Declan Fallon:Semiconductor & Russell 2000 Index See Weekly Breakout!
We are starting to see the strength triggered by Trumps tariff reversal feed into weekly timeframes and improve the long term forecasts for markets. Both the Semiconductor Index $Philadelphia Semiconductor Index(SOX)$ and $iShares Russell 2000 ETF(IWM)$ have cleared declining channel resistance on fresh breakouts as both the $S&P 500(.SPX)$ and $NASDAQ(.IXIC)$ continue to shape V-reversal on weekly timeframes.$SOX$IWMSee the detailed technical charts reading from Declan Fallon at below:I like the action in Semiconductor Index. It was looking very indecisive during the second half of 2024, and when it broke south it lo
Happy birthday to the Dow Jones Industrials index $Dow Jones(.DJI)$ that just turned 129 years old last week It closed last week at 42,270.07, well above the 40.94 it started at 129 yrs ago despite spanish flu, 2 world wars, a great depression, a great financial crisis, a dot com crash , a global pandemic etc That’s over 103,000% capital gain and over 10% annualised return ( including dividends).ImageThe $Dow Jones(.DJI)$ a significant landmark in the financial world, has weathered 129 years of ups and downs. It started at 40.94 a century and a quarter ago and closed last week at 42,270.07.The $S&P 500(.SPX)$ ’s “birthday” can be traced back to March 4, 1957,
Stock Expectations Hit a Decade-Plus Low, But a Rare Opportunity for Investors
When expectations hit rock bottom, no one can push prices down further.Event Review and Expectation AnalysisThe recent shift in market sentiment is noteworthy. According to the latest data, nearly half of the investors anticipate a decline in stock prices, a proportion that has reached one of the historical highs. This expectation is largely influenced by recency bias—during economic booms, market participants tend to expect continued growth; whereas in economic downturns, negative expectations tend to intensify.Logic and Opportunities of Contrarian InvestingThe essence of contrarian investing lies in capturing the extremes of market expectations. When market expectations hit rock bottom, it often means that prices have fully reflected, or even over-reflected, pessimistic sentiments, with
8 Charts Reading: Greed or Fear? Bullish Run or Correction?
1.The Future Path of the Market: Bullish Run or Correction?Will the market continue its bullish run, or is a correction on the horizon? This is the million-dollar question for investors. Technically, the overbought conditions of the S&P 500 and InvescoQQQ suggest the possibility of a short-term pullback. However, the massive buying by retail and institutional investors, combined with the extreme levels of the Fear and Greed Index, indicates a strong upward momentum.Below are some charts observation.The current market landscape is a complex tapestry of signals and emotions. Both the $S&P 500(.SPX)$ and the $Invesco QQQ(QQQ)$ have reached their most overbought levels s