Subscribe: RSS Feed | Twitter | Facebook | Email
Home | Contact Us

Posts Tagged ‘market decline January 2014’

What’s Going On: Market Pullback, Pump ‘n Dump?

Posted by Larry Doyle on January 30th, 2014 7:02 AM |

The consensus opinion by most market strategists coming into the year was that our equity markets would follow up the 25-30% gains of 2013 with another 8-10% gain this year.

The markets will have to experience a hellacious rally in the next two trading days or make an exception to an age old rule that January’s price action sets the direction for the year as a whole.

So what is going on with the markets? Are they simply experiencing a long overdue pullback? No doubt about that. Aside from a mild pullback last August and September of approximately 3-4%, the S&P 500 Index went straight up for the next 3 months to the tune of 12% to end the year with a 30% gain.

The 4% loss year to date certainly qualifies as a pullback but comes nowhere close to qualifying as a correction which market technicians define as a 10% decline.  The S&P 500 would have to retrace another 110 points on top of the ~75 points it has lost year to date to meet that definition.  (more…)

Market Warning Signs

Posted by Larry Doyle on January 24th, 2014 9:58 AM |

When everybody is on one side of a ship that vessel will tend to list and often has a hard time continuing to move in the same direction.

This navigating analogy is used very often on Wall Street and strikes me as very applicable a mere three weeks into trading for calendar 2014. Let’s get more specific in terms of what exactly I mean.

Sentiment indicators on Wall Street are defined as,

A graphical or numerical indicator designed to show how a group feels about the market, business environment or other factor. Sentiment indicators can be used by investors to see how optimistic or pessimistic people are to current market conditions. (more…)






Recent Posts


ECONOMIC ALL-STARS


Archives