). The 2002-2009 chart below shows the XLY:XLP ratio consolidated for several years before breaking down in October 2007.
Are Wars Bullish or Bearish for Stocks?
April 19, 2018 by Leave a Comment
The following article was originally published by Elliott Wave International under the title Is War “Hell” for the stock market? And it looks at the stock market performance during various wars and also during times of peace to see if there is a correlation between the market performance and the existence or absence of war.
Tariffs May Not Slow Profit Momentum
March 28, 2018 by 2 Comments
BIG IMPACT OR SMALL IMPACT? U.S. Treasury Secretary Steven Mnuchin indicated Sunday the U.S. is hopeful to strike a deal with China, which means the tariffs would never go into effect. However, if a deal cannot be reached, how significant are the tariffs relative to the big picture? From CNBC: Jeremy Zirin, head of investment strategy […]
Urgent Message: Two Must See NASDAQ Charts
February 1, 2018 by Leave a Comment
The NASDAQ index was launched in 1971 as the world’s first electronic stock market. With $7 Trillion in market capitalization it has grown to become the second largest market behind the NYSE. The NASDAQ has been in an upward sloping channel since 2011. But now something has happened. See this video for more information.
