The Christmas holidays are just a few weeks away. It’s time for good food, mulled wine… and yes, those annoying holiday adverts on TV! And my favourite reliable indicator for December has just turned bearish- or negative – for the stock market. Take a look: The above chart is the seasonality of…
Keep Your eye on today Friday February 7th. It will be a big day for the stock markets and could change everything… Before I explain why, let’s review what has been happening so far. This year stocks are down 5% since their peak in December. Both the Dow and S&P500…
Here’s a question for you. What’s so special about a chart signal when one line crosses above another line? The answer is not much… Except when it occurs on the markets’s Volatility Index (VIX) – also known as the “Fear” index. Whenever this signal has occurred on the VIX “fear…
The McClellan Oscillator gives an “oversold” or “bottoming” signal for stock markets. This “oversold” signal is usually a reliable “long” or “buy” signal for stock markets. Take a look at this chart of the McClellan Oscillator and notice when it went below the (minus) -80 level: Now take a look…
According to reports (see video below) the smart money has reached a record net short position against the stock market (Dow and Nasdaq). But what will this mean for stocks? Will it result in the long-awaited correction in the stock market? Video will take a look at positions to short…
There is a divergence between two leading indicators and the stock market. One of these charts is lying… Whereas stocks and copper usually move in tandem and are correlated to one another, this correlation has recently broken down. Copper is selling off but stocks (as we saw in the Dow…
Something is not right… Two important pieces of data do NOT believe in the stock market rally. Let me show you what I mean. Here’s a chart of the Stock Markets (S&P 500) – the index of the 500 largest companies in the world: The above chart shows that stocks…
After the rally on the markets following attempts to “rescue” the eurozone, my message is let’s not get too carried away. One thing the technical charts are telling us is that we have yet to plough through some key resistance areas before we can call this a win for the…
If you had logged onto your computer and observed the markets during the early hours of Tuesday morning, you would have seen a far bleaker picture than the one you would have seen some seven hours later. The Dow and S&P played their famous game of cat-and-mouse with traders, penetrated…