Seven years ago the DOW was trading around 6000, today this index is over 17,000. So what is the next big move in this index? I suspect the next big move will be on the downside.
Today, China announced that exports hit a 7-year low which indicates to this observer that economies around the world are slowing down.
Technically in many of the major stocks we still have red monthly Trade Triangles indicating that the trend is still down longer-term. The same holds true for the major indices where we are still seeing monthly red Trade Triangles.
At the end of last week, I indicated that I expected this week to be choppy and range bound, as the major indices have all reached major Fibonacci resistance points. I expect the indices to turn back down after a week or two. I still hold to that belief and want to watch these markets very carefully looking for an entry point to go short. Continue reading "Getting Ready For The Next Big Move"→
After last week's shellacking, I expect the markets to regroup and get used to a another level of trading. I do not expect to see this market rebound dramatically like it has done in the past. If one looks at the NASDAQ index on a weekly close basis, last week's closing price was the lowest level since January 26th of 2015. That does not auger well for this index in the future.
The key to remember this week is not to get overly excited and to stay disciplined. Give the market some room and time to sort out what it has to sort out and then be prepared to make your move.
Here's how I see the big picture, crude oil continues to be in a bear market and I have targeted the $28-$30 levels on the downside for now. Gold is trying to make a turn to the upside which is a reflection of everyone's nervous state about the economy and about liquidity in general. Continue reading "Look For The Market To Catch Its Breath This Week"→
This is a week that many investors would like to forget. It's the worst beginning of the year for equities since records have been kept.
Investors, some of whom are shell-shocked, are asking themselves, what should I do? Should I be a buyer here? Should I sell everything or should I just remain on the sidelines?
In today's video, I will be sharing with you some interesting views of the major indices that you may not have heard before. I will also be examining six big stocks that aren't so big anymore and what you should or should not be doing with them. I will be looking at gold which has done very well this week and predicting where I potentially think it can go.
Hello MarketClub members everywhere! As we start this trading week, I feel we are at a potential crossroads of some major changes in the markets. As you may remember, 2015 has been a no-go year for stocks and it would appear as though we have built a very large top in the equity markets for the time being.
Just as stocks have gone nowhere in 2015, gold appears to be building a base and ending its 4-year bear run. I am going to be watching that market very closely this week and in the near future. If gold moves over the $1,088.55 level this week, buy and hold it until the next weekly Trade Triangle signal.
So, what do I mean by the big rotation? I think we are going to see people move out of stocks in 2016 and transition more into assets like gold and secured short term interest bearing instruments. Continue reading "The Big Rotation In 2016"→
Yesterday the indices came crashing down, breaking through key levels and turning all of the major indicators into strong downtrends. There is no question in my mind that we are now in a full-blown bear market. So how much further down can the market go from here?
In today's video, I will be looking at some downside target areas for all three major indices, as well as five popular stocks.