As is evident from the chart above USD/JPY has been compressing for over two years now. Will it breakout or will we be stuck in this trading range for the foreseeable future? Please Click Here to find out.
Daily Stock Market Update & Forecast – October 26th, 2017 – Elliott Wave Edition
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 S&P.
Explanation:
Long-Term: It appears the S&P 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 S&P 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.
ATTENTION!!! Please note, we have moved most of our free editorial content to our new website MarketSpartans.com Please Click Here to view it.
Buying Opportunity Of A Lifetime Or Peak Optimism?
Players change, speculative instruments change, but human psychology remains the same.
If you thought Trump taking credit for the stock market run up was bad enough, well, you haven’t seen this gem.
Bitcoin to hit $50,000, surpassing Apple’s market cap in next 5 yrs – analyst
“People need to start taking this seriously because today bitcoin caught up with Goldman Sachs. Within five years, it’s going to catch Apple which has a more than $800 billion market cap,” the analyst said in an interview with CNBC
Our intention here is not to debate whether or not Bitcoin has any value, it does not, but rather, to point out the obvious.
How insanely optimistic investors are when it comes to investing in probably the most speculative asset class today.
I remember how investors where trying their best to explain why and how Pets.com valuation would overtake GE by 2005. So is the case today and no matter how reasonable that Bitcoin valuation explanation may sound.
Central banks, no controls, mining, limited quantities, etc….. All nonsense. Bitcoin is only worth what someone else is willing to pay for it. No more and no less. And one day the price of Bitcoin might as well be zero.
The above speculative sentiment is also clearly evident in the stock market today. Bluntly put, investors have never been this bullish before. 
So, is this a buying opportunity of a lifetime or have we reached peak optimism before the collapse?
Well, in terms of the stock market, the situation is incredibly complex. If you would like to find out what happens next, based on our mathematical and timing work, please Click Here.
Investment Grin Of The Day
Daily Stock Market Update & Forecast – October 25th, 2017
– State of the Market Address:
- The Dow is now above 23,000.
- Shiller’s Adjusted S&P P/E ratio is now at 31.42 Now at arguably the highest level in history (if we adjust for 2000 distortions) and still above 1929 top of 29.55.
- Weekly RSI at 76 – overbought. Daily RSI is at 81 – overbought.
- Prior years corrections terminated at around 200 day moving average. Located at around 18,200 today (on weekly).
- Weekly Stochastics at 97 severely overbought. Daily at 87 – overbought.
- NYSE McClellan Oscillator is at -45.Neutral.
- Volatility measures VIX/VXX remains at suppressed levels. Commercial VIX long interest decreased slightly to 105K contracts net long.
- Last week’s CTO Reports suggest that commercials (smart money) are shifting their positioning back to net short. Short interest has shifted slightly higher during the week. For now, the Dow is 8X, the S&P is at 3X net short, Russell 2000 is now at 9X net short and the Nasdaq is net neutral.
In summary: For the time being and long-term, the market remains in a clear bull trend. Yet, a number of longer-term indicators suggest the market might experience a substantial correction ahead. Plus, the “smart money” is positioning for some sort of a sell-off.
If you would like to find out exactly what happens next based on our Timing and Mathematical work, please Click Here.
ATTENTION!!! Please note, we have moved most of our free editorial content to our new website MarketSpartans.com Please Click Here to view it.
Meet Our Latest ‘Prick Of The Week’ – Alan Greenspan
Investment Wisdom Of The Day
Are Yields Topping Or About To Break Out – Trade Of The Day
The 10-Year Note is right at an important long-term resistance level – as the chart above suggest. Should it breakout, as bond bears would argue, yields should surge much higher. Yet, another possibility is in the works. Yields might re-test their 2016 lows from around today’s levels. Inverting the yield curve in the process. Which scenario will fire off, based on our timing and mathematical work? Please Click Here to find out.
Daily Stock Market Update & Forecast – October 24th, 2017 – Elliott Wave Edition
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 S&P.
Explanation:
Long-Term: It appears the S&P 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 S&P 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.
ATTENTION!!! Please note, we have moved most of our free editorial content to our new website MarketSpartans.com Please Click Here to view it.
Find Out Why Yield Curve Inversion & Recession Are Now Imminent
Here is what we are dealing with. Chinese yield curve has inverted last week. The yield curve today is the flattest it has been since 2007. With less than 90 basis points separating 30 and 5 year bonds.
It would be reasonable to expect a few more 0.25 bps rate hikes out of the FED. At least two. Yet, most of the compression will come from the long end of the curve.
If history is any guide, most investors are wrongly positioned again. Anticipating some sort of an inflationary spiral. Quite the opposite is about to happen. As recessionary wave hits and deflation once again rears its ugly head, investors should send the long end of the yield curve plunging towards 2016 lows.
At that stage the yield curve will invert and you can kiss this ‘Trump’ recovery goodbye.
In terms of the stock market, the situation is incredibly complex. If you would like to find out what happens next, based on our mathematical and timing work, please Click Here.