InvestingChannel

Some good looking high tight flags in tonight’s installment…

We are entering historic territory with the S&P 500 closing for the 12th consecutive day above its upper Bollinger Band (50,2). This has only happened 25 times since 1928. When the market reaches historic extremes, it is ordinary to wonder what it all means. Let’s take a look...

On Wednesday, May 15th, $SPY closed 3.52% above its 20 day moving average. While this has happened more than 275 times over the history of $SPY, it is not an altogether common occurrence. It is the first time this has happened in 2013, and it did not happen at all in 2012. A quick glance at the list of these events appeared to show some clustering...

We’re not the only ones to be skeptical of this bull market.

It seems highly unlikely that continued Federal purchasing of Treasuries and suppression of yields will increase borrowing and generate sufficient economic growth to allow wages to increase.

This current scenario of easing has seen income for many working-class people – the ones who have little or no equity market exposure – fall precipitously. Study after study shows that quantitative easing does not help real wages. Those who depend primarily on income from their job to live are feeling the brunt of this situation the most.

We know it. We see it. We feel it.

And yet this open-ended round of easing is set to continue, thanks partly to some positive, yet always dubious, economic data releases…

It would appear that the credit markets both anticipated and began to price in what is now the worst recessionary period for the European Union on record a few days ago. However, their exuberant, ever-hungry colleagues over in equity land remain in the bad is good mode and can't get enough of these higher prices. Where ever we look around the developed world, equity prices are lifting as credit deteriorates. The masses ignored these lessons in 2007; are they ignoring it again? Or is this just another short-term divergence? If so, it is bond-buying time... if not, take your equity profits now because these divergences are unsustainable.

European stocks and credit...

The prices of SPY (S&P 500) starting in March of 2003 and of 2009 have tracked each other surprisingly well over a 6 year period.   The current market has managed higher highs each year, but then that advantage has evaporated by the Christmas holidays. This year the market has already...

Numerous analysts – often the same ones that were bearish just six months ago – continue to talk up US equities using a variety of metrics. These include comparisons of dividend yields or PE ratios to treasuries, etc. One of the more unusual metrics is the...

Today, despite closing slightly lower, the S&P 500 closed for the 5th day above its upper Bollinger Band (50,2). I have written previously how closes above the the upper band are typically bullish and may signal an abnormal market. This evening we’ll examine what happens after 5 consecutive closes above upper Bollinger Band...

Japan's Nikkei 225 equity index is now within one day's new normal range of nominally crossing above the US Dow Jones Industrial Average for the first time since April 2010. The convergence of the two indices coincides with the rapid convergence of the two countries' trade-weighted currencies that dislocated last in March 2009...