Last Wednesday, the markets reversed course after experiencing a long-awaited 10% correction from their September highs. The consensus view seems to be that this was a healthy and much-needed correction, and not the beginning of a new bear market...
Didier Sornette from ETH Zurich uses one of the world’s largest supercomputers to track bubbles in the market; Brian Pretti of Contrary Investor says stocks corrected because global central banks are dropping the QE baton; Eric Hadik warns a massive number of cycles are converging and...
The long awaited 10% correction that everyone was looking for finally took place. The S&P 500, Dow, and Nasdaq all hit record highs on September 19th before steadily falling to their most recent lows on Wednesday, October 15th...
What is the general feeling and outlook among top market technicians right now? Robin Griffiths spoke with Financial Sense Newshour this past week as the International Federation of Technical Analysts met in London and said, “no one is expecting a crashing wipeout right now"
The damage done to the markets is far greater than what appears on the surface as major indices have only experienced mild pullbacks. However, looking at the average decline among thousands of stocks listed on U.S. exchanges and within large indices reveals a stealth bear market occurring.
It has been a wrenching month to hold energy stocks with the dollar rising steadily in August and in September, pushing commodity prices down. Gold has fallen from $1320 to as far as $1183. West Texas Intermediate has fallen from $100 a barrel to $86.50 at the time of this report.
Bad news was good news on Wednesday as minutes from last month’s Fed meeting gave traders reason to expect a slower liftoff on rate hikes in light of global growth concerns and a strengthening dollar.
Near-term caution on the market was echoed again by our most recent technician on the show, Louise Yamada, as the major indexes attempt to stabilize. She sees “continued deterioration” in a number of key indicators beyond what we’ve seen so far this year and believes this may be the start of a cyclical correction of around 10%.
We had an interesting line-up of guests and topics this week for our premium channel: Ross Hansen discussed gold and our slow move towards a cashless society, Urban Carmel talked about the tech bubble and not to expect such euphoria again, Marc Chandler talked about a multi-year bull market in the dollar, and, lastly, Dan Steffens addressed the energy markets.
The strong jobs report confirms that the U.S. economy’s fundamentals are strong enough to sustain its positive momentum despite the sub-par outlook for its trading partners in Europe, Japan and China. This report also shows that the soft reading for the preceding month was an outlier.