Category: Stock Markets 2011
The analysis published under this category are as follows.Wednesday, June 15, 2011
Stock Market Six Straight Weeks Down, DJIA Below 12,000, What Now? / Stock-Markets / Stock Markets 2011
The Dow has suffered the "longest losing streak since the fall of 2002. The market's last seven-week stretch of losses began in May 2001, as the dot-com bubble deflated," reports The Associated Press.
As for why stocks are falling, most observers agree: Blame "weaker hiring, industrial output, and a moribund housing market." The economic reports from the past two weeks made that clear.
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Tuesday, June 14, 2011
Stock Market Getting Ready To Bounce / Stock-Markets / Stock Markets 2011
At least it should be. Without question the thing to watch for is a bottoming, which we did not get today, unfortunately, for the bulls. Looking for a gap down that prints a hollow red candle to tell me that an upside move is in the cards to unwind extremely oversold market conditions on the daily charts. It will probably be nothing more than a dead cat bounce, but a bounce is definitely in the cards to bring up those oscillators. It's easy to get caught up in the selling, and think that we'll stay oversold forever, but when you get down to major areas of support to be talked about later in this letter, it's time for that bounce as the bulls will defend at these critical levels across all the major index charts on the dailies. We're at 30 RSI on the daily charts pretty much across the board, and sub-10 on stochastic, not to mention RSI's at very low levels.
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Monday, June 13, 2011
Have the Stock Market Leadership Stocks Gone South? / Stock-Markets / Stock Markets 2011
Every night we run our computers to measure how Leadership stocks are growing or declining in numbers, and then compare that to what is happening to the Broad Market stock number.
Our historical data has found that the Broad Market follows what is happening to the Leadership stocks. They are aptly named, because they are the "lead dogs" that the rest of the market follows.
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Monday, June 13, 2011
Stock Market Looking to Make Summer Lows / Stock-Markets / Stock Markets 2011
Jon D. Markman writes: With stocks down for the sixth straight week, we need to start looking at where we might expect to see the summer market lows.
So here is the question to ponder: How far could the Standard & Poor's 500 Index sink during the summer and stay within its two-year, bull-cycle uptrend?
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Monday, June 13, 2011
Stock MarketĀ Bottom Getting Closer / Stock-Markets / Stock Markets 2011
I present 8 more bottoming indicators, or indicators that are now at further extremes:
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Monday, June 13, 2011
Yikes, Was That The Top In The Stock Market ? / Stock-Markets / Stock Markets 2011
My cyclical model says to expect a rally in the stock market soon. We have fallen for six weeks in a row and the media patter is starting to turn bearish.The question is, if we do rally, is it the end of the decline.
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Monday, June 13, 2011
Stock Market Closing in on a Low / Stock-Markets / Stock Markets 2011
Another week, another decline. That’s six weeks in a row. Economic reports were not as negative as they have been in recent weeks. In fact 8 of the 10 reports came in positive. The two negatives were a slight uptick in weekly jobless claims and another decline in the WLEI. On the plus side: export/import prices and wholesale inventories remained positive; and the trade/budget deficits improved. Moving higher were consumer credit, the M1-multiplier and the monetary wbase. Most markets, with the exception of the USD, moved lower. The SPX/DOW lost 1.9%, and the NDX/NAZ dropped 3.2%. Asian markets lost 0.8%, European markets were -2.1%, the Commodity equity group were -0.8%, and the DJ World index lost 2.4%. Next week Retail sales, CPI/PPI and Options expiration.
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Monday, June 13, 2011
Time For Stock Market Reversal Drawing Closer / 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.
Long-term trend - In March 2009, the SPX began a move which evolved into a bull market. Cycles point to a continuation of this trend for several more months.
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Monday, June 13, 2011
Stocks Bear Market Rally is Over Mantra About to Get Busted Again? / Stock-Markets / Stock Markets 2011
The stock market's 6 week downtrend has continued to below 12,000 to close on Friday at 11,951 which has increasingly given much fervour to the perma crowd to jump on the bear market mantra band wagon, who collectively are coalescing around the end of QE2 marking the end of the so called bear market rally, despite the fact that the past 2 years has seen one of the greatest bull runs in history of more than 100%.
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Sunday, June 12, 2011
Stock Market Choice Between Bulls Buying or Waterfall Drop / Stock-Markets / Stock Markets 2011
It appears that the markets are now moving into areas where the bulls need to decide if they want to hold this market and step up to the table to buy it, or leave well alone and then could potentially see a waterfall from these levels.
The market is very oversold, there is no question about that, but the big moves come from oversold conditions, with the market now reversing from the lack of support from the POMO and QE operations, it's clear that the stock market rallying for the past 2 years has been one big shell game, and unless the FED comes into support the markets via another round of POMO and QE3, then further prices are likely, just like we saw in 2010 as QE1 ended and a near 20% correction until word of QE2.
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Sunday, June 12, 2011
What the U.S. Dollar & the Euro Mean to the S&P 500 / Stock-Markets / Stock Markets 2011
The buzz around the blogosphere and in the media is that Quantitative Easing II is scheduled to end in around 3 weeks. Already pundits are asking about Quantitative Easing III as a matter of when, not if. In reality a QE III Lite version is already in the cards as the Federal Reserve has stated they will be buying Treasuries and Mortgage Backed Securities (MBS) with maturing issues. The Fed also plans on reinvesting the interest earned from the existing portfolio (Roughly $15 billion/monthly).
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Saturday, June 11, 2011
How Will Investors Handle The Stock Market Correction? / Stock-Markets / Stock Markets 2011
Have investors learned how to recognize and handle market downturns?
They certainly have the tools available now, in the form of information and analysis to help identify when risk of a downturn becomes high, and when support levels have been broken indicating a correction has begun. And the availability of ‘inverse’ mutual funds and ETFs provides the opportunity to not only avoid losses, but to make gains from market declines.
Saturday, June 11, 2011
Stock Market Down Trend Continues Across The Board..... / Stock-Markets / Stock Markets 2011
I know the year seems as if it has been bullish, but this pullback that began six weeks ago has taken the gains out of this market for the year. The S&P 500 is up 1.1%, but now the Nasdaq is red by 0.3%. Not pretty since it was a very good year for the first five months. How fast things can change from good to bad. It came out of nowhere and hasn't stopped for six straight weeks, with the past two weeks being particularly bad, if not gruesome. The Nasdaq is now down 243 points off the top with the S&P 500 down 100 points. 1370 to 1270 at the close today. 8% on the S&P 500 and a little more than 8% on the Nasdaq.
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Friday, June 10, 2011
Think Lower Trade Deficit Is Bullish For the Stock Market? / Stock-Markets / Stock Markets 2011
The Dow rose nearly 1 percent Thursday... Investors were encouraged by a report that the United States trade deficit had narrowed, one positive point in a recent string of weak economic data." (June 9, 2011, Reuters)
Before you join the crowd in thinking that shrinking trade gap is bullish for stocks, read this excerpt from the 2011 edition of our popular free Club EWI resource, The Independent Investor eBook.
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Friday, June 10, 2011
Are Global Stock Markets Topping Out? / Stock-Markets / Stock Markets 2011
I think they are. The top is not yet confirmed, however. Additionally, the next cyclical global equity bear market will be getting into dangerous territory. Evil speculators will have to be careful shorting the markets once the opportunity arises in case the apparatchiks pull out their bazookas and declare that all asset prices except Gold and commodities can only rise and never fall. Don't laugh, because price controls are certain to come in many forms over the next several years as governments fight their losing battles against what is left of the global free market. Being a bear will be fraught with peril once the next downward cycle gets going.
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Thursday, June 09, 2011
SPX Stock Market Index Elliott Wave Pattern Analysis / Stock-Markets / Stock Markets 2011
We took a close look at the SPX charts in response to recent developments in the market. After a review of the SPX, on various timeframes, one count appeared as the most probable for this correction. We just posted that count on the SPX hourly chart.
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Thursday, June 09, 2011
Stock Market Tug Of War, Mass of Bottoming Indicators / Stock-Markets / Stock Markets 2011
Let's start with 8 indicators that all suggest a stock market bottom is close at hand, and therefore a stock market buying opportunity:
Thursday, June 09, 2011
Stock Market Acting More Bearish... Changes Of Character / Stock-Markets / Stock Markets 2011
When studying markets, what you try to do is find a change of character. Something different that hasn't been taking place for quite some time. Something out of the ordinary. If it happens once you can shrug it off as a one time happening that really shouldn't be given any real energy. If it happens more than once you have to start tasking it seriously. Now I think we have to start taking things more seriously from a bearish trend point of view. There are two thins occurring now that have to be taken as a bad omen for the short-term. We are getting any early buying turned into late day selling. Late day selling is a way of the big money saying you can't do too much if you're a bull. Stop buying early on.
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Thursday, June 09, 2011
Stock Market Potential Long Term Topping Process Underway / Stock-Markets / Stock Markets 2011
In the introduction to this report, I detailed many of the non-technical elements that should have happened and could have happened and almost happened--but that ultimately failed to happen--leading to a non-confirmation of an ongoing bull market. Let's reiterate: I gave the bull the benefit of the doubt and argued its cause to the extent that it gave a cause to argue. But when reality departs from argument I will have to go with reality. Let's look at some technical factors which failed to confirm an ongoing bull market and give substantial cause to anticipate a renewed bearish environment.
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Tuesday, June 07, 2011
Stock Market Bulls or Bears? Who Is In Control? / Stock-Markets / Stock Markets 2011
A current update on last week's analysis of Very Strong stocks versus the Very Weak stocks ....
From last week's posting: What if the number of Very Strong stocks in the market was in a "down trend" while the number of Very Weak stocks in an "up trend" ... what would you say?
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