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Category Archives: Stock Market Top 2013

The stupidest thing I’ve read this morning

The stupidest thing I’ve read this morning…. “There’s no doubt that stock buybacks have helped boost EPS [earnings per share] growth, although you could make the case that as long as companies are buying back their stocks, people should do it as well,”.  This horrendously bad advice was given by someone at a significant investment industry firm this morning. Truth Points: When company share […] Read the rest of this entry »

The Short Squeeze Cherry on Top

  With 1 day left before the Treasury hits the so-called debt ceiling, Congress suddenly found a way to act — I mean kick the can. To no surprise, it has done nothing to solve the broad budget/debt problem, and has not managed to kick the can very far since we’re told this will happen again in February. The last massive short-squeeze was seen […] Read the rest of this entry »

Profit Margins Gone Wild

A snip from tomorrow’s Greedometer weekly newsletter… As-reported profit margins (Q2 2013) are likely to end up around 9.0% once all the data is in. With 14.5 years of data on hand, that is the highest as-reported profit margin seen. In fact, it is probably the highest as-reported profit margin from the S&P500 ever. FYI: Q1 saw an as-reported profit margin of 8.94% — […] Read the rest of this entry »

Today: Fed-induced short covering

There have been a lot of questions and comments, so I’ll post this… The Greedometer strategic gauge is not impacted by what happened today. It moves too slow, and it has already done its job: provide months of advance warning prior to a crash (January-May). The mini Greedometer is faster moving and almost certainly will be impacted by today’s Ben-inspired short-covering rally.  The data […] Read the rest of this entry »

Confirmation: Stock Market Crash initiated in May

There were several blog postings in May providing a warning the S&P500 was topping-out and about to initiate a long crash. This posting is a confirmation.  The S&P500 peak in May 2013 (of 1669 or 1687 depending in whether you use closing or intraday) was the initiation point for a protracted stock market collapse that will see the S&P500 drop to the 600 range […] Read the rest of this entry »

Buy Climax Warning

The week prior to last week saw the second highest buy climax reading -probably ever- but certainly in the past quarter century.  A weekly buy climax occurs when a stock hits a 52-week high price but closes the week at a lower price than where it began.  They tend to cluster near secular stock market highs. Approximately 5,000 stocks are included in the weekly […] Read the rest of this entry »