Category: Stock Markets 2011
The analysis published under this category are as follows.Friday, October 07, 2011
Stock Market What's Next ... Will We Have a Rising or Falling Market? / Stock-Markets / Stock Markets 2011
The most important market test of the past two months is coming up soon as seen on today's chart.
Note how the market Strength has behaved on our C-RSI, 30 day indicator. It has been in a down trend since April, and it has been in Negative Territory since the end of July. That has translated into a DOWN condition for the market during the past few months.
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Thursday, October 06, 2011
Stock Market Like March 2008 or August 2008? / Stock-Markets / Stock Markets 2011
We have been calling for the markets to make new lows for eight weeks. The new low occurred on Monday. Given the similarities to March 2008 that have surfaced since Monday’s low of 1,074 on the S&P 500, it is prudent to understand how sharp bear market rallies can be. The bear market rally off the March 2008 lows pushed the S&P 500 14% higher.
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Thursday, October 06, 2011
Stock Market Volatility Continues To Signal Equity Selloff / Stock-Markets / Stock Markets 2011
Looking purely at the Vix one could say it is moving down as fear comes out of the market. Equities are moving higher, Vix moving lower, all is coming back to normal. But if you look behind the Vix it is signaling a completely different picture.
What I see is something pulling back before a final assault and highly probable defeat of the 48.00 line in the sand. I see the Vix moving up to the 60 range in a matter of days. Perhaps that will lead to the final push lower in equities before some form of a tradable bottom is put in. Perhaps it is already in but judging by the divergence between volatility and the SPX I highly doubt it.
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Thursday, October 06, 2011
S&P 500 Stock Index Testing Key Resistance / Stock-Markets / Stock Markets 2011
Why did I bail out of my long ProShares Ultra S&P 500 (SSO) position (+7% in a day and a half)? Largely because the e-mini S&P 500 was bumping up against an important one-week resistance line at 1129.00, which in THIS market could elicit a negative reaction.
That said, so far there has been very little weakness after the initial bump against 1129. Should the e-SPZ hurdle and sustain above the resistance line, then my next optimal upside target zone is 1139-1143.
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Thursday, October 06, 2011
Stock Market New Cycle Begins / Stock-Markets / Stock Markets 2011
Following the September 22, 2011 Market Minute titled "Nearing the low" today's market action suggests that the expected trough has likely occurred.
Over the past two months, models have been indicating the low for the 14-16 week cycle should arrive from late September to early October. The strong reversal on the 4th and today in global markets would correspond with that pattern.
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Wednesday, October 05, 2011
Stock Market Buying Opportunity Ahead Or Another Plunge? / Stock-Markets / Stock Markets 2011
Dear Investor,
"Lost decade."
The phrase originally applied to Japan's stock market. Yet in terms of depth and scale, it more accurately describes today's markets and economy in the United States.
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Tuesday, October 04, 2011
Is the Stock Market on the Verge of a Rally? / Stock-Markets / Stock Markets 2011
Only 5 short months ago the S&P 500 was trading at the 2011 highs around the 1,370 price level on the S&P 500 Index. Since then, the price action has devastated investors and traders alike. As of the close on Monday, the S&P 500 had worked over 270 handles lower in 5 months. The price action since September 27th has been a bloodbath.
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Tuesday, October 04, 2011
Stock Market Nasty Start to Week / Stock-Markets / Stock Markets 2011
The week started off with a thud as the stock market indices gapped down. They had a strong snapback early in the session on positive economic news, but that was it for the day. The indices then came down hard in a 5-wave decline, but at the end of the day when it looked like they were snapping back into the close, they suddenly reversed course in the last 10 minutes and got crushed into the close, finishing at the lows for the day.
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Tuesday, October 04, 2011
Stock Market Moving Down..... / Stock-Markets / Stock Markets 2011
Is this a fun market or what! I know all of you have been enjoying the bear market ride for some time now. Well, maybe you haven't been enjoying it, but not getting caught up in it has to be fun to some degree? No? Ok, maybe I'm wishing too hard here, but thankfully, we've avoided a lot of the carnage since S&P 500 1370. Once the SPX lost a triple bottom at 1260 it was lights out. The market has never recovered from that, and likely won't be any time soon, although a strong rally is not too far off. The bear is here bigger picture, and that should never be lost in your minds, even when a strong counter trend rally ensues. A strong rally can make you forget what's really in control. The short-term can always cloud the bigger picture, so make sure you recognize what's at play. Don't get emotional. You'll want to, for sure. I can guarantee that.
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Monday, October 03, 2011
The Stock Market Could Soon Bottom and Nobody Knows It / Stock-Markets / Stock Markets 2011
The prevailing universal sentiment is neutral to bearish by advisors and the general investing public. Who can really blame them given the Euro-Zone mess, the potential bank contagion collapse effect, and the weak economic trends both here and overseas. However, the work I do is almost entirely behavioral based analysis looking at crowd or herd behavioral patterns.
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Monday, October 03, 2011
Greece, Recession Odds, and Stock Market Technicals All Bearish / Stock-Markets / Stock Markets 2011
While inspectors from the International Monetary Fund, EU and European Central Bank, known as the troika, are in Athens to review the books, Reuters reported Sunday:
Read full article... Read full article...Greece will miss deficit targets set just months ago in a massive bailout package, sources said citing a budget draft being adopted by the cabinet on Sunday, in a setback in Europe’s efforts to stave off the country’s bankruptcy.
Monday, October 03, 2011
Stock Market Beginning of the End / Stock-Markets / Stock Markets 2011
SPX: Very Long-term trend - The very-long-term cycles are down and, if they make their lows when expected, there will be another steep and prolonged decline into 2014 after this bull market has run its course.
SPX: Intermediate trend - Ideally, the 3-yr cycle is due to make its low next week. This should put an end to the intermediate downtrend and start a new intermediate uptrend.
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Monday, October 03, 2011
Two charts best define where we’ve been, where we are and where we are most likely to go / Stock-Markets / Stock Markets 2011
Sustainable bull markets cannot co-exist with falling bank stocks and when bank stocks fall the rest will follow.
In my May commentary I reproduced the monthly chart of the Philadelphia Bank Index. For good measure this time I have added the S&P 500 Diversified Financials Industry Group Index as well. These two charts underline the story I have been trying to convey to my readers for just on two years now. These two charts are the most important ones here, as the bearish patterns have advanced to the point where they are almost impossible to reverse.
Monday, October 03, 2011
The Unpunctured Stock Market Cycle Points to Big Declines Ahead / Stock-Markets / Stock Markets 2011
Robert M. Williams writes: This report is a follow-up to my September 13th report entitled “Running Out Of Time” whereby I projected the demise of the Dow for a number of reasons. At that time I stated my reasons for believing the stock market was going to turn down. I still feel it is important to grasp the turn of events about to befall us, especially in light of the fact the media is busy trying to convince us to buy “cheap stocks”. The Fed of course came out with its “twist” and the market shrugged it off for what it was, a lot of nothing. You simply swap out today’s debt for long-term debt, but nothing is solved. Congress has decided to keep the government open a bit longer but offers no solutions, and Obama’s jobs bill is on a slab in the morgue. Finally problems in Europe once again surfaced and Treasury Secretary Geithner has been assigning blame in an effort to distract Americans from the real problems that face them at home.
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Sunday, October 02, 2011
The Stock Market Smells Deflation / Stock-Markets / Stock Markets 2011
In previous commentaries we've talked about how the 6-year cycle is scheduled to peak around Oct. 1. That now appears to be all but certain following the last few trading sessions. Although the cycle has a 1-2 week standard deviation (plus or minus), it appears that it peaked on schedule last week and that the stock market has lost the last remaining cyclical support it had throughout most of September.
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Sunday, October 02, 2011
Stock Market Elliot Wave Count Now Clearer / Stock-Markets / Stock Markets 2011
This recent week played out like the week before: a rally into tuesday and then a pullback for the rest of the week. Nevertheless, most of the world’s indices were higher and Europe gained 5.2%. In the US economic reports came in mixed. On the uptick: Case-Shiller housing prices, consumer confidence/sentiment, Q2 GDP, the Chicago PMI, the monetary base, and weekly jobless claims dropped under 400K. On the downtick: new/pending home sales, durable good orders, personal income/spending, excess reserves, PCE prices, the WLEI and the M-1 multiplier. US markets ended mixed with the SPX/DOW mixed, and the NDX/NAZ -2.9%. Asian markets gained 0.5%, the Commodity equity group gained 0.3%, and the DJ World index gained 0.9%. Next week’s economic reports include: the monthly Payrolls report, ISM and Auto sales.
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Sunday, October 02, 2011
Stock Market Important Juncture Looming? / Stock-Markets / Stock Markets 2011
They ended pretty much flat for the week, although I was expecting a move towards the 55 or 63ES, area, the actual bounce was far stronger than I initially thought.
Another crazy week of whipsaw, this particular week just gone was some of toughest price action I have seen in a while, loads of crazy wild swings, made trading the range treacherous to say the least, a tough week.
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Sunday, October 02, 2011
SPXU on the Way Down and UPRO on the Way Up / Stock-Markets / Stock Markets 2011
Wow! What a week! Friday ended the worst quarter for the stock market since 2010. After another choppy day, as expected, stocks sold off Friday, 10/28/11, at 3PM to close the day down 240 points o the Dow, 29 points on the S&P and an amazing 65 points on the NASDAQ. The close of 10903 on the Dow was seen as a psychological level of the already fragile economy turning from bad to worse.
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Friday, September 30, 2011
Short-Term Conviction Faltering For Stock Market Bulls / Stock-Markets / Stock Markets 2011
The expression “we are stuck in a trading range” can lull investors into a state of short-term complacency, especially when the market has exceeded expectations since the early August low. While there were many important market moving events over the past seven weeks, the bulls tended to look forward to the Fed’s September 21 statement and Germany’s approval of the July 21 changes to the European Financial Stability Facility (EFSF). The Fed meeting disappointed and stocks reacted in a negative manner. It may be too early to grade the reaction to Thursday’s EFSF vote in Germany, but as we postulated on Wednesday, it appears as if the bullish gains following the vote may be short-lived.
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Friday, September 30, 2011
Another Autumn Stock Market Crash? / Stock-Markets / Stock Markets 2011
After reviewing a host of technical and fundamental data, we are of the view that the world’s stock and commodity markets may be on the verge of a big slide. Remember, for almost two years, the Federal Reserve supported the ‘risk trade’ via quantitative easing. However, it has now left the party, which means that the private-sector credit contraction in the developed world is reasserting its upper hand. For instance, a variety of credit spreads are rising, interest rates on Eurodollars are appreciating (shortage of dollars outside the US), the Federal Reserve is desperately trying to provide liquidity via its swap lines and the US Treasury market is signaling a severe economic contraction.
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