Dow Jones Industrial Average

How to Invest After Black Monday

By Saturday, August 29, 2015
Invest After Black FridayLike dominos, the global markets plunged on Monday, sparked by concerns about the health of China’s economy. In the wake of the worldwide sell-off, many nervous investors are wondering how they should invest after Black Monday. Global Markets Plummet on Black Monday Even investors know how influential social media is. On Monday, August 24th, China’s Xinhua TV announced “Black Monday,” via Twitter nonetheless, that “China joins global panic selloff, dive .

Robert Shiller: Dow Jones Industrial Average Could Crash 30%

By Friday, August 28, 2015
Dow Jones Industrial Average Could CrashAfter Wall Street’s spectacular meltdown last week, Nobel laureate Robert Shiller is ready to forecast a full-blown stock market crash. Although second-quarter gross domestic product (GDP) growth was revised up from 2.3% to 3.3%, equities are chronically overvalued and need a massive sell-off before they fall in line with reality. (Source: The Wall Street Journal, August 27, 2015.) The panic began on Monday, August 17th, when the S&P 500 .

Stock Market: Two Charts That Spell Disaster Ahead

By Monday, August 24, 2015
Stock MarketFor years, the correlation between copper prices and the stock market has been a reliable leading indicator of where stock prices are headed. The chart below plots daily copper prices (brown line), the S&P 500 (green line), and the correlation between the two (black line at the bottom of the chart) going all the way back to 2002. Please pay attention to the red arrows. S&P 500 Large Cap Index Chart Chart courtesy of www.StockCharts.com What’s .

Stock Market: Three Reasons Why It’s About to Get a Whole Lot Worse

By Monday, August 17, 2015
Stock MarketThe downside momentum in the U.S. stock market is gaining traction. And unless the Federal Reserve does a complete about-face and launches QE4, the sell-off in stocks that started in mid-May of this year will accelerate. Today, I present three very strong arguments for lower stock prices. First, looking at the chart below, you will see the Dow Jones Industrial Average has been trading below its 50-week moving average for .

Stock Market Top: Three Things Investors Need to Know About It

By Friday, August 7, 2015
Stock Market: Broad Market Sell-Off Here No matter how you look at it, the U.S. stock market is a dangerous place to be right now. In the chart below of the Dow Jones Industrial Average, pay attention to the circled area.

Dow Jones Industrial Average: This Chart Says the Rally is Likely Over

By Tuesday, July 7, 2015
Stock Market PredictionThe Dow Jones Industrial Average has climbed steadily over the last few years. However, the most recent technical trend and fundamentals predict the stock market’s future might not be so smooth. The Dow is one of the key stock market indices in the U.S. The index is a price-weighted average of thirty significant companies traded on the New York Stock Exchange (NYSE) and the NASDAQ. Over the past several years, .

Recession Ahead for U.S. Economy; These Two Indicators Say Yes

By Wednesday, June 17, 2015
recessionSome very interesting news (or should I say warnings) to share with my readers today… If you’ve been reading Profit Confidential for some time now, you know I am predicting a recession in late 2015 or early 2016. A recession is technically defined as two consecutive quarters of negative gross domestic product (GDP). We are almost half-way there (in respect to a recession happening) because we experienced negative GDP growth .

Dow Theory and Copper Indicators Both Solidly Negative for Stocks Now

By Monday, April 20, 2015
Stock Market Indicators Suggest Stocks Will FallWhen it comes to technical analysis, I follow a century-old—and very effective—market direction tool called Dow theory. And right now, that indicator is flashing a red warning sign. The idea behind Dow theory is very simple. It says that for stock market prices to continue rising, both the Dow Jones Transportation Index and the Dow Jones Industrial Average need to be advancing at the same time. As it stands, this .

Stock Market: Steep Rise in 1Q15 Daily Trading Range a Warning Sign

By Wednesday, April 8, 2015
1Q15 Daily Trading Range a Warning SignThe U.S. stock market is a dangerous place to be. It is acting just like it did right before its previous big sell-off. In fact, the daily point trading range of the Dow Jones in the first quarter of 2015 was at its highest level since 2009. Wild Swings on Stock Market Telling Us Something? In the first three months of 2015, key stock indices like the Dow Jones Industrial .

S&P 500 Now Overpriced By All Historical Stock Valuation Tools

By Monday, March 30, 2015
S&P 500 OverpricedThe S&P 500 and many other key stock indices are overpriced when measured by historical stock market valuation tools. Share Buybacks Still Prevail on S&P 500 In the fourth quarter of 2014, the S&P 500 companies purchased over $125 billion worth of their own shares. In the trailing 12 months, they spent more than half a trillion dollars on buybacks. (Source: FactSet, March 16, 2015.) In the fourth quarter of .
Sep. 4, 2015
Trailing 12-month EPS for Dow Jones companies (Most Recent Quarter) $1014.15
Trailing 12-month Price/earnings multiple (Most Recent Quarter)

17.44

Dow Jones Industrial Average Dividend Yield 2.62%
10-year U.S. Treasury Yield 2.19%

Immediate term outlook:
The bear market rally in stocks that started in March 2009, extended because of unprecedented central bank money printing, is coming to an end. Gold bullion is up $1,000 an ounce since we first recommended it in 2002 and we are still bullish on the physical metal.

Short-to-medium term outlook:
World economies are entering their slowest growth period since 2009. The Chinese economy grew last year at its slowest pace in 24 years. Japan is in recession. The eurozone is in depression. With almost half the S&P 500 companies deriving revenue outside the U.S., slower world economic growth will negatively impact revenue and earnings growth of American companies. Domestically, America’s gross domestic product grew by only a meager 2.3% in the second quarter, which will negatively impact an already overpriced equity market.

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From: Michael Lombardi, MBA
Subject: 200% Profit on the Ultimate "Fear Gauge" Play

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