Archive for August 26th, 2015

TechView: The 2 market charts that I’m watching …

August 26, 2015

I don’t give investment advice.  Period.

That said, there are the 2 technical charts that I have on my radar.

The first is a simple “channeled” trend view of the S&P 500

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The takeaway:

For the past 3-1/2 years, the S&P has been trending upward (no news there) … within a fairly constant band delimited by the highs and lows.

Besides being a psychological trigger, the 2000 level appears to have been a significant technical breakpoint.

Hindsight is 20/20 … I should have bailed on my S&P Index holdings when the 200 level was broken.

But, of course, I didn’t.

Ouch.

The 2nd chart zooms in on the last 5 days of trading.

 

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Posted in S&P 500, Stock Market, Technical Analysis | Leave a Comment »

Bernie Sanders missed a big opportunity on Monday …

August 26, 2015

Yesterday, we posted about high frequency traders crowing about their high profits from Monday’s unprecedented stock market volatility.

Arguably, their methodology — hinging on fast data and low transactions’ costs — fanned the volatility flames.

I was surprised that Bernie Sanders didn’t seize the moment to say “I told you so” … and to pitch his Financial Transactions Tax.

Given the stock market bounces this week, I though it would be timely to reprise a post from a couple of weeks ago which has heightened relevance and timeliness …

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Shocker: I agree with Bernie Sanders’ Financial Transactions Tax … err. make that “half-agree”

Dem-Socialist candidate Bernie Sanders doesn’t serve up much that I agree with … but, there is one reheated idea that I half-support.

Sanders proposes that financial transactions be taxed … roughly 1/2% for most trades … slightly lower for for some categories of investments … say, Municipal Bonds.

Sanders would use the new tax proceeds to fund public college for low-income students.

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Let’s dissect the proposal … then, for what it’s worth, I’ll tell you where I agree and where I disagree …

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Posted in Financial Reform, Journal of Finance, Stock Market, Supply of Money & Common Stock Prices, Taxes | Leave a Comment »