In one week ... the difference between the Russell 1000 (Large/Mid) and Russell 2000 (Small) ... Clearly this is a continued bearish sign.
Graphs & Narration courtesy- Lance Roberts, Real Investment Advice _________________ Who is Bob Farrell? Bob is a Wall Street Veteran With Over 50 Years Of Experience - Markets tend to return to the mean (average price) over time When a rubber band is stretched so far, it must be compressed until it can be stretched … Continue reading Top Investing Rules – Wall Street sage, Bob Farrell
In the last five months, more money has been invested in stocks in the past 12 years! Individuals buy the most at the top, and the least at the bottom.- Bob Farrell, former chief technical analyst, Merrill Lynch
The wave pattern of stocks crested June 10 last year while volume crested February 12. Wave = 5 DMA - 35 DMA We are well aware that mood and sentiment play a role in the pattern of aggregate stock prices. On June 9, the front page B1 of the NY Times business section reads: "Despite … Continue reading Despite new highs, the price wave pattern of stocks continues a topping process
Parabolic advances are inherently unsustainable. Those who are familiar with the Elliott wave model for analyzing and forecasting financial markets know that a main trend takes the form of five waves. Thus, when the fifth wave is complete, a trend in the opposite direction is set to begin. Another insight into the Wave Principle is … Continue reading Anatomy of a Bursting Bubble
The public's current market mindset - especially among inexperienced investors is a reminder of the extremes surrounding the 2000 market top. According to an early February Deutsche Bank survey of online brokerage users, 61 % are under 34 years of age and 45% are in their first year of investing. Barron's reports (Feb. 25): Younger, … Continue reading Sentiment hits an extreme
That is — if you participate in the $1million stock giveaway announced by Miley Cyrus the "Party in the U.S.A." singer. Here's a March 31 Marketwatch quote: Miley Cyrus is giving away a total of $1 million worth of stock in partnership with Square Inc.'s Cash App. The singer tweeted on [March 31]... "Nothing is … Continue reading You may be a lucky winner
Penny stocks tend to be highly illiquid. In other words, it's difficult to buy and sell them at favorable prices. Even so, the lure of low-priced shares is hard for many market participants to resist, especially the novices like in 2000, when penny stock trading had reached a fever pitch. Well, just about the same … Continue reading Pennies from heaven
How do you resist the pull of passive logic? With this little reminder from Marcus Aurelius. "Never let the future disturb you. You will meet it, if you have to, with the same weapons of reason which today arm you against the present." It's absolutely true. The future might be bad. We never know the … Continue reading Making the difficult decision
The historical pinnacle of P/Es (P/E 10 YE) points to a bear today not the start of a secular bull. Source: Crestmont Research
The NAAIM index of professional investors, aka "smart money" turns notably bearish.
An apropos quote for today's asset allocation environment. It's only when the tide goes out that you learn who has been swimming naked.- Warren Buffet