Posts Tagged ‘additional stimulus’

Is a Massive Head and Shoulders Pattern Completing: Just Like On the Eve of the Second Wave Down in the Great Depression?

Is a Massive Head and Shoulders Pattern Completing … Just Like On the Eve of the Second Wave Down in the Great Depression?

Courtesy of Washington’s Blog

In January 2009, I pointed out:

The Telegraph’s lead economic writer, Ambrose Evans-Pritchard, has an interesting article arguing that we are in 1931-like conditions:

  • A big crash has already happened
  • Things are very gloomy
  • But we haven’t been hit by the biggest crash, the "second leg down" which didn’t end for a couple of years

What’s he talking about?

Well, look at this chart:

(click here to see full image).

As you can see, the 1929 crash was actually very small compared to the "second leg down" crash which didn’t end until 1932 or 1933.

According to Elliot Wave and other chartists, a second – bigger – crash is on its way, just like Evans-Pritchard is warning.

Today, CNBC is reporting:

The Dow Jones Industrial Average is repeating a pattern that appeared just before markets fell during the Great Depression, Daryl Guppy, CEO at Guppytraders.com, told CNBC Monday.

“Those who don’t remember history are doomed to repeat it…there was a head and shoulders pattern that developed before the Depression in 1929, then with the recovery in 1930 we had another head and shoulders pattern that preceded a fall in the market, and in the current Dow situation we see an exact repeat of that environment,” Guppy said.

(Robert McHugh is saying the same thing.)

And yesterday, Evans-Pritchard gave an update on macroeconomic trends in an article entitled "With the US trapped in depression, this really is starting to feel like 1932":

"The economy is still in the gravitational pull of the Great Recession," said Robert Reich, former US labour secretary. "All the booster rockets for getting us beyond it are failing."

"Home sales are down. Retail sales are down. Factory orders in May suffered their biggest tumble since March of last year. So what are we doing about it? Less than nothing," he said. [You can read the rest of Reich's essay here

California is tightening faster than Greece…. Can Illinois be far behind?

***

Roughly a million Americans have dropped out of the jobs market altogether over the past two months. That is the only


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Zero Hedge

Meditation May Be the Key to Becoming a Better Investor

Courtesy of ZeroHedge. View original post here.

Every once in a while I write about topics that seemingly have nothing to do with investing, but for those that are able to connect the dots, they will actually find great value in these seemingly unrelated topics to wealth building and preservation strategies. As it is the weekend, I'm releasing an article that we originally posted on our website  about the topic of meditation and investing on 19 August 2016. Again, to first read our articles when we release them, subscribe to our article fee...



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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

Iron Ore Market Seen Collapsing Below Last Year’s Nadir: Chart (Bloomberg)

The iron ore market is about to swoon, according to Westpac Banking Corp., which forecasts benchmark prices may sink below last year’s nadir of $38.30 a metric ton. 

Fear! M1 Money Multiplier Remains Below 1.0 Since End Of Great Recession (And Financial Crisis) (Confounded Interest)

The M1 Money Multiplier is the ratio of M1* to the St. Louis Adjusted Monetary Base and it has been below 1.0 since June 2...



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One Million Market Beaters

Wow. If you're planning to beat the market by being an exceptional stock picker, this article is a MUST READ.

One Million Market Beaters

Courtesy of Michael Batnick, The Irrelevant Investor

  • Uncertainty remains, but Florida is in the cross hairs.
  • What to expect today after tornado outbreak.
  • Why we’re watching Gaston closely now.

These headlines were pulled from a few articles today at weather.com. You could seamlessly replace Florida, tornado, and Gaston with a stock be...



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ValueWalk

IMF knew the euro had serious flaws, Sacrificed Greece

By Mauldin Economics. Originally published at ValueWalk.

BY JOHN MAULDIN

There’s a new chapter in the ongoing tale of IMF incompetence. Take a look at this UK Telegraph headline that recently caught my eye.

The love affair was no surprise. Nor was the fact that the IMF had taken part in the immolation of Greece. No, the surprise was that the IMF would publicly disclose the extent of incompetence and massive rule breaking that had taken place.

The Ambrose Evans-Pritchard byline told me this would be a good story. Here’s his lead:

The International Monetary Fund’s top staff misled their own board, made a series of calamitous misjudgments in Greece, became euphoric cheerleade...



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Chart School

S&P 500 Snapshot: A Modest Loss Follows the Jackson Hole Drama

Courtesy of Doug Short's Advisor Perspectives.

This morning's Second Estimate of Q2 GDP at 1.1% was a ho-hum event in advance of Fed Chair Yellen speech at Jackson Hole. And indeed the intraday range volatility of today's session was at the 70th percentile of the 165 market days of 2016 and the widest in 37 sessions. The S&P 500 opened higher, rallied with the opening of her speech, and then sold off sharply during with Vice Chairman Stanley Fischer's suggestion that a couple of rate hikes this year were possible. The index bounced back later in the afternoon to its -0.16% Friday close. The index is down 0.68% for the week.

The yield on the 10-year note closed at at 1.62%, up four basis points from the previous close.

Here is a snapshot of past five sessions in the S&P 500.

...

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Kimble Charting Solutions

Basic Materials attempting breakout says Joe Friday

Courtesy of Chris Kimble.

Basic Materials stocks can often times give a decent snap shot of how an economy is doing from a growth or lack of perspective. Below looks at Basic Materials ETF (IYM) over the past decade.

CLICK ON CHART TO ENLARGE

IYM remains inside of an upward sloping mult-year rising channel (1), since 2009. It hit the bottom of this channel earlier this year and has bounce off support. Currently IYM is testing f...



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Biotech

Epizyme - A Waiting Game

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

Epizyme was founded in 2007, and trying to create drugs to treat patient's cancer by focusing on genetically-linked differences between normal and cancer cells. Cancer areas of focus include leukemia, Non-Hodgkin's lymphoma and breast cancer.  One of the Epizme cofounders, H. Robert Horvitz, won the Nobel Prize in Medicine in 2002 for "discoveries concerning genetic regulation of organ development and programmed cell death."

Before discussing the drug targets of Epizyme, understanding epigenetics is crucial to comprehend the company's goals.  

Genetic components are the DNA sequences that are 'inherited.'  Some of these genes are stronger than others in their expression (e.g., eye color).  Yet, some genes turn on or off due to external factors (environmental), and it is und...



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OpTrader

Swing trading portfolio - week of August 22nd, 2016

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Digital Currencies

Man Who Introduced Millions to Bitcoin Says Blockchain Is a Bust

 

Man Who Introduced Millions to Bitcoin Says Blockchain Is a Bust 

By  at Bloomberg

Excerpt:

Stefan Thomas, who introduced millions of people to bitcoin, has had a change of heart.

Blockchain, the ledger software that makes the digital currency possible...



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Mapping The Market

Illusion of Choice

From Jean-Luc:

Looks like we are down to about 10 companies for our consumer goods:

http://www.visualcapitalist.com/illusion-of-choice-consumer-brands/

Just like banks, airlines and cable companies! 

The Illusion of Choice in Consumer Brands

Explore the full-size version of the above graphic in all its glory.

If today’s infographic looks familiar, that’s because it originates from a well-circulated report that Oxfam International puts together to show consolidation i...



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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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We know you love coming here for our Stocks & Options education, strategy and trade ideas, and for Phil's daily commentary which you can't live without, but there's more!

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Help One Of Our Own PSW Members

"Hello PSW Members –

This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible.  Feel free to contact me directly at jennifersurovy@yahoo.com with any questions.

Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts.  After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.)  Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.

http://www.youcaring.com/medical-fundraiser/help-get-shadowfax-out-from-the-darkness-of-medical-bills-/126743

Thank you for you time!




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