Tom DeMark says charts show early signs of market top

According to Tom DeMarks charts, Dow is on the verge of reaching his topside. The first reason is the comparison with the bottom from June 2016. At that point, DeMarker counted 13, which ended the corrective movement. That showed, that the declining trend was tired and cannot keep the bulls from taking the upper hand. […]

The stock market just entered a dead zone that sees it drop 70% of the time

A fresh bout of volatility could be here for stocks, if history is any indication. CNBC analysis using Kensho found that the S&P 500 has traded lower 70 percent of the time during the last two weeks of September since 1980. In that time, the index’s average return has been negative 1.3 percent, the analysis […]

‘Dangerous volatility’ is inciting flashbacks to the financial crisis

Markets around the world have been grappling with historically low volatility for some time now. And Societe Generale thinks they’re finally due for a reckoning. In fact, the situation has gotten so untenous that it’s reminding the firm of the period leading up to the most recent financial crisis. Back in February 2007, stock market […]

Why Bears Have Got It Wrong About This Market

On Tuesday the S&P 500 extended Monday’s breakout to record highs. While the gains were modest, traders were more inclined to buy these highs than take profits. But this is no surprise to regular readers of this site. Last week I warned bulls to close their shorts proactively and take losses while they were small.There […]

‘Ridiculous’ valuations: Are markets getting ahead of themselves

  That warning may not just apply to solar eclipse fans but also to investors getting carried away with current market levels, especially in the U.S. The first cracks are already starting to appear as a sense of exhaustion seems to be setting in. On Thursday, the Dow posted its biggest one-day fall in three months […]

History Says Stocks Will Rally – Is It Different Now?

Whenever stocks sell off these days, you can usually be sure of two things. Bears (many of whom are long- standing) will say that this is just the tip of the iceberg, andbulls will say that you need to take advantage of the buying opportunity. Over the last few years, the bulls have been proven […]

Weak S&P 500 Transports, Semiconductors portend broader trouble

Two leading broad-market indicators show signs of weakness, suggesting an underlying rotation out of risk is likely underway in U.S. equities. Transportation’s decline started with airlines but now includes air freight, railroads and trucking. Semiconductors, leaders in the equity market for most of this year, are joining in. Historically, one of these segments can decouple […]

Next bear market for stocks & credit hits in 2018

America’s second-longest bull run in stocks on record will end by late 2018, when U.S. credit also will enter its first bear market since the global crisis, according to a Bloomberg survey of fund managers and strategists. The poll of 30 finance professionals on four continents showed a lack of consensus on the asset judged […]

Here’s why stocks keep rallying despite the Trump-Russia headlines

Stocks may like government gridlock as much as they like potential tax reform. Investment research firm Ned Davis Research found that when the Philadelphia Federal Reserve’s Partisan Conflict Index — a measure of political disagreement in the United States — rises above 100, the S&P 500 has risen at a 11.7 percent annual rate. In contrast, […]