Dow Jones Industrials Led Lower By the “Dive Five”.

The Dow Jones Is Price Weighted, Giving Certain Components Disproportionate Influence. The Dow Jones Industrial Average (Dow) is the oldest and most prestigious stock index.  It’s methodology of calculation is also one of the strangest.  While nearly all indexes are market capitalization weighted, the Dow is “Price” weighted. Price weighting means that a $30 component […]

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World Stock Exchanges and Indexes Overrun by BEARS.

US Stock Markets Valuations Exceed 40% of World Total. According to website Seeking Alpha, the valuation of the United States stock markets exceeds 40% of the entire world (https://seekingalpha.com/article/4202768-u-s-percent-world-stock-market-cap-tops-40-percent).  They compared that to the market capitalizations as they stood on the recent election day in 2018. Not surprisingly, the United States share of world equity […]

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Stock Markets Bracing For Recession?

Bull Vs. Bear Debate Continues. As the major stock market indexes plunged during most of October, fear began to grip Wall Street.  On October 29th, the intraday trading range for the stodgy Dow Jones Industrial Average was nearly 1000 points.  The lows lasted a fraction of a second, however. Within the next 24 hours, the […]

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Stock Markets Bounce Hard Above the “Waterfall Zone”.

High Intraday Volatility Makes for Treacherous Trading. The last two weeks of stock market trading have made for great “theatre” but not much else.  A terrific spectator event was the 1000 point intraday trading range in the Dow Jones Industrial Average (Dow) on Monday, October 29th, 2018.  Eerily, exactly 91 years earlier, the Dow was […]

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Tipping Point (Part 5): For Whom The Bear Market Roars?

Tipping Point (Part 5): For Whom The Bear Market Roars? “Times, they are a changing.” (Dylan) With the exception of Precious Metals, which we covered yesterday (https://markonomics101.com/2018/09/16/inflection-point-part-6-what-precious-metals/), the “Inflection Points” are essentially at their completion.  To be more precise, there actually is no such thing as an “Inflection Point”.  It’s more of a process that […]

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Tipping Point (Part 2): The Four Horsemen Of The Nasdaq Collapse

Tipping Point (Part 2): The Four Horsemen Of The Nasdaq Collapse. Trending markets are typically characterized by “Uniformity”, or the tendency for gains or losses to be spread fairly evenly across a broad number of the market’s components.  At an Inflection Point, a higher proportion of issues begin to participate with the new Emerging Trend […]

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