Posts by The Trend Letter

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Headlines – October 19/17

  • 30 years after Black Monday, could stock market crash again? Read story
  • Spain is set to impose direct rule over Catalonia, risking violent clashes and market turmoil. Read story
  • Saudi needs Aramco billions as recession slows austerity drive. Read story
  • Fewest jobless claims since 1973 show firm US job market. Read story
  • The world’s largest oil trader sees Brent plunging to $45 in 2018. Read story
  • Global cooling killing penguins? Read story
  • Investor Marc Faber stands by racist remarks as corporate boards cut ties. Read story
  • Trump punts his top priorities to Congress, setting the stage for a year-end showdown. Read story
  • UK banks ‘exposed to money laundering in South Africa.’ Read story
  • Quebec public ban on facial covering raises concerns with Muslims. Read story
  • IBM’s stock surge is one for the history books. Read story
  • New Zealand gets its youngest PM. Read story
  • 74% of young adults prefer digital communication to talking. Read story
  • Canada to impose tougher mortgage rules in 2018. Read story
  • On the lighter side. Check it out!

Stay tuned!

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Headlines – October 17/17

  • Wall St flat at open. Read story
  • Dollar gains, Treasuries drop on Fed speculation. Read story
  • North Korea warns that nuclear war could ‘break out any moment.’ Read story
  • Bombardier to partner with Airbus on C-Series jets. Reads story
  • UK inflation hits 3%, highest since April 2012. Read story
  • Rising tensions in northern Iraq keep oil prices elevated. Read story
  • The 5 worst cities to start your dream business. Read story
  • The secret Swiss mountain bunker where millionaires stash their Bitcoins. Read story
  • Harvey Weinstein’s fall opens floodgates in Hollywood. Read story
  • Meet China’s ‘bubble generation.’ Read story
  • Springsteen’s one-man Broadway show tickets going for as much as $12,500. Read story
  • ISIS threatens terror attack on 2018 World Cup Finals in Russia. Read story
  • Newly discovered WiFi bug allows hackers to snoop on your devices. Read story
  • On the lighter side. Check it out!
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Headlines – October 13/17

  • S&P 500, Nasdaq hit records on strong retail sales data. Read story
  • Despite record profits, Samsung CEO to resign citing ‘unprecedented crisis’. Read story
  • Bitcoin price hits another record high above $5800, now up 480% this year. Read story
  • US inflation surges again after hurricane boosts gas prices, CPI  shows. Read story
  • Trump scraps Obamacare subsidies, urges Democrats to fix ‘broken mess.’ Read story
  • The man who controls 1.4 billion lives. Read story
  • Norway to curb lavish electric car subsidies. Read story
  • People are selling their Tesla Model 3 reservations for a 300% profit. Read story
  • Facebook launches new food order and delivery service. Read story
  • The Weinstein company struggled financially even before Harvey Weinstein’s sexual misconduct allegations. Read story
  • Trump to reveal tough new Iran strategy. Read story
  • This gritty Japanese city is Asia’s new tourist hot spot. Read story
  • On the lighter side. Check it out!

Stay tuned!

Reluctant investor

The most hated bull market

We are more than eight years into the current bull market in US stocks, yet the masses (retail investors) are still not interested in US stocks, at least not yet.

So far this year, the S&P 500 has traded an average of 563 million shares a day, down from a daily average of 643 million in 2016,  and significantly down from the 1.3 billion average in 2007. If this pattern continues through the rest of the year, this will be the first multiyear bull market where trade volumes are declining as the market continues higher.

This doesn’t mean we will not get a pullback, or even a larger correction. In fact, our models have warned that we are due for a correction soon, and we have recently sent our subscribers two trade recommendations that will protect them for such an event.

It is not too late to get into this market, and if we do get a correction, it would give investors a great buying opportunity. During the real estate boom in the US, everyone was talking about how much their house was worth. Same story for the 2000 stock market boom, all the water cooler talk was about the great new tech stocks everyone was buying.

Today, there is none of that optimistic chatter that you typically hear at the top of a bull market.  When all you are hearing is how much everyone has made in the markets, you will know we are close to the top of this bull market, but that time is not now.

In the twelve months from October ’98 to October’99 the NASDAQ Composite Indes gained 100%. While that was a great run, during the following five months, the NASDAQ gained another 157%, before the top was in. We are looking for a similar sharp move higher in the next year.

NASDAQ2000

Look for the coming pullback or correction to get back into this market. We will be sending subscribers a number of trades that we believe will provide incredible gains during the coming run up in the equity markets.

Note: If you would like to  subscribe to The Trend Letter to receive all of our BUY & SELL signals, we can offer you a 38% discount off the regular rate, CLICK HERE

Stay tuned!

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Headlines – October 11/17

  • Wall St sluggish on open as earnings kick off. Read story
  • Overseas demand to drive third-quarter earnings. Read story
  • Oil holds near $51 as OPEC sees recovery, storm cuts US output. Read story
  • Stock record rise ‘has reached epic proportions’, Morgan Stanley says. Read story
  • Spain turns screws on Catalonia with threat of direct control. Read story
  • 84% of Puerto Rico still doesn’t have power. Read story
  • Republicans to Trump and Corker: Please just stop. Read story
  • NATO launches Black Sea force as latest counter to Russia. Read story
  • Harvey Weinstein paid off sexual harassment accusers for decades. Read story
  • All the moves Amazon has made in the last month to crush competition in India. Read story
  • Kobe Steel scandal sparks car and train checks. Read story
  • California’s breakup with the NFL. Read story
  • Tony Robbins: 7 questions you must ask to keep a financial advisor honest. Read story
  • Coach to change its name to Tapestry. Read story
  • On the lighter side. Check it out!

Stay tuned!

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Headlines – October 10/17

  • Politics in focus as Spanish stocks, dollar drop. Read story
  • Spanish police set to arrest Catalan leader if he declares independence. Read story
  • Desperate OPEC asks US shale to curb production. Read story
  • Bitcoin flash crashes on Russia ‘Ban’ headline. Read story
  • Trump-Corker feud imperils already delicate tax push. Read story
  • Wal-Mart launches $20 billion buy-back plan. Read story
  • Trump proposes IQ test with Tillerson to find out who is real real moron. Read story
  • Tesla Model 3 issues could delay or kill its ‘iPhone moment.’ Read story
  • Germany has more industrial robots than US, but they haven’t caused job losses. Read story
  • IMF boosts outlook for global growth, with UK as “notable exception.” Read story
  • BAE Systems to cut almost 2,000 jobs. Read story
  • Hacking is inevitable,so it is time to assume our data will be stolen. Read story
  • Brain drain Index: Smartest Americans are heading West. Read story
  • On the lighter side. Check it out!

Stay tuned!

caution

Caution required, correction due

We have been bullish on stocks for quite some time, and last week we saw yet another bullish trend, as the S&P 500, Dow Jones Industrials, Russel 2000 Small Caps, and the NASDAQ, all made new all-time highs. These new highs are very bullish, but as we can see on the bottom of each chart, the Relative Strength Index (RSI) readings have moved into overbought territory for each of these key indexes.

The red arrows highlight that when we reach these RSI levels, we generally see small pullbacks, or larger corrections.

S&P 500

SPX1009

Down Jones Industrial Average

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Russel 2000 Small Caps

RUt1009

NASDAQ

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Every bull market needs corrections to allow the markets to take a pause, and allow momentum to re-charge. Periodic weakness actually increases the longevity of the bull market. These RSI readings are suggesting that these markets are due for a correction anytime now.

Our models are calling for the S&P 500 to reach 3000, and even 3600, before this bull market run ends. But all markets need that re-charge, and these markets are overdue for such a correction.

Note: We sent out a pending trade recommendation to subscribers of The Trend Letter to profit should we get a correction here.

If you would like to  subscribe to The Trend Letter to receive all of our BUY & SELL signals, and receive a 38% discount off the regular rate, CLICK HERE

Stay tuned!

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Headlines – October 5/17

  • S&P 500, NASDAQ hit fresh record-highs. Read story
  • Spain’s court bars MP’s independence move. Read story
  • Oil trades near $50 as exports soar, Putin comments on cuts. Read story
  • US consumer confidence declines by most in a year on finances. Read story
  • Trade gap in US narrows to 11-month low as exports increase. Read story
  • Why does Puerto Rico have more than $70 billion in debt? Read story
  • May faces calls to quit after speech that went wrong. Read story
  • Europe could see another Brexit-like rupture, beyond Spain. Read story
  • Las Vegas killer planned to escape, police say. Read story
  • North Korea workers prep seafood going to US stores, restaurants. Read story
  • North Korea ‘decoders’ offer dire warning about nuclear program. Read story
  • Catalan vote inspires Brazil’s southern separatist movement. Read story
  • TransCanada ends bid to build Energy East pipeline. Read story
  • Over 70% of Americans fear robots taking over their lives, survey finds. Read story
  • Google has built earbuds that translate 40 languages in real-time. Read story
  • On the lighter side. Check it out!
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Headlines – October 4/17

  • Dollar weakens; Spanish stocks and bonds retreat. Read story
  • Catalonia to declare independence from Spain on Monday. Read story
  • Puerto Rico bonds drop to record low as Trumps says debt may need to be ‘wiped out.’ Read story
  • IRS awards fraud-protection contract to Equifax: report. Read story
  • Las Vegas shooter wired $100K to girlfriend in Philippines a week before killing 58. Read story
  • Yahoo now believes 2013 hack exposed all 3 billion of its users. Read story
  • EU to take Ireland to court for not claiming Apple tax windfall. Read story
  • EU orders Amazon to pay $295 million to Luxembourg in back taxes. Read story
  • ‘What in God’s name were you thinking?” senator grills Wells Fargo CEO. Read story
  • Private-sector jobs growth slows in September, ADP says. Read story
  • Tesla’s market value overtakes Ford. Read story
  • Americans want big government help when robots and AI take their jobs. Read story
  • In a world without TV sets, what do we call TV? Read story
  • On the lighter side. Check it out!
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Headlines – October 3/17

  • S&P 500, Dow open at record highs for 2nd straight day. Read story
  • Vegas shooter was retired accountant, heavy gambler. Read story
  • Oil bull market rally stalls as traders await inventory data . Read story
  • Bond traders place biggest short in Treasuries in over a decade. Read story
  • Catalonia is calling the EU for help after its “traumatic” independence referendum. Read story
  • Thousands protest and strike over police violence in Catalonia referendum. Read story
  • 2 survivors of Vegas shooting speak out against gun control: ‘It’s a tragic cost of freedom.’ Read story
  • Tom Petty, ‘distinctively American’ rocker, dead at 66. Read story
  • Russia does not exclude war with NATO. Read story
  • Report: ‘Almost inconceivable’ Malaysia Airline Flight 370 aircraft has not been found. Read story 
  • Tesla shares fall on warning of Model 3 bottleneck. Read story
  • Connecticut towns grapple with big funding cuts amid budget deadlock. Read story
  • Whole Foods price cuts hit hardest at Trader Joe’s, Sprouts. Read story
  • 10 cities where the pay is good and the rent is cheap. Read story
  • On the lighter side. Check it out!