Category: Stock Markets 2012
The analysis published under this category are as follows.Monday, July 30, 2012
Dow 36,000, What Enquiring Minds Want to Know / Stock-Markets / Stock Markets 2012
The July 25, 2012, tribute to Barton Biggs received a large response. Biggs was obviously respected as well as loved. In the end, virtue is its own reward. Virtue is rarely rewarded in the world today; in fact, quite the opposite is true. It is refreshing to see such outpouring for a man who stuck to his guns and was also successful.
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Monday, July 30, 2012
Stock Market Intermediate Target In Sight, Calm Before the Storm? / Stock-Markets / Stock 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 in a limited intermediate uptrend which is estimated to end in the first week of August.
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Sunday, July 29, 2012
Stock Markets Rejoice But Uncertainties Remain! / Stock-Markets / Stock Markets 2012
It was pretty much baked in the cake that the economy is slowing so rapidly that the Federal Reserve will have to come to the rescue, possibly as soon as its FOMC meeting next week.
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Sunday, July 29, 2012
Stimulus Rules...GDP Doesn't Hurt the Dow / Stock-Markets / Stock Markets 2012
In this game you have to deal with combined efforts from those behind the scene. Those folks will do their best to control whatever it is they want controlled. In this case, it's the European central bank and its leader Mario Draghi and our own Fed leader, Mr. Bernanke, an effort between the two to prop the markets higher to prevent Main Street from falling apart. A few days back, Mr. Bernanke went to the Wall Street Journal and had them put out an article roughly thirty-minutes before the market closed. The subject matter was about how he was going to do something to create economic growth. It played out perfectly for him.
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Saturday, July 28, 2012
Stock Market and Gold Fibonacci relationships / Stock-Markets / Stock Markets 2012
In the last two days I talked about Fibonacci relationships in the Elliott Wave structure. Generally, in an impulsive (5-wave) move where wave [iii] is the largest, then wave [v] is often equal to wave [i], or some other Fibonacci relationship may apply. This morning I gave it my best shot, suggesting that wave [v] would be equal to wave [i] at 136.75. Actually, my calculation was off. The correct target was 136.52. Not enough coffee, perhaps.
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Thursday, July 26, 2012
Next Stocks Bear Market Leg Beginning / Stock-Markets / Stock Markets 2012
Since the July 9th BullBear Market Report, the US stock market has apparently completed an ABCDE ascending triangle pattern to complete the rally off the June low. This is being confirmed by a mounting body of technical evidence which strongly suggests we have either seen the top to the rally or that it is nearby. The Introduction to the last report still stands as a solid, sound interpretation of the current state of the markets:
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Thursday, July 26, 2012
Stock Markwet Road To Nowhere Still Upon Us... / Stock-Markets / Stock Markets 2012
And that could be the end of this report. What is there really left to say. The bulls and bears come to the ring each day prepared to fight, and on any given day, either side can score a victory, but when you look back at the fight after 15 rounds, you see that no one has won and that both sides are bloodied, neither one looking all that good. When you look at the two fighters all you see is different body types. You wonder how someone could legally allow such a fight to take place, since one candidate looks so much bigger and stronger than the other one. It's no different for our stock market.
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Wednesday, July 25, 2012
Position Yourselves for Stock Market Collapse Crash or 10 Year Breakout / Stock-Markets / Stock Markets 2012
As mentioned last Friday just before things took a dive on the weekend, a look at the major market indices did not look promising. If we take an even longer term look and examine the monthly charts we can see that The S&P 500 as well as the Dow Jones have been approaching multi-decade rising channel resistance lines. Further, they also appear to be forming bearish rising wedge patterns.
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Tuesday, July 24, 2012
Europe Hits U.S Stock Market / Stock-Markets / Stock Markets 2012
Europe hit the United States futures market overnight when deeper debt concerns became the talk of the world. Spain, Greece and Italy are having a very rough time of it these days with the concerns mounting over the weekend. All of these Eurozone countries are on the precipice of something no one wants to deal with on any level. It doesn't look like there's much anyone can do to save it, either, and that's where there's real problems. If the market feels there's an immediate cure from either the world banks, or a collective effort with our Fed Governor, then things won't be so bad from a market perspective. Clearly, that was somewhat the hope today as things could have been much worse than they were, especially when you look at the losses compiled overseas today.
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Monday, July 23, 2012
Stock Market Gathering Storm Clouds / Stock-Markets / Stock 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 in a limited intermediate uptrend which is estimated to end in the first week of August.
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Saturday, July 21, 2012
Stock Market Trend Forecast, Put Your Seatbelts On, It’s About To Get Bumpy! / Stock-Markets / Stock Markets 2012
It was just about a year ago today when the S&P was sitting at fresh highs and everyone was enjoying a rather upbeat summer. It was a nice summer, the markets were calm, and there was a surreal sense of optimism. Then, in the matter of a few days, things got real ugly, real quickly.
Well, it doesn’t seem like too much has changed since then. We’ve had mixed earnings reports, ever-evolving worries in Europe, and the always looming fiscal mess in the U.S. Once again, are we in the calm before the storm?
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Saturday, July 21, 2012
Spain and CMG... Stock Market Smacked Down... / Stock-Markets / Stock Markets 2012
Sometimes there's an event that takes place to hit the markets in a negative fashion. Sometimes there are multiple things that occur that can bring a market lower. We saw it today in the form of earnings, the markets number one focus these days, and from news in Spain regarding more bailout talks and defaults. None of it is very good news, and thus, the market had a very bad day today. No fun.
Saturday, July 21, 2012
Stock Market Seasonality Mid-Year Update / Stock-Markets / Stock Markets 2012
Even with the S&P 500 up a whopping 107% in the bull market that began three years ago, investors were still pulling their money out of stocks and mutual funds in the first half of 2012, and pouring it into the perceived safety of Treasury bonds.
You can’t blame them. It’s been an extremely rough time for most since the market peak in 2000. Two full-fledged recessions in the economy in the subsequent eight years, two severe bear markets, with the market losing 50% of its value in each.
Friday, July 20, 2012
How Long More for Stocks? / Stock-Markets / Stock Markets 2012
Equity indices may be selling off after 3 consecutive rising days, but this weeks shrugging of poor data by equities cannot be ignored. Equities resilience to pervasively negative economic data (US and abroad) is taking a life of its own.
9-month lows in the US June leading economic indicators index, 8-month lows in US existing home sales and double digit negative reading in the June Philly Fed indexall on the back of the 3rd consecutive monthly decline in US retail sales should be sufficiently negative for equities. Yet indices were still up 2.7-3.0% since Monday.
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Friday, July 20, 2012
FXE and Stock Market Breakdown / Stock-Markets / Stock Markets 2012
EURUSD just traded under1.2150, down over 130 pips on the day. The question is - will we see the ubiquitous rip-roaring reversion rally into the European close again?
The answer is “no.”
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Thursday, July 19, 2012
End of the Bernanke Put is Here / Stock-Markets / Stock Markets 2012
For well over a year, even after Ben Bernanke admitted that the consequences of QE outweighed the benefits, the financial media world is awash with claims that QE 3 is just around the corner. It doesn’t matter than it’s been over a year. Nor does it matter that the Fed has staged 10 FOMC meetings without launching more QE, everyone claims QE is coming.
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Tuesday, July 17, 2012
Cape And Tobin Say Sell!! Bubbleomics Says Buy!! / Stock-Markets / Stock Markets 2012
I recently got into trouble for having the temerity to question the divine orthodoxy of CAPE, reference Tom Armistead’s excellent article about “The Disciples”. http://seekingalpha.com/...An indignant disciple berated me for questioning the divine wisdom of my betters and I was told in words of one syllable that CAPE is for predicting real rate of return for a minimum of ten years in the future; so I should kindly keep my snide comments about the recent performance, or lack of, to myself.
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Tuesday, July 17, 2012
Markets Liquidity Cycle Reaches A Turn / Stock-Markets / Stock Markets 2012
It appears that FXE may be finished with its corrective bounce, or nearly so. There are a couple of ways to label this pattern and the chart shows the most conservative wave pattern. I am tempted to re-label, but we have time to evaluate what transpires over the next three weeks. Tomorrow is day 43 of the liquidity cycle and a turn date. Remember, I had mentioned that we have been seeing significant turns on or near dates divisible by 43. This may be one of them.
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Tuesday, July 17, 2012
Stock Market Relative Strength Today / Stock-Markets / Stock Markets 2012
Ed Carlson writes: Certain sectors of the market are known as being market leaders; financials, technology, small caps, etc. Technicians have long-known that without participation by those “market leaders”, rallies in the broader averages won’t be able to sustain themselves. Others, often called defensive sectors, are said to “outperform” in a down market; utilities, healthcare, consumer staples, etc. The term “outperform” should not be equated with “profitable”. It simply means these sectors will do better than others in a particular environment (bull or bear market). Knowing which groups are outperforming gives us an important clue as to which direction the broader market is headed. So how can we tell which sectors are outperforming? Ratio Charts.
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Tuesday, July 17, 2012
Stock Market Sliding Sideways...Endlessly It Seems.... / Stock-Markets / Stock Markets 2012
Wednesday and Thursday of last week we saw the market take a move lower that appeared to be the beginning of a breakdown. The bears were licking their chops as the time was here for them. Then along comes Friday and a gap up that ruins the best laid plans. The market surges with the daily charts becoming very neutral once again. Today, instead of following through to the upside, we fall again. Nothing major, but, of course, no follow-through of any kind. And so it goes. Endlessly it seems. We are to the point, or at least I know I am, where I am begging for some type of breakout or breakdown that shows something more directional in nature. This whipsaw is so boring it makes it tough to get through the day, extremely boring as the volatility is gone. We simply move back and forth between a few hundred Dow points.
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