Posts Tagged ‘U.S. equities’

Banks, Sentiment and the Long Term Dollar / Equity Correlation

Banks, Sentiment and the Long Term Dollar / Equity Correlation

Courtesy of Binve at Market Thoughts and Analysis 

Interesting Day [Aug. 24], and a potentially important day. Today could be Primary 3 Day!. But instead of me putting up a bunch of charts, counts and indicators of the major indicies (which everybody else is doing and probably better than I would anyways), I wanted to look slightly off the mainstream. Such as last night with A Look At Some of the Asian Markets. I want to look at some more canaries in the coal mine.casino

Financials

And these guys are another canary. Albeit not a very original one. Because everybody watches / trades financials. But most do not do it from a big picture perspective. BAC was a 5-bagger if you picked it off the very bottom in about 5 months. People trade and gamble with financials, people are very emotional and hopeful about them.

This alone should tell you that financials are just another casino play right now. Just like the SSEC (108% off the bottom). Most financials are multi-baggers and the XLF and BKX are up over 100%. And you can sit there and tell me it is because they are healthier or that the strongest have survived …. BS. I still maintain that finanicals are volatile garbage and are the cancer of the economy. And these moves do nothing to dissuade my opinion that this is just speculative casino gambling in these stocks.

And much like the SSEC (a huge casino index), which peaked earlier this month, the casino nature of financials should show weakness ahead of the rest of the markets also. BKX and XLF still made higher highs with the rest of the markets, but good old Goldman Sachs has not been. Did the Goldman Sachs "reign of terror" end on Aug 6th? Stay tuned to find out.

[click on charts for larger images]


Sentiment

Just another look at charts I have shared a few months back. BPSPX notched over the long term resistance line, which is exactly what we expected it to do at the end of P2. So that is another "X" on the checklist for evidence of a P2 top.

Next is a look at the CPC. Option investors were already in uber-bullish territory. And then…
continue reading


Tags: , , , , ,




The Wall Street Clown Show

For a free subscription to Phil’s Stock World, click here (it’s easy, no credit card required)

The Wall Street Clown Show

wall street clownsCourtesy of Michael Panzner at Financial Armageddon

It’s been a while since I laughed out loud while going through the news, but that’s just what happened when I read the following Reuters report, "JPMorgan’s Lee Sees S&P 500 Retest of ’07 Record." As a service to loyal Financial Armageddon visitors, I thought I’d do them the favor by highlighting all the ridiculous bits:

The benchmark S&P 500 index should surge back to its October 2007 record above 1,500 by the end of 2012, provided the U.S. economy sees a V-shaped recovery, JPMorgan Chase Chief U.S. Equity Strategist Thomas Lee said on Wednesday.

My take: And I should be the next president of the United States, provided I have enough write-in votes when the 2012 election results are tallied. In reality, the notion of V-shaped recoveries — especially after what we’ve been through — is one of Wall Street’s favorite (unfulfilled) fantasies. Otherwise, for reality-based insights on the impact of financial meltdowns, read "The Aftermath of Financial Crises," by professors Carmen Reinhart and Keneth Rogoff).

"The global economy is in the midst of a synchronized recovery," Lee said at the Reuters Investment Outlook Summit. "If we end up with a V-shaped recovery, we could go back to our record high of 1,500 in 2011-2012," he added, referring to the S&P 500.

The S&P 500 fell 0.4 percent to 908 on Wednesday.

My take: "Synchronized recovery"? Say what?! Not according to data published just weeks ago by economics professors Barry Eichengreen and Kevin O’Rourke, in a post at voxEU.org entitled, "A Tale of Two Depressions." Below is just one of their highly illuminating graphs (no sign of a rebound here, that’s for sure):

Worldoutputthenandnow

Lee also reiterated his year-end 2009 target of 1,100 for the S&P 500, saying the United States will likely come out of its recession some time this summer, followed by the rest of the developed world.

In October 2007, the S&P 500 hit a record closing high of 1,565.15, before falling back. In March of this year, it slumped to a 12-year closing low, but has since rebounded


continue reading


Tags: , , , ,




 
 
 

Phil's Favorites

Brexit deal flops, Theresa May survives -- so what happens now?

 

Brexit deal flops, Theresa May survives -- so what happens now?

Courtesy of Victoria Honeyman, University of Leeds

As the clock ticks down to March 29 2019, all of the political manoeuvring, negotiating, arguing and fighting is coming to a peak. In the two and a half years since the 2016 EU referendum, views on both sides have hardened and agreement still seems as far away as it was the day after the referendum.

With Theresa May’s withdrawal agreement disliked by all sides, and voted down by an unprecedented majority in the House of Commons, everyone is wondering what can and should be done next?

...



more from Ilene

Zero Hedge

Federal Workers Taking Odd Jobs To Make Ends Meet During Shutdown

Courtesy of Zero Hedge

Federal employees affected by the partial government shutdown are turning to various side jobs to make ends meet, according to the Associated Press

Some, such as immigration lawyer Cheryl Inzunza Blum of Tucson has been renting out a room on Airbnb for extra cash - capitalizing on the busy winter travel season in Arizona after she stopped receiving paychecks for her government contract work at a local immigration lawyer. She says she's working for free since she has clients who depend on her - some of whom are detained or have court hearings. 

Cheryl Inzunza Blum ...



more from Tyler

Kimble Charting Solutions

The "Average Stock" is Facing a Big Test Here!

Courtesy of Chris Kimble.

The Value Line Geometric Index tends to give investors a good idea of the health of the overall market. It is an equal-weighted index with a broad swath of stocks that gives investors an idea of how the “average stock” is performing.

The Value Line Geometric formed highs in the same area in 1998, 2007, and 2015 (see blue line). In the last two years, the index broke out above that line and held above it until the recent correction.

It is now testing the underside of that price area (now resistance). Bulls will get good news with a breakout ABOVE thi...



more from Kimble C.S.

Digital Currencies

Crypto-Bubble: Will Bitcoin Bottom In February Or Has It Already?

Courtesy of Michelle Jones via ValueWalk.com

The new year has been relatively good for the price of bitcoin after a spectacular collapse of the cryptocurrency bubble in 2018. It’s up notably since the middle of December and traded around the psychological level of $4,000... so is this a sign that the crypto market is about to recover?

Of course, it depends on who you ask, but one analyst discovered a pattern which might point to a bottom next month.

A year after the cryptocurrency bubble popped

CCN...



more from Bitcoin

ValueWalk

D.E. Shaw Investment Calls For Leadership Change At EQT

By ActivistInsight. Originally published at ValueWalk.

Elliott Management has offered to acquire QEP Resources for approximately $2.1 billion, contending the oil and gas explorer’s turnaround efforts have done little to lift the company’s share price. The company responded and said that a thorough review of the proposition is imperative in order to properly act in the best interests of shareholders, “taking into account the company’s other alternatives and current market conditions.” The news came only a month after Travelport Worldwide agreed to sell itself to Siris Capital Group and Elliott’s private equity arm Evergreen Coast Capital for $4.4 billion in cash and two months after Athenahealth was bought by Veritas and Evergreen for $5.7 bi...



more from ValueWalk

Insider Scoop

UBS Says Disney's Streaming Ambition Gives It A 'New Hope'

Courtesy of Benzinga.

Related DIS Despite Some Risks, Analysts Still Expecting Double Digit Growth From Communications Services In Q4 ...

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

Chart School

Weekly Market Recap Jan 13, 2019

Courtesy of Blain.

In last week’s recap we asked:  “Has the Fed solved all the market’s problems in 1 speech?”

Thus far the market says yes!  As Guns n Roses preached – all we need is a little “patience”.  Four up days followed by a nominal down day Friday had the market following it’s normal pattern the past nearly 30 years – jumping whenever the Federal Reserve hints (or essentially says outright) it is here for the markets.   And in case you missed it the prior Friday, Chairman Powell came back out Thursday to reiterate the news – so…so… so… patient!

Fed Chairman Jerome Powell reinforced that message Thursday during a discussion at the Economic Club of Washington where he said that the central bank will be “fle...



more from Chart School

Members' Corner

Why Trump Can't Learn

 

Bill Eddy (lawyer, therapist, author) predicted Trump's chaotic presidency based on his high-conflict personality, which was evident years ago. This post, written in 2017, references a prescient article Bill wrote before Trump even became president, 5 Reasons Trump Can’t Learn. ~ Ilene 

Why Trump Can’t Learn

Donald Trump by Gage Skidmore (...



more from Our Members

Biotech

Opening Pandora's Box: Gene editing and its consequences

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

 

Opening Pandora's Box: Gene editing and its consequences

Bacteriophage viruses infecting bacterial cells , Bacterial viruses. from www.shutterstock.com

Courtesy of John Bergeron, McGill University

Today, the scientific community is aghast at the prospect of gene editing to create “designer” humans. Gene editing may be of greater consequence than climate change, or even the consequences of unleashing the energy of the atom.

...

more from Biotech

Mapping The Market

Trump: "I Won't Be Here" When It Blows Up

By Jean-Luc

Maybe we should simply try him for treason right now:

Trump on Coming Debt Crisis: ‘I Won’t Be Here’ When It Blows Up

The president thinks the balancing of the nation’s books is going to, ultimately, be a future president’s problem.

By Asawin Suebsaeng and Lachlan Markay, Daily Beast

The friction came to a head in early 2017 when senior officials offered Trump charts and graphics laying out the numbers and showing a “hockey stick” spike in the nationa...



more from M.T.M.

OpTrader

Swing trading portfolio - week of September 11th, 2017

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 ...



more from OpTrader

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. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

Market Shadows >>