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.
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"
By: Elliott Wave International
This article was adapted from Robert Prechter's June 2015 Elliott Wave Theorist. For more charts and detailed commentary, analysis and forecasts from Prechter's latest issues, click here for the extended subscriber version of this report -- it's free.
It is amazing to read assertions from the Fed and others that the stock market is nowhere near being in a bubble. Several aspects of the financial environment are actually so extreme as to be unprecedented. Some indicate a bubble, and others a bubble in trouble.
Below are eight indicators we are watching closely, among others.
1) Record debt in U.S. dollars
Total dollar-denominated debt peaked at $52.7 trillion in early 2009. At the end of Q1 2015, it stands at $59 trillion, an unprecedented amount.
2) Margin Debt at All-Time Highs
Never have more trading-account owners owed so much money, and never have they had such a low level of available funds from which further to draw. Continue reading "8 Unprecedented Extremes Indicate A Stock Market Bubble In Trouble"