Category: Stock Market

– State of the Market Address:

• The Dow is back above 24,000
• Shiller’s Adjusted S&P P/E ratio is now at 32.60. Slightly off highs, but still arguably at the highest level in history (if we adjust for 2000 distortions) and still above 1929 top of 29.55.
• Weekly RSI at 54 – neutral. Daily RSI is at  57 – neutral.
• Prior years corrections terminated at around 200 day moving average. Located at around 19,400 today (on weekly).
• Weekly Stochastics at  49  – neutral. Daily at 86 – overbought.
• NYSE McClellan Oscillator is at +37 – Neutral.
• Commercial VIX interest is now 20K contracts net short.
• Last week’s CTO Reports suggest that commercials (smart money) have, more or less, shifted back to a net short position.  For now, the Dow is net neutral, the S&P is at 4X net short, Russell 2000 is 3X net short and the Nasdaq is 2X net long.

If you would like to find out exactly what happens next based on our Timing and Mathematical work, please Click Here. 

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ATTENTION!!! Please note, we have moved most of our free editorial content to our new website MarketSpartans.com Please Click Here to view it. 

 

ELLIOTT WAVE UPDATE:

Since many people have asked, I will attempt to give you my interpretation of Elliott Wave and how it is playing out in the market. First, I must admit. I don’t claim to be an EW expert, but I hope my “standard” interpretation is of help.

Let’s take a look at the most likely recent count on the Wilshire 5000.

Explanation:

Long-Term: It appears the Wilshire 5000 is quickly approaching the termination point of its (5) wave up off of 2009 bottom. If true,we should see a massive sell-off later this year. Did it already complete? Click Here

Short-Term: It appears the Wilshire 5000 might have completed its intermediary wave 3 and now 4. It appears the market is now pushing higher to complete wave 5 of (5). If true, the above count should terminate the bull market. Did it already complete? Click Here

If you would like to find out exactly what happens next based on our Timing and Mathematical work, please Click Here. 

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ATTENTION!!! Please note, we have moved most of our free editorial content to our new website MarketSpartans.com Please Click Here to view it. 

In the video below Peter Schiff is fairly upset at the USD. According to him the Dollar rally we have experienced is borderline delusional, with most traders making a giant mistake. As you know, Mr. Schiff expects massive inflation and a dollar collapse going forward,.

Once again, we believe he is dead wrong on both counts. Here is why…..

The US Dollar bottomed exactly where it should have a few weeks ago. We were actually expecting DXY to hit $88, but it reversed a bit earlier. At $88.43 to be exact. In addition to the Dollar being extremely oversold at that juncture, completing its leg down, here is why Mr.Schiff is wrong.

We are on a verge of a massive deflationary cycle (not inflation or hyperinflation) In fact, we are already deep in this cycle. The FED efforts or flooding the market with cheap money has hidden the problem, but only for the time being. That is why we are not seeing massive inflation or wage inflation outside of delusional inflation in risk asset prices.

A deflationary collapse is in our future. When it strikes you will see the USD surge while inflation disappears into thin air, to be replaced by a deflationary death spiral. Too much debt assures us that no other outcome is possible.

– State of the Market Address:

• The Dow is back above 24,000
• Shiller’s Adjusted S&P P/E ratio is now at 31.86. Slightly off highs, but still arguably at the highest level in history (if we adjust for 2000 distortions) and still above 1929 top of 29.55.
• Weekly RSI at 53  – neutral. Daily RSI is at  55 – neutral.
• Prior years corrections terminated at around 200 day moving average. Located at around 19,400 today (on weekly).
• Weekly Stochastics at  35  – neutral. Daily at 73 – neutral.
• NYSE McClellan Oscillator is at 26 – Neutral.
• Commercial VIX interest is now 30K contracts net short.
• Last week’s CTO Reports suggest that commercials (smart money) have, more or less, shifted back to a net short position.  For now, the Dow is net neutral, the S&P is at 6X net short, Russell 2000 is 3X net short and the Nasdaq is 2.5X net long.

If you would like to find out exactly what happens next based on our Timing and Mathematical work, please Click Here. 

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ATTENTION!!! Please note, we have moved most of our free editorial content to our new website MarketSpartans.com Please Click Here to view it.