Dow Fails at 20,000 & Payrolls Data: More Of The Same
The Dow trying to hit 20,000 is like Shaquille O’Neal attempting free throws. Shaq was a great basketball player, but he wasn’t a great free throw shooter. The market is strong either way, but this milestone keeps failing to be reached. As you can see from the chart below, the Dow missed reaching 20,000 eight…
Fed Minutes & American Demographics
When the Fed raised rates in December, I explained it was because of the added inflation the Trump election brought and the anticipated stimulus package in 2017. The media and the Fed seemed to discount these factors to not appeal political. Those who disagreed with me said the Fed was going to raise rates after…
Premium Cheap for the Landmines Ahead
In tonight's video we will review the technical landmines facing the market. At the same time options premium is at an historic low. In 2017 those that have a trading system will have the advantage. Join Doc Severson for the "Plan or Get Slaughtered" class and get help building your own trading system from a…
Bitcoin Falls Over 20%
In my article yesterday, I said bitcoin would hit an all-time high and then have a correction because it was overbought due to extreme speculation from China. It didn’t take long for that prognostication to come to fruition as bitcoin hit an all-time high on some exchanges before crashing 23%. The Coindesk website has an…
Inflation Rises To 1.7% In Germany
German inflation rose to 1.7% and European inflation increased to 1.1% in December. In a Reuters article, it was stated that these inflation numbers show the dovish ECB policies are working. Firstly, the inflation mainly came from energy. Therefore, OPEC takes more credit for the European inflation than the ECB. Secondly, the policy goal is…
Traders Throw Caution to the Wind
In light volume trading today traders have thrown caution to the wind. Just remember risk is always at the highest precisely at the time it seems like it's the lowest. Conversely when traders are panicked out of stocks that's the time to be buying. Let's take a look at the markets where the risk seems…
Bitcoin Approaches New Record High
I said Bitcoin could get over $1,000 in January because of the intense momentum it has. The parabolic momentum has cascaded the price to near its record high. The current price is $1,103 and the all-time high was $1,242 set on November 29th, 2013. At one point today it was up about 18% year to…
Hope Springs Eternal (Optimism in the Markets)
I have been bearish on equities since late 2015 and remain so at the start of 2017. I’ve seen comments saying that I am issuing the same types of arguments that have kept people out of equities since the start of the bull market. My response is I was not bearish until late 2015 when…
Evaluating the Transition into 2017
The first day of trading in 2017 is in the books. Let's evaluate January trading in the past few years and see if we can determine what to expect this year. Also, let's look at the most dangerous thing in the market right now...
Demonetization Hurts Indian Manufacturing
The Prime Minister of India, Modi, instituted a ban on the 1,000 and 500 rupee notes in November. He wanted to modernize the Indian economy and crack down on the money earned in the underground economy. This action was the wrong way to achieve those goals. The Indian economy can’t be modernized and become cashless…