What An Expiring Bubble Looks Like

The Nasdaq bubble popped in 2000 after motoring upward on increasing volume in two separate phases. Volume rammed upward and RSI diverged. Like shootin’ fish in a barrel, it was, except that at the time I was too inexperienced to see it. It was a steep slope and blow out.

compq bubble

The 2006 bubble in copper made a consolidation and a steep slope and blow out of its own with a little help from rising volume, but nothing like the above. No notable divergences here. The inflation trade of the time was starting to rotate, and rotate commodity herds did… Continue reading "What An Expiring Bubble Looks Like"

Are The Markets Teetering At The Edge Of A Cliff?

Well, it certainly seems as though the equity markets cannot make up their minds which way they want to go. The question on every investor's mind is, is this going to be a major top in the market like 2007?

I remember reading an article years ago titled "They do ring a bell at the top of the market." It was an intriguing title and, of course, that's the reason I read the article. In essence, it boiled down to this, when the Federal Reserve starts raising interest rates, it can be a major negative for the market.

What will happen when interest rates start to move up again, as they invariably will? Are we going to see a move out of stocks and into safe yield bearing instruments again? Continue reading "Are The Markets Teetering At The Edge Of A Cliff?"