D Day Was an Important Historical Day & It Might Be Again. Having discussed in my previous idea the stock market during election years and the fact that a crisis during an election year invariable leads to a change of president & party. I want to highlight the current trend and the D Day spot it is heading towards. Here are 8 observations (with numbers marked...
D Day Was an Important Historical Day & It Might Be Again. Having discussed in my previous idea the stock market during election years and the fact that a crisis during an election year invariable leads to a change of president & party. I want to highlight the current trend and the D Day spot it is heading towards. Here are 8 observations (with numbers marked...
Presidential Election Crisis & Crisis of Confidence The next big macroeconomic event to happen is the US Presidential Election, and that got me thinking, "what happened in previous elections?" The last two major crashes, the DOTCOM Crash 2000-2004 and the Financial Crisis 2007-2009, both occurred during a presidential election. The DOTCOM crash was underway...
The Empire is strong, Darth Powell’s lightsabre is carving into every company, fund, and bond, but instead of cutting off limbs, his magical weapon is adding them. What we end up with is a grotesque monster that does not resemble anything in the known universe. Every right-minded investor knows in the back of their mind that this cannot last. But while it...
Although all the Bears out there agree that the market action is illogical there is a strong counter-argument. Reasons to be Bearish: • Corporate Profits and Weak Manufacturing Outlook • GDP is slashed • Massive unemployment • Corona Second Wave • Mass Protests / Rioting • Massive Quantitative Easing Will Corrupt the Economy Reasons to Be Bullish All Major...
The market is currently in a short term 22-day consolidation. We currently have a double top and considering the futures, we will probably hit a triple top. What is interesting to note is the recent $3 trillion aid package did not have an extremely positive effect on the market, unlike those previously. Looking at the advance-decline ratio we see that the...
According to technical analysis theory the rising wedge points in the opposite direction to the breakout. In this hourly chart of the coronacrash we can clearly see the rising wedge pattern formation. This pattern also predicts that the length of the move into the wedge “X” is the same distance as the length of the break-out “X”. Therefore X = X. The...
AD Ratio Suggests Birth of a New Bull Market! Or the madness of crowds. The Advance-Decline Ratio (ADR) is a simple measure of how many stocks increase versus how many decline. A ratio of 1 means 1 company’s stock increases to every 1 that declines. A ratio of 4 means 4 increase to every 1 that declines. It is a good measure of the bullishness of the market...
I hand it to Trump, he will say anything to make sure the stock market moves in the right direction to get him elected. This market should be called the "Trump Pump" It's great for long-term investors FOR NOW. The Long-term ramifications are hard to see, but most economists and experts agree the outlook is grim longer-term. Indicators Confirming the Uptrend....
When analyzing a market or stock on shorter timeframes it is very important to use a mix of indicators that can confirm the price trend, or suggest and underlying weakness in the price move. Technical analysts call different indicators moving in the same direction “confirmation”. When the indicators are moving in a direction contrary to the price trend it is...
I like to select stocks that have a significant chance of significantly beating the market. After all, that is our job as traders and investors. One such stock that will be involved in my shopping spree when the overall market shows it is back in bullish business is AMD. AMD is busy releasing Ryzen Chips that are sending Intel into a tailspin. Chips that are...
To put into perspective what could happen in the current market climate is always helpful to study historical market behavior. For this analysis, I am using Gann Boxes a great drawing tool from TradingView. Although each market cycle is different in duration, boom and bust, they share common characteristics. The ability to be unpredictable, erratic and wipe...
How To Correctly Draw Trend-Lines To Assess Breakouts Trend-lines are the most fundamental skills of anyone performing the technical analysis of charts. As a certified market analyst, you are taught how to draw trendlines properly, this is the quick guide to doing it right. There are 3 time-frames for trends according to Charles Dow the father of technical...
When analysing daily chart price moves to determine the future direction of a market, it is important to use a good mix of indicators each focused on a telling a different story. In this analysis I will be using a few of my favourite indicators: 1. Price – the most important indicator of all 2. Volume – the power behind the price trend 3. RSI – Price Strength...
Do you feel it? The FOMO. Fear of missing out is a common phenomenon, and I imagine it is starting to creep in right about now. The last few days have seen the market begin to claw back some of its losses, so the key question is… When should I get back into the market? To answer this question, you have to formulate the risk-reward situation. To do this let's...
How To Correctly Draw Trend-Lines To Assess Breakouts Trend-lines are the most fundamental skills of anyone performing the technical analysis of charts. As a certified market analyst, you are taught how to draw trendlines properly, this is the quick guide to doing it right. There are 3 time-frames for trends according to Charles Dow the father of technical...
It seems with the huge amount of macro-economic news providing fiscal and monetary stimulus the market might be trading to establish a trading range between 2,100 and 2,600 points. Very early to say as right now as one bounce does not make a trend. I am surprised the massive jobless claims news today has not had more of an impact. Market Outlook. A...
Gold is widely perceived as the best safe haven for your capital as the stock market goes through a bear market correction or crash. But is this really true? For gold to be a good hedge it would need to move in the opposite direction (have a negative correlation) to the broad market index, in this case, the S&P500. Looking back 15 years we can see this is not...