• 13 hours Is This The World’s First Truly Democratic Stock Exchange?
  • 16 hours India’s Wealthiest Set To Hold $23 Trillion By 2028
  • 19 hours First Quarter Profits Slip For World's Top Oil Companies
  • 21 hours The Yuan May Be China's Biggest Weakness
  • 2 days Hedge Funds Having A Banner Year
  • 2 days Disney Heiress Asks “Is There Such A Thing As Too Much?”
  • 2 days BHP Turns Bullish On EVs
  • 2 days Investors Turn Bullish On America’s Nuclear Decommissioning Business
  • 3 days The $90M Inflatable Rabbit Redefining Modern Art
  • 3 days Huawei’s Fate In The Air
  • 3 days Tesla Slashes Prices Again
  • 3 days The Modern History Of Financial Entropy
  • 4 days Italy’s Central Bank Embraces Sustainable Investing
  • 4 days Trump Lifts Metals Tariffs To Cool Simmering Trade War
  • 4 days Researchers Push To Limit Space Mining
  • 4 days Could China Start Dumping U.S. Treasury Bonds?
  • 5 days Is Winter Coming For HBO?
  • 5 days Rise Of EVs Signals Peak Gasoline
  • 6 days Jeff Bezos Doubles Down On Space Colonization Ambitions
  • 6 days Gold Mining Stocks Stuck In Limbo
How Millennials Are Reshaping Real Estate

How Millennials Are Reshaping Real Estate

The real estate market is…

Market Sentiment At Its Lowest In 10 Months

Market Sentiment At Its Lowest In 10 Months

Stocks sold off last week…

Strong U.S. Dollar Weighs On Blue Chip Earnings

Strong U.S. Dollar Weighs On Blue Chip Earnings

Earnings season is well underway,…

  1. Home
  2. Markets
  3. Other

US Stockmarkets Update - Getting Scarier by the Day

This article was originally published at clivemaund.com at 10.20 am EDT on April 16th, 2015.


 

The giant bearish Rising Wedge in the S&P500 index shown on its 8-year chart below is now closing up rapidly and looks set to force a breakdown soon. While an upside breakout is possible, it looks highly unlikely, for a variety of other reasons that we will look at shortly. The top line of this Wedge is certainly of importance as the index has retreated from it on several occasions. Note the non-confirmation of recent new highs by the Dow Jones Transports at the top of the chart.

The long-term 20-year chart shows that we are at a good point for the market to reverse, from a cyclical standpoint, as the market has been rising for 7 to 8 years now, without even a significant correction for the past several years. The gap between the 2000 and 2007 peaks was of course 7 years. We know that the Fed has been intervening on Wall St's behalf to prop the market up in recent years, but these manipulative forces may soon be overtaken by reality. The rising dollar has sucked foreign capital into the US, but once the dollar starts to tumble, this flow could reverse and send the dollar lower still, forcing the Fed to raise rates, thus crashing the stockmarket.

All normal indicators are showing excess optimism in the market which is clearly a warning...


Larger Image - Chart courtesy of www.sentimentrader.com

Margin debt is at very high levels, showing that investors are max leveraged, similar to the situation at the 2000 and 2007 peaks, another bad sign...


Larger Image - Chart courtesy of www.sentimentrader.com

NYSE available cash is close to record lows - better print up another few trillion pronto!...


Larger Image - Chart courtesy of www.sentimentrader.com

Equities as a percentage of GBP are very high...


Larger Image - Chart courtesy of www.sentimentrader.com

The InsiderScore Buy/Sell ratio shows that Insiders are doing much more selling than buying now...


Larger Image - Chart courtesy of www.sentimentrader.com


Conclusion

The Fed has been goosing the market for years now with QE and heavy intervention every time it looks like it's going to drop at the behest of their masters on Wall St, creating massive distortions, which means that if they lose control for whatever reason this whole thing will blow up in their faces. The biggest threat to this enormous Ponzi scheme will be a self-feeding dollar collapse involving a reversal of capital flows, that only a significant rise in rates could halt. The closing up of the giant bearish Rising Wedge shows that we could be very close to this happening.

 

Back to homepage

Leave a comment

Leave a comment