Category: Financial Crash
The analysis published under this category are as follows.
Wednesday, June 19, 2013
Unsupported Bullish Investor Sentiment - Stock Market Set to Crash? / Stock-Markets / Financial Crash
By: InvestmentContrarian
Sasha Cekerevac writes: If one were to look at the current state of the stock market, because of the substantial run-up in prices, one would think that investor sentiment is being based on the bullish opinion that corporate earnings will continue to rise.
However, a look below the surface would reveal that corporate earnings are not growing anywhere near the levels necessary to sustain the current enthusiasm in investor sentiment.
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Friday, June 07, 2013
Don't Ignore the Hindenburg Stock Market Crash Omen / Stock-Markets / Financial Crash
By: Money_Morning
David Zeiler writes:
The Hindenburg Omen-a harbinger of stock market crashes-eerily appeared again last week...and the Dow Jones promptly dropped 205 points. But its appearance brought mostly scorn from the mainstream financial media.
Here are just a few of the headlines from the past week:
"Hindenburg Omen is Just Hot Air"
"Why 'Hindenburg Omen' Is Just a Superstition"
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Thursday, June 06, 2013
Stock Market Margin Buying Surpasses 2007 Danger Levels – Another Crash Coming? / Stock-Markets / Financial Crash
By: Money_Morning
Gary Gately writes:
There's nothing like buying securities with money you don't have - or, more precisely, with borrowed money from your broker, with your investments as collateral.
It's called buying on margin, and it's soaring as the market continues its tear and speculative investors seek a piece of the action. As your stocks appreciate you can borrow even more. A market rally lets you expand your portfolio by piling on more debt.
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Wednesday, June 05, 2013
A Summer Stock Market Crash Scenario / Stock-Markets / Financial Crash
By: Clif_Droke
Despite the recent weakness, the broad market has displayed a fair amount of resilience in the face of rising interest rates and falling commodity prices. The charts even leave us with some hope that there will be one more rally to new highs in the coming weeks. But a growing list of problems also suggests the market could be setting up for a repeat of the 1998 mini-crash later this summer.There are several parallels between now and the spring and summer of 1998 which led to the July-October decline. The year 1998 was an exceptionally strong one for U.S. equities for the first half of the year; that year also witnessed a strengthening domestic economy. Like this year, however, 1998 saw trouble begin overseas with global weakness reflected by falling commodity prices.
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Thursday, May 30, 2013
How to Protect Your Stock Market Portfolio Profits From a Crash / Portfolio / Financial Crash
By: Money_Morning
Tim Melvin writes: Thanks to billions of dollars in quantitative easing from the U.S. Federal Reserve, fears over a looming stock market crash have been put on hold lately.
The Standard & Poor's 500 Index is up 16% this year. The market's outstanding performance has shrugged off weak earnings reports, slowing growth in China, and continued weakness in Europe.
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Friday, May 24, 2013
Stock Market Set Up for a Crash / Stock-Markets / Financial Crash
By: Anthony_Cherniawski
About 77% of all Broadening Wedges do not retest thw lower trendline. The rest will either test the trendline or move back inside the body of the formation briefly. That is why I suggested a retracement to 1645.00. A quick scan of the Fibonacci levels now suggest that a 38.2% retracement may not be out of the question.
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Tuesday, May 21, 2013
Crash Proof Your Stocks Portfolio - Parallels to 1987 / Stock-Markets / Financial Crash
By: Axel_Merk
With the stock market seemingly reaching new highs every day, should we worry about a crash that puts an end to the party? If so, how should investors prepare? Let us explain.
Thursday, May 16, 2013
Warning: Why My Flash Crash Alert Flag Is Flying High / Stock-Markets / Financial Crash
By: Bill_Bonner
Whoa! Investors are acting as if it were 2007 all over again.
USA Today has the story: Emboldened by soaring stock prices and record-low borrowing costs, stock investors are taking out loans against their portfolios at the fastest pace since before the Great Recession hit.
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Friday, May 10, 2013
Margin Debt and the Next Stock Market Crash / Stock-Markets / Financial Crash
By: Clif_Droke
The latest fear on Wall Street is that record levels of margin debt may end up toppling the stock market rally.
NYSE margin debt recently reached its highest level since 2007 before the last major stock market peak and credit crash. Stephen Suttmeier, technical research analyst at Bank of America, noted that margin debt, rose 28% in March from a year ago to $380 billion. That figure is slightly below the July 2007 peak of $381 billion, although analysts speculate that April's margin debt totals (which haven't yet been released) have already surpassed this mark.
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Thursday, May 09, 2013
Flash Crash of 2010: Could the Dow Tumble 1000 Points Again? / Stock-Markets / Financial Crash
By: Money_Morning
We've just marked the third anniversary of the Flash Crash of 2010.
That May afternoon was already a down day for the Dow, with the index off by about 300 points since trading opened. Then, at 2:45 p.m., the Dow rapidly plunged by another 600 in just five minutes. By 2:47 p.m., the Dow had lost a staggering 998.5 points.
By 3:07 p.m., the losses had reversed and the Dow picked up most of those 600 lost points. In just about 20 minutes, the Dow had lost close to 9% of its total value - and then regained it.
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Thursday, May 09, 2013
Stock Market Euphoria Phase Turns Into Parabolic Phase That Always Crash / Stock-Markets / Financial Crash
By: Toby_Connor
The euphoria phase of the bull market that I warned about months ago is now beginning its final parabolic phase.
I'm guessing we still have another month to month and a half before this runaway move finally ends. Depending on how far above the 200 day moving average it ends up stretching, I think there's a pretty good chance we will see the entire intermediate rally wiped out in a matter of days or even hours when this house of cards finally comes tumbling down.
Friday, May 03, 2013
Stock Market Will Crash When Central Banks Stop Printing / Stock-Markets / Financial Crash
By: DailyGainsLetter
Moe Zulfiqar writes: As central banks around the world have taken money printing and easy monetary policy, such as low interest rates, as their key tools to boost economic growth, there are concerns among investors about what happens once they actually stop and bring their monetary policy back towards normalization—raising interest rates and no longer printing money like they are doing now.
Wednesday, May 01, 2013
Is the Fed Setting Up the Mother of All Stock Shorts? / Stock-Markets / Financial Crash
By: Jesse
The timing may be tricky, but such severe distortions in valuation as shown in the chart below can often set up special opportunities for investment profits when the eventual reversion to the mean, or norm, occurs.
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Wednesday, May 01, 2013
SPX to Join GOLD in Market Panic Cycle? / Stock-Markets / Financial Crash
By: Anthony_Cherniawski
After much deliberation and calculations I have concluded that the blue Master Cycle (starting June 4, 2012) concluded on February 26. This is what I call a “sleeper cycle.” The reason that it passed my attention was that the VIX hit a 7-year low on March 14. As a result, the volatility/velocity wasn’t enough to punch below the 50-day moving average as we had in November. The same thing happened in the summer of 2006. The result was that virtually every cycles analyst missed the 4-year low on June 12, 2006.
Friday, April 26, 2013
Stock Market Reaches Correction Apex, Gold Panic About to Begin / Stock-Markets / Financial Crash
By: Anthony_Cherniawski
It now appears that SPX has reached the apex of its corrective wave and may have started down shortly after 2:00 pm eastern time. I went to a Rotary lunch today and several members mentioned that they bought more stock, indicative of the sentiment of the day.