Posts by The Trend Letter

Markettop

Stock market approaching key support level

In early February the S&P 500 tested its 150-DMA (black circle red line) and then rallied off that support level. Last week the S&P 500 tested its 200-DMA (black circle on blue line) and bounced off that support level. Today, after Monday’s big rally, the S&P gave up much of those gains, and is again approaching that 200-DMA.

We want to keep a close eye on that 200-DMA because it is an important technical indicator. In bull markets, stocks tend to spend most of their time above the 200-DMA, while during bear markets, they spend most of their time below this line. Stocks seldom stray too far from this line in either direction, and when they do, the further they stray, the faster they tend to revert back to it. Looking at the chart below, we can see that in January, the S&P 500 strayed over 12.6% above the 200-DMA, which was an extreme,  and warned us that a correction was overdue.

The question now is, can this 200-DMA hold, and the S&P rally from there?

Key levels to watch:

2587 – the 200-DMA
2535 – bottom of the 2-year uptrend channel
2470 – Key Support

This action in the markets is a reminder that every investor needs to have an exit strategy, a plan to ensure that you do not incur large losses. Be sure to have SELL Stops to lock in gains and limit losses.  Another great strategy is to hedge your long positions. Trend Technical Trader (TTT) is an excellent hedging service that provides subscribers with daily market updates and easy to action strategies to protect their investments and actually make money when the market is declining.

This bull market in stocks has been running for over 9 years, and it is going to end sometime. In the very best-case scenario, we are in the late innings of this bull market, suggesting that a sizable correction is coming. Be sure you are protected!

We have extended our Special Offer to make it easier for you to get TTT’s strategies for a correction, and especially for a full-on crash. It’s your money – take control!  Save $250 off the regular price of $649.95, and get TTT’s daily updates on the markets for only $399.95Click here to take advantage of this offer.

Stay tuned!

Headlines_sm

Headlines – March 27/18

  • Deutsche Bank seeks new CEO as it runs out of quick fixes. Read story
  • The Dow and S&P 500 have already doubled the number of 1% moves seen in all of 2017. Read story
  • A practical guide to how blockchain could end corruption in South Africa. Read story
  • The US needs to borrow $300 billion this week – in the middle of a fight with its biggest creditor. Read story
  • Cambridge Analytica whistle-blower reveals shocking claim his predecessor was poisoned and police bribed. Read story
  • Zuckerberg refuses to explain data scandal to British parliament – and instead wants to put senior execs in firing line. Read story
  • Bitcoin hovers around $8,000 as Twitter bans crypto ads. Read story
  • Mystery train believed to be carrying North Korean delegation and possibly Kim Jong Un leaves Beijing. Read story
  • Thousands protest over Russia fire tragedy that killed 64, including 41 children. Read story
  • FCC wants Chinese tech out of phones, routers. Read story
  • US to add citizen question in 2020 census. Read story
  • Suspicious packages found at several military installations in DC area. Read story
  • A 21-year old Swedish AI prodigy wants to revolutionize the $6 trillion education industry – and Tim Cook is impressed. Read story
  • On the lighter side. Check it out! 

Stay tuned!

Headlines_sm

Headlines – March 26/18

  • World stocks bounce on report of US-China trade talks. Read story
  • Mnuchin ‘cautiously hopeful’  US can reach trade deal with China. Read story
  • US is expelling 60 Russian diplomats in solidarity with Britain over nerve agent attack. Read story
  • Stormy Daniels describes her alleged affair with Donald Trump. Read story
  • Facebook scraped calls, text message data for years from Android phones. Read story
  • Battered underfunded public pensions to persist. Read story
  • China challenges Europe, US benchmarks with launch of first oil futures contracts. Read story
  • Thousands protest in Barcelona as ex-Catalan leader Puigdemont arrested in Germany. Read story
  • ‘It’s just chaos’: Nobel Prize-winning economist Robert Shiller warns that an ‘economic crisis’ is brewing. Read story
  • American adults just keep getting fatter. Read story
  • Remington, the oldest US gunmaker, files for bankruptcy. Read story
  • Tesco veteran to head Walmart’s Jet.com as US grocery wars flare. Read story
  • Amazon checking accounts could have massive appeal for these Americans. Read story
  • Facebook is too big to fail. Read story
  • Charles, the mind reading robot mimics human facial expression. Read story
  • On the lighter side. Check it out!

Stay tuned!

market tensions

Big down day as stocks lose another 2%

Let’s look at the volatility in the equity markets. The following chart shows the VIX Volatility Index. With the VIX Volatility Index a reading of under 20 indicates that investors are ‘complacent’, meaning a ‘risk-on’ sentiment, while a reading over 30 indicates investors are ‘fearful’ with a ‘risk-off’ sentiment. In the last couple of days the VIX has jumped almost 60%, moving out of the ‘complacent’ zone into a ‘neutral’ zone.

Vix0323

Now let’s look at the S&P 500 chart. The S&P 500 gained over 23% from mid-April to late-February, and then lost almost half those gains (over 10%) from February to current levels.

S&P0323

Unfortunately, most investors do not have an exit strategy and that is very dangerous, especially when we see severe market crashes. We always set SELL Stops to get out when the market turns against us. Another prudent strategy is to hedge your positions, with strategies that let you profit while the markets decline. Trend Technical Trader (TTT) is one of the best hedge services that we have ever seen, and its equity hedge strategies have gained over 55% since the market high in January.  While the S&P 500 has lost over 10% since the January high, TTT’s equity hedge positions are up an average of over 55% in that same time.

This bull market in stocks has been running for over 9 years, and it is going to end sometime. In the very best-case scenario, we are in the late innings of this bull market, suggesting that a sizable correction is coming. Be sure you are protected!

We have extended our Special Offer to make it easier for you to get TTT’s strategies for a correction, and especially for a full-on crash. It’s your money – take control!  Save $250 off the regular price of $649.95, and get TTT’s daily updates on the markets for only $399.95Click here to take advantage of this offer.

Stay tuned!

Headlines_sm

Headlines – March 23/18

  • Trump threatens to ‘VETO’ massive $1.3 trillion spending bill, which would push government into shutdown. Read story
  • French hostage crisis: ‘Two dead’ in Trebes supermarket. Read story
  • Gold rallies as investors seek shelter from global trade tensions. Read story
  • Asian shares tumble on trade war fears. Read story
  • EU complains of Trump’s ‘gun to our head’ over tariffs. Read story
  • Trump appoints hawkish new security chief. Read story
  • McMaster is out – here is a list of the Trump administration casualties so far. Read story
  • Music industry sees fastest growth in more than 20 year. Read story
  • State and local sales, income and property taxes all at record highs. Read story
  • Japan loses out amid China trade threat that shakes markets. Read story
  • Canadian Senate passes bill to legalize recreational marijuana. Read story
  • Trump’s crackdown on Chinese imports is on firmer ground than many of his other trade complaints. Read story
  • Canadian inflation rate accelerates to 2.2%, beyond BoC target. Read story
  • Inside Jeff Bezos’s private conference for a new ‘golden age.’ Read story
  • On the lighter side. Check it out!

Stay tuned!

tradewar

Market update – Trade war reality

Trade war fears became reality as Trump did the expected and placed up to $60 billion in tariffs directed at China imports. China responded, saying “if a trade war were initiated by the US“, which is exactly what Trump did, “China would fight to the end to defend its own legitimate interests with all necessary measures.

The two largest economies entering a trade war drove fears about the global economy, fueling the biggest stock market declines since Trump’s steel tariffs announcement 6-weeks ago. In addition to trade war fears, we had Trump’s personal lawyer resign today, suggesting that the Mueller investigation is coming to a head. Trump has been very good for the stock markets, so any thought of him being side tracked by a scandal does not go over well with the markets.

The Dow dropped 724 points or  2.93%, the S&P 500 was down 68.54 points or 2.52%, while the Nasdaq was down 178.61 points, or 2.43%.

In Sunday’s issue of The Trend Letter, we showed subscribers how the S&P had been trading inside a wedge pattern. Below is an updated chart showing how the S&P has fallen out of that wedge pattern, dropped below its 50-DMA (blue line), and is approaching its 100-DMA (pink line).

Next Key Support will be the February low where we had a close of 2581. A breach of 2581 would open the door for a test of  2535, and a break below 2535 would validate our target low of 2470.

In the bullish scenario, the S&P 500 needs to push back above 2700, then break through 2750, before attempting a third run at Near-term Resistance at 2787 (horizontal red dotted line).

Volatility

The CNN Fear & Greed Index has moved toward its deepest ‘Extreme Fear’ reading since the February low.

CNNFear

With the VIX Volatility Index a reading of under 20 indicates that investors are ‘complacent’, meaning a ‘risk-on’ sentiment, while a reading over 30 indicates investors are ‘fearful’ with a ‘risk-off’ sentiment. Today the VIX jumped over 30%, moving out of the ‘complacent’ zone into a neutral zone.

vix0322

Are you protected?

While most investors will have trouble sleeping tonight worrying about their portfolio, subscribers to Trend Technical Trader (TTT) have seen their equity hedge positions gain an average of 47% since the January high in the equity markets.

You probably buy fire insurance for your home, why would you not buy insurance to protect your portfolio. TTT gives subscribers easy to action strategies to protect themselves and their portfolio in case this correction turns into a full blown crash. This bull market in stocks has been running for over 9 years, and it is going to end sometime. In the very best case scenario, we are in the late innings of this bull market, suggesting that a sizable correction is coming. Be sure you are protected!

We are extending our Special Offer to make it easier for you to get TTT’s strategies for a correction, and especially for a full-on crash. It’s your money – take control!  Save $250 off the regular price of $649.95, and get TTT’s daily updates on the markets for only $399.95. Click here to take advantage of this offer.

Stay tuned!

Headlines_sm

Headlines – March 22/18

  • 10-year Treasury yield drops most in 6 months as investors rush to bonds for safety. Read story
  • US congress announces massive $1.3 trillion plan to avoid government shutdown. Read story
  • Mark Zuckerberg had 15 minutes to respond to privacy crisis – he took four days. Read story
  • US added 700,000 new millionaires in 2017. Read story
  • US has added $1 trillion in debt in just six months. Read story
  • Advertisers threaten to quit Facebook over Cambridge Analytica scandal. Read story
  • Police say Austin bombing suspect left a 25-minute recorded confession on a phone. Read story
  • Tesla shareholders approve deal that could earn Elon Musk more than $50 billion. Read story
  • China blames US for staggering trade surplus as tariffs loom. Read story
  • Explore all $506 billion in goods the US imported from China in 2017. Read story
  • Bitcoin slumps after Binance is said to face warning in Japan. Read story
  • Bitcoin will be the world’s single currency, says Twitter and Square CEO Dorsey. Read story
  • Trudeau government tells workers told not to use the terms ‘mother or ‘father’. Read story
  • Trump: ‘Crazy Joe Biden would go down fast and hard, crying all the way’. Read story
  • Check out what kind of house $6.9M get you in Vancouver. Read story
  • Why Denmark consistently ranks as one of the top three ‘happiest’ countries. Read story
  • On the lighter side. Check it out

Stay tuned!

Headlines_sm

Headlines – March 21/18

  • Texas bombing suspect blows himself up as police close in. Read story
  • Facebook sued by investors over voter-profile harvesting. Read story
  • WhatsApp co-founder who made billions form Facebook now says to delete it. Read story
  • $CAN, Peso surge on report US drops contentious auto demand in NAFTA talks. Read story
  • Mnuchin says US ‘not afraid’ of a trade war. Read story
  • 10 ways China could retaliate against the US in a trade war. Read story
  • Cambridge Analytica suspends CEO Nix amid inquiry. Read story
  • Here’s how to check which apps have access to your Facebook account – and delete them. Read story
  • Technology giants face European ‘digital tax’ blow. Read story
  • Deutsche Bank shares plunge 7% as CFO warns of securities revenue headwinds. Read story
  • Israel admits to bombing suspected Syrian nuclear reactor in 2007, warns Iran. Read story
  • The robots really are taking over – but only because there aren’t enough workers. Read story
  • Fortress Sweden: Inside a plan to mobilize Swedish society against Russia. Read story
  • Nine ways the PNB scam will affect India’s economy. Read story
  • Japan condom makers hope for 2020 Olympic lift. Read story
  • On the lighter side. Check it out!

Stay tuned!

Headlines_sm

Headlines – March 20/18

  • Gold flirts with new low for 2018 ahead of Fed meeting. Read story
  • How Facebook made its Cambridge Analytica data crisis even worse. Read story
  • CEO of Cambridge Analytica secretly filmed offering to entrap politicians with bribes and sex workers. Read story
  • Californians fed up with housing costs and taxes are fleeing state in big numbers. Read story
  • Package explodes at FedEx facility in Texas, link to Austin bombs probed. Read story
  • Ex-French president Sarkozy arrested for allegedly receiving 50 million euros from Gadhafi. Read story
  • Multiple injuries reported at high school shooting in Maryland. Read story
  • Self-driving Uber car kills Arizona woman crossing street. Read story
  • US bans transactions with Venezuela’s digital currency. Read story
  • Amazon’s Jeff Bezos brings robot dog for a walk at tech conference. Read story
  • Xi warns Taiwan and Hong Kong that any attempt to split China is ‘doomed to fail.’ Read story
  • 5 US cities with the most affordable homes. Read story
  • Slavoj Zizek thinks political correctness is exactly what perpetrates prejudice and racism. Read story
  • More than 70% of Tesla’s biggest fans didn’t buy a Model 3 when offered. Read story
  • Cirque du Soleil performer falls to death. Read story
  • On the lighter side. Check it out!

Stay tuned!

Headlines_sm

Headlines – March 19/18

  • Facebook shares down 4% after enormous data breach. Read story
  • “We want to listen to you.” Austin Tex hit with fourth explosion as police make appeal to bomber. Read story
  • Mueller looking to nail Trump on obstruction, attacks on FBI. Read story
  • The UK and EU agree on terms for Brexit transition. Read story
  • Putin secures record win in Russia presidential election. Read story
  • Apple is looking to make its own display screens for the first time. Read story
  • Democrats widen advantage over Republicans in mid-term election poll. Read story
  • Republicans push for ‘phase two’ of tax cuts. Read story
  • ECB shifting to interest rate path from QE. Read story
  • Here’s the No.1 tech stock, according to money flows. Read story 
  • Congress braces for battle over massive spending bill. Read story
  • All of Xi’s men: The names you need to know in China’s  government reshuffle. Read story
  • Hindu priests are burning 50 tonnes of wood to fight pollution. Read story
  • On the lighter side. Check it out!

Stay tuned!