Stock Indices

No stock can resist gravity forever. What goes up must eventually come down. This is especially true for stock prices that become grotesquely distorted. We have been - and still are - living in another dotcom bubble, and - like the last one - it is inevitable that it is going to burst.

Is the current stock market correction simply just a dip within an ongoing uptrend OR have the “bears” finally awakened from their winter hibernation? [Below are my views on the subject plus those of several others to help you arrive at an informed conclusion].

The unintended consequences of five years of QE are coming home to roost! In May or early June the stock market parabola will collapse...followed by a massive inflationary spike in commodity prices - particularly gold & silver - that will collapse the global economy.

Is the latest credit-balance trough a definitive warning for U.S. equities? In this article we examine the numbers and study the relationship between margin debt and the market, using the S&P 500 as the surrogate for the latter.

After intensive consultation with his advisors, President Obama has decided to modify the formula used for calculating the Dow Jones Index. On January 1, 2015 the Dow Divisor will be changed to 30. The result of this change will be that the Dow Jones Index drops from the current 16532 points to about 85.8 points. The underlying value of the …

Once the temporary effects of past & current manipulation of the price of gold subsides we will have a continuation of the bear market in the Dow Jones and a continuation of the bull market in gold. If the secular cycle repeats, we can conclude that the Dow Jones will be priced at an ounce of gold or even less.

It’s frustrating to see key stock indices keep pushing higher when historically proven market indicators are all warning of a crash ahead. Irrationality is exuberant to say the very least, and that’s why I believe this rally is counting its last days.

With both the fundamentals and the technicals saying the stock market is a risky place to be, we await its crash back to reality. Here's why.

Every time the number of, or specific constituent, companies change in the Dow index any comparison of the new index value with the old index value is impossible to make with any validity whatsoever. It is like comparing the taste of a cocktail of fruits when the number of different fruits and their distinctive flavours – keep changing. Furthermore, because of the application of the ever changing Dow Divisor, we are always comparing a basket of today’s apples with a basket of yesterday’s pears.

Copper has just met the lower resistance line of its descending triangle pattern and should it break through that resistance the price for copper could fall like a stone. That, in turn, would have a MAJOR "watch out below" impact on the future level of the S&P 500. Let me explain.