Global Central Banks have so numbed Treasury markets it is as though Bernanke and Yellen gave a massive shot of Lidocaine to financial markets since 2008.
The volatility we have seen in the markets since early February is enough to put bears and bulls alike at unease. Prior to early February, the markets were climbing up and up, making it worth maintaining a long position and buying each and every dip.
Just have a look here at the SPX:
But early February was the warning shot across the bow for the bear market that I expect. If you had been following the advice that I published throughout the third and fourth quarters of last year and into January, you would have converted to 60-70% cash and saved yourself from the headache and loss, which that shot would have inflicted.
Since February, the markets have been up and down. There are times when the market gets locked into a trading range and the market chops and churns, and the past 6 months have been a case in point. I call these periods “meat grinder” markets, because they tend to chew traders up.
Nevertheless, I’ve been on record saying that a bear market will arrive soon – and I had anticipated that it would arrive even sooner. But when things go against our expectations it’s critical not to panic. We must continue to watch the charts, and stick to our analysis and conclusions about what is fueling the larger emerging trend.
The post Bulls Have the Edge, But This “Meat Grinder” Market Is Very High Risk appeared first on Lee Adler’s Sure Money.
Crypto-blockchain technologies are leveraging the potential of computers and the web for direct political-social innovation.We’re accustomed to three basic templates for system-wide solutions or improvements:1. an individual “builds a better mousetrap”…
On the one hand, The Federal Reserve has been raising its target rate (upper bound) in recent years, from 25 basis points (Dec ’15) to 200 basis points today.
But if we subtract inflation (CPI YoY) from the target rate, we see that The Fed is st…
Russia has dumped most of its US Treasury holdings, back to the small holdings from 2007.
US housing starts in June crashed 12.3% MoM, the biggest June decline since 1959. And maybe before 1959.
Based on both my cyclical/technical analysis and liquidity analysis, I had a July 10 deadline for the end of the strong period for stocks. We’re now a week past that point and the market remains a tad higher than it was on July 10, and higher overall than I anticipated. When the market misaligns with the projected timeframe of my analysis, it’s time to ask whether I’m wrong or just early. As I do my research, that question is never far from my mind.
It’s important to always do a little post mortem when things don’t go as expected. In doing so, I try to figure out what happened and what I missed that caused the market to operate outside my expectations. That can help me make a course correction in my current forecast. At times, it can even help me recognize a new or different indicator that provides me with a deeper understanding of what’s driving the market, and where it’s ultimately headed.
While I cannot possibly account for every fluctuating input influencing the market direction, I try to recognize those that are most important.
The post My Crucial Bearish Indicators, Plus a Critical Bullish One I Missed appeared first on Lee Adler’s Sure Money.
The news is constantly abuzz with scary “Trade War!” headlines. But it reminds me of Wendy’s hamburger
Last week I made the case for gold prices finally finding their bottom, but the market would have nothing of it.
The pain wasn’t over, as the resource space as a whole took a hit while the dollar rallied once again.
But what’s hurt the price of gold ov…
Housing bubbles follow a predictable progression.