Category: Stock Markets 2011
The analysis published under this category are as follows.Monday, May 16, 2011
Stock Market Warning Signs / Stock-Markets / Stock Markets 2011
It is been my belief that stocks and the economy have been locked in a secular bear market since March of 2000. During that period we've had two recessions and two cyclical bear markets. One of those recessions was the worst since the Great Depression and the last bear market in stocks was the second worst in history.
I've said all along that printing money will not cure the problem we've gotten ourselves into. It's never worked in history and it's not going to work this time either. We can't solve a problem of too much debt with more debt. All we will accomplish is to make the problem bigger.
Read full article... Read full article...
Monday, May 16, 2011
Stock Market One More Push Higher Before Correction Sets In / 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 in a bull market. Cycles point to a continuation of this trend for several more months.
Read full article... Read full article...
Sunday, May 15, 2011
Significant Stock Market Correction In Progress Now / Stock-Markets / Stock Markets 2011
I've been long SPX since the September 2010 bottom and an aggressive buyer on pullbacks. Today I exited all long trades and went to 100% cash and then even took on a small short position. My current analysis shows ample reason to conclude that stocks and commodities are in the early stages of a significant correction. Here's my SPX trading record for 2011:
Read full article... Read full article...
Sunday, May 15, 2011
Stock Market Headaches, Headaches, and More Headaches..... / Stock-Markets / Stock Markets 2011
The market had a tough close to the week. The number of headaches for this market is starting to add up. The market spent the week testing key support and finding a way to hold above it. 1335 S&P 500 is horizontal support that the bears worked on over and over all week, but somehow they couldn't take it out with any force. Although they did take it below by a few points intraday on one occasion. The problem for the bulls is that they couldn't muster up enough energy each time it held 1335 S&P 500 to blast it higher. 1370 never came close to being tested back on the up side.
Read full article... Read full article...
Saturday, May 14, 2011
Stock Market Weakening Uptrend / Stock-Markets / Stock Markets 2011
The US market started the week at SPX 1340, then gyrated to 1359-1332-1351-1333, and ended the week at 1338. Overall the SPX/DOW were -0.25% and the NDX/NAZ were -0.10%. Asian markets lost 0.4%, European markets lost 1.2%, the Commodity equity group was 2.2% lower, and the DJ World index lost 1.2%. On the economic front positive reports outnumbered negative reports by 11 to 3. The negatives were declines in the Monetary base, the WLEI, and an increase in the Trade deficit. On the positive side were increases in Wholesale/Business inventories, Consumer sentiment and Retail sales. The Budget deficit, M1-multiplier and Jobless claims improved. Remaining positive were the PPI/CPI and Import/Export prices. Next week Housing, Industrial production and the May FOMC minutes.
Read full article... Read full article...
Saturday, May 14, 2011
Stock Market Reversal, Without Vision the People Perish / Stock-Markets / Stock Markets 2011
Nobody can see the future, except of course for a real prophet. I'm not one. Real prophets come along to show us the way very rarely. One of the signs of a true prophet is often that they are run out of town on rails, long before the world realizes that they actually had a glimpse of the future and its too late to heed their warning.
Read full article... Read full article...
Saturday, May 14, 2011
Stock Market Kicking The Can! / Stock-Markets / Stock Markets 2011
The economic catch phrase of the year has become ‘kicking the can down the road’, applied to all the problems that are not being solved, but are simply kicked further down the road.
It’s an apt description, as it is exactly what’s happening.
Friday, May 13, 2011
How Weak Japanese Economy Contributes to a Global Stock Market Reversal / Stock-Markets / Stock Markets 2011
Jack Barnes writes: In our ongoing search for possible "inflection-point" catalysts - financial stimulants that could help turn global markets upside down - the Japanese economy has to be a prime candidate.
In the last part of the 1980s, Japan was the world power - so much so that investors on the U.S. trading floors of New York each day watched the Tokyo markets with a mixture of awe and fear. An oft-cited investing aphorism of the day explained this very clearly by holding that "when Tokyo sneezes, Wall Street catches a cold."
Read full article... Read full article...
Thursday, May 12, 2011
Stock Market The Bears Have Dreams / Stock-Markets / Stock Markets 2011
The bears have dreams. Oh, to see those levels get eaten away one by one. Fantasy is nice, and maybe someday it'll come true, but for now it remains a dream unfulfilled. Everyone keeps talking about market death these days, and we certainly could use a longer down trend to unwind all of the bullishness from this market, but no matter what happens, we can't even seem to take out horizontal support at 1335 on the S&P 500. So let's go over the headline title here.
Read full article... Read full article...
Thursday, May 12, 2011
Stock Market Key Downside Reversal for S&P? / Stock-Markets / Stock Markets 2011
Let's notice that today's action in the emini S&P 500 initially climbed above yesterday's high at 1356.50 (to 1358.25), but then reversed sharply into a nosedive that so far has pressed to 1334.75, which is 4.25 points below yesterday's low.
The net result from a technical perspective is the potential for a key downside reversal day in the e-SPM (contingent upon a close beneath 1339). Such a signal will indicate strongly that the rally off of last Thursday's low at 1325.25 into this morning's recovery high at 1358.25 was a countertrend rally within a larger corrective process that should break the rising 20 DMA (1335) and the prior low at 1325.25, on the way to a test of the lower BBnd line, now at 1300.
Read full article... Read full article...
Wednesday, May 11, 2011
Cycles Analysis Says that the Stock Market Bears are About to Roar / Stock-Markets / Stock Markets 2011
The Stock market pushes higher and higher, what fool would take a short position against this mighty liquidity pump up, however there are a few dark clouds in the next few months: US Summer is seasonly poor, QE2 ending, earnings are peaking, Greek woes. When the SP500 sinks, historically the US dollar rallies, transports fall and funds rotate out of aggressive stocks to defensive stocks. Let's review these cycles to see what we can expected next.
Read full article... Read full article...
Tuesday, May 10, 2011
Stock Market Daily Charts Remain In Control For Now.... / Stock-Markets / Stock Markets 2011
bottom line for the action we're seeing. The weekly charts we know are bearish, but we also know the primary chart to follow is the daily chart. Only when the daily chart confirms the weekly chart can we say with more assuredness that we're about to correct with some force rather than the tiny little selling days we get from time to time. The daily charts for the major indexes are all in bullish inverse patterns and that has to be the focus until broken. The bears can't even remove the 20-day exponential moving averages, let alone the key 50-day exponential moving averages further below.
Read full article... Read full article...
Tuesday, May 10, 2011
Hong Kong ETF EWH on the Move / Stock-Markets / Stock Markets 2011
All of the action in the iShares MSCI Hong Kong Index (EWH) from the November 8, 2010 high at 20.24 into the March 17 low at 17.63 has the right look of a completed major corrective period. If accurate, that means that all of the action since March 17 (at 17.63) is part of a new upleg within the dominant, powerful uptrend.
Read full article... Read full article...
Monday, May 09, 2011
Stock Market Odds Favour a Rise to SPX 1420 Before the Next Correction / 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 in a bull market. Cycles point to a continuation of this trend for several more months.
Read full article... Read full article...
Sunday, May 08, 2011
Stock and Commodity Markets Wild Week, Elliott Wave Analysis / Stock-Markets / Stock Markets 2011
The ongoing weakness in the Asian markets, and the Commodity equity group caught up to the western markets this week, as they experienced their first decline in three weeks and largest weekly decline since mid-March. Commodities were the biggest losers as Silver lost 25.6%, Crude dropped 16.6%, and the GSCI index dropped 11.2%. For the S&P GSCI Commodity index this was the largest weekly drop since, oddly enough, the first week in May 2010. The equity markets held fairly well considering these declines. The SPX/DOW were -1.5%, and the NDX/NAZ were -1.3%. Asian markets lost 1.8%, European markets lost 1.3%, the Commodity equity group dropped 3.3%, and the DJ World index lost 2.3%.
Read full article... Read full article...
Thursday, May 05, 2011
Nasdaq Rebounds At Support.... / Stock-Markets / Stock Markets 2011
This does not mean that things look good here and that we should start loading up. Not at all. It means we should have a small rally, but that's about it. We should ultimately test lower again, and if that move down brings about strong positive divergences from low oscillator levels, then we can feel better about taking on a new play or two. With the market moving lower early on and then extending down as the morning went along, it looked like things might get out of hand. But these pullbacks often look worse than they really are in terms of how it set up technically. Selling off 70 RSI's on both the daily and weekly charts can seem scary, but you know it has to happen, and thus far, it's not even close to being out of the ordinary.
Read full article... Read full article...
Wednesday, May 04, 2011
Geomagnetism and a Stock Market Model / / Stock Markets 2011
3 days of geomagnetic disturbance trumped positive seasonality and lunar phasing for the stock markets in May's opening days. The first chart below shows the geomagnetism readings of the planetary A index over the last 3 months and the second chart below shows the inverse correlation in stock market performance over the same period, with periods of higher geomagnetism bringing about bearish sentiment in the market, and low geomagnetism bullishness:
Read full article... Read full article...
Tuesday, May 03, 2011
Stock Market Rallies on News of Bin Laden's Death? It's Not So Simple / Stock-Markets / Stock Markets 2011
On the morning of May 2, the financial headlines were abuzz with the news of Osama Bin Laden's death and its positive impact on the stock market: "Stock Market Celebrates Killing of Bin Laden" (The Wall Street Journal)
But despite a positive open, stocks closed lower on May 2. Undoubtedly, in the days ahead we'll hear analysts explaining how Bin Laden's death is not that "bullish" of an event, after all.
Read full article... Read full article...
Tuesday, May 03, 2011
The Stocks Stealth Bull Market Update 2011 Ebook / News_Letter / Stock Markets 2011
The Market Oracle NewsletterApril 12th, 2011 Issue #8 Vol. 5
Read full article... Read full article...
Tuesday, May 03, 2011
Stock Market Sidelights to 1994 / Stock-Markets / Stock Markets 2011
LURING THE UNSOPHISTICATED into the stock market was considered a risk by Federal Reserve Chairman Alan Greenspan in 1994. So much so, that protecting the individual investor was a mandate of the Fed. (The Fed advertises and then omits new mandates faster than spring fashions. My favorite is the brainstorm of former Fed governor Frederic Mishkin in 2007: "The modern science of monetary policy proceeds under the assumption that the central bank's purpose is to maximize the well-being of households in the economy; the objective function specifies exactly what should be maximized.") On May 27, 1994, Greenspan told the Senate Banking Committee it was for this very reason that he - his FOMC - had started raising rates in February, 1994: "Lured by consistently high returns in capital markets, people exhibited increasingly a willingness to take on market risk by extending the maturity of their investments." The People had shifted assets out of bank deposits and the like. The avuncular Fed chairman, by raising rates, was shepherding his sheep: "[S]ome of those buying the funds perhaps did not fully appreciate the exposure of their new investments to the usual fluctuations in bond and stock prices."
Read full article... Read full article...