Skip to comments.3 Reasons to Worry That Stock Rally’s End Is Near
Posted on 07/21/2016 3:49:45 AM PDT by expat_panama
In technical analysis we are taught to trade what we see and under that directive the stock market, or at least the larger capitalization end of it, has a significant breakout in place. After nearly two years of sideways trading, albeit with some large swings, the indexes finally gave what should be an important buy signal.
But is it really? It sure walks like a duck, as the old saw goes. But it is quacking like a platypus...
....What really bothers me is the lack of dissent in the bullish chorus... ... many sentiment surveys still show doubt in this rally. ...
...A breakout is supposed to indicate a sea change of mood from uncertain to bullish...
...Volume is supposed to show at least a little vigor when a two-year pattern breaks, yet since the Standard & Poors 500 first moved above its range, NYSE volume has been below average every single day (see Chart). Indeed, volume over the past week has been much lower than average...
...Another curiosity is the CBOE Volatility Index has fallen below 12 again... ...suggest that people are not concerned. Or, maybe worse, are not engaged.
The last time the VIX was below 12 was last year, just before the market dropped sharply...
...In other words, volatility is more likely to spark selling, in my view.
Getting back to technical analysis 101, the breakouts in the S&P 500 and Dow Jones Industrial Average must get respect. But so must lagging banks, atypical breadth and uncomfortably low interest rates. ...
(Excerpt) Read more at barrons.com ...
Interests are fine Mr Kahn! Go sit back down. Duh.
BFD! All rallies have an end to them. In baseball, there can be multiple rallies by either and/or both teams in a single game.
Summer is a slow time for stocks. I would not buy into this market. Best to sell and go to cash.
The Federal Cabal will continue to pump to prop up the Wall Street casino, the Obumbo legacy, and to help the elite get Crooked Hillary elected.
Obozo timed it to happen at the start of the next POTUS’ watch.
Only like everything else in life he miscalculated.
Happy Thursday and yesterday's stocks closed as IBD said "Broad gains, Higher trade"!
OK, so gold/silver are off a tad (again) now down to $1,322.78/$19.53 and futures traders say they'll continue today another -0.54%. As for stock indexes some futures contracts look up and others are pessimistic.
Lots of econ reports today:
8:30 AM Initial Claims
8:30 AM Continuing Claims
8:30 AM Philadelphia Fed
9:00 AM FHFA Housing Price Index
10:00 AM Existing Home Sales
10:00 AM Leading Indicators
10:30 AM Natural Gas Inventories
The so called great economy was never really there starting in 1993. It was a fantasy created to perceive a belief in success and abundance by the liberal party that took credit for it. And it created a problem world wide by creating artificial inflation to levels that can’t be handled as they run out of ways to let a little air out of the balloon to keep it from popping every time they can. When they run out of ideas, it will pop.
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