Category: Stock Market

How “Insane Optimism” is at Work in the Stock Market “Stock investors are so bullish that they are…” Many technical indicators are highly useful, yet the price moves of the stock market really boil down to two things: optimism and pessimism. Major trend turns tend to occur when extremes are reached in either optimism or… Read more Insane Optimism in Stocks

Corporate Bonds: “The Next Shoe to Drop” “The neckline has been broken over the last few days” A “calamity” is likely ahead for corporate bonds, says our head of global research, Murray Gunn. Some of Murray’s analysis involves the head and shoulders, a classic technical chart pattern. In case you’re unfamiliar with it, here’s an… Read more Next Shoe to Drop: Corporate Bonds

Explosive Rise in Stock Market Volatility! Why It May Be Ahead There are now S&P options that expire each day of the week. What that may mean. Here’s a Wall Street Journal headline from a couple of months ago that some people may have scanned without much contemplation (Jan. 11): VIX, Wall Street’s Fear Gauge,… Read more Rise in Stock Market Volatility Ahead

U.S. Stocks: Why Acting Independently Has Never Been More Important “Individual investors have been snapping up stocks at the fastest pace on record” More than 20 years ago, when I was working for another company, I remember hearing a colleague say that he doesn’t look at his monthly 401k statements. The implication was clear: He… Read more Retail Investors Jump In

Why Oil Prices Fell in the Face of “Supply Shock” “Crude should be at the forefront of a…” Looking back on 2022, one of the biggest fears about oil was that prices would skyrocket even more than they did due to a disruption in supply from Russia. Of course, Russia has been a major world… Read more Why Oil Prices Fell Despite Supply Shock

Stocks and Economy: Why 2022 May Have Just Been the Preview “Fight the inertia that will keep you from taking action to prepare for the downturn” The main show is likely about to begin. 2022 may have just been a preview of what’s ahead for stocks and the economy, which Robert Prechter’s Last Chance to… Read more 2022 May Have Been the Preview of the Upcoming Crash

Why You Should Be Leery of the 60 / 40 Portfolio “The tidal wave of risk assumption … may be turning” Many investors allocate a percentage of their portfolios to bonds to cushion against a drop in the stock market. A popular allocation is a 60 / 40 mix of stocks and bonds. However, this… Read more Stocks and Bonds Can Fall in Tandem

Why You Should Expect a Pickup in Stock-Market Volatility “Traders are convinced the market volatility will remain subdued” When things get quiet in a horror movie, that’s when you need to really brace yourself. The monster or the killer will soon be on the scene. That’s a close enough analogy to what can happen in… Read more Daily Sentiment Index Extreme Says Volatility Is Next

Severe Bear Market: Will You Be Among the Prepared 1.5%? “Oftentimes, rallies will end with an inter-index non-confirmation” A long-long time ago in a galaxy far away… errr, on the heels of the year 2000 dot-com crash, to be exact — which is ancient history for many investors today — the February 2003 Elliott Wave… Read more Only the Few Can Get Out at The Top