Archive for July, 2016

Gann Angles on the Russell 2000

Courtesy of Read the Ticker.

gann-angles-on-the-russell-2000It is amazing how price is bound within Gann Angles!



Gann Angles



Click for popup. Clear your browser cache if image is not showing.

RUT


Long term channels…



Click for popup. Clear your browser cache if image is not showing.

RUT Channel




NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net



Investing Quote…



…“My satisfaction always came from beating the market, solving the puzzle.  The money was the reward, but it was not the main reason I loved the market.  The stock market is the greatest, most complex puzzle ever invented – and it pays the biggest jackpot…it was never the money that drove me.  It was the game, solving the puzzle, beating the market that had confused and confounded the greatest minds in history.  For me, that passion, the juice, the exhilaration was in beating the game, a game that was a living dynamic riddle”..



Jesse Livermore





..”The stock market is filled with individuals who know the price of everything, but the value of nothing”..



Philip Fisher





..“I buy on the assumption they could close the market the next day and not reopen it for five years” and “Much success can be attributed to inactivity. Most investors cannot resist the temptation to constantly buy and sell.”..



Warren Buffet





In the short run, the market is a voting machine, but in the long run it is a weighing machine.



Benjamin Graham





..The time of maximum pessimism is the best time to buy and the time of maximum optimism is the best time to sell”..



John Templeton











Regression to Trend: The Latest Look at Long-Term Market Performance

Courtesy of Doug Short’s Advisor Perspectives.

Quick take: At the end of July the inflation-adjusted S&P 500 index price was 87% above its long-term trend, up slightly from 82% the previous month.


About the only certainty in the stock market is that, over the long haul, over performance turns into under performance and vice versa. Is there a pattern to this movement? Let’s apply some simple regression analysis (see footnote below) to the question.

Below is a chart of the S&P Composite stretching back to 1871 based on the real (inflation-adjusted) monthly average of daily closes. We’re using a semi-log scale to equalize vertical distances for the same percentage change regardless of the index price range.

The regression trendline drawn through the data clarifies the secular pattern of variance from the trend — those multi-year periods when the market trades above and below trend. That regression slope, incidentally, represents an annualized growth rate of 1.79%.

Regression to Trend

The peak in 2000 marked an unprecedented 142% overshooting of the trend — nearly double the overshoot in 1929. The index had been above trend for two decades, with one exception: it dipped about 15% below trend briefly in March of 2009. At the beginning of August 2016, it is 87% above trend, near the top of the 69% to 91% range it has hovered in for the past 33 months. In sharp contrast, the major troughs of the past saw declines in excess of 50% below the trend. If the current S&P 500 were sitting squarely on the regression, it would be around the 1151 level.

Incidentally, the standard deviation for prices above and below trend is 40.6%. Here is a close-up of the regression values with the regression itself shown as the zero line. We’ve highlighted the standard deviations. We can see that the early 20th century real price peaks occurred at around the second deviation. Troughs prior to 2009 have been more than a standard deviation below trend. The peak in 2000 was well north of 3 deviations, and the 2007 peak was around two deviations, the same level as the latest data point.

Stanrdard Deviations


Footnote on Calculating the Regression: The regression on the Excel chart above is an exponential regression to match the logarithmic vertical axis. We used the Excel…
continue reading





China PMI Crosses Into Positive Territory, But Barely

Courtesy of Mish.

The Markit China Manufacturing PMI crossed into positive territory, but barely. This is the first positive reading in operating conditions since February 2015.

July survey data signalled a renewed upturn in operating conditions faced by Chinese manufacturers, with output, new orders and buying activity all returning to growth. However, employment continued to decline and at a solid pace, which in turn contributed to the quickest rise in outstanding business since March 2011. Meanwhile, increased prices for raw materials led to a marked rise in average input costs, which companies generally passed on to clients in the form of higher output charges.

Key Points

  • Renewed expansions in output, new orders and purchasing activity
  • Payrolls cut again and a solid rise in backlogs of work was recorded
  • Marked increases in input costs and output charges

Comment

Commenting on the China General Manufacturing PMI™ data, Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group said:

“The Caixin China General Manufacturing PMI came in at 50.6 for July, up significantly by 2.0 points from the reading for June, marking the first expansion since February 2015. The sub-indexes of output, new orders and inventory all surged past the neutral 50-point level that separates growth from decline. This indicates that the Chinese economy has begun to show signs of stabilizing due to the gradual implementation of proactive fiscal policy. But the pressure on economic growth remains, and supportive fiscal and monetary policies must be continued.”

China PMI

China PMI 2016-07-31

Comment on the Comment

There were signs of stabilization in 2015, 2014, 2013, and 2012. So let’s not get excited over a one month expansion that is barely positive.

Where this all heads is more likely to depend on the global economy than internal demand in China. Export demand is as likely to weaken as anything else.

A global trade war may be on the horizon regardless of who wins the US election in November.

Mike “Mish” Shedlock

[Original article published here.]





Is War Inevitable In The South China Sea?

Courtesy of ZeroHedge. View original post here.

Authored by Pepe Escobar, originally posted Op-Ed via RT.com,

Since the recent ruling by The Hague in favor of the Philippines and against China over the South China Sea, Southeast Asia has been engulfed on how to respond. They dithered. They haggled. They were plunged into despair.

It was a graphic demonstration of how “win-win” business is done in Asia. At least in theory.

In the end, at a summit in Vientiane, Laos, the 10-nation Association of Southeast Asian Nations (ASEAN) and China finally settled for that household mantra – “defusing tensions”.

They agreed to stop sending people to currently uninhabited “islands, reefs, shoals, cays, and other features” after ASEAN declared itself worried about land reclamation and “escalations of activities in the area”.

And all this without even naming China – or referring to the ruling in The Hague.

China and ASEAN also pledged to respect freedom of navigation in the South China Sea (which Washington insists is in danger); solve territorial disputes peacefully, through negotiations (that happens to be the official Chinese position), also taking into consideration the UN Convention on the Law of the Sea (UNCLOS); and work hard to come up with a Code of Conduct in the South China Sea (that’s been going on for years; optimistically, a binding text will be ready by the first half of 2017).

So, problem solved? Not really. At first, it was Deadlock City. Things only started moving when the Philippines desisted to mention The Hague in the final statement; Cambodia – allied with China – had prevented it from the start.

And that’s the heart of the matter when it comes to ASEAN negotiating with China. It’s a Sisyphean task to reach consensus among the 10 members – even as ASEAN spins its role as the perfect negotiation conduit. China for its part prefers bilaterals – and has applied Divide and Rule to get what it wants, seducing mostly Laos and Cambodia as allies.

That threat by a peer competitor

The strategic geopolitical centrality of the South China Sea is well known: A naval crossroads of roughly $5 trillion in annual trade; transit sea lanes to roughly half of global daily merchant shipping, a third of global oil trade and two-thirds of all liquid natural gas (LNG) trade.

It’s also the key hub of


continue reading





Breaking News And Best Of The Web

Courtesy of John Rubino.

Doug Noland and Jim Grant on the global credit bubble. The Telegraph on negative interest rates. US and Chinese numbers disappoint. Most financial markets directionless on first day of August. Oil, however, still falling, now back in technical bear market. Polls give Clinton slight edge but very close in battleground states.

Best Of The Web

Weekly commentary: Bubble battles – Credit Bubble Bulletin

Jim Grant is bullish on gold, bearish on Craft – Barron’s

Negative interest rates: necessary evil or symbol of greed? – Telegraph

IMF admits disastrous love affair with the euro – Telegraph

Biggest companies in the S&P 500 use made-up earnings numbers – MarketWatch

This is how independent central banks are – Gold Republic

Why real reform is impossible – OfTwoMinds.com

Plutocracy, then and now – the lesser of two evils – Jesse’s Cafe Americain

How to profit form these massive, Brexit-induced trends – Casey Research

5 reasons why Trump will win – Michael Moore

An upside down world – Financial Sense

IceCap asks what happens when the bond bubble finally pops – Zero Hedge

It’s all connected – Globe And Mail

—————————————————————–

Breaking News

The Economy

8/01    US factory activity dips, construction spending weak – Yahoo!

8/01    Growing oil glut shows investors theres’ nowhere to go but down – Bloomberg

8/01    Did Germany just blink? – Wolf Street

8/01    The Fed that cried wolf – Seeking Alpha

8/01    Abe’s fiscal plan follows a long road of packages that failed – Bloomberg

8/01    Skewed interest rates – Talk Markets

8/01    CSLA, like Gundlach, warns of “nasty surprise” amid negative rates – ValueWalk

8/01    “Time’s up – the pain must begin now” – Zero Hedge

8/01    italian banks crash despite ‘all clear’ from EU stress tests – Zero Hedge

8/01    Satyajit Das slams policymaker ignorance – Zero Hedge

8/01    


continue reading





Yuan Strengthens Most Since 2010 As China Manufacturing Spikes To 17-Month Highs AND Tumbles To 7-Month Lows

Courtesy of ZeroHedge. View original post here.

In a miracle of modern goal-seeking, China’s Manufacturing PMI clung to within an inch of ‘stable’ 50 level for the 20th month (actually missing expectations of 50.0, printing 49.9) But while manufacturing is its lowest since Feb, the non-manufacturing PMI jumped to 53.9 – its highest since Dec 15. Even better, just 45 monutes after this data, Caixin released their manufacturing PMI data which smahed expectations, surging to 50.6 – its highest since Feb 2015. Following the notable USD weakness on Friday (thanks to BoJ disappointment), and the apparent recovery of the Chinese economy (just need another trillion or two of credit to keep the dream alive), PBOC strengthened the Yuan fix by 0.35% – the most since mid-June… extending the 9-day gain to the most since Sept 2010.

Manufacturing slipped to a 5-month low…

Services hits 7-month (2016) highs…

But Caixin Manufacturing (weighted more towards smaller-caps rather than official PMI’s weighting towards SOEs) surged to 19 month highs… thanks to the quickest rise in outstanding business since March 2011.

Commenting on the China General Manufacturing PMI data, Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group said:

“The Caixin China General Manufacturing PMI came in at 50.6 for July, up significantly by 2.0 points from the reading for June, marking the first expansion since February 2015. The sub-indexes of output, new orders and inventory all surged past the neutral 50-point level that separates growth from decline. This indicates that the Chinese economy has begun to show signs of stabilizing due to the gradual implementation of proactive fiscal policy. But the pressure on economic growth remains, and supportive fiscal and monetary policies must be continued.”

Evercore ISI notes the following a China’s most crucial recent developments… 

  • “Severe challenges” in the China economy says Beijing, worse than “persistent downward pressure” – their characterization of the last several months. 
  • Two components to this change.  One, managing expectations down. Two, showing the upcoming G20 (Sep 4-5) attendees that the officials are on the case. 
  • Conflicting Beijing comments.  Saying ‘foundation of stable economic development not solid’ – bad.   Then saying the ‘long-term positive trend in fundamentals has not changed’ – good.   
  • China budget deficit now 4.2% of GDP, vs. 2.2% in worst of 2008-09 global crisis amid a big


continue reading





What If?

Courtesy of ZeroHedge. View original post here.

Presented with no comment…

Source: Townhall.com





America’s Recent Achievements In The Middle East

Courtesy of ZeroHedge. View original post here.

Authored by Eric Zuesse,

Here are before-and-after pictures of what the U.S. government has achieved, in the Middle East:

What’s especially interesting there, is that in all of these missions, except for Iraq, the U.S. was doing it with the key participation of the Saud family, the royals who own Saudi Arabia, and who are the world’s largest buyers of American weaponry. Since Barack Obama came into the White House, the operations — Libya, Yemen, and Syria — have been, to a large extent, joint operations with the Sauds. ‘We’ are now working more closely with ‘our’ ‘friends’, even than ‘we’ were under George W. Bush.

As President Obama instructed his military, on 28 May 2014:

When issues of global concern do not pose a direct threat to the United States, when such issues are at stake — when crises arise that stir our conscience or push the world in a more dangerous direction but do not directly threaten us — then the threshold for military action must be higher. In such circumstances, we should not go it alone. Instead, we must mobilize allies and partners to take collective action. We have to broaden our tools to include diplomacy and development; sanctions and isolation; appeals to international law; and, if just, necessary and effective, multilateral military action. In such circumstances, we have to work with others because collective action in these circumstances is more likely to succeed.

So: ’we’ didn’t achieve these things only on our own, but instead in alliance with the royals of Saudi Arabia, Qatar, UAE, Kuwait, and other friendly countries, which finance jihadists everywhere but in their own country. And, of course, all of ‘us’ are allied against Russia, so we’re now surrounding that country with ‘our’ NATO partners before we do to it what we’ve previously done to Iraq, Libya, Yemen, and Syria. America is becoming even more ambitious, because of ‘successes’ like these in Iraq, Libya, Syria, Yemen, and Ukraine.

The United States has been the great champion of ‘democracy’ throughout the world. And these are are some of the results of that ‘democracy’. ‘We’ are spreading it abroad.

‘Our’ latest victory has been ‘our’ spreading it to Ukraine. No country is closer to Russia than that.

Inside America, the term that’s used for referring to anyone who opposes this spreading of


continue reading





If You Disagree With This Harvard Economist You May Be Stupid And A Racist

Courtesy of ZeroHedge. View original post here.

Shocked by the inexplicable realization that Americans are stubbornly unwilling to bow down and blindly accept the political and economic views of the educated elites in this country, Harvard Professor Gregory Mankiw recently took to the New York Times to pen an oped where he concluded that the only possible reason for the lack of conformity to his point of view is the stupidity and racism of the electorate.  An article by Adam Button at forexlive, called our attention to the recent oped which he described as a “dazzling display of contempt for the public from a Harvard professor who can’t believe that voters aren’t listening to the gospel of the economic elites.

Questioning why American’s object to increasing globalization, Professor Mankiw pointed to three main conclusions:

“The first is isolationism more broadly. Trade skeptics tend to think, for example, that the United States should stay out of world affairs and avoid getting involved in foreign conflicts.  They are not eager for the United States to work with other nations to solve global problems like hunger and pollution.”

“The second is nationalism. Trade skeptics tend to think that the United States is culturally superior to other nations. They say the world would be better if people elsewhere were more like Americans.”

“The third is ethnocentrism. Trade skeptics tend to divide the world into racial and ethnic groups and think that the one they belong to is better than the others. They say their own group is harder working, less wasteful and more trustworthy.”

In summary, Professor Mankiw concludes that “…isolationist, nationalist, ethnocentric worldview is related to one’s level of education…the more years of schooling people have, the more likely they are to reject anti-globalization attitudes.”  So if we understand Professor Mankiw correctly, we disagree with him because we’re stupid, and because we’re stupid we’re also necessarily racist.  Got it.  

Lest you think that Mr. Mankiw only holds contempt for American dissenters, he points out that the British people are stupid and racist as well:

“…the recent Brexit vote was strongly correlated with education.  Districts with a high percentage of college graduates tended to vote to remain in the European Union, while those with a small percentage tended to vote


continue reading





The Trouble with Trade

 

The Trouble with Trade

By John Mauldin, Thoughts from the Frontline 

“When goods don’t cross borders, armies will.”
– Frequently attributed to Frédéric Bastiat

“Free trade agreements are trade agreements that don’t stick to trade.”
– Ralph Nader

“The future has arrived. It’s just not evenly distributed yet.”
– William Gibson, circa 1993 in an interview (original version of the quote)

The political speech-fests are finally over. Republicans and Democrats conducted largely violence-free quadrennial conventions – but not because everyone loves each other. The disdain was palpable, both within and between the two parties.

On one topic, however, both campaigns agree: global free trade has jumped the shark. We haven’t seen this kind of protectionist rhetoric in a long time, at least from major party candidates. Globalization is taking the blame for a wide variety of ills. The trouble with all this dissing of globalization and free trade is that, like some generals, both major political parties are fighting the last war, not the ones we face today and tomorrow. And the Libertarian Party seems to think that the correct philosophy by itself will cure the problems, which it may do in the long run; but philosophy doesn’t pay the bills or create jobs in the short run.

However, we should recognize that aimless, disorganized criticism isn’t necessarily wrong. Real economic problems led to Donald’s Trump’s GOP nomination. Ditto for the strong Bernie Sanders run against Hillary Clinton. People aren’t just imagining their pain.

I have used the quote from William Gibson several times this year at the opening of the letter: “The future is already here. It’s just not evenly distributed yet.” I decided to do a little research on the quote and found that the popular version actually comes from an interview in the documentary Cyberpunk. The quote evolved over the next few years to today’s form. Most versions that you read, including the one I’d been using, did not have the final word yet at the end of the sentence. And yet (he wrote with a smile), for the purposes of today’s letter, that is the key word. We are going to talk about the negative public sentiment that…
continue reading





 
 
 

Zero Hedge

Why Is Maduro Still Pushing The Petro?

Courtesy of ZeroHedge View original post here.

Authored by William Luther via The American Institute for Economic Research,

In a recent Wall Street Journal article, Mary Anastasia O’Grady writes that Venezuela’s “National Superintendency for the Defense of Socio-Economic Rights is reportedly pressuring stores to accept the government’s new digital fiat currency, the petro.” The Venezuelan government claims its digital...



more from Tyler

The Technical Traders

Is The Technology Sector Setting Up For A Crash? Part IV

Courtesy of Technical Traders

As we continue to get more and more information related to the Coronavirus spreading across Asia and Europe, the one thing we really must consider is the longer-term possibility that major global economies may contract in some manner as the Chinese economy is currently doing.  The news suggests over 700+ million people in China are quarantined.  This is a staggering number of people – nearly double the total population of the entire United States.

If the numbers presented by the Chinese are accurate, the Coronavirus has a very high infection rate, yet a moderately small mortality rate (2~3%).  Still, if this virus continues to spread throughout the world and infects m...



more from Tech. Traders

Phil's Favorites

Why Trump's post-impeachment actions are about vengeance, not retribution

 

Why Trump's post-impeachment actions are about vengeance, not retribution

President Trump fired Army Lt. Col. Alexander Vindman for testifying in his impeachment trial. AP Photo/Susan Walsh, File

Courtesy of Austin Sarat, Amherst College

Since the end of his Senate impeachment trial, President Donald Trump has carried out a concerted campaign against ...



more from Ilene

Biotech & Health

Deep learning AI discovers surprising new antibiotics

 

Deep learning AI discovers surprising new antibiotics

A colored electron microscope image of MRSA. NIH - NIAID/flickr, CC BY

Courtesy of Sriram Chandrasekaran, University of Michigan

Imagine you’re a fossil hunter. You spend months in the heat of Arizona digging up bones only to find that what you’ve uncovered is from a previously discovered dinosaur.

That’s how the search for antibiotics has panned out recently. The relatively few antibiotic hunters out there ...



more from Biotech

Kimble Charting Solutions

King Dollar Going To Lose Strength Here? Gold & Silver Hope So!!!

Courtesy of Chris Kimble

Is King$ and the Euro facing important breakout/breakdown tests at the same time? It looks like it in this chart!

The US$ trend remains up, as it has created a series of higher lows since the start of 2018. The opposite can be said for the Euro, as it has created a series of lower highs since early 2018.

The US$ is currently testing the top of its 18-month rising channel, as the Euro is testing the bottom of its falling channel.

What King$ and...



more from Kimble C.S.

Insider Scoop

The Daily Biotech Pulse: Heron Pain Drug Review Extended, Disappointment For Teva In Tourette Syndrome Study

Courtesy of Benzinga

Here's a roundup of top developments in the biotech space over the last 24 hours.

Scaling The Peaks

(Biotech Stocks Hitting 52-week highs on Feb. 19)

  • Adverum Biotechnologies Inc (NASDAQ: ADVM)
  • Akebia Therapeutics Inc (NASDAQ: AKBA)
  • Ana...


http://www.insidercow.com/ more from Insider

Digital Currencies

Altcoin season 2.0: why bitcoin has been outgunned by crypto rivals since new year

 

Altcoin season 2.0: why bitcoin has been outgunned by crypto rivals since new year

‘We have you surrounded!’ Wit Olszewski

Courtesy of Gavin Brown, Manchester Metropolitan University and Richard Whittle, Manchester Metropolitan University

When bitcoin was trading at the dizzying heights of almost US$2...



more from Bitcoin

ValueWalk

What US companies are saying about coronavirus impact

By Aman Jain. Originally published at ValueWalk.

With the coronavirus outbreak coinciding with the U.S. earnings seasons, it is only normal to expect companies to talk about this deadly virus in their earnings conference calls. In fact, many major U.S. companies not only talked about coronavirus, but also warned about its potential impact on their financial numbers.

Q4 2019 hedge fund letters, conferences and more

Coronavirus impact: many US companies unclear

According to ...



more from ValueWalk

Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Tuesday, 01 October 2019, 02:18:22 AM

Click for popup. Clear your browser cache if image is not showing.


Comment: Wall of worry, or cliff of despair!



Date Found: Tuesday, 01 October 2019, 06:54:30 AM

Click for popup. Clear your browser cache if image is not showing.


Comment: Interesting.. Hitler good for the German DAX when he was winning! They believed .. until th...



more from Chart School

Members' Corner

How to Stop Bill Barr

 

How to Stop Bill Barr

We must remove this cancer on our democracy.

Courtesy of Greg Olear, at PREVAIL, author of Dirty Rubles: An Introduction to Trump/Russia

...



more from Our Members

Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



more from Lee

Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

more from M.T.M.

Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

...

more from Promotions





About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. Contact Ilene to learn about our affiliate and content sharing programs.