Market Commentary: Bad News As Markets Close Below Major supports
Here is an excellent article summarizing stock market conditions and indicators. Gary believes we will get a bounce off the bottom sometime, and he suggested that the 50 day line crossing over the 100 day line could be the turning point to the upside. Another important indicator is that $NYMO is at -61, and the stock market has a very good chance for reversal when the NYSE McClellan Oscillator is this low. You may want to sell any long rallies, though.
Monday, October 13, 2014
This is the most dangerous stock market since 2008
This is the most dangerous stock market since 2008
This is a very important article which gives details of a stock market that is about to fall hard. The only question is how low will it go? Will it be -10%, -15%, -25%? We have already violated the 200 day average lines.
On a positive spin, interest rates are still low, and the economy is not in a recession. So, it probably won't be a 2008 bear market. It will be something in between until the big boys decide the market has corrected enough to advance again. In the meantime, TMF, the 3x government long term bond, ETF, has been working very well. The bleeding seems to have stopped on Facebook (FB), too. The last line of hope will be the typical November-December rallies. After that, cash will probably be king.
This is a very important article which gives details of a stock market that is about to fall hard. The only question is how low will it go? Will it be -10%, -15%, -25%? We have already violated the 200 day average lines.
On a positive spin, interest rates are still low, and the economy is not in a recession. So, it probably won't be a 2008 bear market. It will be something in between until the big boys decide the market has corrected enough to advance again. In the meantime, TMF, the 3x government long term bond, ETF, has been working very well. The bleeding seems to have stopped on Facebook (FB), too. The last line of hope will be the typical November-December rallies. After that, cash will probably be king.
Sunday, October 12, 2014
SemiWiki - Samsung Profits Fall
SemiWiki - Samsung Profits Fall
Here is a good article at SemiWiki about why Samsung profits have fallen so dramatically. They are getting stiff competition from Chinese companies. It remains to be seen if Samsung can turn things around. SemiWiki has many other news articles that are worth reading also.
Here is a good article at SemiWiki about why Samsung profits have fallen so dramatically. They are getting stiff competition from Chinese companies. It remains to be seen if Samsung can turn things around. SemiWiki has many other news articles that are worth reading also.
Stocks: The Most Important Week In 6 Years | Seeking Alpha
Stocks: The Most Important Week In 6 Years | Seeking Alpha
Eric Parnell has written an outstanding article assessing the state of the stock market. I agree with Eric that we should get a bounce in stocks at these oversold levels. However, the long term trend will be much harder to figure out. I own Facebook, and I think it is one of the few stocks that will recover from this downturn. In theory, we should only have a correction and not a bear market because the economy is doing okay and interest rates are still low. When the ten-year treasury bond interest gets to 4%, that could be the final top for the market because stocks will die when interest is high.
Eric Parnell has written an outstanding article assessing the state of the stock market. I agree with Eric that we should get a bounce in stocks at these oversold levels. However, the long term trend will be much harder to figure out. I own Facebook, and I think it is one of the few stocks that will recover from this downturn. In theory, we should only have a correction and not a bear market because the economy is doing okay and interest rates are still low. When the ten-year treasury bond interest gets to 4%, that could be the final top for the market because stocks will die when interest is high.
Saturday, October 11, 2014
Investors gird for scarier days in markets - Yahoo Finance
Investors gird for scarier days in markets - Yahoo Finance
Here is an excellent article about the stock market after a terrible 300+ drop in the Dow on Friday that put the index in the negative region for the year. The semiconductor index also fell so dramatically that you have to go all the way back to 2009 for results that bad. People believe that semiconductors will remain down due to global economy concerns. It would be best to stay out of semiconductor stocks until we see some chip companies reporting positive results.
In other news, government bonds received massive buying while stocks were sold off. TMF, the 3x long bond ETF, is a good stock to buy during these times, and I own it. Another point in the article is that the big boys are buying a lot of options while they exit stocks. So, we definitely need to be defensive this month and maybe longer until we see the bottom of this correction.
Here is an excellent article about the stock market after a terrible 300+ drop in the Dow on Friday that put the index in the negative region for the year. The semiconductor index also fell so dramatically that you have to go all the way back to 2009 for results that bad. People believe that semiconductors will remain down due to global economy concerns. It would be best to stay out of semiconductor stocks until we see some chip companies reporting positive results.
In other news, government bonds received massive buying while stocks were sold off. TMF, the 3x long bond ETF, is a good stock to buy during these times, and I own it. Another point in the article is that the big boys are buying a lot of options while they exit stocks. So, we definitely need to be defensive this month and maybe longer until we see the bottom of this correction.
Thursday, October 9, 2014
3 Companies Working to Prevent an Ebola Outbreak
3 Companies Working to Prevent an Ebola Outbreak
This is a great article about the severe possible complications of the Ebola virus. The author also mentioned three drug companies that could rise significantly if the Ebola disease gets more widespread. Tekmira Pharma. (TKMR) has a drug which has already been used successfully on an Ebola patient. The stock has gained more than three times in price in the past year. I plan to buy TKMR tomorrow as part of a balanced portfolio. Moreover, since the stock market has experienced a severe downturn lately, biotech companies may be the only stocks that can go against the tide.
This is a great article about the severe possible complications of the Ebola virus. The author also mentioned three drug companies that could rise significantly if the Ebola disease gets more widespread. Tekmira Pharma. (TKMR) has a drug which has already been used successfully on an Ebola patient. The stock has gained more than three times in price in the past year. I plan to buy TKMR tomorrow as part of a balanced portfolio. Moreover, since the stock market has experienced a severe downturn lately, biotech companies may be the only stocks that can go against the tide.
Tuesday, October 7, 2014
Market Commentary: DOW Down 273, SP500 Off 30, NASDAQ Off 70
Market Commentary: DOW Down 273, SP500 Off 30, NASDAQ Off 70
Here is an outstanding article about the triple digit loss of the Dow on October 7, 2014. We may have further downside. Even though the U.S. economy is doing okay, Europe is not doing well, and the rest of the world has the ability to affect the stock market. Accumulating cash is a very good idea until the market turns around. Then, the 3X mid-cap ETF, MIDU, might have a good November-December run. The only question will be knowing where the bottom is for MIDU and the market. If $NYMO hits -80 or greater, we should at least get an oversold bounce.
Here is an outstanding article about the triple digit loss of the Dow on October 7, 2014. We may have further downside. Even though the U.S. economy is doing okay, Europe is not doing well, and the rest of the world has the ability to affect the stock market. Accumulating cash is a very good idea until the market turns around. Then, the 3X mid-cap ETF, MIDU, might have a good November-December run. The only question will be knowing where the bottom is for MIDU and the market. If $NYMO hits -80 or greater, we should at least get an oversold bounce.
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