| September 29, 2014 | | | | | |
 | | | How to Spot a
Market Top | | | - Protests spook stocks
- Is the S&P headed for trouble?
- Plus: Are we still in a recession?
|
| | | Greg Guenthner coming to you from Baltimore, MD...
 | | Greg Guenthner | World markets are beginning the week with a new case of the jitters…
Escalating pro-democracy protests in Hong Kong are helping to fan some selling this morning. Hong Kong's Hang Sang Index has slipped into the red for the year. Stocks in Europe are lower. U.S. futures are in the red. Last week's performance doesn't help matters. The S&P slid 1.4%-- even after taking into account Friday's comeback move.
Cue the doomsday predictions! Surely, these series of events will catalyze a major shift in the markets.
Or maybe not…
"What's interesting here is the fact that the media is already talking about a potential top in stocks," our own Jonas Elmerraji.
Jonas was nice enough to collect some of the more ridiculous financial headlines over the weekend:
"Apple, Alibaba Hype Could Signal a Market Top" – USA Today
"Can the Stock Market Keep Going Higher?" – Wall Street Journal
"U.S. Stock Market Hitting a Reality Wall" – Forbes
So on top of the "global unrest" headlines, we have big tech stocks, IPOs, and rich valuations to blame for the forthcoming market top.
"It's telling when that much doubt creeps into the big financial press," Jonas continues. "There's money to be made when other investors start going off the deep end. Anecdotally, the bearish sentiment from last week felt a lot like the panic that I wanted to see back in August when we bought the dip in the S&P 500 – it's the sort of panic that typically precedes a great buying opportunity."
Even taking last week's terrible performance into account, the S&P is still well within its "buy the dips" channel…  "The bottom line is that, from a technical standpoint, literally nothing has changed in the last week or two," Jonas concludes. "The S&P 500 is still bouncing around in the same exact uptrend that we've traded all year long. The big index has been a "buy the dips market" for going on two years now – and we're coming up on another dip. In other words, Mr. Market is doing exactly what we expected." | | | | | | | | | EXPOSED: Gaping hole found in the tax code... You might be shocked to learn that there's a gaping hole hidden deep in the tax code. And it turns out that just by tucking into that legal blind spot... you can "hide" a potentially huge amount of income, tax-free. The IRS simply can't touch it. CLICK HERE to see how it works -- it's shockingly simple. | | | | | | | |  | | | | Rude Numbers | Targets, Predictions and Wild Guesses
| | | | 147 | points have dropped from the Dow early this morning. Futures are quickly sinking as we approach the opening bell… | | 180 | points fell off the Nikkei today. The Japanese index finished Monday with a 1.1% decline as world markets take a hit… | | $1,220 | is where you'll find gold futures early this morning. The shiny yellow metal is up $5 today as protests rage in Hong Kong… | | 85.66 | marks the spot for the U.S. dollar index. The dollar is on an unbelievable tear, hitting 4-year highs late last week | | $92.85 | buys a barrel of oil this morning. Crude is still attempting to find solid support here near $90. | | | | | | | | Rude Trends | When to Buy... When to Sell
| | | So we're getting smacked with a little market volatility… That certainly won't help the average person's perspective on the economy. As I'm sure you've noticed, most folks are clueless when it comes to ebb and flow of the world's markets—and even economic expansions and contractions. In fact, most people are just plain wrong when it comes to the state of the country's economy. "Americans aren't happy with the economy, despite continuous signs of improvement. In fact, 72% of Americans 'believe that the recession is still on,' according to the 2014 American Values Survey," Financial Advisors Magazine reported late last week. "Only 7% of American believe that they are in 'excellent financial health themselves,' and approximately one-third surveyed said that 'they or someone else in their household had to cut back on food in the last year to save money.'" In my view, stagnant wages play a huge role in this misconception. Until the average middle-class worker starts earning more, the negative view of our economy and markets will persist. Of course, these people who are stuck in underpaid hell right now also aren't throwing extra coin at the stock market. Keep that in mind the next time someone attempts to compare this market to the booming dot-com bubble. I don't know about you, but I haven't been getting any stock advice from shoeshine boys lately… [Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner] | | | | | | | Ignore At Your Own Peril | Today's Must Read Links
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