As stock market bears gasp in disbelief, the Dow powered into even higher highs in the scorching post-Christmas rally yesterday. Does something smell fishy to you about this stunning move? It certainly did to me – until I discovered who the big buyers are. And
January was a record-breaking month for shares (but not all) – just as was December, but in the opposite direction, of course. If you had taken a vacation in the winter sun in those two months you would have asked what all the fuss was
In a previous post The Oil Price is Suddenly Hot News – Has it Topped?, I pointed to the manic extreme bullish posture of hedge funds in the crude oil bubble which was waiting for the pin to arrive. It duly arrived on Friday. It
Last time, I explained at length why your views are not nearly as important in forecasting the price path as that of the other traders. Unless you have more funds available than hedge funds, central banks and governments put together, your trading will have precious
Yes indeed, the surging oil price story is all over the media with forecasts for $100, $150 and I even saw one for $300 yesterday as they come out of the woodwork in a torrent. It appears everyone is finally on board the bull train
Regular readers know that I make a special focus on forecasting major trend changes in my swing trading approach. Not only does that give me the opportunity to take maximum profits from the old trend, but also gives me the ability to jump on the
There is one Golden Rule in trading I observe and that is: Always Expect the Unexpected. Although I have been bearish stocks since the January high, last week’s events gave me pause for the immediate downturn. Not only did North Korea appear to cosy up
Who remembers the 1980s British TV series Tales of the Unexpected? They were stories with an unexpected twist at the end – and the stock market story of 2017 could well have been one of them! This Year of the Unexpected finished with shares coming
Yesterday’s volatile stock market action was telling. For the first time in weeks, the Dow suffered a significant fall – but then recovered. The VIX Volatility Index was likewise volatile (sharp up and then sharp down) The news items that emerged were that a former
I ask that question rhetorically because I have asked it several times this year – and the answer was always ‘no’. A few weeks ago, I noted a rush of MSM articles that proclaimed the end was nigh – and I took that as a
Over the years, I have noted that ‘surprise’ price thrusts often occur on Fridays. During the week, the market is relatively quiet which lulls traders into a state of lethargy. And on Friday many professional traders are glad to escape the boredom and leave their
At certain manic times, such as the one we are currently in, the quest for speed goes hyperbolic. In the 1920s, it was all about air speed races, road races and speedboat races (Donald Campbell in Bluebird). There was an ongoing race among ocean liners
