Category: Financial Crash
The analysis published under this category are as follows.
Thursday, May 16, 2013
Warning: Why My Flash Crash Alert Flag Is Flying High / Stock-Markets / Financial Crash
By: Bill_Bonner
Whoa! Investors are acting as if it were 2007 all over again.
USA Today has the story: Emboldened by soaring stock prices and record-low borrowing costs, stock investors are taking out loans against their portfolios at the fastest pace since before the Great Recession hit.
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Friday, May 10, 2013
Margin Debt and the Next Stock Market Crash / Stock-Markets / Financial Crash
By: Clif_Droke
The latest fear on Wall Street is that record levels of margin debt may end up toppling the stock market rally.
NYSE margin debt recently reached its highest level since 2007 before the last major stock market peak and credit crash. Stephen Suttmeier, technical research analyst at Bank of America, noted that margin debt, rose 28% in March from a year ago to $380 billion. That figure is slightly below the July 2007 peak of $381 billion, although analysts speculate that April's margin debt totals (which haven't yet been released) have already surpassed this mark.
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Thursday, May 09, 2013
Flash Crash of 2010: Could the Dow Tumble 1000 Points Again? / Stock-Markets / Financial Crash
By: Money_Morning
We've just marked the third anniversary of the Flash Crash of 2010.
That May afternoon was already a down day for the Dow, with the index off by about 300 points since trading opened. Then, at 2:45 p.m., the Dow rapidly plunged by another 600 in just five minutes. By 2:47 p.m., the Dow had lost a staggering 998.5 points.
By 3:07 p.m., the losses had reversed and the Dow picked up most of those 600 lost points. In just about 20 minutes, the Dow had lost close to 9% of its total value - and then regained it.
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Thursday, May 09, 2013
Stock Market Euphoria Phase Turns Into Parabolic Phase That Always Crash / Stock-Markets / Financial Crash
By: Toby_Connor
The euphoria phase of the bull market that I warned about months ago is now beginning its final parabolic phase.
I'm guessing we still have another month to month and a half before this runaway move finally ends. Depending on how far above the 200 day moving average it ends up stretching, I think there's a pretty good chance we will see the entire intermediate rally wiped out in a matter of days or even hours when this house of cards finally comes tumbling down.
Friday, May 03, 2013
Stock Market Will Crash When Central Banks Stop Printing / Stock-Markets / Financial Crash
By: DailyGainsLetter
Moe Zulfiqar writes: As central banks around the world have taken money printing and easy monetary policy, such as low interest rates, as their key tools to boost economic growth, there are concerns among investors about what happens once they actually stop and bring their monetary policy back towards normalization—raising interest rates and no longer printing money like they are doing now.
Wednesday, May 01, 2013
Is the Fed Setting Up the Mother of All Stock Shorts? / Stock-Markets / Financial Crash
By: Jesse
The timing may be tricky, but such severe distortions in valuation as shown in the chart below can often set up special opportunities for investment profits when the eventual reversion to the mean, or norm, occurs.
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Wednesday, May 01, 2013
SPX to Join GOLD in Market Panic Cycle? / Stock-Markets / Financial Crash
By: Anthony_Cherniawski
After much deliberation and calculations I have concluded that the blue Master Cycle (starting June 4, 2012) concluded on February 26. This is what I call a “sleeper cycle.” The reason that it passed my attention was that the VIX hit a 7-year low on March 14. As a result, the volatility/velocity wasn’t enough to punch below the 50-day moving average as we had in November. The same thing happened in the summer of 2006. The result was that virtually every cycles analyst missed the 4-year low on June 12, 2006.
Friday, April 26, 2013
Stock Market Reaches Correction Apex, Gold Panic About to Begin / Stock-Markets / Financial Crash
By: Anthony_Cherniawski
It now appears that SPX has reached the apex of its corrective wave and may have started down shortly after 2:00 pm eastern time. I went to a Rotary lunch today and several members mentioned that they bought more stock, indicative of the sentiment of the day.
Thursday, April 25, 2013
Bubblemania And The Market Crash / Stock-Markets / Financial Crash
By: Andrew_McKillop
FINANCIAL EUPHORIA
Stock markets are at all-time record highs, yet the real economy is anemic as is clearly shown by constantly "unexpected" or "disappointing" GDP growth figures in almost all countries. As we know, one major fetish cant-lose asset bubble, after another, will suddenly weaken and collapse but the equity markets confortingly roar on and up, unperturbed. Looking at the cant-lose asset bubbles since year 2000, we have had the Internet dot com bubble, real estate in a string of countries and arguably a major cause of the 2008 crash, the uranium bubble of 2005-2007, oil prices in 2004-2008, the green energy and cleantech bubble of 2007-2012, gold price growth for nearly 11 years, the ongoing Bitcoin craze, and other cant-lose assets whose prices "could only grow". Until they wilted or even collapsed.
Wednesday, April 24, 2013
Stock Market Crash Alert / Stock-Markets / Financial Crash
By: Money_Morning
Ben Gersten writes: If you're contrarian, then Barron's latest "Big Money" poll and its magazine cover just gave you reasons to be on the lookout for a stock market crash.
The semiannual poll of professional investors found that 74% of money managers are bullish or very bullish about the prospects for U.S. stocks - an all-time high for Big Money, going back more than 20 years.
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Tuesday, April 23, 2013
Gold, Stocks and Copper Set to Crash / Commodities / Financial Crash
By: Clive_Maund
Failure of gold's key support at $1500 - $1550 triggered a stunning plunge as masses of stops were triggered. We can see what happened on the 6-month chart below. The plunge was the most severe since 1980 and was accompanied by colossal record volume, which is strongly bearish. It quickly lead to gold becoming critically oversold and it bounced later in the week as cheerleaders advised their readers to buy this "opportunity of a lifetime". Is it? In this update we will consider the implications of this extraordinary breakdown.
Thursday, April 18, 2013
Euro Currency XEU Ready to Flash Crash Markets / Stock-Markets / Financial Crash
By: Anthony_Cherniawski
XEU has crossed the lower trendline of its Broadening Wedge, potentially triggering its own Flash Crash scenario. The only support holding it is the Intermediate-term support at 129.92.
Wednesday, April 17, 2013
Stock Market Enters Flash Crash Territory / Stock-Markets / Financial Crash
By: Anthony_Cherniawski
SPX just declined through Intermediate-term support this morning, raising the probability of a Flash Crash to 50% or more, IMO. The chances rise to 90% when SPX falls through its 50-day moving average at 1541.42 and the lower trendline of its Broadening Top at 1535.00.
Tuesday, April 16, 2013
Hindenberg Omen For Gold, Death Bell For Overpriced Assets / Stock-Markets / Financial Crash
By: Andrew_McKillop
The Omen, largely based on Norman G. Fosback's High Low Logic Index is rarely applied by analysts to commodities, but applying the Omen's method to equities, bonds and other assets can identify probable future violent downward price movement affecting all markets. Basically, the method sets out to identify if markets are undergoing a period of extreme divergence — many assets at new highs and many at new lows. When this happens, pricing is evidently haywire or "stochastic-oriented", and this divergence is very rarely conducive to future rising prices. Conversely, a healthy market needs a semblance of internal coherence and uniformity whether the uniformity is down tilted, toward declining prices, or the opposite.
Tuesday, April 02, 2013
Is David Stockman's Stock Market Crash Forecast on Target? / Stock-Markets / Financial Crash
By: Money_Morning
David Stockman, who had been budget director under President Ronald Reagan, created quite a stir when he predicted a stock market crash in an op-ed piece in The New York Times Sunday.
"Over the last 13 years, the stock market has twice crashed and touched off a recession: American households lost $5 trillion in the 2000 dot-com bust and more than $7 trillion in the 2007 housing crash," Stockman, now an investment banker, wrote. "Sooner or later - within a few years, I predict - this latest Wall Street bubble, inflated by an egregious flood of phony money from the Federal Reserve rather than real economic gains, will explode, too."
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