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Showing Posts 61 - 70 out of 181 found.

Junk Bonds and Financial Stocks are underperforming.

Junk Bond ETF (JNK) price broke down below 3-week lows on 11/14/14. Financial SPDR ETF (XLF) Relative Strength Ratio (XLF/SPY) peaked on 10/14/14 and has underperformed over the past month. When Financials underperform, it is a warning for the general market. NASDAQ 100 ETF/S&P 500 ETF Relative Strength Ratio (QQQ/SPY) rose above its highs of the previous 14 years on 11/14/14 and...

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Weak Japan Economic Data Sinks World Stock Markets Monday

* Latest Market Developments * (Follow me on Twitter: @jimwyckoff) In overnight news, Japan reported its gross domestic product declined by 1.6% in the third quarter, year-on-year, versus expectations of a 2.2% increase in growth. Thus, Japan is now in recession. This somewhat surprising news sunk Japan’s Nikkei stock index by 3% Monday, which in turn put downside pressure on most other...

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Trading the Markets, Part 1: Feeling the Pressure

There are many traders who do it for a living because they have a formula for success.  Each one has their own concoction of methods and a particular style that works for them, but I will tell you that most winning traders have a good plan but are flexible to change if needed.  Further, the most successful traders do not let outside factors influence their daily actions or routine, as they...

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The Arc of Energy is Bending Toward Alternatives

The Arc of Energy is Bending Toward Alternatives

Yes, I have said it before, but it bears repeating – one economic report does not a trend make. However, when you put that report in context with other things, well, then, maybe it is a sign of things to come. German Economy Returns to Growth as France Beats Forecasts True, we might not have a trend yet for the Eurozone, but what we do have is the possibility the tide might be changing. Put...

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Is It Time To Go Long Walmart?

Is It Time To Go Long Walmart?

Walmart (WMT) announced third quarter earnings this week and – gasp! – U.S. same-store sales actually rose for the first time in two years, by 0.5%. Walmart’s smaller neighborhood market stores enjoyed a much healthier 5% rise in same-store sales, and online sales jumped by 21%.  All told, not a bad showing. After years of disappointing news for the world’s largest retailer, this past...

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Correlated Markets Is Opportunity For Stock Picking

Correlated Markets Is Opportunity For Stock Picking

The recent action in the markets has created a distinct advantage for the stock picker.  How do I know this?  Take a look at the chart below of the implied correlation index, or the ICJ.  Simply put, this is a market-based estimate of the average correlation of stocks that comprise the SPX 500.  When the level is high (above 73%), we see a strong correlation between the market and...

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March ICE Coffee Futures: Trading Idea November 14, 2014

March ICE Coffee Futures a Selling Opportunity on Fresh Price Weakness See on the daily bar chart for March coffee futures that prices are presently seeing a corrective bounce but remain in a downtrend. A move in prices below solid chart support at the November low of 1.8540 would give the bears fresh downside momentum and it would also become a selling opportunity. The downside price...

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Sometimes, You Just Gotta Roll Out

Sometimes, You Just Gotta Roll Out

Rolling a position is very simple to do.  You just buy a further out expiration and sell out your existing one.  The hardest part of rolling a position is actually making the decision to execute the trade, and to do that, you have to understand why you are doing it. One of the most difficult things to master as a trader is to admit when you are wrong, which means you have to realize losses. ...

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Crude Oil Collapse

Crude Oil, United States Oil ETF (USO) absolute price broke down below its lows of the previous 5 years on 11/13/14, thereby reconfirming its preexisting downtrend. Energy Sector SPDR ETF Relative Strength Ratio (XLE/SPY) fell below 7-year lows on 11/13/14, thereby reconfirming its preexisting major downtrend. iShares MSCI BRIC Fund (BKF) Relative Strength Ratio (BKF/SPY) broke down below...

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Stunning Drop in Crude Oil Has Traders' Attention

* Latest Market Developments * (Follow me on Twitter: @jimwyckoff) In overnight news, the European Union reported its third-quarter gross domestic product, which came in at up 0.2% on the quarter and up 0.8% year-on- year. While not great numbers, they did slightly beat market expectations. This takes just a bit of pressure off of the European Central Bank, which most believe is still set to...

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