US Markets

U.S. Financial Markets Review: Precursor To October

September was an uneventful month on the economic front, as the dollar continued to strengthen, and many ‘risk assets’ drifted lower with concerns about slowing global growth. In hindsight this action was a precursor to the wild ride in equities we’ve seen thus far in October. Here’s what happened in the financial markets in September, by the numbers: Stocks & Bonds After a rally in August, September saw minor declines

3 Threats To The U.S. Stock Market And Standard Of Living

We in America are facing multiple serious threats simultaneously; each of which has the potential to hinder our ability to maintain our standard of living. The stock market is once again nearing bubble levels and a significant stock market crash may already be underway. But there are several other high-probability threats that can be potentially devastating to our way of life—threats that are economic and geopolitical in nature but will directly impact what

Natural Gas Breaks Lower, Eyes November 2013 Low

Natural gas traders are left wondering what is in store for prices this winter following a bitterly cold and bullish winter for the eastern U.S. in 2013-2014, followed by a very mild and bearish summer of 2014. Will a similarly brutal winter ensue, sending Natural Gas prices sharply higher again in 2014-2015? I won’t pretend to be a meteorologist, but some will point to the Farmer’s Almanac prediction of another

Why The Oil And Gas ETF (XOP) Is Rallying

The Oil and Gas ETF (XOP) suffered a tremendous decline from the 2014 all-time high at $84. In sum, XOP retraced 50% of the move from $23 to $84 from the bear market low in 2009 to its peak in 2014. The precise 50% retracement level is $53.53. Technicians like to find a confluence of technical significance when identifying support and resistance. And with this in mind, we can see

Bounce or More? A Look At Where The SPX Rally Headed

In my last comment about the S&P 500, I argued that as long as a demand zone at 1986-1953 held the stock market would stay on course toward higher highs. That area of technical support failed and SPX sold off sharply; 1986-1953 now represents technical resistance. After the recent decline, it’s time to reassess. On Wednesday SPX put in a substantial bullish hammer candlestick (small real body, longer lower shadow

Small Cap Outperformance: Pointing to a Market Bottom?

One positive mentioned plenty in the market this week is small cap outperformance. One might suggest that we are at a sign of a bottom because of it. Well, that may be a farce. Let’s take a look, starting with the Russell 2000. The Russell 2000 iShares ETF (IWM) has broken a major 1 year topping pattern, pushing below 2014’s year-to-date support in February and May near 107. It’s unorthodox, but

5 Stock Charts Calling The Shots: F, HD, KO, TWTR, GPRO

During bull or bear markets, it’s always important to be on the lookout for changes in market behavior. For instance, when market pullbacks are consistently bought at 2 to 4 percent declines, it becomes worrisome when we the markets dip deeper. Or when leaders and momentum stocks get sold and defensive stocks get a bid. These examples are apparent in the current stock market decline and are a representative mix of what

Investors: Was Last Month’s Doji Star A Warning Sign?

Did the Dow Jones Industrial Average (DJIA) create a “Doji Star” topping pattern last month? Possible! Doji Star patterns (which look like a + sign on a chart) can take place at key reversal points (i.e. highs & lows). The chart below highlights that a Monthly Dow Jones Doji Star took place in October of 2007, which ended up marking the high that year. Did the Dow Jones create a

Will Icahn’s ‘Half Price’ Approach Boost Apple Stock?

Apple has been accumulating cash for several years now. And Carl Icahn has been accumulating Apple stock for several months. And Icahn wants Apple to dig deeper into their cash pile and buy back more stock. This isn’t news to Apple (AAPL) shareholders. If anything, antics like Icahn’s “Half Price” letter to Tim Cook have helped bolster Apple stock. Just look at Apple’s share price since he announced his position in

Corn vs US Dollar: Chart of the Day

Many are aware of the the recent US Dollar strength. As well, many are aware of the weakness in commodities. After all, strong moves in the US Dollar (up or down) tend to effect commodity prices. Take Corn prices for example. Let’s just say the recent run higher in the buck has hit Corn pretty hard. Or at least this chart says so: Couple the strong buck with a bumper