Holiday in Denmark

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SPX just kicked around without any definite direction yesterday and so far today the same again, though we may now be starting to resolve down. This sideways action is neither bullish nor bearish, and is a decent fit with both the H&S and larger IHS scenario marked on the 60min chart below.

What is potentially interesting here is key support on the 50 hour MA, with that currently at 1909 and SPX at 1890 at the time of writing. If bears can convert that into resistance, having been support all yesterday, then we may resolve in the obvious direction, which is down. SPX 60min chart:

160205 SPX 60min Bull Bear Setups

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Wall Street Feels the Bern

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Hillary Clinton, Wall’s Street’s lap dog (I was going to write “whore”, but I get slammed for such things, so I wisely decided on a different word), shows how forceful she has been dealing with the likes of Lloyd Blankfein and Jamie Dimon. She said………and I quote………..”Cut it out!”

If we have the horrid misfortune of this wretched person becoming our President, you can expect more fiery rhetoric aimed at Wall Street, like “Knock it off”, “Stop, you guys!” and “Thanks for the six-figure speaking fee!” What a disgusting, criminal, money-grubbing hypocrite. Here’s the clip from last night’s debate. The Moral Man is on the left. The Anti-Christ on the right.

Don’t Dream It’s Over

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Early today, I saw a prominent article declaring that the low for 2016 was in, because there have been a couple of recent years in which early February marked the bottom for the year as well. Ummm, OK. This, to me, is about as meaningful as getting excited every October, simply because huge market crashes seem to take place during that month (like in 1929, 1987, 1990, and 2008, just to name a few). It’s dumb.

Indeed, if there’s anything I’ve noticed about recent market action, it’s that intermediate highs take place at the very start of each month. It’s actually kind of freaky, and this didn’t dawn on me until I began writing this post. I’ve circled about the 1st of November, December, January, and February below. I’ve also tinted the brief drop which, according to some, is the entirety of the 2016 Bear Market, and it’s all blue skies ahead from here on.

0206-es

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Hulbert Does Harvey

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By Biiwii

Much more than CPI inflation needs to be considered with respect to the gold price

Yes folks, it’s the return of the two egg heads (Campbell Harvey and Claude Erb) who first put the scare into gold bugs back in 2013 with the research paper The Golden Dilemma (PDF), which found that as adjusted for CPI, gold was very over valued. Enter Mark Hulbert with the updated warning for inflation-centric gold bugs. Gold has no business being this expensive.

market hulbert, gold price vs. CPI

I have never understood who would want to be one of these “gold traders” (other than the miners with a need to hedge and bullion banks with a need to hedge and manipulate, ha ha ha). Why would you be a trader in an element that is a measure or barometer of other items and conditions? It don’t get it. I guess slick traders speculate with insurance policies, so why not gold too? Everything’s a play after all, in the casino.

To answer Hulbert’s points, beginning with the above…

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