Dow Jones Industrial Average

Stock Market Vulnerability Showing as We Near 1Q15 Reporting Season

By Friday, March 27, 2015

Stock MarketThe stock market action on Wednesday indicates the high anxiety amongst investors, traders, and institutional money, suggesting it may be vulnerable to some near-term selling.
Stock Market Vulnerable to the Downside
Despite recent record advances by the DOW and the S&P 500, along with the rumors of more gains to come, there was always a sense that the stock market was vulnerable to the downside. The markets seemed to have… Read More

Corporate Earnings to Fall This Quarter at Fastest Pace Since 2009

By Friday, March 20, 2015

Corporate earnings PlummetIs it finally happening? Are investors coming to the realization that the stock market is fully valued as corporate earnings are declining and general economic conditions in the U.S. are deteriorating faster than at any time in the last five years? I believe the smart money figured this out long ago, but the masses will go down with the crash.
According to Aon Hewitt, a human resources consulting firm, investors… Read More

Two Charts Stock Market Investors Should Worry About

By Monday, March 16, 2015

Stock market bearish InvestorThere are two important stock market-related charts investors should be worried about. They will be of the utmost interest to bearish investors.
Bearish Investor Sentiment Plummets
The first chart has to do with the declining number of stock market bears. The best time to buy stocks is when there’s blood on the streets (like in 2008). In other words, the best time to buy a stock, or any other investment… Read More

If the Stock Market Bounces Back, These Blue Chips Will Lead

By Monday, March 16, 2015

Wall Street Bullish on Blue ChipsSimilar to the trading action in the first half of last year, the stock market seemingly continues with its identity crisis. While it’s perfectly reasonable for stocks to sell off on any inkling of a change in monetary policy, what’s interesting about the market bounce-backs is that they’re often led by blue chips.
We saw this last week with the market sell-off after the unemployment numbers. The rebound was with… Read More

Stock Market Trapped as Corporate Earnings Turn Sour

By Wednesday, March 11, 2015

Stock Market TrappedAs this issue goes to press, the Dow Jones Industrial Average is down for the year. Yes, 70 days into the year, we’ve seen the stock market move up to new highs and we’ve seen stocks move back down. The bottom line is that stocks are lower today than when the year opened. This is consistent with my 2015 outlook that stocks are overpriced and this would be a down… Read More

The Greece Debt Crisis: Back in Four Short Months

By Monday, February 23, 2015

Greek Debt CrisisThis past Friday, we got news of Greece’s debt extension. The headline at the Financial Post said it all: “Greece and its EU paymasters reach accord to keep bailout funds flowing for four months.” (Source: Financial Post… Read More, February 20, 2014.)
With the news, the Dow Jones Industrial Average, which spent most of the day flat, jumped 157 points to a new record closing of 18,140. Yes, the Dow Jones

Current Stock Market Not a Good Play for New Money?

By Friday, February 6, 2015

Current Stock Market Not a Good Play For MoneyWhich DOW stock just hit a home run with its earnings? It was The Walt Disney Company (DIS)… Read More, reporting another strong quarter in terms of its parks and resorts, consumer products, and media networks. It was a solid quarter for the company and the stock soared on the news, helping out the Dow Jones Industrial Average tremendously on a down day for the broader market.
The company’s fiscal first

February Looking Up for Stocks?

By Friday, February 6, 2015

February StocksFebruary appears to be setting up to be a month of romance with the stock market after the DOW blasted up 521 points in the first two sessions of the month.
Now, you must be wondering about how the stock market is playing, given the turmoil and volatility we witnessed in January that drove the key stock market indices to below their respective 50-day moving averages (MAs). The only thing… Read More

Collapse in Trading Volume Makes Stock Price Rise Suspicious

By Wednesday, January 21, 2015

Crashing Stock MarketOne of the fundamentals of economics is that rising demand for an item pushes prices higher, while declining demand results in lower prices. It’s common sense: the more people want something, the higher the price; the less people want something, the lower the price.
That is what has me very suspicious about the stock market. Since 2009, stock trading volume has all but dried up, yet stock prices have gone… Read More

How Central Banks Are Pushing Stock Prices Higher

By Friday, November 28, 2014

Central Banks Are Pushing Stock Prices HigherThe “trade” these days is very simple. Just follow what the central banks around the world say and you are pretty much guaranteed to make money. As long as they announce they are printing more paper money or lowering interest rates, then just buy stocks. This requires no thinking whatsoever and the fundamentals, like economic data and corporate earnings, don’t really matter.
Look at the chart below of the Dow… Read More

×