This past week, we experienced yet another horrendous terrorist attack in New York City. And, amazingly, just like what occurred after several other terrorist attacks that have been experienced over the last year, the market rallied right after the attack.
It has almost gotten to the point that people now expect the stock market to rally after a terrorist attack. Have we really become this warped in our thinking? Must we hold fast to ridiculous notions that news is what drives the stock market to the point that we have to resign ourselves to believing that the market will rally “because” of a terrorist attack? Do you not see how ridiculous these perspectives really are?
Yet, if the market dropped after a terrorist attack, there is no question in my mind that every analyst and their mother would be absolutely certain that the market dropped specifically due to the terrorist attack. Every article the next day would have been pointing to the attack being the definitive “cause” of the market drop. And, if I then challenged this false exogenous causation theory, the response I would receive is “don’t you believe your eyes?” Yet, not a single analyst dares to suggest that the markets are rallying because of news of terrorist attacks despite seeing many instances of this occurring over the last two years. Do, they not believe their eyes? (more…)
Even though equity markets are making new lifetime highs every single day of the week, there are pockets of weakness that are working out after all. I wanted to offer three Slope ideas that have been getting nicely torched lately. First up is CBL & Associates, mentioned in the Eight New Shorts post from just a couple of weeks ago (this was a PLUS post).
We did the monthly free public Chart Chat at theartofchart.net yesterday, and if you missed that the recording is posted on the November Free Webinars page here.
We were asked a question about a correlation there, and I remarked that I don’t think most correlations are worth much. If you think USD is going down and therefore gold should go up, then it’s best to cut out the middleman and just short USD. That’s not to say however that there aren’t some striking correlations around.
As part of her ongoing campaign to make me feel old and decrepit my daughter has found herself a job, and while she was going to that job on Saturday morning she was astonished to find a group of enthusiastic Flat Earthers sharing the … um …. flat news in the city centre. It appears that Chester is a major centre for these hardcore traditionalists, meaning that there appear to be at least five of them, and they have a website with reasonably grammatical sentences and so on here. It’s certainly an interesting read and they seem very passionate about their beliefs. (more…)
The Internet has been a hot mess all day, but I think it’s sorta-kinda working again. Anyway, just wanted to point out that Tesla, which has already lost ONE-QUARTER of its entire value in just a few weeks, is getting hazardously close to a major trendline failure. Just sayin’.
From Ramsey 2017: Since I know there are some here who have been in crypto for years and many who ignore it completely, I’ll try to appeal to both audiences with this post and hopefully everyone can say they learned something new.
It’s no secret bitcoin has been on an unstoppable bull run lately, but what you may not know is that virtually all other cryptocurrencies have not participated and are flat to down over the last few months. Prior to August/September, most cryptocurrencies followed bitcoin – so what’s going on? I would highlight two main factors – first, bitcoin is the most widely accepted, has the most liquidity, and can be bought/sold in more fiat currencies compared to any other crypto. Secondly, there is an upcoming hard fork in 10 days which will result in the creation of a new cryptocurrency called Bitcoin2x. (more…)
Further to my prediction at the end of July that WTI Crude Oil may reach $65.00 if it could reach and hold above the 55.00 level, this update will confirm that such a scenario is still a possibility, even though it’s now three months later and we’ve seen a rise in volatility, as price has bounced around in a $10.00 range since then. As I write this post Sunday evening, it’s finally hovering above 55.00.
As can be noted on the Monthly chart below, I’d say that a retest of the bearish (monthly) Moving Average Death Cross around 65.00 is imminent and that momentum currently favours the bulls — particularly in light of the Saudi purge that is underway, as well as recent military activity that’s occurring in that region — and as illustrated by the recent bullish (daily) Moving Average Golden Cross that has formed on the Daily timeframe (see second chart below). (more…)