@theMarket: Odds High That markets Will Continue to ClimbBy Bill Schmick, 02:22PM / Sunday, February 28, 2016 | |
The S&P 500 Index broke through an important technical level this week. It is an encouraging sign and could mean that over the next few days that index could move even higher.
There are all sorts of technical levels that traders study. In the intermediate term, they usually look at the 50-day moving average. For the first time since the beginning of the year, we have broken up and through that level at 1,954 on the S&P. For those less inclined to worry about the charts, all you need to know is that traders are becoming bullish.
As I suggested in my last column, it was a week where markets first consolidated, and then climbed higher, supported by an oil price that
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The Independent Investor: Social Security Update & Other TidbitsBy Bill Schmick, 04:12PM / Friday, February 26, 2016 | |
Over the past few months there have been some changes to social security rules as well as an on-going effort to provide increased protection from brokers managing your IRAs. Here is an update to those topics.
Readers may recall a column I wrote as a result of last November's budget. Several changes were instituted to shut down some social security loopholes that could impact certain retirees. Prior to the new budget changes, a growing number of couples, 66 and older, could delay claiming benefits based on their own earnings record, while collecting a spousal benefit based on your spouse's earnings. This was costing the taxpayer millions and generating lifetime benefits for
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The Independent Investor: OPEC's Poker GameBy Bill Schmick, 01:45PM / Thursday, February 18, 2016 | |
The news this week that some OPEC members have at least agreed to talk, and possibly freeze production, had traders covering their oil shorts, sending crude up over 15 percent. But why should simply freezing production at multi-year levels stem oil's price decline?
Naysayers are right when they argue that holding production where it is does not solve the oversupply problem in world energy. At the present rate of production, an additional 330 million barrels of oil (or about 1 million barrels/day) of unneeded oil is flowing onto world markets.
That oversupply has been building for a year or more. It is being stored in spare oil tankers, storage tanks and wherever else
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@theMarket: Stocks at Bottom of Trading RangeBy Bill Schmick, 08:29AM / Saturday, February 06, 2016 | |
This week was a little more promising. At least it was better than going down almost every day, as we did last month. Is this a pause or can we expect something more?
Something more is my bet, but whether it is up or down largely depends on the direction of oil. I did notice, however, that there were days this week that the oil price was not in lockstep with the markets. There was even talk that stocks and energy prices might decouple in the weeks ahead. Whether that is wishful thinking or a possibility will take more than a day or two of evidence.
I have insisted that no one knows where the bottom is in oil. Yet, a consensus seems to be forming that $30 a barrel, (give or take
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The Independent Investor: Is a Recession Looming?By Bill Schmick, 03:22PM / Thursday, February 04, 2016 | |
The funny thing about declining stock markets is that when they last more than a couple of weeks, talk of recession starts to percolate among investors. It is no different this time.
I have written before that the stock market has erroneously called six of the last 13 declines as recessions, meaning that weak stock prices do not necessarily herald a weak economy. There have been instances in the past where a prolonged decline over a year or so has contributed to a recession but even then the data is not conclusive.
There is no evidence thus far that the U.S. economy is rolling over. Economic data continues to be spotty, which is consistent with a moderately growing
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