I have often said that traders and investors have a short term memory when it comes to the stock market. Right now we are seeing signs that the same mistakes that led to the 2008 and 2001 market crash are being repeated. Take a look at this chart: The above…
The stock market’s “V-shaped” rally has done a good job of slaughtering any short sellers who expected a January crash. So far we have been right on our 7th February signal to go “long” stocks. However, if history repeats, based on data going back to 1928, we think we know…
One of the most important lessons we learn as traders is that we must be suspicious of the crowd. When everybody is expecting the same outcome, chances are the opposite usually happens. So here are three surprises we should expect this week. This could turn out “nasty” if you’re on…
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…
Stock Markets are showing signs of weakness and an imminent reversal (see above video). The volatility index (VIX) – also known as the market’s “fear index” – surged by nearly 16% on Friday and closed above its 21 EMA. A rising VIX usually has bearish implications for the stock markets.…
On Monday I posted on my facebook page that if the S&Ps (ES) closed below 1200 we were going to see much further downward movement on the stock markets. The ES closed almost 10 points below the 1200 level on Monday, and since then the markets have slided much lower…
Be prepared. Something big is brewing up on the stock markets. That is, the markets are getting prepared for an EXPLOSIVE breakout. Let’s take a look at the Nasdaq. The above chart shows that the Nasdaq has tested the 2420 region many times (once in the spring, twice in the…
Friday’s breakout of the consolidation on the S&P 500 (futures) may have delighted the “bulls” in this market. However, even with the unconvincing volume behind this move (see chart 1), I remain sceptical.