Category: Financial Markets 2012
The analysis published under this category are as follows.Monday, June 25, 2012
Stock and Gold Bugs Remember It's Always Darkest Before The Dawn / Stock-Markets / Financial Markets 2012
The above proverb refers to the fact that it is always darkest one hour before the sun rises has metaphorical meaning, in that a situation may seem bleak or about as dark as it possibly could get...but soon is about to get better (i.e. Light will pour open and remove all feelings of despair). At present, I think it is safe council to state that every gold bug on the planet is probably sick and tired of waiting for the first glimmer of light on the horizon, hoping that it will soon illuminate and drive away all despair...many on the other hand probably feel a similar feeling to Charlie Loman in the Death of a Salesman who "Remembers the good ol' days" (2001-2003, 2005-2007) as he crashes his car. There are many "shades of grey" out there for how people feel at present (no, the reference has nothing to do about Anastasia or Christian).
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Saturday, June 23, 2012
Major Market Hopes Were Dashed, What Now? / Stock-Markets / Financial Markets 2012
Global markets have rallied for two weeks, which has investor hopes high that the rally marks the end of the market correction that began in March.
But the rally has run into serious problems in the news, as well as technical resistance on the charts that make the thought of the correction already being over questionable to say the least.
Monday, June 18, 2012
Lets Talk Stock and Commodity Market Cycles / Stock-Markets / Financial Markets 2012
I hope your weekend went well.
I wish to discuss how the cycles have played out and what we may expect in the following days. First, I must admit that I missed the Master Cycle low for FXE and the other ETFs that follow the “liquidity cycle.” Apparently it happened on May 31 for the euro. My Elliott Wave analysis called that low a wave (3) and the inability to rally forcefully caused me to continue waiting for the final wave (5) that didn’t come. Thursday, June 17 was day 254, which is the average duration of the Master Cycles that I have tracked for the past 10 years. The market ramp on June 8 may have been an intervention to stop the decline before options expiration. What followed was another ramp into options expiration and its final high that did not add any appreciable value.
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Sunday, June 17, 2012
Greece Elections Puts Fed On Deck..... / Stock-Markets / Financial Markets 2012
Those are two nice little events we can all go through together over the next several days. We will start, with the Greece elections over the weekend that will have a real impact on the markets. The market is clearly telling us it thinks, and believes, the party that wins will be the one that has promised to stay in the Euro-zone and not create chaos. If the party that gets in is the one that creates market uncertainty, the market will be very unhappy come Monday morning, but the opposite is true if the right party gets elected. Monday morning will have fireworks for sure.
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Sunday, June 17, 2012
Financial Markets And Governments Are Rolling The Dice! / Stock-Markets / Financial Markets 2012
Global markets had been plunging since March on worries about the dangerous eurozone debt and banking crisis and its threat to global economies.But over the last two weeks they’ve been rallying quite impressively, even as the crisis in Europe has taken another frightening turn for the worse, and as tomorrow’s Greek election neared, with its outcome just as critical and uncertain as before.
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Friday, June 15, 2012
EU vs US Markets – Inflation vs. Deflation: Part 2 / Stock-Markets / Financial Markets 2012
That (perceptions that) the stability of the EU is deteriorating is indisputable. Nevertheless, that a breakup of the EU cannot be countenanced is equally indisputable. If the world’s banks were forced to crystallise losses from sovereign European bad debts – even it were confined to Greece only – there would be a domino ripple of bankruptcies, starting with the five US banks who dominate the derivatives industry, leading to a collapse of the world’s financial system. The following is a recent quote by Angela Merkel: “Germany – and I can say this for the whole country – is prepared to do more on integration but we cannot get involved in things which I am convinced will lead to an even bigger disaster than the situation we are in today,” she said. (Source: http://www.ft.com/intl/cms/s/0/f29cdbf4-b4a8-11e1-aa06-00144feabdc0.html ) Further, although Mr Hollande of France is making loud socialist sounding noises, it was reported in the UK Financial Times of June 13th 2012, that: “He is expected to welcome Ms Merkel’s calls for closer political and fiscal union and signal his readiness to examine what competences would need to be transferred to Brussels to make the single currency function better, despite strong sensitivity in France to handing over more sovereignty.” (Source: http://www.ft.com/intl/cms/s/0/a732fdbe-b553-11e1-ad93-00144feabdc0.html )
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Wednesday, June 13, 2012
Euro FXE still holding Whilst Stock Market SPY Declining / Stock-Markets / Financial Markets 2012
We still await the next installment of the decline on FXE (124.73). At the moment it si doing a final test of Short-term trend resistance at 124.74 and the Head & Shoulders neckline in the same location. Cycle Bottom support is at 124.19, but the bounces at that level are over, IMO.
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Tuesday, June 12, 2012
Stocks And Bonds: The Two Terrible Twin Investments During Economic Depression / Stock-Markets / Financial Markets 2012
As Benjamin Graham stated in the Intelligent Investor; "The extreme depth of the depression of the early 1930's was accounted for in good part, this writer believes, by the insane height of the preceding stock-market boom."
It is easy to see the full cycle using the 1930's stock market as an example. During the Roaring 1920's stocks were bid up to 32 times earnings. This bubble ensured the Great Depression. Eventually, stocks fell 75%+ becoming cheap at 5 times earnings. Those that bought at these rock-bottom levels established or ensured their wealth for generations.
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Monday, June 11, 2012
How to Trade this Spanish Bailout this Week / Stock-Markets / Financial Markets 2012
Spanish Bailout news has sparked market moves. Here's my 13 minute video on how to trade the news with the dollar, commodities, gold and stocks.
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Monday, June 11, 2012
More Work Before Stock Market Intermediate Low? / Stock-Markets / Financial Markets 2012
Current Position of the Market
SPX: Very Long-term trend - The very-long-term cycles are down and, if they make their lows when expected (after this bull market is over) there will be another steep and prolonged decline into late 2014. It is probable, however, that the steep correction of 2007-2009 will have curtailed the full downward pressure potential of the 120-yr cycle.
SPX: Intermediate trend - SPX is working on an intermediate low.
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Monday, June 11, 2012
Stocks, Gold and Silver Marked Up For Monday's Open! / Stock-Markets / Financial Markets 2012
The past couple months have been a roller coaster ride for investors and traders. Overseas headline news has made investing and trading more difficult than normal because of prices gaping up or down at the opening bell several times per week. The next two weeks are going to be even crazier because of the Greek election and Spanish bank bailout.Read full article... Read full article...
Saturday, June 09, 2012
Key Fundamentals for Investor Profits & Protection / Stock-Markets / Financial Markets 2012
“As always, the Federal Reserve remains prepared to take action as needed to protect the U.S. financial system and economy in the event that financial stresses escalate…”
“Bernanke: Fed Could Act If Economy Weakens,” 6/7/2012
Martin Crutsinger, AP Economics Writer, Associated Pres
Fed Vice-Chairman Janet Yellen’s “hint” of possible further QE on Wednesday, June 6, 2012 was followed by Ben Bernanke’s much weaker mere openness to the possibility, expressed on Thursday.
It is thus no surprise that the Equities Markets Massively Rallied Wednesday. And also no surprise that the “Rally” petered out late Thursday.
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Friday, June 08, 2012
EUvs.USA markets – Inflation vs. Deflation: #1 / Stock-Markets / Financial Markets 2012
Author Note: This is the first of three articles that examine the threats and opportunities facing the world economy. It looks at the European crisis – and its potential impact on the world economy – through the eyes of the financial authorities and the banking community. The next article will look at the opportunities flowing from a now serious commitment by the oil companies to embrace natural gas as an alternative to oil. The third will articulate and examine the risks that the financial/political authorities may be underestimating, or may even have missed because the issues lie outside their areas of expertise or focus.
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Tuesday, June 05, 2012
U.S. Quantitative Easing, Circling Sharks, and Gold Backed Eurobonds? / Stock-Markets / Financial Markets 2012
Why Read: More to focus on possible further U.S. (and other Central Bank) quantitative easing, than on the possibility of gold backed Eurobonds - but to be aware of at least some 'talk' with respect to the latter.
Featured Article: For reference to possibility of gold backed Eurobonds, see King World interview with Don Coxe of Chicago based Coxe Advisors.
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Thursday, May 31, 2012
Financial Market Forecasts Last Chance / Stock-Markets / Financial Markets 2012
With Europe in turmoil, U.S. stocks retreating and the mainstream financial press totally on the wrong side of the trend (as usual), EWI's big-picture forecast -- though dire -- is actually quite refreshing to read. In trademark fashion, EWI tackles the issues that everyone else ignores, and they explain the future using straight-talking language I appreciate.
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Wednesday, May 30, 2012
United States is Going Down Slow, Debt Problem is Global / Stock-Markets / Financial Markets 2012
The greatest discovery of my generation is that a human being can alter his life by altering his attitudes of mind.- William James (1842 - 1910)
If you believe everything you read in the newspaper it appears that the U.S. housing market is finally rising from a long slumber. Yet real estate Web site Zillow reports that homeowners are still under water. Nearly 16 million homeowners owed more on their mortgages than their home was worth in the first quarter, or nearly one-third of U.S. homeowners with mortgages. That’s a $1.2 trillion hole in the collective home equity of American households. Despite the temptation to just walk away and mail back the keys, nine of 10 underwater borrowers are making their mortgage and home loan payments on time. Only 10 percent are more than 90 days delinquent. Still, “negative equity” will continue to weigh on the housing market – and the broader economy – because it sidelines so many potential homebuyers.
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Wednesday, May 30, 2012
Euro-Zone Crisis Delay and Pray, Stock Market Not Bearish Enough to Support a Rally / Stock-Markets / Financial Markets 2012
-- The VIX remains beneath Mid-Cycle resistance at 24.21 but above its Head & Shoulders neckline today. It overshot the neckline on the first pullback and the second one is not as deep, but we would not like to see it go beneath the neckline. Tomorrow is the next pivot day, so it is possible that we may have seen the last of the correction today. This action seems to be saying that the rally in equities may be short-lived.
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Friday, May 25, 2012
Euro Panic, ECB Out of funds, and Germany Out of Patience / Stock-Markets / Financial Markets 2012
Good Morning!
FXE (124.43) is leaking lower beneath its massive Head & Shoulders neckline at 124.75. The wave pattern may allow it to wiggle around at this point, but the trend is totally down. It is certain that the algos will try to milk any news about another European bailout, even though the ECB is out of funds and Germany is out of patience. Meanwhile the Greek police are trying to keep their constituents from stuffing their mattresses full of Euros. This simply cannot get any worse, or can it?
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Friday, May 25, 2012
Where Can an Investor Go in this Period of Turmoil? / Stock-Markets / Financial Markets 2012
We start with this quote from David Cameron, the British Prime Minister made at the conclusion of the latest in European Summit Meetings.
Well, it was a good meeting in that there was complete agreement that dealing with deficits and getting growth are not alternatives, they go together, you need to do one in order to get the other.
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Friday, May 25, 2012
Financial Market Forecasts - Free Report / Stock-Markets / Financial Markets 2012
Dear Reader
Elliott Wave International are making their current and highly timely Financial Forecast 10 page report available for FREE.
With Europe in turmoil, U.S. stocks retreating and the mainstream financial press totally on the wrong side of the trend (as usual), EWI's Financial Forecast offers big-picture forecasts tackling the issues that the mainstream ignores, and they explain possible future trends using straight-talking language.
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