Archive for Big Picture
Aug
04
Dow Theory & Elliott Wave Theory
Posted by: | CommentsWell it seems my prediction of a market break out was correct, the S&P500 has begun it’s next leg up with 6 of the last 8 days as “up days”. Looking at the S&P 500 on a weekly chart it is clear to see the market has completed what could be considered the first leg of the Primary Bull Market move.
Dow Theory
According to Dow Theory the market has 3 types of move. Read More→
Feb
10
Interpret How Global Events Can Affect Your Investments
Posted by: | CommentsEconomic Health and how it affects the stock market.
What is happening in the world. ahhhhh Don’t Panic !!
- Financial crisis, the current crisis is nothing new a crisis occurs every 20 years or so where some event occurs to cause a correction in the markets and widespread panic to investors. The recent Credit Crisis is different only in the fact that the pullback was so rapid and volatile. The SP-500 has pulled back to the 2003 lows in 3 months. When the tech bubble burst in 2000, it took 3 years for that pull back to happen.
- Banking system : massive failures in the banking systems and a lack of regulation has largely been attributed as the main cause, of the domino effect
- Demand downturn : this has occurred because of the financial crisis, people are already in debt, and cannot finance new debt, therefore they are reducing their spending.
- Increase in unemployment : as demand reduces, so we need less jobs to make the products that nobody wants anymore.
- Developed world Debt : the developed world is taking on too much debt, the developed world lead by the US is taking on a lot of debt to create a stimulus package, to kick start the economy, and create jobs.
- Market Volatility : Stocks and shares have become very volatile (this happens when people get too emotional), and have nosedived, to below the 2003 crash.
- Continued Political unrest in the usual hotspots.
— Middle East (affecting Oil Prices)
— Terrorism (affecting Oil Prices)
— Africa / North Korea / Iran
