Posts filed under “Technical Analysis”

CRB Index, 5 years

Crb_6_years

Category: Commodities, Technical Analysis

Sell Off on Volume

Category: Technical Analysis

Technicals versus Economics

I got involved in a debate earlier at RealMoney – Columnist
Conversation
, and wanted to pass it along here.

Pre-GDP (1/27/2006 7:31 AM EST), I wrote :

1) Technicals remain strong, and continue to be the driving force short
term. But economics look weak, and continue to be source of concern
long term.

2) Last Friday’s market actions was the market’s early warning sign.
Very heavy volume to the downside on a big selloff is never a good
thing. I interpret that day as a foundational crack of the cyclical
Bull market. Again, we are not looking for a 1987 situation, but rather
a Q1 topping out, and an ugly rest of the year.

3) Gold also looks toppy — it’s well overdue for a 10% correction. We
are short here, but would re-establish a long position in the 480-510
range.

4) A 500 point day in Japan is too exuberant — it’s a sign of very
emotional trading. Historically, these sort of buying frenzies tend to
end badly. As such, we are lowering our multiyear price target on the
Nikkei down from 21,000 to 18,000. I would not be surprised to see this
lowered again before year’s end. And the Korean Topix, which I have
liked for some time, is geting crazed. Still plenty of upside, but
getting frothy…

Norm Conley raised a legitimate question about this:

"It seems as if you are taking two outlier one-day moves in markets (one "up"
move, and one "down" move), and extrapolating that although they are
contradirectional, they both carry ominous portents."

My response was:

Read More

Category: Economy, Technical Analysis

The Astonishingly Inefficient Market

Category: Apprenticed Investor, Markets, Psychology, Technical Analysis

TA Infiltrating Everywhere!

Category: Technical Analysis

Bulls Looking for a Cinderella Scenario

Category: Economy, Investing, Markets, Technical Analysis

Dow 11,000

Category: Technical Analysis

New Column: CULT OF THE BEAR, part II

Category: Investing, Markets, Technical Analysis

Death of Volatility

Category: Markets, Psychology, Technical Analysis, Trading

P/E vs S&P 500 (50 Years)

As promised, today brings us to the 4th in our series of charts: P/E vs S&P500 click for larger chart courtesy of Mike Panzner, Rabo Securities > I’ll get into the significance of what this means to the markets later, but for now, note where the P/E is over the median, and its impact on…Read More

Category: Earnings, Markets, Psychology, Technical Analysis