Seven years ago the DOW was trading around 6000, today this index is over 17,000. So what is the next big move in this index? I suspect the next big move will be on the downside.
Today, China announced that exports hit a 7-year low which indicates to this observer that economies around the world are slowing down.
Technically in many of the major stocks we still have red monthly Trade Triangles indicating that the trend is still down longer-term. The same holds true for the major indices where we are still seeing monthly red Trade Triangles.
At the end of last week, I indicated that I expected this week to be choppy and range bound, as the major indices have all reached major Fibonacci resistance points. I expect the indices to turn back down after a week or two. I still hold to that belief and want to watch these markets very carefully looking for an entry point to go short. Continue reading "Getting Ready For The Next Big Move" →
In Ireland, February 29 is Bachelor's Day - a traditional holiday when women propose to men. Scotland began the tradition in 1288 by passing a law permitting women to propose and if refused, the man had to pay a fine. Only in Europe.
Leap years are also election years, as every politician knows, four years is just enough time for the electorate to forget all their broken promises from last time around. Plus, we all must take a giant leap of faith when you go to the polls.
Okay, back to the markets. It is hard to believe that we are rapidly coming to the end of the second full trading month of 2016. The first two months have been extraordinarily volatile with triple digit swings becoming the norm. As we move into March, I expect to see the markets begin to settle down somewhat.
So what's trending so far in 2016? Continue reading "It's A Leap Year So Watch Out!" →
The Gold Report: What is the state of the current global graphite market and what impact might Tesla's construction of a battery Gigafactory in the desert in Nevada have on future demand for the mineral?
Blair Way: Because graphite is used in many energy-related applications (including electric vehicles, Pebble Bed Nuclear Reactors, fuel cells, solar panels and electronics ranging from smartphones to laptops), it has been categorized as a critical, strategic mineral by several governments including the United States and Europe.
What does this really mean? At this point in time it means nothing—graphite is in oversupply and prices are low. However, if China decided to stop supplying graphite to the world, then the West would be in trouble. This is highly unlikely to ever happen. As far as the impact of the Tesla plant on the greater market, that's yet to be defined in detail, but it will create more demand for graphite, both natural and synthetic.
TGR: How big is the graphite market? Continue reading "What Tesla Needs to Know About the Graphite Sector" →
Hello MarketClub members and traders everywhere! As you start a new week, it is important to look at what happened last week in the markets.
There's no doubt that last week was tough week for most traders with Apple sliding almost 4% which was enough to drag practically every other market down. But what interested me was the market action on Friday. Last Friday we saw a recovery in the market and when one looks at the RSI indicator, all the major indices closed over the 50 line. In fact, all of the Trade Triangles on both the indices and Apple remain positive in both the intermediate and long-term trends.
I would not be surprised to see the market chop around these areas for a while, but I would rather be a buyer here, than a seller.
Here are some of the stocks I think are worthy of your attention: Continue reading "Time To Buy These 5 Buy Stocks?" →
Hello traders and MarketClub members everywhere today is a big day for Apple as the world's most valuable company is officially joining the DOW after the close of business today. Leaving the Dow is poor old AT&T. They are getting booted out in favor of Apple.
I say congratulations to Apple Inc. (NASDAQ:AAPL) and I hope that they do very well being a major component in the DOW. The biggest component in this particular index will be Goldman Sachs (NYSE:GS). This is the first time that you had an investment bank represents over 7% of the weighted Dow index. So the most watched index in the world should be worth watching again. Continue reading "Apple Joins The DOW And Tesla Has Range Anxiety" →