AN UPDATED S&P CHART SHOWING THE SIMPLICITY OF THE MARKET HERE
The first chart is the S&P chart from last night's review, in case you missed it. You need to understand last night's chart in order to understand what I have posted tonight. click chart to enlarge
5 LONG-TERM CHARTS TO HELP CLEAR OUT THE NOISE
Note: I would usually be doing the weekly review looking at the intermediate term picture for the important components of the market. However, being that Dow futures are currently up some 200 points, the price action will look completely different by mid-week. So this seem like a good time to zoom way out and look at the monthly charts to gain some perspective. I will likely do an update towards mid-week as it seems we are headed for another week of Euro led mayhem and volatility. click chart to...
THE 4 PROBLEMS THE MARKET CREATED FOR ITSELF THIS WEEK
The 4 problems the market faces due to the price action of the past few days. Enjoy your Thanksgiving. click chart to enlarge
HOW GOLD INVESTORS HAVE ACCURATELY PICKED EVERY MARKET BOTTOM THUS FAR IN 2011
Earlier this year I posted an article about what I term "Phase 4 Investor Theory". To give the cliff notes version of the article: It basically states that when bull markets are reaching an intermediate to long-term top, a certain group of investors will appear and inevitably rotate their funds into the most speculative names. These are the investors you want to bet against, as they wrong more often than not. The full article is here. Looking at the price movement in certain asset classes has always been one of my favorite methods of gauging investor sentiment. Inevitably at important turning points in the market, groups of investors will react to fear (or greed) in a certain way that informs the astute investor of the possibility that fear (or greed) has reached its apex and the market will soon reverse trend. The most difficult part is identifying which asset class is attracting "Phase 4 Investors". It is constantly shifting with the times. The speculative stocks of one period are the conservative stocks of another. In the current market environment gold and silver continue to attract the attention of speculative and conservative investor alike. The tech newsletters of the 90's have been replaced by newsletters focusing on gold and silver stocks. Investing in metals has become the trade of the global apocalyptic, Zerohedge obsessed, modern day investor. It is only natural then that gold investors deploying their life boats would become a reliable indicator of market bottoms throughout 2011. Let's look at the examples from 2011 of gold selling coinciding with intermediate term market bottoms: click chart to...
5 CHARTS THAT WILL HELP YOU GAIN PERSPECTIVE AMIDST THE FIREBOMBING
click chart to enlarge
A REMINDER: CHARTS ARE BEING USED TO KILL YOU
There is a disease that has been unleashed amongst the investment community. It doesn't discriminate along the lines of experience level, income or how nice of a person you feel you are. It's the garbage disposal of the investment business. Sucking capital in, chopping it up and sending it into the sewer system to serve as a floatation device for rodents. Charts or technical analysis are turning otherwise decent fund managers and investors into mouth breathing, hyperactive reptilian creatures who cannot get out of their own way. Consistently being wrong on Wall Street has been known to lead to shape shifting, sudden outbursts and uncontrollable twitching. All of which can be witnessed on any street in Manhattan or Greenwich several times a day. There's a very simple rule on Wall Street. It goes into the DNA of the financial markets. When a majority of market participants use the same methods in an attempt to extract a short to intermediate term profit, not only will that methodology cease to function properly. Rather, the methodology will begin a process of self-cannibalization of sorts. It will turn into a tool for the devouring of market participants rather than a tool for profit. It is no secret that nearly every active market participant is looking at the same technical levels, same moving averages and same patterns. Drawing the same conclusions from the charts they observe. This won't work. It will hurt you. In fact, it will kill you. And we're all guilty of it. A reminder along with some illustrations of the fact that technical analysis alone will kill you. There are three recent examples of death by chart below. Before and after images provided for clarity: STUDY #1 - THE DEATH STAR STUDY #2 - THE AVALANCHE STUDY #3 - THE P.T....
NOV. 16th: THE TWO ILLUSTRATIONS THAT WILL MAKE A FOGGY MARKET CRYSTAL CLEAR
click on charts to enlarge
