Category: Trading Articles

Performance Anxiety

There are many factors that can drive an equity market higher or lower. Whether it's a subtle shift in the economic fundamentals, some exogenous event that strikes or the continued intervention in the markets by the central bankers, there are many considerations. In the case of the current move higher, it technically began with the failure to break lower which led to a gallop higher as good old fashioned performance anxiety is now at the center of the move. Consider how we got to the current state of affairs.

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  • Written by LA Little

Category: Trading Articles

TNA- 78.16 short term target Update 6/9 5:30PM

Bulls need to get TNA to 78.16- see the following 1m daily chart.

Read more: TNA- 78.16 short term target Update 6/9 5:30PM

  • Written by Gary Caumont

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

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.

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  • 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.

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  • Written by LA Little