Best of the Week
Most Popular
1.Canada Real Estate Bubble - Harry_Dent
2.UK House Prices ‘On Brink’ Of Massive 40% Collapse - GoldCore
3.Best Cash ISA for Soaring Inflation, Kent Reliance Illustrates the Great ISA Rip Off - Nadeem_Walayat
4.Understanding true money, Pound Sterling must make another historic low, Euro and Gold outlook! - Marc_Horn
5.5 Maps That Explain The Modern Middle East - GEORGE FRIEDMAN
6.Gold Back With A Vengeance As Bitcoin Bubble Bursts - OilPrice_Com
7.Gold Summer Doldrums - Zeal_LLC
8.Crude Oil Trade & Nasdaq QQQ Update - Plunger
9.Gold And Silver – Why No Rally? Lies, Lies, And More Lies - Michael_Noonan
10.UK Election 2017 Disaster, Fake BrExit Chaos, Forecasting Lessons for Next Time - Nadeem_Walayat
Last 7 days
Why Surging UK Household Debt Will Cause The Next Crisis - 27th Jul 17
Reconciling the US Dollar Outlook with the Super Bullish Gold and Silver COTs - 26th Jul 17
Last Week’s Rally in Gold Stocks Erased - 26th Jul 17
Dollar, Bitcoin, Markets - Is There A New Flight To Safety? - 26th Jul 17
Central Banks ARE The Crisis - 26th Jul 17
Iran: Public Image Versus Historical Reality - Part 1: An Abridged History to the 20th Century - 26th Jul 17
Trump Fails To Understand One Critical Thing—Our Trade Partners Have Options, Too - 26th Jul 17
Stock Market and Gold Stocks Trend Forecast Update - 25th Jul 17
Saving Illinois: Getting More Bang for Its Bucks - 24th Jul 17
3 Stocks Sectors That Will Win in The Fed’s Great Balance-Sheet Unwind - 24th Jul 17
Activist Investors Are Taking Over Wall Street, Procter and Gamble Might Never Remain the Same - 24th Jul 17
Stock Market Still on Track - 24th Jul 17
Last Chance For US Dollar To Rally - 24th Jul 17
UK House Prices Momentum Crash Warns of 2017 Bear Market - Video - 22nd Jul 17
Crude Oil, Gold, ETFs & more: Pro-grade Market Forecasts - 22nd Jul 17
Warning: The Fed Is Preparing to Crash the Financial System Again - 21st Jul 17
Gold / Silver Shorts Extreme - 21st Jul 17
GBP/USD Bearish Factors - 21st Jul 17
Gold Hedges Against Currency Devaluation and Cost Of Fuel, Food, Beer and Housing - 21st Jul 17
Is It Worth Investing in Palladium? - 21st Jul 17
UK House Prices Momentum Crash Threatens Mini Bear Market 2017 - 21st Jul 17
The Fed May Show Trump No Love - 20th Jul 17
The 3 Best Asset Classes To Brace Your Portfolio For The Next Financial Crisis - 20th Jul 17
Gold Stocks and Bonds - Preparing for THE Bottom - 20th Jul 17
Millennials Can Punt On Bitcoin, Own Safe Haven Gold For Long Term - 20th Jul 17
Trump Has Found A Loophole To Rewrite Trade Agreements Without Anyone’s Permission - 20th Jul 17
Basic Materials and Commodities Analysis and Trend Forecasts - 20th Jul 17
Bitcoin PullBack Is Over (For Now): Cryptocurrencies Gain Nearly A 50% In Last 48 Hours - 19th Jul 17
AAPL's 6% June slide - When Prices Are Falling, TWO Numbers Matter Most - 19th Jul 17
Discover Why A Major American Revolution Is Brewing - 19th Jul 17
iGaming – Stock Prices - 19th Jul 17

Market Oracle FREE Newsletter

Crude Oil, Gold, ETFs & more: Pro-grade Market Forecasts

The Stock Market’s New Normal: A Wall of Worry

Stock-Markets / Stock Markets 2014 Mar 06, 2014 - 05:39 PM GMT

By: Christopher_Quigley

Stock-Markets While I realize that fundamentals are important to investment success I also appreciate the relevance of technical analysis in gauging investor sentiment and in timing entry and exit points.

From the technical point of view the market is in a strong bull trend and would appear to be poised to reach new highs. However,  when I research into the fundamental reason  behind this strength I find little to support it other than the actions of the FED. To explain what I mean I attach 5 charts from two different sources. They outline real underlying weakness. Thus while I am fully invested in equities at the moment I have hard sell stops in place and I am prepared to quickly and solidly go short should my key technical positions break-down on high volume.


Comparison S & P Index with US Macro Economic Activity: 2013-2014.



Comparison S&P Index with US Jobless Claims: 2012-2014.

Comparison S & P Index with FED Balance Sheet 2013/2014.



(Charts Above Courtesy of  Zero Hedge Feb 22. 2014).

S& P Index 1950 – 2014.

S&P: Bull and Bear Cycles 1994-2014



(Charts Above Courtesy of: “Of Two Minds” Charles Hugh Smith, December 20 2013).

European Youth Unemployment Crisis Continues.

While there is definitely some good news on the European economic front, in that the banking sector appears to be stabilizing, the youth unemployment situation is utterly chronic. Such is the degree of desperation within the populace that  the President of Ireland felt compelled to speak out. The following is a report published in the Irish Independent 15th February last:

Irish PRESIDENT Michael D Higgins has warned that society is "sleepwalking into disaster" by failing to tackle youth unemployment and deep-rooted issues including inequality.

He believes the public has been "numbed" by "breaches of trust" arising from the role that institutions and professions played in the economic collapse.

Speaking as he launched a series of seminars to take place across the country this year on ethics, President Higgins told the Irish Independent there was a need to discuss how trust could be restored and what type of institutions were needed for the future.

URGENT NEED FOR ACTION:

"I believe this discourse is not only urgent in Ireland, but essential in Europe if we are not going to abandon the European dream, and allow extremes to be built on top of an exploitation of youth unemployment," he said.

" I think 100 years on from 1914, you could say that Europe sleepwalked into a terrible disaster that was the carnage of World War I. In exactly the same way, if you have a crisis of an economic and social kind, you can't sleepwalk through that, you must act."

"We're in a space where people ask the immediate question of how trust can be restored, and they also ask what kind of institutions can serve us best now.”

"We've seen the return of emigration in Ireland which is deeply distressing for many, even with modern communications where people can Skype each other. All of this means there's a certain sense of deepening catastrophe.”

"It is simply not acceptable that we would drift on and attempt to repair something that has delivered such malignant result, rather we must start anew.”

“I'd like when people go to speak of Ireland abroad, to be able to say that these are the people who are unique insofar as they are all discussing ethics. I believe it would be of enormous value.”

!It's also very consistent with our literary tradition, our peacekeeping tradition, with the best of our Irishness and I think it's well worth it," he added.

President Higgins said he believed it was important to challenge the notion that a "group of experts" should decide the "major decisions" to be taken in people's lives.

He said that experts had "no obligation to explain to you what their assumptions were, what their options are and how they have chosen one policy rather than another.”

Such outspoken honesty has not made President Higgins popular among certain sections of the Irish political elite. One prominent journalist in a national newspaper newspaper actually called for his impeachment.

President Higgins is a hero, his truth must break through into the consciousness of the ruling European Commission. It is obvious to me, and a growing active minority, that unless the current bankrupt European economic policies are modified and modified quickly great social and political instability will explode throughout the entire Euro area. Such a development will make the Ukraine experience the norm rather than the exception. Thus in my view President Higgins is right, we will  sleep-walk into a new Pan-European nightmare unless we Europeans wake up to the true reality around us.  We must “de-trance” and take action to restore the dream of  a new, fair and equitable  social covenant that was born out of the devastation of World War II.

By Christopher M. Quigley

B.Sc., M.M.I.I. Grad., M.A.
http://www.wealthbuilder.ie

Mr. Quigley was born in 1958 in Dublin, Ireland. He holds a Bachelor Degree in Accounting and Management from Trinity College Dublin and is a graduate of the Marketing Institute of Ireland. He commenced investing in the stock market in 1989 in Belmont, California where he lived for 6 years. He has developed the Wealthbuilder investment and trading course over the last two decades as a result of research, study and experience. This system marries fundamental analysis with technical analysis and focuses on momentum, value and pension strategies.

Since 2007 Mr. Quigley has written over 80 articles which have been published on popular web   sites based in California, New York, London and Dublin.

Mr. Quigley is now lives in Dublin, Ireland and Tampa Bay, Florida.

© 2014 Copyright Christopher M. Quigley - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Christopher M. Quigley Archive

© 2005-2017 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife