Article Index
Dow Jones Industrial Average

When it comes to the stock market, 2015 will be remembered as a year of corrections and flash crashes. Yet despite the frenetic year on Wall Street, fears of an interest rate hike in the U.S., and a struggling global economy, the S&P 500 and Dow Jones Industrial…

Here are four reasons why the stock market will continue to fall, starting with contracting earnings and revenue. On June 30, analysts were expecting S&P 500 companies to report a decline of one percent in corporate earnings. As of September 25, they now expect a decline of 4.5%.…

Investor sentiment today is looking like it did in 2000 and we could be due for a stock market crash of 30% or more. At least, that’s the opinion of famed economics professor Robert Shiller. In an interview with CNBC’s Squawk Box on Tuesday, the Yale University professor…

Like 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…

After 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…

For 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…

The 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,…

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. Chart Courtesy of www.StockCharts.com Of importance to note, the Dow Jones Industrial Average…

Some 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…

When 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…

The 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…

The 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…

Is 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…

There 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…

Similar 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…

As 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…

This 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, February 20, 2014.) With the news, the Dow Jones Industrial Average,…