Posts Tagged ‘new highs’

Hypselotimophobia – The Fear of High Prices

Hypselotimophobia – The Fear of High Prices

Hiking

Courtesy of Joshua M Brown, The Reformed Broker 

Hypselotimophobia (from the Greek, is an anxiety or extreme fear or hatred of high prices)

If you are uncomfortable buying or trading stocks that are at new highs, this is not your tape.

There are only two categories of investors who are unfazed by the deluge of new 52 week highs – the nimble and the desperate.

The nimble are in a position to act quickly should things change.  With every tick, they are tossing blades of grass into the wind to gauge direction in real-time.  If you run a machine shop or have a waiting room full of patients, this is not feasible.

The desperate are most likely professional runners of money, those without the luxury of waiting for their pitch.  They must get more stocks on the books to show that they "didn’t miss it" and they must do so regardless of the top-tick risk.  An ill-timed buy today can quickly be described as an "intermediate-term" pick to the investment committee if need be, but a swollen cash position in a vortex of up stocks cannot be explained at all.

There’s a bumper crop of gaps and breakouts, hundreds of 52 week highs daily – so why isn’t everybody happy?

Most market participants are not incredibly nimble nor are they under career pressure to buy at any price.  The drumbeat of daily new highs can be more frustrating than fun for them.

Unless you’re in the habit of buying new highs, the ascent of this market has been way less enjoyable over the last 6 weeks than the headlines would lead outsiders to believe.

If you are a a hypselotimophobe, there isn’t much for you to do at this juncture, so maybe you want to just chill out. 

 


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Doug Kass and Jim Cramer Need to Change the False Ads for Real Money

Doug Kass and Jim Cramer Need to Change the False Ads for Real Money

Courtesy of Damien Hoffman at Wall St. Cheat Sheet

As if TheStreet.com didn’t already have enough troubles with the SEC investigating their accounting, another Street veteran Doug Kass joins the pile fools who have tried to make prophetic claims regarding the stock market. (Nouriel Roubini is still my favorite.)

On August 26, 2009, Kass authoritatively proclaimed, “Markets top during times of enthusiasm. I believe that the markets are now overshooting to the upside and that the U.S. stock market has likely peaked for the year.”

On September 30, 2009, 


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The 52 Week Lookback Period and New Highs – New Lows

Bill Luby’s cautions that new highs are relative, and the ones occurring now are being compared back to when the market was in free fall last October. – Ilene 

The 52 Week Lookback Period and New Highs – New Lows

free fallCourtesy of Bill Luby at VIX and More

Market breadth is a great tool. It can be used to evaluate momentum and also as a contrarian indicator to help identify potential market reversals. Various breadth indicators range from simple advance-decline indicators like the McClellan Summation Index, to measures of new highs and new lows, and beyond.

As I have seen a fair amount of comments related to new 52 week highs and lows in recent weeks, I wanted to point out what I hope is obvious to everyone looking at these charts. First, in many respects that 52 week time frame is an arbitrary lookback period. One could easily use a lookback period of 3 months, 6 months, 2009 year-to-date, 2 years or whatever. As it happens, 52 weeks is the conventional lookback period that is baked into almost all of the new high and new low data.

I mention all this because from October 1, 2008 to October 10, 2008 the SPX was in a free fall and dropped from 1167 to 839. As a result, a large number of stocks are making 52 week highs right now only because the lookback period no longer captures the values prior to the free fall.

So…keep a close eye on market breadth, but be wary of an artificial jump in new highs that shows new highs surging since the beginning of October. For the most part, this is a function of an arbitrary lookback period. Said another way, if you are going to be a student of technical analysis, but sure to study not just the recent data, but also the data that is scrolling off of the radar.

[graphic: StockCharts]

 


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NASDAQ Hits New High for the Year

NASDAQ Hits New High for the Year

Courtesy of Corey at Afraid to Trade

I almost let this bit of news slip me by!  The NASDAQ Index crested above its June high today, creating a fresh new high for 2009.  As strength in the Technology Index can foreshadow strength in the broader market, this is definitely worth a second look.

chart of the nasdaq composite

Without going into too much detail, I mainly wanted to highlight the pop to new highs that took place today.

There was resistance about the 1,850 level but buyers seemed to have no trouble at this level… so far.

Volume is not running at a significantly high level (it’s actually beneath the 50-day average) so buyers would like to see higher volume to confirm the move better.

As long as we’re at new highs, whatever your bias is, buyers are in control.

Corey Rosenbloom, CMT

 


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The Fed Has Created the Big Lie for Congress on its Repo Loans while the New York Fed Blocks Freedom of Information Requests

Courtesy of Pam Martens

By Pam Martens and Russ Martens: November 14, 2019 ~

Yesterday Federal Reserve Chairman Jerome Powell testified before the Joint Economic Committee of Congress. Only one Congressman, Kenny Marchant (R-TX), had the courage to ask Powell about the Fed’s intervention in the repo loan market beginning on September 17. Since that time the Fed has been pumping hundreds of billions of dollars each week (...



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Zero Hedge

"I'll Die For Hong Kong": Students Transform Campuses Into Armories As Protests Rage For 4th Straight Day

Courtesy of ZeroHedge View original post here.

The situation in Hong Kong went from bad to worse on Thursday, as the unprecedented weekday protests - a violation of the tacit agreement between the pro-democracy movement and the business community not to disrupt weekday commerce -continued for a fourth day on Thursday.

After a squad of HK police officers earlier this week raided the campus of the Chinese University of Hong Kong, but purportedly found nothing, protesters accused them of unjustly harassing students, many of whom are simply trying to get through the semes...



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The Technical Traders

Great Cycles Article PG 9 in TradersWorld Mag - Free

Courtesy of Technical Traders

  1. How to Use Price Cycles and Profit as a Swing Trader
  2. Geodetics and the Affairs of Men – USA, and China
  3. Cosmological Economics
  4. Time Machine
  5. Trading Means Pr...


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Digital Currencies

Is Bitcoin a Macro Asset?

 

Is Bitcoin a Macro Asset?

Courtesy of 

As part of Coindesk’s popup podcast series centered around today’s Invest conference, I answered a few questions for Nolan Bauerly about Bitcoin from a wealth management perspective. I decided in December of 2017 that investing directly into crypto currencies was unnecessary and not a good use of a portfolio’s allocation slots. I remain in this posture today but I am openminded about how this may change in the future.

You can listen to this short exchange below:

...



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Kimble Charting Solutions

Silver Testing This Support For The First Time In 8-Years!

Courtesy of Chris Kimble

Its been a good while since Silver bulls could say that it is testing support. Well, this week that can be said! Will this support test hold? Silver Bulls sure hope so!

This chart looks at Silver Futures over the past 10-years. Silver has spent the majority of the past 8-years inside of the pink shaded falling channel, as it has created lower highs and lower lows.

Silver broke above the top of this falling channel around 90-days ago at (1). It quickly rallied over 15%, before creating a large bearish reversal pattern, around 5-weeks after the bre...



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Insider Scoop

Analysts Upbeat On Skyworks' Fundamentals

Courtesy of Benzinga

Skyworks Solutions Inc (NASDAQ: SWKS) reported better-than-expected fiscal fourth-quarter earnings and revenues, but the stock is slipping in reaction to the year-over-year declines in both metrics.

The Analysts

Bank of America analyst Vivek Arya reiterated an Underperform rating and $92 price target for Skyworks shares. (See his track record ...



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Chart School

Gold Gann and Cycle Review

Courtesy of Read the Ticker

Gold has performed well, golden skies are here again. In fact it has been a straight line move, and this is typically unusual and a pause can be expected.

It seems the markets are happy again, new highs in the SP500, US 10 year interest rates look to re bound, negative interest may soften. The US FED has reversed their QT and now doing $250BN (not QE) repo. The main point is the FED has stopped QT, and will do QE forever. The evidence now is the FED put is under market risk and the possibility of excessive losses do not exist. 

Point: If in future if there is market risk, the FED will print it's way out of it.
Subject To: In this blog view. The above is so until the amount required rocks confidence in the US dollar as a reserve currency.&n...



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Lee's Free Thinking

Today's Fed POMO TOMO FOMC Alphabet Soup Unspin

Courtesy of Lee Adler

But make no mistake, if the Fed wants money rates to stay down by another quarter, it will need to imagineer even more money.

That’s on top of the $281 billion it has already imagineered into existence since addressing its “one-off” repo market emergency on September 17. This came via  “Temporary” Repo Man Operations money, and $70.6 billion in Permanent Open Market Operations (POMO) money.

By my calculations that averages out to $7.4 billion per business day. That works out to a monthly pace of $155 billion or so.

If they keep this up, it will be more than enough to absorb every penny of new Treasury supply. That supply had caused the system to run out of money in mid September.  This flood of paper had been inundati...



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Biotech

The Big Pharma Takeover of Medical Cannabis

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

 

The Big Pharma Takeover of Medical Cannabis

Courtesy of  , Visual Capitalist

The Big Pharma Takeover of Medical Cannabis

As evidence of cannabis’ many benefits mounts, so does the interest from the global pharmaceutical industry, known as Big Pharma. The entrance of such behemoths will radically transform the cannabis industry—once heavily stigmatized, it is now a potentially game-changing source of growth for countless co...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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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.

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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...

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