Stock Indices

The S&P 500 index is trading at record high levels and optimism remains high with Barron's professional money manager survey indicating a record 74% money managers being bullish on markets even at current levels. [When one] measures valuations with respect to expected growth, [however, the ensuing ratio, the PEG ratio,] suggests overvaluation at these levels. [Let me explain further.] Words: 254; Charts: 1

It is a pure leap of faith to believe that if the Plunge Protection Team is indeed directly intervening, that it is acting in the interests of the average investor.

We make the case in the charts below that we could be near a bottom, which represents a great buying opportunity. A recovery could start as soon as this week.

There is no question a dark cloud is looming over U.S. financial markets and that cloud just got a little darker over the past two days as key support levels in all of the crucial equity indices were violated. This sends a loud and clear signal to pay attention. Even the darkest of clouds has a silver lining, though, so my goal here is to highlight some contrarian points of view on an otherwise gloomy market perspective.

It is the overall TREND of the market which determines a bull or bear market and, currently, that trend is still rising. Such will not always be the case, however, and we may now be in the process of a trend change. I am not talking about a 20% correction type bear market. I am talking about a devastating, blood-letting, retirement crushing, "I am never investing again," type decline of 40%, 50%, or more. Here's why.

Here are 3 charts from the PM complex that are very helpful in figuring out what the PM complex is up to and what they reveal is pretty amazing when you think about it. Take a look.

Ignore the headlines, the next crisis is here and if you're not already preparing for it, NOW is the time to do so.

I know, I know, no one likes the bearer of bad news — especially when it comes to stock prices - but someone needs to remind you what usually happens to stocks when the Fed raises rates so it might as well be me. They drop. Let me explain.

All reliable bottoms start with a reclamation of the 200-day moving average and the GDXJ currently shows absolutely no indication of a bottom yet. If it doesn't look like a bottom and doesn't smell like a bottom, it's probably not a bottom...

It is still too early to know for sure whether this is just a "correction" or a "change in the trend" of the market so pay attention to the market as its action this year is very reminiscent of previous market topping processes. Words: 859