3 Factors That Could Soon Derail The Bull Market

This article originally appeared on StreetAuthority

These are truly days of wine and roses for stock market investors.

After being knocked down in the dot-com bubble of the late 1990s and again during the financial crisis of 2008, long-term investors are being rewarded for their persistence and dedication as stocks surge higher, breaking record after record.

In fact, this bull market turned 4 years old in March and is showing no signs of letting up.

Historically, the average bull market has lasted 4 1/2 years. In and of itself, this means little; for instance, the 1990s bull market lasted nearly seven years without a major correction.

But according to my research, there are three distinct signs that make me think this bull market may be ending soon. Here's what you need to know. Continue reading "3 Factors That Could Soon Derail The Bull Market"

U.S. home prices jumped in April by most in 7 years

U.S. home prices soared 12.1 percent in April from a year earlier, the biggest gain since February 2006, as more buyers competed for fewer homes.

Real estate data provider CoreLogic says prices rose in April from the previous April in 48 states. Prices also rose 3.2 percent in April from March, much better than the previous month-to-month gain of 1.9 percent.

Prices in Nevada jumped 24.6 percent from a year earlier, the most among the states. California's gain was next at 19.4 percent, followed by Arizona's 17.3 percent, Hawaii's 17 percent and Oregon's 15.5 percent.

More people are looking to purchase homes. But the number of homes for sale is 14 percent lower than it was a year ago. The supply shortage has contributed to the price increases.

Rising home prices can help sustain the housing recovery. They encourage more homeowners to sell. And they spur would-be homeowners to buy before prices increase further. Continue reading "U.S. home prices jumped in April by most in 7 years"

A 'Carry Trade' Returns?

As I was charting long-term Treasury yields in NFTRH 241, I ran a chart of the ratio between the banks and the S&P 500 and what do you know?  The ratio had broken out to the upside right along with long-term interest rates.  'Hmmm…'said I, 'maybe this is relevant to the analysis.' ;-)

Excerpted from NFTRH 241:

bkx.spx.tnx

BKX-SPX ratio w/ 10 year yield, weekly

"The Bank Index ratio to the S&P 500 (BKX-SPX) is breaking out to the upside in defiance of a bear case in stocks.  The BKX has modestly led the SPX since 2011.  We have noted that this is a necessary bullish factor for the financialized economy, which is quite different from a real or organic economy. Continue reading "A 'Carry Trade' Returns?"

Today's Video Update: Are Investors Too Complacent Right Now?

Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Monday, the 3rd of June.

As we start off the month of June, I wanted to make my latest eBook, 5 Professional Trading Rules That Will Make You Successful In Any Market, available to you with my complements. The book contains the core trading rules that you need to be successful in any market.

iPad Owners - Download My Latest Book
5 Professional Trading Rules That Will Make You Successful In Any Market - by Adam Hewison
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Dont' Have An iPad? No Worries
5 Professional Trading Rules That Will Make You Successful In Any Market - by Adam Hewison
This PDF version does not include the video.

Are Investors Too Complacent Right Now? Continue reading "Today's Video Update: Are Investors Too Complacent Right Now?"

Gold Chart of The Week

Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

We are on the heels of a week full of important economic reports from the United States, Europe and England. The overnight session was kick-started with news from China that while mixed, was read as bullish for the board. As I write this, US stock indexes are trying to recover from the late week selloff, which was driven by a string of misses in the last few days of the week.

The lineup includes today’s ISM report, Wednesdays Beige Book, and Non Farm Payrolls to finish the week. Additionally, we expect several FED Members to stir the QE pot in interviews throughout the week.

Europe and England both will report Interest Rate decisions this week, which will impact global Currencies and global markets overall. Weeks like these give very good opportunities for day and swing trades, which we plan to take part in. As each day and overnight bring important economic numbers to the trade, it will be important to make adjustments to mitigate risk and capture profit. Continue reading "Gold Chart of The Week"