How to Know Exactly When the Next Bear Market Starts

Let’s face it. We all want to know when the next bear market will start. Fortunately, there is a way to know. There are actually many tools that will tell us exactly when the bear market starts. Of course, they all signal after the market turns. Even though signals from some tools will come after the down turn is underway, these signals could still provide a profitable warning. And, it could be that early signals are dangerous to your wealth. Early Can Be Devastating Stocks can be on a sell signal well before the market turns down.  The chart of the popular CAPE ratio is shown below t...
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What Florence Could Mean for Stocks

  It’s a familiar story. A hurricane makes landfall and devastates a large area of land. There is a sad story from a human perspective. This year, the story is centered in North Carolina. Factset summarized the financial impact in a headline that read, “Insurance Industry and Financials Sector Earnings at Risk Again Due to Hurricane Florence.” The analyst noted, “Hurricane Florence is expected to cause significant property damage and business losses across the southeast coast of the U.S. over the next few days." From a corporate earnings perspective, what sectors or indust...
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How Lehman’s Anniversary Could Shake Markets in 2018

It was ten years ago when Lehman Brothers went bankrupt. That was also in the midst of a bear market and that bear market was to become significantly worse. Lost among some of the headlines is the fact that stocks were already in a bear market when the Lehman crisis unfolded. That makes comparisons between now and then less significant. Now, Lehman was a Wall Street institution and the bankruptcy of important firms has always rattled investors. History Has Lessons for Today History shows that 2008 was not unprecedented. There were also problems with Wall Street firms in the past. Acco...
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This is Where the Next Global Boom Could Start

  It’s been ten years since Lehman Brothers collapsed, plunging the global financial system into chaos. Regulators and legislators have taken steps to ensure that crisis won’t happen again. But, like the general who is always fighting the last war, legislation and regulation can’t address the next crisis. That leaves investors and financial analysts always on the lookout for the next crisis. They have had several scares over the years with nearly endless crises in the euro zone and deep market plunges in China. Lesser known problems could also develop into unexpected problems. ...
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How to Use the Popular Stochastic Indicator

Source: Alchetron.com   If you have been looking at stock charts for some time, you are probably familiar with the stochastic indicator. It is one of the most popular momentum indicators applied to charts and is widely used. But, even experienced traders may not fully understand what the indicator does. Defining Stochastics Stochastics is an indicator that has withstood the test of time. According to market historians, this indicator was believed to be developed by a market technician named George Lane although there is some question as to whether or not it was the effort of any ...
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Congress Can’t Be Good for Social Media Stocks

Political junkies often spend a great deal of time on web sites like Politico, The Hill and Roll Call. These are sites that describe what’s going inside Congress, the White House and executive agencies. They dig deep into the legislative and rule making process. Sites like that are useful for many individuals, especially if Congress or executive agencies are interested in their business. Energy companies, for example, are often subjected to new rules and the rules can carry costs. It’s rare to see an article on political sites that is good for a company. Congressional oversight or ne...
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This Popular Indicator Can Be Improved Upon

  Traders might disagree on whether a stock should be bought or sold. They might disagree on the name of the pattern they spot on the chart. But, one thing they do seem to agree on is that indicators should be added to charts because these tools are useful. The price chart depicts the price action and traders have been searching for patterns on the charts since at least the early 1900s. By the 1940s, many traders had added moving averages which were designed to highlight the trend. Then, they began adding indicators to charts as shown below. This is a chart of the SPDR S&...
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China Is Front and Center in the Trade War

  Trade war fears are now near the top of almost every investor’s list of fears. That’s at least partly because the possibility of a trade war appears to be unprecedented. Investors have become comfortable with the idea of globalization even knowing there are costs associated with free trade. The costs of free trade are often easy to overlook. One of the greatest costs of free trade, at least according to many pundits right now is lost jobs. But, job losses have always been an issue that is less concerning to those with jobs. Ronald Reagan recognized this in the 1980 Presiden...
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