Wednesday, January 28, 2015

"Equities Will Be Devastated" Crispin Odey Warns, Looming Recession Will Be "Remembered For 100 Years"

"I think equity markets will get devastated," warns famed $12bn AUM hedge fund manager Crispin Odey in his latest letter to investors. Having been one of the biggest bulls of this particular central bank artificial-bull cycle, his dramatic bearish tilt (as we discussed what he thinks are the biggest risks underpriced by the market previously), is notable. Finally, Odey fears major economies are entering a recession that will be "remembered in a hundred years," adding that the "bearish opportunity" to short stocks looks as great as it was in 2007-2009 (more)

Please share this article

Profit From the 2015 ‘Dogs of the Dow’

A traditional Wall Street investing strategy that pops up every January is placing wagers on the “Dogs of the Dow.”
The tactic involves investing equal dollar amounts in the 10-highest yielding stocks in the Dow Jones Industrial Average and holding them until the end of the year.
The approach, including dividends, returned 10.8% last year. That was a hair better than the Dow’s 2014 gain of 10% (including dividends).  (more)

Please share this article

Gold Is on the Verge of a Major "Buy" Signal

Gold has been on fire.
Over just the past four weeks, the price of gold is up $110 per ounce. That's a gain of almost 10%. It's one of the best monthly performances for the metal since the price peaked back in 2011.
If gold can hang onto these gains over the next week, we'll have the first long-term buy signal for the metal since mid-2009. And it could lead to big gains in the price of gold...
Take a look at this long-term monthly chart of gold with its Moving Average Convergence Divergence (MACD) momentum indicator... 
The MACD indicator is often used for determining overbought and oversold conditions. But it can be used as a long-term timing indicator, too.  (more)
Please share this article

Consolidation of US Stock Averages

Coming into 2015, the major US Stock Market Indexes like the Dow Industrial Average and S&P500 were not areas where we wanted to be putting new money to work. Not only did we have failed breakouts around the holidays which is always a bad sign, but I felt we needed some consolidation, or digestion, of the gains over the past few years. Markets can consolidate gains in one of two ways, either with a downside correction in price or sideways through time. The latter is obviously the healthier version of the two.
Today I want to take a look at a few of the Major US Stock Market Indexes to show how these averages have been consolidating over the past several months. The first one is the S&P500 representing 500 of the largest corporations in America. Look at price trading within these two converging trendlines and essentially at the same price that it was in early November:
1-27-15 spx
The next chart is the Dow Jones Industrial Average which includes 30 humongous US Stocks. Notice how similar this pattern is to the S&P500. Prices are right where they were in early November and trading within this symmetrical triangle looking formation defined by two converging trendlines:  (more)
Please share this article

2 Popular Investments Show Strength in a Sideways Market

All major U.S. indices closed in positive territory last week, led by the tech-heavy Nasdaq 100, which gained 3.3%. However, all others remain in negative territory for 2015 as stocks continue to drift sideways.
Although this recent sideways movement tends to lull investors to sleep, it is important and worth keeping a close eye on because it represents the probable springboard for the market's next multi-month trend. (more)

Please share this article