Is Housing Bubble #2 heading for the same shoals that popped housing bubble #1 in 2007-08? Markets discover price via supply and demand: Big demand + limited supply = rising prices. Abundant supply + sagging demand = declining prices. Eventually, prices rise to a level that is unaffordable to the majority of potential buyers, with demand…
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are occasionally posted on…
The gold price moved up $18. However, the silver price moved up 60 cents which is a much bigger percentage. The silver community is getting pretty excited. A market trend will often begin when a small number of traders learn something new. As they begin buying (or selling), the price begins to move. Others become…
After the rally of the last couple of weeks, Friday’s narrow range gains felt like it may offer bulls a break from their buying. There are a couple of resistance levels in play for some of the indices, but these have’t played important roles in recent months as markets traded in narrow ranges. The Nasdaq…
October 10, 2015 Technicians have a lot of versions of a “breadth thrust” signal, and the basic idea is that the Advance-Decline numbers suddenly go from not so good to REALLY good in a short amount of time. The late Martin Zweig was one of the first to examine this phenomenon, and he came up…
October 10, 2015 Technicians have a lot of versions of a “breadth thrust” signal, and the basic idea is that the Advance-Decline numbers suddenly go from not so good to REALLY good in a short amount of time. The late Martin Zweig was one of the first to examine this phenomenon, and he came up…
The UK’s Guardian newspaper, of Edward Snowden leaks fame, just published a good overview of the world’s recent financial missteps titled The world economic order is collapsing and this time there seems no way out. Some excerpts: The heart of the economic disorder is a world financial system that has gone rogue. Global banks now make profits to…
PPG Industries (PPG) is the global leader in the coatings industry. The company’s two largest competitors are: Fellow Dividend Aristocrat Sherwin-Williams (SHW) Amsterdam headquartered Akzo Nobel (AKZOY) Together, the 10 largest coatings companies control over 50% of the industry globally. The coatings industry is quickly consolidating as the largest players acquire smaller players. This trend…
by Dirk Ehnts, Econoblog101 Positive Money noticed that Draghi answered a question on helicopter money. As it stands, the ECB has no instruments available to give money to people for free (helicopter money). It is a political problem to have a central bank engage in fiscal policy. This is traditionally reserved for government, and it is called “tax cuts”. From…
My read of the Twitter stream sees some resistance ahead for the S&P 500 Index (SPX). The most obvious sign comes from support and resistance levels gleaned from Twitter. Most tweets above current prices are at 2040 on SPX, which is the last major support level to break. It has now become resistance. The next…
