Current Orientation on U.S. Stocks
Keeping You on the Right Side of the Markets
Financial Market Technical Analysis
Elliott Wave :: Intermediate and Long Term Swing Trading
Get the balanced, objective analysis you need to profit from timing moves in the stock market, gold, precious metals, commodities, treasuries, bonds or forex!
Eventually, all bull markets will see significant corrections of price gains. During the last secular bull market from 1982-2000, SPX saw corrections of 14.18%, 35.94%, 20.36% and 24.51% on its way to a gain of 1419%.
Even the terrifying 1987 crash was nothing but a correction in a perfectly trending long term bull market.
In my view SPX and US equities in general are in the process of finishing a bull wave that started in November 2012. It is possible that the bull wave can see a significant extension from current levels before it completes, but analysis tends to support limited upside and substantial downside risk going forward. When equally viable Elliott Wave counts compete, the technician needs to examine the technicals, liquidity, sentiment and psychology of the market to see which count is better supported by underlying conditions. In my view there is substantially more evidence to support a correction than there is to support a bullish extension at this time. For this picture to change, we would need to see a fairly immediate and aggressive bull breakout move at the outset of 2015. Failing that, if we see a continuation of last week's selling, it is likely that a sizable correction will be nearby.
Oil has been in a down trend now since it topped out in early June at $52 per barrel. Now trading at $41.05, oil is starting to get interesting for a near term bounce. I would not suggest holding it for longer periods but a technical bounce will be seen in the price. The key level is $40.00. This will also result in a key gap fill on the $USO (the oil tacking ETF). Patience as it falls, look for this level to make solid money off of.
The M&A action is insane right now. Almost daily there is a new deal announced, with one company buying another. Today we saw Oracle Corporation (NYSE:ORCL) buying NetSuite Inc (NYSE:N) in a deal worth approximately $9.3 billion. So why are all these buyouts coming over the last month or so? What is going on? Is there that much value in these names or is there something amiss.
Below are the the two main reasons why there are so many buyouts going on.
Investors are joining Verified Investing by the thousands, intrigued and excited by a website policing 1000's of Pro Traders, verifying every trade they take and compiling track records. In addition, the only reward a Pro for profitable information rule is by far the most popular. This finally puts average investors in the drivers seat in the financial world.
Common questions arise from Users of our system. We hope this will shed some light on how to consistantly profit from Pro…Continue
Superconductor Technologies, Inc. (NASDAQ:SCON) is a small cap company that has a history of mega moves. The small cap market right now is red hot and every investor is looking for that next big score. SCON is likely that stock. Trading at lows in an amazing long base of consolidation, this company has just peaked above the 200, 50 and 20 daily moving averages. Volume has been increasing over the last two weeks as well on accumulation. A break above $3.75 sends SCON to $6.25. There is huge…Continue
United States Steel Corporation (NYSE:X) reported earnings this morning. The stock has soared, making new 52 week highs.** Where is X heading and what caused the pop?Earnings were solid but this run…Continue
eBay Inc (NASDAQ: EBAY) reported earnings last Wednesday, July 20, after the bell and continued on its recent journey up to close at $30.49 on Friday, a 36% increase in less than a month! $EBAY is…Continue
Great Basin Scientific Inc (NASDAQ:GBSN) is setting up to likely pop big next week. A compilation of oversold, value, positive news, light sell volume and the right micro cap environment create the…Continue
3M Co (NYSE:MMM) is collapsing today, dropping to $180.14 -1.28 (-0.71%). This is following an all-time high yesterday. While most investors marvel at the stock move and want to buy, it is probably…Continue