Fibonacci

Why China Hit The Panic Button On Metals Traders (In 1 Simple Copper Chart)

Within the last week China appears to have hit the panic button with regards the seemingly unstoppable collapse of commodity prices. First, desperate Chinese producers began to demand a QE-for-commodities bailout; then, following the well-trodden (and failing) path of China's equity market maipulation, authorities began to crackdown on "malicious" commodity short-sellers. So why now? Why focus attention on the commodity markets? Perhaps this chart holds the key...

Major Market Index Fails Key Test

The blue chip Major Market Index failed to recapture a key breakdown level. Recently, amid the sharp post-September rally, the XMI returned to “kiss” the underside of the broken trendline. This was no happy reunion, however, as the result was a clear and precise rejection of price by the trendline.

Judgment Day Looms - US 10Y Yield Hitting Key Resistance

With the US bond markets closed for Veterans' Day, it is time to take a breath and examine how far (and how fast) yields have moved in the last few weeks. With the entire curve bursting higher, we focus on the 10Y yield which will need to fight through critical resistance here if rates are to continue to rise.

Gold – A Rally No-One Really Believes In

Anecdotal evidence from press reports, survey data and positioning data all agree on one point: very few people believe that the recent rally could actually be for real. With a pullback underway, we now have a chance to judge its nature – this should soon tell us if the recent rally was just another fluke or if it retains the potential to become a more sustained advance.

Nasdaq 100 Facing Key Challenge For Stock Rally

The ability of the Nasdaq 100 to overcome nearby resistance would be one of the first price-based signs that the current stock rally may be more than just a mean-reversion bounce.

Weekend Reading: Capacious Cognitions

With the Federal Reserve still hinting at raising interest rates, but trapped by weak economic growth, will the next big move by the Fed be another form of monetary accommodation instead? Or, are the underlying dynamics of the economy and market really strong enough to shake off the recent weakness and continue its bullish ascent?

U.S. Stocks Face Their Biggest Test In 8 Years

We don’t label many spots on U.S. equity charts as “make or break” for the broad market. However, the mid-430?s area on the Value Line Geometric Composite is as critical a level as we can give you in any index or security.

Key Global Equity Index Has Fallen Off The Precipice

Each and every day, we are witnessing the ongoing global selloff inflict more and more damage to the post-2009 cyclical bull market. And while that bull may not be declared dead for some time, it is now being wounded enough daily to warrant very seriously considering that possibility.

Bull Retest Or Bear Failure?

For investors, the markets have been sending a fairly clear warning signal. Market topping processes take time to develop fully and, unfortunately, are only fully recognized in hindsight. The problem in waiting for "recognition" is that the destruction of capital is already far larger than previously expected. This leads to a series of "psychological" responses that exacerbate the problem such as "hoping to get back to even." The last point is critically important. In the world of investing, "hope" has never been an investment strategy that one could profit by. It likely won't be successful this time either.

Materials Stocks Are Testing Critical Support Levels

A failure of the current key support area would signify a deepening of these problematic trends that have unfolded over the past month. And as bad as things have been this past month, a further acceleration could be devastating.