Category: Stock Markets 2011
The analysis published under this category are as follows.Friday, June 24, 2011
Stock Market Plunge Protection Team Losing Traction? / Stock-Markets / Stock Markets 2011
To this analyst, analysing charts of the markets is like doing a jigsaw puzzle. With patience, when you put the pieces together – and they fit comfortably – a picture begins to emerge. Often, the outline of the picture becomes visible well before the media reports on it. To those who enjoy the adrenalin rush of making trading profits (and losses) the revelation of the long term picture is not relevant. “Look at all the action we missed because the big picture told us to stay out!” Well, the article below might go some way towards explaining why the big picture is highly relevant – even to those with a trading mentality.
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Thursday, June 23, 2011
Deflationary Stock Market Collapse In Action / Stock-Markets / Stock Markets 2011
In the modern fiat world, a deflationary-style stock market collapse isn't supposed to happen. And yet that is exactly what Greece has already experienced and I don't think it's over yet. Here's a modified chart any real bear has seen before: the first half of the 1929-1932 Dow Jones Industrial Average stock market bear, which saw a total loss from top to bottom of 89% (chart stolen from chartsrus.com, a great site, and modified):
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Monday, June 20, 2011
Stock Markets Unhappy with Lack of Immediate Greece Bailout / Stock-Markets / Stock Markets 2011
Futures are down again this morning as the perception that there would be a 'solution' (kick the can) to the Greece situation over the weekend has not come to fruition.
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Monday, June 20, 2011
Stock Market S&P500 Index and Decreased Solar Sunspot Output / Stock-Markets / Stock Markets 2011
There were a series of articles put out this past week on sunspots: drop in sunspots, solar minimums and STEREO of sun all came out earlier this week. The take home message is "this could be the last solar maximum we'll see for a few decades. That would affect everything from space exploration to Earth's climate."
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Monday, June 20, 2011
Stock Market Negative Divergence Carrying a Dangerous Message? / Stock-Markets / Stock Markets 2011
Last week we discussed how the Leadership stocks were in retreat. That was a good discussion why the market couldn't hold up since the beginning of June, but today's message is about a longer term Negative Divergence that is potentially very dangerous.
Many investors and technicians are familiar with positive or negative divergences that come from various technical indicators. The problem they have is, that they don't always kick in because the indicator is measuring stock or index movements and it is like trying to take a picture of yourself.
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Monday, June 20, 2011
Stock Market Valuations Can’t Offset Current Concerns / Stock-Markets / Stock Markets 2011
With QE2 winding down, China raising interest rates, and debt problems in Europe, investors have not responded to strong earnings growth. According to Bloomberg:
Read full article... Read full article...Standard & Poor’s 500 Index companies will earn 18 percent more this year than in 2010, according to the average estimate of more than 9,000 analysts compiled by Bloomberg. Higher profits haven’t stopped the gauge from falling 6.8 percent since April 29, pushing valuations to the cheapest levels in 26 years. Even if companies posted no growth, price-earnings ratios would be lower than on 96 percent of days in the past two decades.
Monday, June 20, 2011
Stock Market Investor Sentiment Growing Overly Negative / Stock-Markets / Stock Markets 2011
Right now just about everything that has to do with the financial markets except for bonds has been in a corrective mode since the end of April. That means gold, oil, and most commodity related stocks are down too. It is true that the price of gold itself has held up well during this drop in the broad market, but the HUI gold stock index is down over 19% from its April high.
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Monday, June 20, 2011
What to Watch as the Fed Abandons U.S. Stocks / Stock-Markets / Stock Markets 2011
Jon D. Markman writes: Without any more help from the U.S. Federal Reserve, U.S. stocks are on their own - and they're in for a rocky ride.
Markets have slumped as the Fed has not indicated it will initiate another round of quantitative easing, and last week was a sign that there's more volatility ahead.
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Monday, June 20, 2011
Stock Market Flashing A Buy Signal? / Stock-Markets / Stock Markets 2011
Since the first trading session in May we have seen the stock market sell off. The old saying “sell in May and go away” was dead on again this year. Here we are 7 weeks later with the stock market continuing to lose ground. This extended sell off has everyone all worked up that this is the beginning of another market collapse.Let’s take a quick look at the SP500 hourly chart covering the month of June.
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Monday, June 20, 2011
Stock Market May be Ready for Short-term Uptrend / Stock-Markets / Stock Markets 2011
Very Long-term trend - The continuing strength in the indices is causing me to question whether we are in a secular bear market or two consecutive, cyclical bull/bear cycles. In any case, the very-long-term cycles are down and, if they make their lows when expected, there will be another steep and prolonged decline into 2014-16.
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Saturday, June 18, 2011
Stock Market Has Possibly Bottomed / Stock-Markets / Stock Markets 2011
A volatile week in the US which ended about where it started: SPX/DOW +0.2%. On the economic front positive reports edged out negative ones 9:8. On the positive side: the PPI/CPI remained positive, along with business inventories and industrial production. Improving were housing starts, building permits, weekly jobless claims, leading indicators and the monetary base. On the negative side: capacity utilization, the NAHB housing index, consumer sentiment and the WLEI all turned lower.
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Saturday, June 18, 2011
Still Just A Stock Market Correction / Stock-Markets / Stock Markets 2011
The best thing to do is not be emotional. To write this update from a perspective that has no interference from what seems to be a bear market in the making. It may not be a bear at all, but let's explore what's going on here and what seems to be trying to set up. Let's start with facts. Simple facts. We are seeing unemployment increase. We are seeing unemployment claims rise. We are seeing wages fall because no one has power as a worker to demand more. Employers can fire anyone and find someone in the snap of a finger to replace that worker who wants more. Employees are working out of fear, and thus, accepting whatever comes, even if it means taking on more work for less wages. Just the reality of the world these days. Again, simple truths about what's taking place.
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Saturday, June 18, 2011
Stock Market Investors Suffering From the Chihuahua Syndrome / Stock-Markets / Stock Markets 2011
You may not have heard of this particular syndrome before but it comes from my pet Chihuahua dog, Chico. Whenever he gets scared during a thunderstorm, he slinks off to sit under my bed. I suppose the mattresses and bed covering overhead comfort him. He is actually a pretty good forecaster of nasty weather because he will anticipate the arrival of a storm by his habitual exhibition. When the first clap of thunder rattles the air, Chico can be found under the bed and shaking like a leaf.
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Saturday, June 18, 2011
Why It’s Too Soon To Buy the Stock Market Dip! / Stock-Markets / Stock Markets 2011
After six straight down weeks the S&P 500 is down only 6% from its April peak.
That’s not near enough to factor all the negatives into stock prices. Those negatives include the rapidly slowing U.S. economy, sharply rising global inflation, plunging global markets as central banks raise interest rates to ward off inflation, the cuts in government spending yet to hit the U.S. economy as Washington and individual states tackle their record budget deficits, and the end of the Fed’s QE2 stimulus program.
Friday, June 17, 2011
Stocks are Weak, Especially the EuroStoxx50 / Stock-Markets / Stock Markets 2011
The rally in equity markets globally looks at risk now as traders start to re-assess the health of the global economy. And no matter where one looks, all the major economies are experiencing their own unique and sometimes shared difficulties.
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Friday, June 17, 2011
Stock Market Sentiment Surveys Or Margin Debt Who Is Smarter? / Stock-Markets / Stock Markets 2011
The one and only data point that has given the bears pause is the extremely bearish sentiment readings. As an example the AAII survey recorded its highest bullish view on December 21, 2010 at 63.3% bullish to 16.4% bearish whereas on June 15, 2011 those readings were 29.0% bullish to 42.8% bearish.Read full article... Read full article...
Thursday, June 16, 2011
European Debt Contagion Impact on Domestic Banks and Stock Market / Stock-Markets / Stock Markets 2011
The price action in U.S. financial markets on Wednesday was the culmination of fear and disease. Fear was represented by a breakout in the Volatility Index (VIX) and the disease was related to the sovereign debt crisis unfolding in the Eurozone. The violent reaction by the Greek citizenry to proposed austerity measures paired with grumblings coming from multiple Eurozone nations ignited fear among traders and investors alike.
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Thursday, June 16, 2011
Stock Market Close To Breaking Down / Stock-Markets / Stock Markets 2011
Yesterday was promising for the bulls. We had a gap up near key support. Always good to see a gap up when you're so close to breaking down below key support. The gap up ran quite a ways higher before pulling back so late in the day. Overall, a good day for the bulls. Gave them some real hope that maybe things wouldn't get so bad. That maybe losing the 200-day exponential moving average wasn't a guarantee after all.
Wednesday, June 15, 2011
Stock Market Indices Buying Opportunity / Stock-Markets / Stock Markets 2011
On Monday we saw the intraday sell-off and reversal pattern that I had stated I was looking for, to accompany the mass of bottoming indicators that were flashing. We didn't get everything in alignment (capitulation breadth/volume not as deep as historically, lunar/Puetz downward pressure period not quite complete), but we had more than 10 different oversold technical indicators and contrarian sentiment readings calling for a trend change together with the intraday sell-off and reversal coming just 2 days from the full moon: that was enough for me to add long stock indices positions. It is rare that the market provides perfect alignment and I believe it is probable that was the bottom. If it wasn't the bottom and we hit lower over the next couple of sessions then a reversal would become even more compelling and I would add further on the long side. Let's dive in.Read full article... Read full article...
Wednesday, June 15, 2011
Stock Market Possible Low / Stock-Markets / Stock Markets 2011
Further to the June 4th Market Minute titled "Corrective low draws near" today's market action suggests that the bottom to this retracement may have occurred.
Probability models have indicated that the low in the current pullback should develop sometime in the second half of June (More information is on page 8 of the May newsletter). Today's strong broad-based advance may prove to be that bottom, however, additional follow through with higher price levels will be needed before confirmation. The S&P 500 will need to close above 1300 and the TSX over 13,200.
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