Category: Trading Articles

Stock market’s day of reckoning postponed

If there was any doubt left in any quarter regarding the power of the central bankers, the past twelve trading days have once more shown their absolute power to push equity prices on expected quantitative easing - this time in Europe with the European Central Bank (ECB). The forgone conclusion is that there will be a rate cut, the potential for negative rates on monies deposited with the ECB and a decent chance of the European version of quantitative easing ( longer term refinancing operation (LTRO)) being revived. The possibility of a flood of new money being pushed into the European economy and inevitably finding its way to world equity markets once more delays the day of reckoning that eventually will come.

Register to read more...

  • Written by LA Little

Category: Trading Articles

$Gold- 1240.4, 1226.4, 1191.6 short term targets

$Gold has been dribbling lower- see the following 3m daily chart.

Read more: $Gold- 1240.4, 1226.4, 1191.6 short term targets

  • Written by Gary Caumont

Category: Trading Articles

The real danger in buying stocks now

A couple days back, I had the privilege of speaking with The Financial Exchange host Barry Armstrong of WRKO in Boston who was interested in the recent MarketWatch article "The stock market is ripe for a fall". That was a follow-up article on the continuing pressure that has been building in the Russell 2000 to the downside. Over the last couple of months, our Russell 2000 canary has been singing the same tune over and over - lower still! The problem however, is that despite how hoarse this canary must be by now, yesterday's trading action appears to set the stage for yet another bounce -- before the expected flush.

Register to read more...

  • Written by LA Little

Category: Trading Articles

Can you handle 130 points down on the S&P 500?

In most things, it doesn't matter what the answer is if you aren't asking the right question. The most significant question no longer is whether a correction is going to unfold. We already have that answer. The probabilities favoring a "yes answer" are quite high and have been for a while. For those interested refer back to The Market is Ripe for a Fall for the correction scenario as most recently outlined. The question one should be asking as we plod along towards that seemingly inevitable outcome is a) how do we get there and b) how long will it last and c) how far might it take us? Let's deal with each of these.

Register to read more...

  • Written by LA Little

Category: Trading Articles

The stock market is ripe to fall

For a good two months the strong indexes have been trying to break higher while the weaker ones have been building the case to break lower. Yesterday they did both - on the same day! It has become just that bifurcated. Throughout this period there were range trades that could be made trading long the strong and short the weak. All the while, the wolves were gathering for the kill. Now it is time.

Register to read more...

  • Written by LA Little