Technical Analysis

"Ominous Shades Of 1987" - HSBC Shows Why 17,992 Is The World's Most Important Number

With Saudi devaluation bets soaring, Chinese money-market rates popping, 2 debates and an election looming, and the most systemically dangerous bank in the world flashes the reddest of red warning signs, HSBC's Murray Gunn's conclusion bears paying attention to. Between wave-trending signals and disturbing technical trading patterns, Gunn warns of "ominous shades of 1987" for the markets.

Bob Farrell's (Illustrated) 10-Investment Rules

Regardless of how many times we discuss these issues, quote successful investors, or warn of the dangers – the response from both individuals and investment professionals is always the same... “I am a long term, fundamental value, investor.  So these rules don’t really apply to me.” No, you’re not. Yes, they do. Individuals are long term investors only as long as the markets are rising.

Do Newly Built Skyscrapers Signal The Top Of The Stock Market?

In the market, extreme optimism results in price bubbles. One of the real-life manifestations of extremely positive social mood is the construction of enormous buildings. Market tops and skyscrapers often seem to emerge simultaneously, because both phenomena are the result of the illusion of infinite prosperity. But extreme psychological conditions do not last very long...

The Trick To Staying Sane In The Market's New Normal Ponzi Narrative

Just as there’s a scheme to pay old investors with new investors money (aka a Ponzi.) There’s another part of the scheme that rarely gets talked about: i.e.,The narrative that fuels the scheme to begin with. Much like the original structure which involves money, this too needs an ever-growing amount of gullible, willing participants. However, the currency here is narrative.

Global Stocks, Futures Rally, Ignore Sharp Yuan Devaluation On Hopes Fed Is Right This Time

The single biggest event overnight was the PBOC's devaluation of the Yuan to the lowest since March 2011, setting the fixing at 6.5693, the highest in over 5 years and in direct response to a stronger dollar, which however if one looks at the DXY remains well below the recent highs in the 100 range, suggesting for China this is only just beggining. However, the fact that there was not more volatility in onshore and offshore overnight FX also comforted the market that at the same time as its was devaluing the PBOC was also intervening in the FX market, thus providing some assurance it would not allow runaway "risk off" sentiment prevail, nor would it promote another blitz round of capital outflows, leading to another gradual levitation in overnight risk.

Heavy Metals Sending A Warning To Economy, Markets

The vast under-performance of industrial metals compared to precious metals may be a warning sign regarding the strength of economic demand and/or investor skittishness. Furthermore, if recent history is a guide, the stock market may have a difficult time defying gravity much further as the industrial metals continue their relative deterioration

Is Bitcoin About To Soar?

A "Bullish Pennant" has been spotted in the chart of Bitcoin, one which suggests a major breakout is imminent.

Buying Dollar Bills For $1.10

There are two conditions that should be met when a company engages in a stock buyback. 1) The shares should be trading below intrinsic value 2) there are no investment opportunities available that would allow the company to continue to grow at a desirable rate. If both conditions can be met a case may be made for share buybacks.