Category: Stock Markets 2011
The analysis published under this category are as follows.Tuesday, February 15, 2011
Stock Market Correction Due, Awaits Technical Breakdown / Stock-Markets / Stock Markets 2011
The market is at a very interesting juncture. On all my favourite indicators (A/D Line, McClennan Summation, Slow Stochastics, Fast Stochastics and MACD) the current bull run is very much overbought. Given that this highly profitable move has been in place since last September it is logical that we are due a correction, but there is no sign yet of any technical breakdown. If you are not in the market or have been stopped out from positions I would hold my powder dry for the moment as the risk/reward ratio is negative.
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Tuesday, February 15, 2011
Stock Market Bears Can't Keep History From Repeating / Stock-Markets / Stock Markets 2011
Jon D. Markman writes: There's something in the air - and I'm not talking about spring or young love. I'm talking about a profound sense of déjà vu.
The way the stock market has performed of late has me thinking back to the low volatility bull-market cycles of the early- and mid-1990s. So far 2011 is awfully reminiscent of 1995 - another year that featured a jobless recovery and a Democratic president moving to the center.
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Tuesday, February 15, 2011
Stock Market Bears Turning Bullish, Warning Signal for Crisis 2011 / Stock-Markets / Stock Markets 2011
After two years of issuing "sell" ratings on equities and making bearish pronouncements on the year-ahead economic outlook, Wall Street has finally turned bullish again. Recent analyst polls reveal the consensus outlook for 2011 is for another year of double-digit stock market gains. Even stalwart bears are starting to sound a more optimistic note on the prospects for continued economic recovery in 2011 and beyond.
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Tuesday, February 15, 2011
Stock Market Overbought Again On The Daily Index Charts.... / Stock-Markets / Stock Markets 2011
It's the same old story. Wash, rinse and repeat. The market goes higher until the daily charts get those 70 RSI readings, and then it sells off a bit to unwind some. Once unwound just a little bit it begins its journey once again to the up side. At some point that'll stop. The RSI, stochastics, and MACDs, will some day really sell off when everyone expects it not to.
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Monday, February 14, 2011
U.S. Stock Markets Financial Disconnect / Stock-Markets / Stock Markets 2011
Despite last week's confusing employment data, the increasing threat of another decline in home values, political uncertainty in Egypt and the broader Middle East, and sharp pullbacks in some emerging markets such as Brazil, US stock markets continued to rise. It sometimes seems that Wall Street exists in a bubble that is well-insulated from the rough and tumble of the outside world. But, in what may be a harbinger that America's era of prosperity is winding down, the hallowed New York Stock Exchange, long the epicenter of American economic might, is expected to be bought by Germany's Deutsche Boerse. When the king is so unceremoniously uncrowned, it won't be long before investors notice how shabbily dressed he really is.
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Monday, February 14, 2011
How to Tell When Stock Bulls or The Bears Are in Control / Stock-Markets / Stock Markets 2011
There are different ways of measuring what is happening in the markets.
Indexes measure the market, but some indexes are price weighted, some are market value-weighted or market share-weighted, and some are float weighted. It is sometimes why, a few stocks can have an over exaggerated impact on the movement of an index.
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Sunday, February 13, 2011
Stock Market Trends All Remain Up / 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 cyclical bull/bear cycles side by side. 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 mini bull market. Cycles point to a continuation of this trend for several more months.
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Sunday, February 13, 2011
Very Brutal Stock Market Investor Sentiment / Stock-Markets / Stock Markets 2011
As expected, the bullish extremes in investor sentiment persist. Company insiders continue to unload shares at a high rate. As I have brought forth over the past couple of months, these data points (and those of most analysts) have not mattered as the major indices keep marching higher. It has been very brutal if you are anticipating a correction. It has been brutal if you are short, and it has been brutally hard to sit on your hands and do nothing while you wait for an entry point that is more than 1% below the recent highs. At this point, divining when a meaningful correction will happen is only guess.
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Sunday, February 13, 2011
Stock Market Valentines Day Massacre? / Stock-Markets / Stock Markets 2011
The FDIC Averaging 3 Weekly Closures for Past Year. The FDIC Failed Bank List announced four new bank closures this week. Premier American, based in Miami, acquired Sunshine State Community Bank, the Federal Deposit Insurance Corp. said today in a statement on its website. Lenders in Michigan, Wisconsin, and California also closed, and the four transactions drained $144.9 million from the FDIC’s deposit-insurance fund.
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Saturday, February 12, 2011
Stock Market Uptrend is Relentless, Analysis for Week Starting 14th Feb / Stock-Markets / Stock Markets 2011
Economic reports continue to come in mostly on the positive side and the market continues to move higher. This week the positive economic reports again outnumbered negative reports 8 to 2. On the negative side both the Trade and Budget deficits worsened. On the positive side consumer credit, wholesale inventories, consumer sentiment, the monetary base, the WLEI, excess reserves and the leading wbase increased. Also, jobless claims declined.
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Saturday, February 12, 2011
Egypt Resolves... Stock Market Resilient... / Stock-Markets / Stock Markets 2011
Democracy. The people of Egypt were fighting to remove autocratic leadership and create democracy for themselves. The market had been somewhat shaken recently over rioting in the streets. It was a reminder of the recent past riots when we also had to deal with the flash crash. The market didn't like all that rioting in the streets not too long ago, and was clearly worried a bit that this could happen again. It should not happen as President Mubarak has stepped down.
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Friday, February 11, 2011
U.S. Stock Market’s Remarkable Resilience! / Stock-Markets / Stock Markets 2011
The U.S. stock market’s continuing strength in the face of so many global problems is truly remarkable - and has been correct so far.
Meanwhile, the stock markets of three of the seven largest economies of the world rolled over to the downside last November. The markets of China, India, and Brazil are down an average of 15% since their peaks in November, and are mostly making new lows almost daily. They are three of the four so-called ‘BRIC’ countries (Brazil, Russia, India, and China) that were leading the way in the new bull market that began off the March, 2009 low. Even the Russian market has declined 5% over the last week.
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Friday, February 11, 2011
Want to Bet Against Permanent Open Market Operations (POMO) ? / Stock-Markets / Stock Markets 2011
Permanent Open Market Operations are purchases of treasuries and other securities by the Fed to inject money into the system. It is the policy of Quantitative Easing broken down into a schedule of action. Chris Ciovacco's diagram here shows how this policy results in pushing asset prices higher around the globe:Read full article... Read full article...
Thursday, February 10, 2011
Stock Market Hedging Strategies: Tight Trailing Stops and Inverse Funds / Stock-Markets / Stock Markets 2011
The Dow Jones Industrial Average has soared 26% since early July and some 84.59% from its March 2009 bear-market lows. And that has Money Morning Chief Investment Strategist Keith Fitz-Gerald more than a little concerned.
Does that mean it's time to cash out?
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Thursday, February 10, 2011
Stock Market Minor Pullback On The SPX/NDX Off 70 RSI's On Daily Charts... / Stock-Markets / Stock Markets 2011
You wouldn't call this a strong, or a major, pullback, I'm sure, but it was a pullback to some degree, nevertheless, especially on the Nasdaq and today's lows. RSI readings on the S&P 500, Dow, and Wilshire all hit 70 Tuesday, and thus, it should come as no shock that the market made an attempt to sell off some today. In the end, however, it didn't do a whole lot of selling successfully as the buy-the-dip bull crowd came in again today when things started to really move down. The interesting thing about 70 RSI readings in this bull market is that it has rarely stopped individual stocks from moving higher if they're in the right type of bullish pattern. The RSI readings often get well in to the 70's if not the lower 80's. This is not normal behavior, and shouldn't be looked upon as such, since normally, 70 will stop stocks dead in their tracks.
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Wednesday, February 09, 2011
Under the Big Stock Market Top / Stock-Markets / Stock Markets 2011
1,332. That is a 100% in the S&P since it's March 2009 low of 666 (see David Fry's chart). Does it matter? Can we expect even a LITTLE pullback after a 100% run or is it "to the moon Alice" and maybe Mars and Jupiter while we're at it as the Federal Reserve's multi-Trillion Dollar thrusters send us to the stars, breaking the bonds of gravity (and logic) as they send stocks every higher in an expanding universe of freshly supplied money. As fellow stock market physicist, Art Cashin said yesterday:
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Tuesday, February 08, 2011
Dow Jones Stock Market Index Reverses at 12,000 Target, Correction Starts / News_Letter / Stock Markets 2011
The Market Oracle NewsletterJan 31st, 2011 Issue #3 Vol. 5
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Tuesday, February 08, 2011
What Happens in a Sideways Stock Market / Stock-Markets / Stock Markets 2011
Today's OTB features an excerpt from my friend Vitaliy Katsenelson's recently published The Little Book of Sideways Markets. Vitaliy is CIO at Investment Management Associates, a value investment firm in Denver, and he is a prolific and engaging writer (you can find and subscribe to his articles at http://ContrarianEdge.com). I had the pleasure of writing the foreword to Vitaliy's book, and here is a brief excerpt:
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Tuesday, February 08, 2011
Stock Market Trending Higher Still.... / Stock-Markets / Stock Markets 2011
The questions are asked daily. How soon will the correction begin? Shouldn't I be selling my longs and going short and short aggressively? I can't blame people for wondering about those issues. It makes sense emotionally. The problem is, it hasn't made sense in the real world. Bull markets can be very stressful on bulls and bears alike. The bulls get stressed out the higher they go. The bears get stressed out wondering just how much pain they can endure and when will those losses finally end. Nothing worse than being short and watching the market blast higher.
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Monday, February 07, 2011
Stock Market Bias Remains Bullish, But Resistance Ahead / Stock-Markets / Stock Markets 2011
We head into the new week with some good news from the Middle East, Europe, and the United States. The bias on the Street remains positive, but from a strategy perspective we have potential resistance to contend with near 1,315 and 1,326 on the S&P 500. Below, we outline a possible approach for the week from a portfolio management perspective. Quick reads from this morning’s news capture the early tone for Monday:
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