Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Wealth Builder Report

Stock-Markets / Stock Markets 2011 May 20, 2011 - 05:33 AM GMT

By: Christopher_Quigley

Stock-Markets

Best Financial Markets Analysis ArticleThe volatility which was predicted in the last quarterly brief continues apace with the markets continuing to climb a “wall of worry” as is typical.

On the basis of Dow Theory, the bull run is still in place with the Dow Transports indicating that new highs are anticipated.


Technology is going through a tricky phase. This market is patchy due to the fact that there are some specific stellar winners and many definite losers. The dynamics involved in tech product development, cloud computing, social networking fads and web marketing strategy are so rapid that “old” business models quickly become stressed and dated.  Momentum demands exceptional growth. So one must do ones research well before investing in this arena. Apple (APPL), Netflix (NFLX) and Baidu (BIDU) are all looking very strong with management well up on their game. As always we recommend that you invest only on supported pullbacks.

The big story at the moment of course is the collapse of commodity prices. This is good for the overall market in that oil and food price appreciation will hopefully be tamed somewhat. This will have a bearing on core inflation and the future ability of the FED to keep interest rates low. As long as this supportive policy is held in place the market should maintain its bullish stance. (An indication of a change in sentiment in the market will be indicated when the 20 DMA on the Advance -Decline line in the broad market averages starts collapsing below the 50 DMA and fails to recover).

Our favourite commodity instrument, the Silver Ultra ETF: AGQ, was up nearly 100% since March. Its break below the previous low of 318.44 on the 2nd. May indicated it was a sell.  Currently Silver is technically broken so it will be some time before we can be sure the worst is over. Thus I would recommend you save your profits and keep your powder dry until solid technical support is in evidence.

The social situation in Europe continues to spiral downward.  Here in Ireland economic conditions continue to deteriorate with little help being granted by Germany or France to the Irish government’s attempts to lighten its EU/IMF bailout conditions.
Greece cannot meet its rescue terms and is being given “more time” which is a default in any normal mans language. Of course it cannot be “officially” named as such given that this would kick in the credit default swap insurance militia and nobody wants to give them a free lunch, if at all possible. A recent Vanity Fair article opened the lid on the rampant corruption in Athens and it is hard to see how Greece was ever allowed to join the Euro when it was common knowledge that its taxation system was such a complete corrupt mess.

 Most interestingly the Madrid “sit down movement” is bringing a new dynamic into the Euro equation. Spanish youth have finally had enough. With 40% of under 30’s unemployed they want a change. They are educated, eager and ambitious and they do not wish to continue to live, with no income or future, in the homes of their aging parents. Should this movement adversely affect an already fragile Spanish banking complex it may bring Madrid one step closer to needing IMF assistance. That could be a potential Euro endgame.

 The one winner in all of this is Germany. It continues to benefit from the Euro arrangement in that it has access to a vast European market for its industrial produce yet benefits from a fixed Euro currency. However Berlin refuses to accept any responsibility for the “lite touch regulation” it allowed to develop at the European Central Bank. It would appear Germans are happy with representation without taxation. Under these circumstances it is hard to see how the Euro will survive over the next decade. Yes, on paper, the cracks can be glossed over and the can kicked down the road but at the end of the day Europe is not only an economy it is a society. Currently its social contract based on dignity, freedom, equality, solidarity, citizen’s rights and justice is crumbling and it would appear that Brussels, as of yet, does not “get it”. The original vision of the great men who founded the E.E.C. is being destroyed by short-sighted bankers, technocrats and bureaucrats. These mandarins are playing with fire. Monnet, Schumann and Gaspari would be ashamed of them.

Dow Transports: Weekly

Apple: Weekly

Netflix: Weekly

Baidu: Weekly

AGQ: Daily

By Christopher M. Quigley

B.Sc., M.M.I.I. Grad., M.A.

http://www.wealthbuilder.ie

Mr. Quigley was born in 1958 in Dublin and holds a Batchelor Degree in Accounting and Management from Trinity College/College of Commerce, Dublin and is a graduate of the Marketing Institute of Ireland. He commenced investing in the Stock Market in 1989. in Belmont, California where he lived for 6 years. He developed the Wealthbuilder investment and trading course over the last decade as a result of research, study, experience and successful application. This course marries Fundamental Analysis with Technical Analysis and focuses on 3 specific approaches. Namely: Momentum, Value and Pension Strategies.

Mr. Quigley is now based in Dublin, Ireland and Tampa Bay, Florida.

© 2011 Copyright Christopher M. Quigley - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Christopher M. Quigley Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in