I would like to repeat the idea that it is best to subordinate yourself to markets at all times. To put your ego aside or at least check it daily to make sure it is not leading you astray. The gold bug ego for example, hardened by a solid decade-plus of relentless bull market is in my opinion too set in its ways on balance. That is because it is an ego that knows it is right.
Au monthly chart, log scale Continue reading "Technical Analysis – Put Egos Aside & Respect the Charts"
Cyprus has imposed limits on money transfers and hired extra security guards to prepare for the reopening of its banks, which have been shut for almost two weeks to avoid a run during the country's financial drama.
A banking official said Wednesday that new controls will include restrictions on large-scale transfers from the country's two largest and most troubled lenders, Bank of Cyprus and Laiki, when they reopen Thursday. Both are being restructured and big depositors face losses of as much as 40 percent.
Authorities are looking to increase the daily withdrawal limit from 100 euros to 300 euros (from $130 to $386), while payroll payments will be allowed in order to help businesses, which saw a huge slump as people cut down on their spending amid the uncertainty swirling about the banks. Continue reading "Banks preparing for reopening in Cyprus"
The most devastating market events are those that no one sees coming.
Take what happened to the Lehman Brothers in 2008, for example. Up until the last minute, virtually no one could have imagined one of the country's leading investment banks would file for bankruptcy. The housing market crash was the same way. The Street believed housing prices would never go down.
With the market totally blind to the growing risk in each investment, anyone who had investments in housing or with Lehman Brothers suffered huge losses.
Despite these tough lessons, there is now another epic bubble developing and the market is ignoring this one too.
In fact, this bubble is so big, the 2006 housing bubble and the 2000 bubble pale in comparison. And when it pops, it will hit the most conservative portfolios the hardest. Continue reading "A Bubble Bigger than Housing Is About to Pop"
Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Tuesday, the 26th of March.
Goodbye Yellow Gold, Hello Black Gold
The gold market continues to frustrate the bulls and confound conventional wisdom. The market action yesterday and early today can only be seen as negative. With both our weekly and monthly Trade Triangles red, we see no reason to get excited about gold moving higher at the moment, so for now say goodbye to yellow gold.
On the other side of the ledger, say hello to black gold. Yesterday our weekly green Trade Triangle kicked in and gave a buy signal in the crude oil market. Yesterday's buy signal was in line with the longer-term monthly Trade Triangle, which has been bullish and in place for quite some time. We see the renewed bull market in crude oil continuing from here based on our Trade Triangle technology. With gasoline and crude oil prices moving higher, it does raise concerns about gas prices. If gas prices become so expensive, is that going to derail the economy? Continue reading "Today's Video Update: Goodbye Yellow Gold, Hello Black Gold"
After a stunning 15% surge since mid-November, the market has struggled in the past month, trading up and down in a tight 1% band. Problems in Europe have reignited and many on Wall Street are expecting consumer spending to weaken during the rest of the year. It is all making the case for a bull market very difficult, except for a key report the U.S. Federal Reserve recently released.
I am not talking about the Fed's stance on interest rates, or whether it will maintain record bond purchases. This report is even more important because it concerns the driver to 70% of the nation's economy and, despite current bad news, it's pointing straight up.
But first, a bit of background... Continue reading "Get Ready to Profit from the "Return of the Consumer""
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