Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks Correct into Bitcoin Happy Thanks Halving - Earnings Season Buying Opps - 4th July 24
24 Hours Until Clown Rishi Sunak is Booted Out of Number 10 - UIK General Election 2024 - 4th July 24
Clown Rishi Delivers Tory Election Bloodbath, Labour 400+ Seat Landslide - 1st July 24
Bitcoin Happy Thanks Halving - Crypto's Exist Strategy - 30th June 24
Is a China-Taiwan Conflict Likely? Watch the Region's Stock Market Indexes - 30th June 24
Gold Mining Stocks Record Quarter - 30th June 24
Could Low PCE Inflation Take Gold to the Moon? - 30th June 24
UK General Election 2024 Result Forecast - 26th June 24
AI Stocks Portfolio Accumulate and Distribute - 26th June 24
Gold Stocks Reloading - 26th June 24
Gold Price Completely Unsurprising Reversal and Next Steps - 26th June 24
Inflation – How It Started And Where We Are Now - 26th June 24
Can Stock Market Bad Breadth Be Good? - 26th June 24
How to Capitalise on the Robots - 20th June 24
Bitcoin, Gold, and Copper Paint a Coherent Picture - 20th June 24
Why a Dow Stock Market Peak Will Boost Silver - 20th June 24
QI Group: Leading With Integrity and Impactful Initiatives - 20th June 24
Tesla Robo Taxis are Coming THIS YEAR! - 16th June 24
Will NVDA Crash the Market? - 16th June 24
Inflation Is Dead! Or Is It? - 16th June 24
Investors Are Forever Blowing Bubbles - 16th June 24
Stock Market Investor Sentiment - 8th June 24
S&P 494 Stocks Then & Now - 8th June 24
As Stocks Bears Begin To Hibernate, It's Now Time To Worry About A Bear Market - 8th June 24
Gold, Silver and Crypto | How Charts Look Before US Dollar Meltdown - 8th June 24
Gold & Silver Get Slammed on Positive Economic Reports - 8th June 24
Gold Summer Doldrums - 8th June 24
S&P USD Correction - 7th June 24
Israel's Smoke and Mirrors Fake War on Gaza - 7th June 24
US Banking Crisis 2024 That No One Is Paying Attention To - 7th June 24
The Fed Leads and the Market Follows? It's a Big Fat MYTH - 7th June 24
How Much Gold Is There In the World? - 7th June 24
Is There a Financial Crisis Bubbling Under the Surface? - 7th June 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Trump Added $3 Trillion in Wealth to Stock Market Participants

Stock-Markets / Stock Market 2017 Mar 22, 2017 - 05:55 PM GMT

By: Chris_Vermeulen

Stock-Markets

The “talking heads” in the media are saying that the markets are “not supposed to be this high”. Analyst are just now raising their targets for the SPX for the rest of 2017. My long-term target, as of now, is 2550 and possibly even higher. It is now heading into a corrective wave pattern before beginning its’ next new impulsive wave UP.


Equities appear to have reached the top of wave three and prices should correct themselves back to my Fibonacci level at 2340 for a pivot low.  This long term BULLISH trend is very sustainable.

Courtesy of TMTF service.

Dips In Price Are Investments “On Sale.”

Happy 8th anniversary to the U.S. Bull markets. This is the game that is going on in today’s world of artificially inflated asset classes of stocks and real estate where hyper-liquidity is king.

Overvalued heated markets encourage corporate takeovers and new public stock offerings, which result in huge investment banking fees to Wall Street Banking houses.

Investor Movement Index® (IMXSM):  February 2017:

The Investor Movement Index, IMX, is a proprietary behavior-based index created by TD Ameritrade. It was designed to indicate the sentiment of retail investors. The IMX rose to 6.15 in February of 2017 whereas it increased above 6.0 for the first time ever and reached its’ all-time high.  TD Ameritrade clients were net buyers during the February 2017 IMX period while increasing their exposure to equity markets. Net buying of equities, as well as some widely-held stock names saw their volatility rise relative to the overall market.  The CBOE Volatility Index, VIX, which measures implied volatility of the SPX, dropped below 10 during that still remains historically low. It provides a snapshot into individual investor behavior.

Will The FED Kill The Bull Market Rally?

The FED will continue to keep “loose” monetary policy, indefinitely, as they do not want to repeat their mistakes of 2000 and 2006.  The markets believe that President Trump will create a new economic “miracle”. Implementing new fiscal initiatives is the next and last option to implement.

I believe that Infrastructure Spending will be the new asset class to invest in for the future. A rate hike this month of an “immaterial” 25 basis points does not change the BIG picture that the FED will lower all three of these “immaterial” hikes  down the road or even go directly into the markets and purchase stocks and bonds on the next major downturn : (http://www.cnbc.com/2017/03/03/janet-yellen-puts-a-rate-hike-on-the-table-for-this-month.html).

Federal Chairwoman Yellen and Company is under pressure to do some face saving.  This is not an indication by them to push ahead with any material future FED FUNDS RATE hikes.  This Federal Funds rate hike is already factored into all of the markets today. It is much to do about nothing!

With languishing Real GDP, The FED cannot and will not raise the FED FUND Rates in any material manner!

Federal government current expenditures: Interest payments

The Federal Reserves’ easy-money policies of debt monetization, ( https://en.wikipedia.org/wiki/Monetization), and zero interest rates,( http://www.investopedia.com/terms/z/zero-bound-interest-rate.asp), have largely absorbed and papered over the debt crisis that brought the U.S. economy to its economic knees in 2008. Therefore, that means more deficit spending.  The FEDS balance sheet, Treasury and mortgage debt, has grown by 425% since 2007/2008.  The increasing global debt, (https://www.bloomberg.com/news/articles/2016-02-22/the-world-s-debt-is-alarmingly-high-but-is-it-contagious),

The FEDS easy-money policies have made the 2% richest even richer, but the reality is that the middle class has been almost entirely left behind. Fifty million Americans remain below the poverty line. The number of food stamp recipients have increased over 40% in the last six years.

There are ways to take advantage of these fast moving markets to earn a steady income or grow your trading account. That is through our Momentum Reversal Method (MRM)

Our New Paradigm Trading Results:

UGAZ 74%

ERX 7.7%

NUGT 112%

URA 2.7%

Our most current active trade was SCO: In less than 24 hours, we banked a quick 7.8% in profit!

I am currently monitoring a list of hot stocks and sectors to enter new trades in the next day or two.

Chris Vermeulen
www.ActiveTradingPartners.com

Chris Vermeulen

www.TheGoldAndOilGuy.com

Chris Vermeulen is Founder of the popular trading site TheGoldAndOilGuy.com.  There he shares his highly successful, low-risk trading method.  For 7 years Chris has been a leader in teaching others to skillfully trade in gold, oil, and silver in both bull and bear markets.  Subscribers to his service depend on Chris' uniquely consistent investment opportunities that carry exceptionally low risk and high return.

Disclaimer: Nothing in this report should be construed as a solicitation to buy or sell any securities mentioned. Technical Traders Ltd., its owners and the author of this report are not registered broker-dealers or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Never make an investment based solely on what you read in an online or printed report, including this report, especially if the investment involves a small, thinly-traded company that isn’t well known. Technical Traders Ltd. and the author of this report has been paid by Cardiff Energy Corp. In addition, the author owns shares of Cardiff Energy Corp. and would also benefit from volume and price appreciation of its stock. The information provided here within should not be construed as a financial analysis but rather as an advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. Technical Traders Ltd. and the author of this report do not guarantee the accuracy, completeness, or usefulness of any content of this report, nor its fitness for any particular purpose. Lastly, the author does not guarantee that any of the companies mentioned in the reports will perform as expected, and any comparisons made to other companies may not be valid or come into effect.

Chris Vermeulen Archive

© 2005-2022 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