Best of the Week
Most Popular
1. Will Gold Price Breakout? 3 Things to Watch… - Jordan_Roy_Byrne
2.China Invades Saudi Oil Realm: PetroDollar Kill - Jim_Willie_CB
3.Bitcoin Price Trend Forecast, Paypal FUD Fake Cryptocurrency Warning - Nadeem_Walayat
4.The Stock Market Trend is Your Friend ’til the Very End - Rambus_Chartology
5.This Isn’t Your Grandfather’s (1960s) Inflation Scare - F_F_Wiley
6.GDX Gold Mining Stocks Fundamentals - Zeal_LLC
7.US Housing Real Estate Market and Banking Pressures Are Building - Chris_Vermeulen
8.Return of Stock Market Volatility Amidst Political Chaos and Uncertain Economy - Buildadv
9.Can Bitcoin Price Rally Continue After Paypal Fake FUD Attack? - Nadeem_Walayat
10.Warning Economic Implosion on the Horizon - Chris_Vermeulen
Last 7 days
Russia Buys 300,000 Ounces Of Gold In March – Nears 2,000 Tons In Gold Reserves - 24th Apr 18
Stock Market Study Shows Why You Shouldn’t “Sell in May and Go Away” - 24th Apr 18
CRYPTOCURRENCY MASTERCLASS #CRY90 - 24th Apr 18
UKGC Set to Make Online Gambling Industry More Risk-Free - 24th Apr 18
Chaos Capitalists Short Countries - How Chanos Got China Wrong - 24th Apr
Artificial Intelligence Defines the Political News Narrative - 24th Apr 18
Stock Market "Oops, They Did It Again" - 24th Apr 18
Fox in the Henhouse: Why Interest Rates Are Rising - 23rd Apr 18
Stocks and Bonds, This is Not a Market - 23rd Apr 18
Happy Anniversary Silver Investors! - 23rd Apr 18
The Hottest Commodity Play In 2018 - 23rd Apr 18
Stock Market Correction Turns Consolidation - 23rd Apr 18
Silver Squeeze, Gold Fails & GDX Breadth - 23rd Apr 18
US Economy Is Cooked, the Growth Cycle has Peaked - 23rd Apr 18
Inflation, With a Shelf Life - 23rd Apr 18 - Gary_Tanashian
Stock Market Predictive Modeling Is Calling For A Continued Rally - 22nd Apr 18
SWEATCOIN - Get PAID to WALK! Incentive to Burn Fat and Lose Weight - Review - 22nd Apr 18
Sheffield Local Elections 2018 Forecast Results - 22nd Apr 18
How Long Does it take for a 10%+ Stock Market Correction to Make New Highs - 21st Apr 18
Sheffield Ruling Labour Party Could Lose 10 Council Seats at May Local Elections - 21st Apr 18
Crude Oil Price Trend Forecast - Saudi Arabia $80 ARAMCO Stock IPO Target - 21st Apr 18
Gold Price Nearing Bull Market Breakout, Stocks to Follow - 20th Apr 18
What’s Bitcoin Really Worth? - 20th Apr 18
Stock Market May "Let Go" - 20th Apr 18
Overwhelming Evidence Against Near Stock Market Grand Supercycle Top - 20th Apr 18
Crude Oil Price Trend Forecast - Saudi's Want $100 for ARAMCO Stock IPO - 20th Apr 18
The Incredible Silver Trade – What You Need to Know - 20th Apr 18
Is War "Hell" for the Stock Market? - 19th Apr 18
Palladium Bullion Surges 17% In 9 Days On Russian Supply Concerns - 19th Apr 18
Breadth Study Suggests that Stock Market Bottom is Already In - 19th Apr 18
Allegory Regarding Investment Decisions Made On Basis Of Government’s Income Statement, Balance Sheet - 19th Apr 18
Gold – A Unique Repeat of the 2007 and How to Profit - 19th Apr 18
Abbeydale Park Rise Cherry Tree's in Blossom - Sheffield Street Tree Protests - 19th Apr 18
The Stock Market “Turn of the Month Effect” Exists in 11 of 11 Countries - 18th Apr 18
Winter is Coming - Coming Storms Will Bring Out the Best and Worst in Humanity - 18th Apr 18
What Does it Take to Create Living Wage Jobs? - 18th Apr 18
Gold and Silver Buy Signals - 18th Apr 18
WINTER IS COMING - The Ongoing Fourth Turning Crisis Part2 - 18th Apr 18
A Stock Market Rally on Low Volume is NOT Bearish - 17th Apr 18
Three Gold Charts, One Big Gold Stocks Opportunity - 17th Apr 18
Crude Oil Price As Bullish as it Seems? - 17th Apr 18
A Good Time to Buy Facebook? - 17th Apr 18
THE Financial Crisis Acronym of 2008 is Sounding Another Alarm - 16th Apr 18
Bombs, Missiles and War – What to Expect Next from the Stock Market - 16th Apr 18
Global Debt Bubble Hits New All Time High – One Quadrillion Reasons To Buy Gold - 16th Apr 18
Will Bitcoin Ever Recover? - 16th Apr 18
Stock Market Futures Bounce, But Stopped at Trendline - 16th Apr 18
How To Profit As Oil Prices Explode - 16th Apr 18
Junior Mining Stocks are Close to Breaking Downtrend - 16th Apr 18
Look Inside a Caravan at UK Holiday Park for Summer 2018 - Hoseasons Cayton Bay Sea Side - 16th Apr 18
Stock Market More Weakness? How Much? - 15th Apr 18
Time for the Gold Bulls to Show their Mettle - 15th Apr 18
Trading Markets Amid Sound of Wars - 15th Apr 18
Sugar Commodity Buying Levels Analysis - 14th Apr 18
The Oil Trade May Be Coming Alive - 14th Apr 18

Market Oracle FREE Newsletter

Trading Lessons

Stock Market Elevated Risk Premia Suggests the Worst Yet to Come

Stock-Markets / Financial Crisis 2018 Mar 28, 2018 - 01:56 PM GMT

By: Builderadv

Stock-Markets

Stock markets ended very weak yesterday. Any ounces of bounce is sold as we saw yesterday. The economy per se is doing just about fine.

Home Prices: Rising at its fastest
The S&P CoreLogic Case-Shiller National Home Price Index, which measures the price of a typical single-family home in major metropolitan areas across the country, rose 6.2% in January, down slightly from a 6.3% year-over-year increase reported in December. The 10-city index gained 6% over the year, unchanged from the prior month. The 20-city index gained 6.4%, up slightly from 6.3% the previous month.


However, consumer Confidence declined

U.S. consumer confidence fell in March, dragged down by consumers’ perception of current and future economic conditions in light of recent stock-market gyrations. The Conference Board said Tuesday its measure of U.S. consumer confidence decreased to 127.7 in March from an 18-year high of 130.0 in February. Consumer confidence will decline dramatically over the next few months if S&P falls down below 2600.

The yield on the 10-year US Treasury rose 1 basis point to 2.784 per cent, still hovering at seven-week lows, while that on Japanese 10-year government bonds was virtually unchanged, at 0.029 per cent.

Stumbling blocks for Markets
VIX : Elevated risk premia

VIX hourly chart show that the markets are seeing elevated levels of risk premia. Despite what charts and technical analysts say, unless VIX drops below 15, we see major correction in equity markets to resume next month.

SPX : Weak (Very)

SPX triangle consolidation has broken to the downside. The fact the prices remain outside this zone shows we are going to see even more declines. Markets are very weak.

GOLD: Breakout is nearing but NOT yet broken out!

GOLD is at a key resistance at 1350. This is a resistance which has held since 2013. So its a fairly big level to overcome. In case if it does move convincingly above, we could see a minimum move to 1550 levels

CRUDE: Bullish but resistance near

Brent crude, the international benchmark, slipped 0.7 per cent to $69.65 a barrel, pulling back further from the one-month high of $71.05 it notched on Monday. West Texas Intermediate, the US marker, fell 0.8 per cent to $64.74 a barrel after US crude inventories rose by 5.3m barrels last week, coming in higher than expected. Opec and Russian officials are considering creating a longer-term oil alliance to keep prices in check, according to Saudi Arabia’s crown prince Mohammed bin Salman.

Forex Markets:
EURUSD Monthly: Heavy resistance

EURUSD Monthly chart show the big resistance at 1.25 zone. However because EURUSD is not backing out of the level, means bulls are readying to take this higher. We see 1.27 coming very soon.

EURUSD Weekly

EURUSD weekly charts show the bullish flag which has been broken upwards. The move to 1.27 is now underway. It has been sluggish but it is picking up

We send a lot of detailed trade setups and trend directions for all major forex pairs like EURJPY, GBPJPY, USDJPY, EURAUD, AUDUSD, GBPUSD, USDCAD, CADJPY, AUDJPY and so on....Detailed trade setups are shared via our premium posts at buildadv.com You need to be Platinum subscriber at buildadv.com to read these trade setups: Platinum Membership at buildadv.com

We also a run a automated Trade copier for forex trading. It has done well with positive returns every single month since 2010 to 2018. If you would like a automated trading solution and you have a MT4 trading account, please reach out to us at contact us

Bond Markets: Yield is flirting higher

US10Year yield is at 2.79%. It has corrected from 2.9% but only mildly and one that cannot called a correction. Howevera stock market correction, will see yields back to 2.65%
Dollar Index: Break and Bounce


DXY breaks the wedge down. We are seeing mild support at 89, but the bounces are weak and it will continue lower from here on.

Summary: We see no reason to become neutral on risk. As long as VIX stays elevated, we see extreme pain coming in US equity markets and then world wide.

Trade Copier updates

The Trade copier has made over 9% this month for clients. Our long term equity curve continues to rise. The system has seen all markets since 2010 and has made returns every single month. If you would like to copy these signals to your MT4 trading account, please contact us here: Contact us

By Buildadv

http://buildadv.com/

About Buildadv:
Buildadv is a investment management firm. We specialize in premium trading research, chart setups, trading insights and a forex trade copier which generates returns for MT4 trading clients. We operate the BUILDFX Trading system which has a rich history of over 8 years of trading history generating an average return of over 15% a month.
Email: adminsupport@buildadv.com
Website: http://buildadv.com/contact/

Copyright 2018 © Buildadv - 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 losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2018 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

6 Critical Money Making Rules