Posts by The Trend Letter

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Headlines – November 10/17

  • Global stocks dip on US tax doubts. Read story
  • In landmark move, China opens up banks, finance sector to foreign control. Read story
  • Xi, Trump offer dueling visions of globalization at Asia Forum. Read story
  • Is the junk bond market getting scary? Read story
  • Saudi Arabia orders citizens out of Lebanon, raising fears of war. Read story
  • Default day looms for cash-strapped Venezuela. Read story
  • Bitcoin slides by $1000 in less than 48 hours. Read story
  • Tesla’s junk bonds are trading under water, and it could spell trouble for Elon Musk. Read story
  • Republican Senate candidate Judge Moore hit by sexual misconduct allegations. Read story
  • Uber loses UK appeal bid to overturn worker’s rights decision. Read story
  • The man who gave us DVR says Roku is the future of TV. Read story
  • The deadly smog over New Dehli is a perfect example of everything that’s wrong with India. Read story
  • On the lighter side. Check it out!
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Headlines – November 9/17

  • Tech stock pull Wall St lower amid tax bill worries. Read story
  • Trump says trade deficit is not China’s fault. Read story
  • Dissecting the $250 billion China deals Trump got for US. Read story
  • ISIS issues threat before Paris anniversary, vows to kill kids. Read story
  • Saudi anti-corruption probe finds “$100 bln was embezzled”. Read story
  • Saudi Aramco signs $4.5 billion oil, gas deals. Read story
  • Catalan speaker appears before Spain’s supreme court. Read story
  • Michael Lewis reveals his new “Big Short”. Read story
  • These maps show how crazy fast the world is aging. Read story
  • One region is growing older a lot faster than anywhere else in the world. Read story
  • Iranian activist shot dead in Netherlands. Read story
  • Self-driving shuttle bus involved in crash on first day. Read story
  • Take that Miami: Pittsburgh now top retirement haven. Read story
  • Kevin Spacey scenes in completed movie to be cut and reshot with Christopher Plummer. Read story
  • On the lighter side. Check it out

Stay tuned!

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Headlines – November 7/17

  • OPEC sees slower growth in demand for its oil as rivals pump more. Read story
  • European stocks wobble around 1-year high. Read story
  • Dollar strength in a ‘Turnaround Tuesday’ pulls Euro to nearly 4-month low. Read story
  • Trump: “It makes sense for North Korea to come to the table and make a deal that’s good for the people of North Korea.” Read story
  • Saudi Arabia calls missile launch ‘act of war’ by Iran, vows retaliation. Read story
  • Saudi crackdown widens as more bank accounts said frozen. Read story
  • Tax overhaul faces major hurdles. Read story
  • The EU monster is falling apart, and has never looked so grim. Read story
  • Many older Americans are living a desperate, nomadic life. Read story
  • India’s central bank is shutting the door on Bitcoin and other crypto-currencies. Read story
  • Toyota sees profits rise again. Read story
  • German military prepares for “break-up of European Union” or worse. Read story
  • Air travelers resisting the ‘incredible shrinking airline seat.’ Read story
  • On the lighter side. Check it out!
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Headlines – November 3/17

  • Payrolls rebound as jobless rate fall to 17-year low. Read story
  • Trump nominates Powell as Fed chair. Read story
  • Apple CEO breathes new life into old iPhones. Read story
  • Republicans release tax plan. Read story
  • Cryptocurrencies’s market hits record $200 billion as Bitcoin soars. Read story
  • Bitcoin may be staging the biggest challenge yet to gold and silver. Read story
  • European stock rally is finding fresh fuel. Read story
  • Pound’s pain is stocks gain. Read story
  • North Korea top subject for Trump on Asia tour. Read story
  • Can Trump reverse the decline in the coal industry? Read story
  • Homeland Security wants facial recognition to identify people in moving cars. Read story
  • Millennials: Communism sounds pretty chill. Read story
  • Forget checked baggage, this airline is weighing passengers. Read story
  • On the lighter side. Check it out!
Headlines_sm

Headlines – November 2/17

  • US stocks pause waiting on tax bill, new Fed boss. Read story
  • First UK rate hike in 10 years. Read story
  • US oil prices struggle for direction, hold below $55. Read story
  • House GOP plan call for 20% corporate tax rate. Read story
  • Tesla announces worst quarter ever, Model 3 delays. Read story
  • EU’s silence over Catalan leader’s call for actions speaks volumes. Read story
  • Catalan: Spain’s prosecutors call for eight leaders to be jailed. Read story
  • Bitcoin skyrockets above $7,000 for first time ever. Read story
  • Powell for Fed chair could support stocks bull market. Read story
  • North Korea defector warns military trained to “press the button” on any sign of US attack. Read story
  • US productivity increases at fastest pace in three years. Read story
  • Inside Hilary Clinton’s secret takeover of the DNC. Read story
  • India’s homegrown startups are ganging up against foreign rivals. Read story
  • Explosion at Indian coal power plant kills 29, injures 85. Read story
  • On the lighter side. Check it out!
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Headlines – October 31/17

  • Wall St opens higher on strong earnings. Read story
  • Catalan leaders facing rebellion charges flee to Brussels. Read story
  • Eurozone growth exceeds expectations. Read story
  • The Dow just logged its longest period without a 1% intra-day move since 1930. Read story
  • Manafort pleads not guilty to conspiracy and money laundering charges. Read story
  • North Korea nuclear test site collapse leaves 200 dead. Read story
  • The uncomfortable parallels between ICOs and the “penny stock” underworld. Read story
  • Netflix cancels House of Cards amid Kevin Spacey allegations. Read story
  • Under Armour stock plunges 13% on revenue cut. Read story
  • Depression rates rising fast for young US teens. Read story
  • ECB has won this battle, but it’s out of ammo for the next one. Read story
  • Swiss prosecutors seeking widening of secrecy laws to bankers abroad. Read story
  • The Kremlin dismisses Mueller’s Russia investigation as ‘laughable.’ Read story
  • Apple could drop Qualcomm components in next year’s iPhones, iPads: sources. Read story
  • Would ESPN really consider dropping NFL? Read story
  • On the lighter side. Check it out!

Stay tuned!

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Headlines – October 30/17

  • World stocks hit new high as Spain relief, tech rally boost European trading. Read story
  • Euro-area economic confidence surges to highest in 17 years. Read story
  • Trump’s former campaign head indicted on conspiracy charges. Read story
  • Catalan president Puigdemont faces up to 30 years in prison. Read story
  • US consumer spending rises most since 2009 on car buying. Read story
  • China bond sell-off spreads to stocks as deleveraging risks mount. Read story
  • WSJ: Trump likely to name Powell as Fed chair. Read story
  • What’s behind the rise of Asia’s stock markets? Read story
  • Kevin Spacey apologizes after accusation of sexual misconduct, comes out as gay. Read story
  • American girl dolls are dying, taking Mattel with them. Read story
  • Apple engineer reportedly fired over daughter’s viral video of iPhone X. Read story
  • California clears first hurdle to breaking into three states. Read story
  • China’s planning a 1,000km tunnel to divert water away from one of India’s largest rivers. Read story
  • Who will take care of you when you are old? It’s probably not who you think. Read story
  • On the lighter side. Check it out!
MarketWatch

Market update – October 25/17

The S&P 500 Index has now recorded 62 all-time record highs, year-to-date, the 3rd most in history, and the year is not over yet.  According to Yardeni Research, the S&P 500 has had 10 ‘corrections’ of 5% or more since 2009. Other than in 2009, where the S&P 500 saw its bear market bottom, there has been at least one 5%+ correction every year, except this year. These corrections are highlighted below.

S&P_corrections

As is typical in bull markets , the technicals have lead the way, with the NASDAQ up 32.4% for the year. But recently, we have seen the tech darling stocks (Facebook, Amazon, & Apple) under-perform the S&P, by between 3.3% and 5.8%. This is another warning signal that at least a pullback may be underway here.

We have also seen the VIX Volatility Index, known as the ‘fear index”, jump off record lows, suggesting that investors are becoming a little more concerned.

Vix1025

While there is no way to know for certain if we will indeed get a correction here,  we do want to make sure you are prepared. Every bull market needs corrections to allow the markets to take a pause, and gain momentum to re-charge. Periodic weakness actually increases the longevity of the bull market. These markets are due for a correction anytime now. A nice 5% or 10% correction would be healthy, and we would welcome it.

Here are the near-term numbers to watch for the S&P 500:

2525 – a drop below here would suggest a pullback is likely.
2515 – a drop below this level would open the door for a deeper correction
2400 – key near-term support, and if breached, a stronger correction is under way.

S&P1025

In our October 9th Musings, we highlighted that the markets were looking overbought and that a temporary top was likely forming. Understand that while we are looking for up to a 10% correction, a much bigger decline is certainly possible. We issued two trades for subscribers to play should we get the correction that we have outlined. Those trades are close to being triggered, so if you are not a subscriber and want to protect yourself from a potential correction, it is not too late.

Our models are calling for the S&P 500 to reach 3000, and even 3600, before this bull market run ends. Most investors have not been invested in this market, but have just recently started to jump in. A correction here would spook these new investors, which will provide a potentially great buying opportunity

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 25/17

  • Wall St slips at the open on tepid earnings. Read story
  • US House speaker says tax plan unlikely to swell deficit. Read story
  • Bank of Canada holds rates steady, pledges caution. Read story
  • New Zealand bans foreign home buyers. Read story
  • US new home sales race to nearly 10-year high. Read story
  • UK growth figures raise chances of rate increase. Read story
  • It pays to be Belgian central-bank chief. Read story
  • Uber says riders are not its customers; drivers are – and SEC on board. Read story
  • Amazon to sell ‘smart locks’ so it can slip packages into shopper’s home. Read story
  • Avoid these mistakes in your retirement planning. Read story
  • Clinton campaign, DNC paid for research that led to Russia dossier. Read story
  • Why Spain’s crisis in Catalonia threatens your European investments. Read story
  • China’s Xi could rule for decades, status elevated to same as Mao and Deng. Read story
  • China’s Communist Party is all in on the power of technology. Read story
  • Amazon receives 238 bids for its second headquarters. Read story
  • Vietnam jails student activist six years for propaganda against the state. Read story
  • On the lighter side. Check it out!
Headlines_sm

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!