Category: Stock Markets 2011
The analysis published under this category are as follows.Friday, March 18, 2011
Stock Market Indices Buying Opportunity / Stock-Markets / Stock Markets 2011
In my analysis of February 17th I suggested that a stock market pullback was imminent - it began on the 18th and remains in progress.
In my analysis of March 2nd I suggested the correction should last an average of 4 weeks based on cycles and previous corrections, and that the overly bullish indicators and sentiment needed resetting, in order for the cyclical bull to continue.
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Friday, March 18, 2011
Time for More QE? / Stock-Markets / Stock Markets 2011
We have heard it all before. The market is going up because of QE2. The Fed has got your back. And yes, from early November to mid- February that is all the market did -- it went up. But a funny thing happened along the way -- just when investors got comfortable with the idea of a sure thing -- somebody or something pulled the rug out from underneath them. And oh my goodness, the SP500 is down a whopping 5% from its highs. Ruin!!
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Thursday, March 17, 2011
What's Going On With the SP500 Stocks Index Now / Stock-Markets / Stock Markets 2011
Not surprisingly, we have been getting lots of calls about the markets in light of both the unsettling circumstances in the Middle East and the triple catastrophe in Japan, with the still brewing European debt crisis in the background.
The first observation is that events, more than analysis, are driving the markets at this point. That puts macro-economic observation and thinking in first position, price chart behavior in second position, and fundamental analysis in third position in terms of what is most likely to occur in the markets in the short-term.
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Thursday, March 17, 2011
Decidedly Negative Stock Market Session / Stock-Markets / Stock Markets 2011
The stock market indices suffered big losses today, and although a late rally did bring them back, they fell back again in the last 15-20 minutes to close not far off the session lows.
Net on the day, the Dow was down 242.12 at 11,613.30, with a low of 11,555, so about 70 points off its low. The S&P 500 was down 24.99 at 1256.88, about 7 points off its low, and the Nasdaq 100 was down 56.65 at 2202.97, about 14 points off its low.
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Thursday, March 17, 2011
How to Gauge the Stock Market So you Don’t Buy to Early! / Stock-Markets / Stock Markets 2011
Over the years I have found an indicator/trading tool which I find help spot intermediate trend reversals. I am going to quickly cover in this report. As most of you know the 20 simple moving average is a great gauge for telling you if you should be looking to buy the dips or sell the bounces. It’s an indicator I keep on the broad market charts like the SP500, Dow and NASDAQ.Read full article... Read full article...
Thursday, March 17, 2011
Stock Market Selling Accelerates... / Stock-Markets / Stock Markets 2011
What a day we had today. Down in the morning before rallying back with the Nasdaq, actually going green for a brief moment before the European Union's energy chief made a comment about the Japan nuclear situation, which sent the market exploding downward. The Dow went from -40 to -200 in moments. Eventually, it almost went to -300 before rallying back to -130. It slipped again late finishing down 242 points. Down 50 plus on the Nasdaq and 25 plus on the S&P 500. Very nasty action with wild swings as the VIX has spiked, and thus, large swings were taking place all day long, although most of the swings are clearly lower. Larger swings do create more emotion, so it's best to keep things light on both sides as you'll get head faked time after time. Just better to keep things light to mostly, if not all, cash.
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Wednesday, March 16, 2011
E.U. Energy Chief Remarks on Japan Nuclear Catastrophe Hits U.S. Equity Markets / Stock-Markets / Stock Markets 2011
The EU Energy Chief made some comments about the likelihood of a major radiation disaster in Japan, which may be underway. This caused US equity markets to plunge dramatically.
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Tuesday, March 15, 2011
New Stocks Bull or Deceptive Bear Market? Find Out in This Free Elliott Wave Theorist! / Stock-Markets / Stock Markets 2011
Elliott Wave International has released a free issue of Robert Prechter's Elliott Wave Theorist. It includes more of Robert Prechter's experience than you’ll ever read in a single issue -- all 30-plus years of it. What matters is that he uses his experience at a moment when it can do the most good, namely when investors are most vulnerable. This is a unique opportunity for you to see what Prechter’s subscribers see. Don't miss out! This free issue is only available through March 21. Learn more about Prechter’s 12-page issue – it’s yours for free.
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Tuesday, March 15, 2011
Will Fed Hint at QE3 and Surprise the Stock Market Bears? / Stock-Markets / Stock Markets 2011
Will the Fed Hint atGiven the stark contrast between asset class performance before and after the implied announcement of QE2, the Fed’s statements related to quantitative easing in the coming weeks will have a significant impact on the outlook for stocks and the relative attractiveness of asset classes, market sectors, and subsectors.
The Fed is scheduled to issue statements on March 15 and April 27, 2011 with the following concerns as a backdrop:
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Tuesday, March 15, 2011
Japanese Nuclear Plant Explosions Trigger Global Stock Market Meltdown / Stock-Markets / Stock Markets 2011
Japanese Nuclear power plant buildings exploding virtually every other day has sent a shock wave across the worlds stock markets that effectively crashed the japanese stock market by 11% which set in motion a chain reaction of stock market meltdowns across the world.
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Tuesday, March 15, 2011
Negative Returns for a Decade, Is Gold in a Bubble? / Stock-Markets / Stock Markets 2011
John Hussman is is once again exploring the topic of valuations and expected future returns. Please consider this snip from Anatomy of a Bubble
Read full article... Read full article...When valuations are reasonable, investors can expect satisfactory long-term returns simply on the basis of the stream of cash flows they receive over time. But once valuations are elevated, investors become increasingly reliant on pure increases in prices and valuations in order to achieve satisfactory returns. This is easily seen in historical data for the S&P 500.
Tuesday, March 15, 2011
Secular Stock Market Trend Game Changer / Stock-Markets / Stock Markets 2011
This week we look at another except from Ed Easterling’s gonzo book on stock market return projections, called Probable Outcomes. This section is entitled “Game Changer,” and it is that and more. (Again, thanks to Ed for letting us read his work!)
“Game Changer” is a thought-provoking, somewhat detailed analysis, with two major surprises. The first is that GDP growth was well below average last decade (a trend that could continue this decade); and second, slowing growth has a substantial negative effect on valuations (P/E ratios). This ties well into my own Endgame and suggests implications about slower growth, etc. (similar to what I project from work of my own). Slower growth drives P/Es lower (even without higher inflation, or deflation) and could drop the market by a third or so relative to “normal” cycles.
Tuesday, March 15, 2011
U.S. Interest Rates Are On The Launch Pad / Interest-Rates / Stock Markets 2011
A few months ago, the chorus sung by the recovery cheerleaders reached a crescendo when expanding consumer credit statistics and surging US trade deficits provided them with "evidence" of an economic rebound. In declaring victory, they overlooked the very nucleus of this past crisis: namely, the enormous debt levels and bubbling inflation that created fragile asset bubbles. If they had recognized the original problem, they would have remained silent. In reality, only a reduction in US debt levels or increase in the value of the dollar would have signaled a budding recovery; but, thanks to the Federal Reserve and Obama Administration, there is virtually no way those results will ever be seen.
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Tuesday, March 15, 2011
Stock Market Doing What It Was Going To Do... / Stock-Markets / Stock Markets 2011
Markets have a way of doing what they need to do regardless of whatever news is out there. The situation in Japan is incredibly sad. Breaks my heart, and I'm sure it breaks the heart of each and every one of you out there.
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Monday, March 14, 2011
Japan’s Nikkei Index Stock Market Crash / Stock-Markets / Stock Markets 2011
Japan’s Nikkei Index, which measures the top 225 companies on the Tokyo Stock Exchange, went into an almost immediate freefall after Tsunami waves began washing up on the country’s northeast coast. The Nikkei 255 Index, which reached a high of 10,600 point on Wednesday, had tumbled to 10,250 points by Friday’s close. The earthquake off the coast of Japan hit at approximately 2:00 PM Japanese time on Friday, March 11.
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Monday, March 14, 2011
Stock Market Investors, It’s Time to Get Out! / Stock-Markets / Stock Markets 2011
This is for all you folks out there with retirement accounts in the general stock market. I've been warning for many months that the cyclical bull we've been in for almost two years is still just a counter trend rally in an ongoing secular bear market. I made that same warning about the last cyclical bull market from `02 to `07. Many people ignored me in November `07 when I said the second leg down in the secular bear had begun. I suspect many people wish they hadn't.
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Monday, March 14, 2011
Will Stock Sell-Off Trip Up the Bull Market? / Stock-Markets / Stock Markets 2011
Jon D. Markman writes: Stocks tumbled over the past week - despite a sharp 3% drop in crude oil prices - as investors fretted about the devastating earthquake in Japan, a downgrade of Spain's sovereign debt rating, weak trade data out of China, Germany and the United States and violence in Saudi Arabia.
The Dow Jones Industrial Average closed down by 1% for the week, while the Nasdaq Composite Index finished down 2.5% and the Russell 2000 small caps fell 2.7%. The stock sell-off was punctuated by a 90% downside day on Thursday, which means nine out of 10 stocks finished lower and 9/10 of the volume was in declining stocks.
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Monday, March 14, 2011
Stock Market Correction May Be Ending / 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 2014-15.
Long-term trend - In March 2009, the SPX began an upward move in the form of a bull market. Cycles point to a continuation of this trend for several more months.
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Saturday, March 12, 2011
Stock Market Correction Confirmed / Stock-Markets / Stock Markets 2011
The week started with the market remaining in its SPX 1303 to 1332 trading range. During the latter part of the week the lower end of the trading range broke down, confirming an OEW downtrend, and the market traded down to SPX 1292 on friday before recovering during the day. Economic reports remained mostly good with positives beating out negatives 7 : 4. On the positive side, consumer credit continued to expand while wholesale/business inventories, retail sales, excess reserves, the monetary base and the WLEI all improved. On the negative side, the trade/budget deficits expanded, weekly jobless claims increased and consumer sentiment declined.
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Saturday, March 12, 2011
Stock Market Trends Impacted by Social Moods / Stock-Markets / Stock Markets 2011
We can now add the recent uprisings in North Africa and the Middle East to the category of life imitating art -- specifically, music lyrics. Those who lived through the 1980s might be forgiven for hearing an unbidden snatch of music run through their heads as they watched first Hosni Mubarak and now Moammar Gadhafi try to hold onto power -- "Should I Stay or Should I Go" by The Clash. In Libya, where Gadhafi has used air strikes and ground forces against the rebels, The Clash's other huge hit from 1981, "Rock the Casbah," describes the current situation so well it's almost eerie:
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