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Gregory Mannarino's  Instablog

Gregory Mannarino
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I started my financial career working for the securities and trading arm of the now defunct Bear Stearns before thedot-com bubble. I am an active trader of the capital markets. I have published several books pertaining to finance, global economics, and equity trading; My most recent book is... More
My company:
TradersChoice.net
My blog:
MarketReport
My book:
Ultimate Guide To Money And The Markets..
  • Proof That The Bull Market In Stocks Is Over.

    A very clear sign that this historic bubble/Federal Reserve induced bull market has ended is here.

    According to DOW theory: if manufacturers profits are rising they will increase production, and If they produce more goods they will have to be shipped to consumers. (To read more about Dow theory click HERE).

    So it follows through that in order to sustain a rising stock market the transports, (which consist of the weighted averages of twenty corporations), must be rising as well.

    If you look at the chart below from today, 5/26/15, you will notice that ticker (NYSEARCA:IYT) iShares Dow Jones Transport Average ETF has broken a sustained upward trend, and has now clearly begun a new downward move. There was a period of consolidation from December 2014 through mid-March 2015 which then broke trend to the downside.

    (click to enlarge)

    As hard as a pill this is to swallow for all those permabulls out there, seeing IS believing.

    Well there it is in the chart above.

    If DOW theory is correct, then we can also expect that the bull market in stocks has indeed ended.

    RELATED VIDEO, Click here: According To DOW Theory The Stock Market Bull Run Is Ending.

    Happy Trading!

    May 26 9:37 PM | Link | 8 Comments
  • Caution Advised: Capital Outflows, Low Volume, Divergences, May Sink This Market.

    With mass capital outflows already working against this market, DOW transports diverging from ever increasing market highs, low trading volume, and a jittery bond market, it is clearly time for caution.

    Does this all mean the market is going to plunge tomorrow?

    Absolutely not.

    However it may just be time to take some cash off the table on the long side, pull profits, and maybe look for get short as well.

    My concern as a trader myself is not just the inordinate low market volume, capital outflows, or even the lagging transports, but it is the divergences between them. Something has to give.

    The already overwhelming distortions which exist in this market across every single asset class being driven by "abnormal" monetary policies by the Federal Reserve, continue to get worse.

    Further, there is no end in sight.

    There are simply too many factors weighing against this market at this time, and it is for this reason that I believe traders continue to take up short positions against this market.

    Below is an options statistics sheet from this past Friday 5-22, the last day the market was open for trading on ticker (NYSEARCA:SPY) SPDR S&P 500 ETF Trust.

    The call to put ratio is favoring puts at better than 2:1

    More importantly is the open interest.

    Price action tends to go in the direction of that interest, and here again puts are heavily favored.

    Happy trading!

    May 25 9:43 PM | Link | 4 Comments
  • Gold Has Outperformed Every Currency On Earth, And It Will Continue To Do So.

    (click to enlarge)

    It's incredible how many dollar bulls are out there, and how quick they are to put down, or try to downplay gold. The funny thing is gold has outperformed the dollar (and every other fiat currency on Earth) across the board for decades and will continue to do so.

    Let's harken back to just 2008, the same year the housing/credit bubble burst. At that time an ounce of gold cost roughly $800 an ounce, and today it's more than $1,200, that's a gain of 50%. What this means simply is it now takes many more "weaker" dollars to buy the same ounce of gold, a trend which will continue until infinitum.

    Will gold fluctuate in value based in dollars or any other fiat currency? Sure it will, but over the long run gold, silver, platinum, and palladium, will continue to outperform paper.

    I am certain that this short article will infuriate many dollar bulls out there, but the fact is there is no disputing this. (Please have a look at the chart at the top of this page).

    World central banks have been destroying their currencies since well, always, and this simple fact has vaulted gold higher. Since we are all well aware that gross monetary mismanagement by central banks will continue in perpetuity, the place for you to be is clearly in hard assets.

    *For you dollar bulls out there, you have been wrong for decades. So what makes you think you're finally going to be right?

    Related video click here: Dollar Bulls Have Been Wrong For Decades!

    Happy trading!

    May 21 10:46 PM | Link | 6 Comments
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