Stock Indices

The stock market does not turn on a dime... at least historically that's been the case. There was always a distinctive topping process going on before the bear finally struck. In every case you can look back and detect the same pattern: a marked deterioration of market internals and of interest rate based indicators before any crash so, if history is our guide, we should not expect this time to be different. So, what should we look for?

As earnings fall, and particularly as earnings expectations fall one would expect stock prices to fall but, as we see, earnings are falling and stock values are rising.

As demonstrated by his previous market calls George Soros is an investor worth paying attention stock to. He is currently buying gold hand over fist, as he believes that we are closing in on a bear market.

The First Rebuttal website has coined a term that gets to the heart of an increasingly dysfunctional system: the too-big-to-fail stock market. Markets no longer serve their intended purpose of efficiently allocating capital. Since capitalist wealth creation depends on that function, today’s world can no longer be called “free” or “market-based” in any meaningful sense.

While CNBC and other perma-bulls claim that the stock market is a great investment today, the smart money is already prepping for a disaster. Goldman Sachs has told its clients to “sell at the new high.” Credit Suisse just told its clients stocks “haven’t looked this worrisome since the tech bubble.” They’re correct. Stocks are in a bubble by virtually every reasonable metric.

The stock market huffed, and it puffed, and finally made it over the hump, with the large-cap S&P 500 Index (414 days) and Dow Jones Industrial Average both vaulting to new all-time highs. It’s worth revisiting the details of this bullish buy signal to see what could be in store for the stock market in the months ahead.

Understanding palladium is more important than ever, because there are important correlations between the palladium/gold ratio and stock market prices and, currently, the ratio of palladium/gold ratio is giving warning signals for both the economy and the stock markets.

I'm becoming increasingly pessimistic that we could see a meaningful downside episode in the S&P 500 that's potentially sustained before the leaves are turning brown on the trees in the fall.

This is a warning that stocks are about to enter a long-term bear market, one that will likely be lengthy and deep. This Sell signal confirms that the Economic Ice Age is starting.

There are patterns in markets and we can learn from past patterns in the S&P 500 Index. My assessment of the Index at this point in time suggests it would be wise to consider the possibility of a substantial S&P 500 Index drop in coming months. Here's why.