stock market bloodbath - stock market bloodbath profits guide

are we in a bear market

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stock market bloodbath - stock market bloodbath profits guide

stock market bloodbath - stock market bloodbath profits guide

Stock market bloodbath. That is the best way to refer to the stock market right now 2 weeks into 2016.

Here is a chart of the S&P 500 daily chart. OUCH! You can see it has formed some sort of an elongated wedge pattern so far. [chart below]

Its been a stock market bloodbath lately. But without realizing it, you could be sitting on a winning lottery ticket. Yes, its true.

The stock market’s bloodbath Friday was not the final flush needed to clear the way for a recovery, according to a widely-watched indicator of selling intensity.

Many technicians, as well as old-school fundamental investors like Warren Buffett, say that the time to start buying in a falling market is after signs of panic, or capitulation by the bulls. Well, if you are not seeing panic right now, we do not know what is.

But after the Dow Jones Industrial Average DJIA, -2.39%  plunged 391 points, or 2.4% on Friday--the biggest one-day percentage decline in 3 1/2 months--the New York Stock Exchange’s

The A50R Chart, which represents a value of overbought and oversold areas on the stock market, is clearly pointing to the market being very very CHEAP HERE. See the chart below. Currently as you read this post, we are sitting at 12.40. Its an area seen as been very very low. Normally we do not see these levels for too long. 







Does it mean the market CANNOT experience more selling. No!, that is not what we are talking about as lots of investors are panicking right now, and every bad bit of news coming out of china is causing some people to 'shit the bed pan' the last few weeks.

In other words, sellers tend to hit the sell button a little harder when the market is falling, then when it isn’t.

As an indicator the A50R indicator could be telling us that a big bounce could be coming to the stock market later in the year. And it could be one of those bounces that goes up 100 - 200 points rather fast. So you better be ready if that actually does happen.

Also On Friday, the NYSE’s Arms rose to just 1.791. That is a better sneak peek at what the market will actually do in the short term. You can get the latest chart in our LIVE VIP NEWSLETTER CLICK HERE!

In all my years, I actually cannot remember the market falling this hard after XMAS, or 2 weeks after the new year! It is terrible, and its wiped literally billions off the value of investments. I can recall several other times, the market GOT A SWOOP down early in the year, only to come back by the end of the year. 

Its probably a bit melodramatic to start predicting what is going to happen in DECEMBER 2016 here in JANUARY. Yes, lets not be pre-emptive, but so far this does feel a little bit different to 2008. Of course there are lots of brokers, and even main stream media telling you to get on the phone and SELL, SELL, SELL, almost everything. However looking back in recent history after big drops like that, early in the year that would be a big big mistake. 

Are investors in a state of PANIC! The quick answer to that would be a big FAT NO!, but are they really scared, well sure. When every you see significant sell offs in the market, it normally leads to other people who are heavily invested, to start a domino effect, and do what other people who are heavily invested in the market do. 

But when there is a bloodbath, or semi-bloodbath in the market, do the smarter investors start selling. No, what they do is see opportunity where other people are screaming FIRE! and heading for the exit doors. 

One of the smartest investors in the world, by the name of WARREN BUFFET was once quoted as saying. "buy when people are panicking, and sell when people get very very greedy" Its a good rule to go buy, and its one of his top strategies he has incorporated through bear markets, and bull markets to formulate HUGE FORTUNES.  


 I cover more and more technical analysis ==> HERE in our VIP members section.

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stock market future predictions

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stock market future predictions

stock market future predictions that might shock you !

source :  marketwatch

Well, OK, I can tell you that our latest stock market future predictions will probably not shock you, but there is alot of confusion out there right now. What with OIL crashing, and also stocks closed higher Tuesday, recovering slightly from a sharply lower start to the year and shaking off pressure from an intraday dip in oil below $30 a barrel.

Stabilization in the Chinese yuan overnight and oil's initial attempt at gains helped stocks rise more than 1 percent in the open.

The major U.S. averages recovered some of their opening gains after an intraday turn lower as oil declined, but ended off session highs.

"For worldwide market sentiment, if China can stabilize it definitely can help markets stabilize worldwide. but that has to be sustained and oil is still driving the market," said Peter Coleman, head trader at Convergex.

The Nasdaq composite outperformed to close up 1.03 percent, off session highs of a more than 1.5 percent rise but after posting eight-straight days of losses. The Nasdaq composite closed lower Monday to post its first eight-day losing streak since January 2008.

"The good news is, after the close in energy prices, we know it's not going to go any lower," said Art Hogan, chief market strategist at Wunderlich Securities.

Oil is hot on the lips of everyone, and prices remained near their lowest in more than a decade as oversupply concerns persisted. In intraday trade, Brent futures hit a low of $30.34 a barrel and U.S. crude oil futures briefly fell more than 4 percent to below $30 a barrel.

WTI has settled lower every single day of the year so far, for a seven-day losing streak, its longest consecutive decline since a nine-day losing streak in July 2014.

"Whatever the number is, the logic behind it is the market has to reach a shocking level for oil producers of all (types) to respond," said John Kilduff, founding partner at Again Capital. His target is $18 and he expects oil to trade in a range between $14 and $48 this year.

Copper hit a fresh low going back to April 2009. The decline pressured Freeport-McMoRan, which closed down 4.6 percent, well above session lows. Freeport shares fell 20 percent Monday amid declines in copper and news Arch Coal filed for Chapter 11 bankruptcy protection, as part of a restructuring agreement reached with lenders who hold more than $4.5 billion of the coal mining company's debt.

"The Arch Coal bankruptcy reminds me that 0 is the ultimate number for these bankruptcies," Kilduff said.

In the close, the Nasdaq composite and Dow Jones industrial average remained 10 percent or more below their 52-week intraday highs, in correction territory. The S&P 500 closed within 10 percent of its 52-week high.

"Today is a relief rally on China's ability to stabilize their own markets and I believe China-inspired volatility will continue in 2016 because what they need to do is move to a freer market and they're having trouble letting go," said Doug Cote, chief market strategist at Voya Investment Management.
Overnight, the Chinese central bank set the yuan mid-point fix at 6.5628 against the dollar, similar to Monday's fix of 6.5626.

"You can't both do reform and maintain a 6.5 percent growth rate at the same time. ... The feedback loop is slowing global growth. That's one of the implications of low oil," Cote said.
In November, China's President Xi Jinping said the country's economic growth rate will not be less than 6.5 percent in the five years to 2020, Reuters reported, citing the state-run Xinhua news agency.

Traders were watching to see whether Tuesday's early rally was sustainable. Weakening in China's currency and speculation of further devaluation helped pressure U.S. stocks to end the first trading week of the year down nearly six percent or more, their worst week since 2011.

"At the highest level, investors are starting to adjust to the uncertainty of a new regime of interest rates in the United States," said Omar Aguilar, chief investment officer, equities, at Charles Schwab Investment Management. "Then we have significant headwinds coming out of emerging markets."

I think, the SPX would have to rally about 100 points by the end of the week Friday in order to suggest a shakeout (read: false breakdown) has occurred, As it stands, breakdowns are abundant from a bottom-up perspective, so we think near-term strength is best viewed as an opportunity to take down exposure.

stock market future predictions

We can go and take a look at some charts! You can see if we zoom back and take a look at the more longer term or the SPX weekly chart you can see that we are currently at 1922, and since the end of 2015 we could make the assumption that we are putting in a series of HIGHER LOWS! That is of course we do not just drop like a rock here, and fall off a cliff. If that was to happen, that would be a good time to hit the panic buttons and put yourself in BUG OUT mode!! But the weekly chart is significant here, so we must watch and wait to see what Mr Market has in store for us.

The other interesting thing is the DAILY chart of the S&P. Have a look at that chart. You can see that the daily chart is clear showing 2 GREEN DAYS! That has not happened for a long time, so that could be significant. 

 The last several times we had 2 GREEN DAYS in a row it lead to rallies. We are not saying that is set in stone, but it could be significant here, and it could be a warning that some sort of rally is about to occur. Its hard to swallow for some people that just a few months ago on the S&P we were at 2100. Today, we closed at 1922. A lot of traders have been cut up and lost money on the way down too. I hear people screaming about some sort of top, and this is the 1929 crash all over again! That is crazy!, and you need to put that to bed if that is your train of thoughts right here. I guess its smart to remain vigilant here, and always follow your charts. I was talking to a friend over the phone on the weekend who has lost $50,000 on the market in the last two weeks. He told me he thought the market would keep going down, but right when he added to his shorts, the market bounced violently and he kept getting stopped out. So be careful, and keep your position sizes really small. That will save you from getting your nuts chopped off and for blowing up your account. Anyone that tells you this market will go down like 1929 has rocks in their head, as this VOLATILITY is likely to be the same as last year in 2015. Really big rallies, and really big sell offs at the same time. If you are not ready for that this year, then this game is not for you. 


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investing in biotech - The best way to be investing in biotech

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investing in biotech

investing in biotech - made easy!

source :  marketwatch


Biotech stocks finished out the month on a high note after a roller-coaster ride this year. Yet according to one top analyst, investors must trade the space carefully in 2016.

"It's really a stock picker year," RBC Capital Markets Michael Yee told the "Fast Money" traders last week.

Yee explained in his most recent note that plenty has changed in the biotech industry in 2015. And investing in biotech could be a good action to take if the smart money moves in there in 2016. The sector has evolved so rapidly that the public knows more about diseases, targets and designing better-targeted drugs than ever before.

However, while he remains "fundamentally positive" on secular innovation, he said overall outlook and expectations for biotech stocks have shifted. According to Yee, there are four major headwinds in the space that temper his view on stock performance in 2016.

First, "there's a big money-flow change going on," he said. "After three years of gains of well over 30 percent a year in biotech, most fund managers have been overweight this sector for many years and I think there's a situation here where people are taking that overweight position and moving to a lot more equal weight position."

As investor interest is a crucial part of research and development for many biotech names, the possibility of a slowdown in growth increases in this type of environment.

Secondly, "I think as we're going into an election year I think people are going to be a little more cautious going into the political rhetoric that is going to pick up," Yee said. "I see biopharma stocks having a little bit of a tougher time in a political election year."

Skyrocketing drug prices have been the topic of many political debates and conversations involving Democratic presidential contender Hillary Clinton, Yee notes. Earlier this year, Clinton injected herself into the drug pricing controversy surrounding the medication Daraprim.

Whether the industry experiences pressure to lower prices or not, the general investor is going to shy away from investing in controversial stocks.

Third, Lee said that the technicals are sounding the alarm. "We've broken down on the Nasdaq biotechnology index (NBI) on the 200-, the 100- and the 50-day moving averages — I think it's going to take some time for us to grind back up," Yee said.

Yet it remains to be seen if the August lows can continue to serve as support for 2016.
Lastly, Yee sees less chance of an earnings upside to the consensus models for each of the large-cap stocks versus previous years. In 2015, Amgen, Gilead, Biogen and Celgene all managed to trounce their own guidance by 10 to 50 percent. With less surprise catalysts in 2016, maintaining that momentum will be much harder.

Despite the potential for all these headwinds, Lee said there are three names that could break away from the pack in 2016: Biogen, Celgene and Vertex.

"Biogen has a number of catalysts, that stock has been beaten down all year and I think that stock starts to recover," said Yee. "Biogen has the most upside and downside potential with four big catalysts coming in the next 12-18 months."

Vertex and Celgene also have several catalysts on the horizon in 2016 for their drugs to treat cystic fibrosis and multiple myeloma, respectively. He says Celgene could start to move back up toward its highs.

"You need specific catalysts to move higher this year," said Yee.

investing in biotech

Biotech Daily Chart.

investing in biotech

Contrarians are currently advising against investing in biotech . However you must remember right now, we are experiencing some of the most fast, and rapid technological advancements in medicine and bio-technologies, the world has ever seen. So today, perhaps you can take this post not as a 'you must do this' type post, but as a nudge, telling you, 'hey you in 2016, you really must take a look at this' because we have been looking around at some of the other sectors, and none warm the cockles of our heart just like the biotech one does.

You can see the chart above, is also forming what looks to be an ASCENDING TRIANGLE pattern, and in technical analysis terms, patterns like this, always tend to form before prices increase in price. So let that be a heads up for you.

We all agree that 2015 was not a good year for BIOTECH, but when you have a look back, there are lots of messy charts, and BIOTECH did seem to hold up ok, with lots of relative strength. So if 2016 was to be one of those years where everything does in fact recover, you will want to look for the sectors that show clear cut relative strength and BIOTECH is one of those. 

There are several other charts we will share with our VIP members, but they have been concentrating on some of the BIOTECH sectors lately, and investors who are selective and astute in 2016, will make very HANDSOME profits!!! and one action to take, could be investing in biotech going forward.


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