Category: Stock Markets 2013
The analysis published under this category are as follows.Thursday, June 27, 2013
Fed or Fundementals Driving Stock Market Moves? / Stock-Markets / Stock Markets 2013
Gary Gately writes: What's driving the stock market - the Fed or company fundamentals?
The answer, of course, depends whom you ask.
Has most or all of the growth in the market over the past few years been due to the Fed's massive QE easy money stimulus?
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Wednesday, June 26, 2013
Stock Market Ready for Liquidation? / Stock-Markets / Stock Markets 2013
George Leong writes: I advise you to look at buying stocks—but not quite yet; the time for buying hasn’t arrived. Just like a fire or liquidation sale at a retailer, the best buying opportunity in the stock market is when the discounts are at their heaviest. We’re not at that point yet.
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Tuesday, June 25, 2013
China Stock Market 400-Point Flip-Flop / Stock-Markets / Stock Markets 2013
The worst is now past.
That's the word from an HSBC economist after the PBOC's Ling Tao assures the bank will keep money-market rates "within reasonable ranges." The People’s Bank of China has provided liquidity to some financial institutions to stabilize money market rates and will use short-term liquidity operation and standing lending facility tools to ensure steady markets, according to a statement posted to its website today. It also called on commercial banks to improve their liquidity management.
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Tuesday, June 25, 2013
Why the Stock Market Is Doomed / Stock-Markets / Stock Markets 2013
One of the myths of economics is that markets are rational. Theories are based on this assumption, and the belief that markets are rational fuels the argument against regulation. The market response to the Federal Reserve’s June 19 statement that it will taper off its bond purchases if its forecast comes true is unequivocal proof that markets are irrational.
The Federal Reserve’s statement that it “currently anticipates that it would be appropriate to moderate the monthly pace of purchases [of bonds] later this year” depends on a very big if. The if is the correctness of the Fed’s forecast of moderate economic growth and employment gains.
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Tuesday, June 25, 2013
S&P Stock Index Trying To Hold On To 1576..... / Stock-Markets / Stock Markets 2013
We closed at 1573, thus, that really is a hold for now. It doesn't look too promising in terms of holding too much longer but the bulls did fight back some today from the breakdown. The S&P 500 fell hard and lost 1576 with force but again, did manage to come back late and hold for the most part. The reason we most likely held wasn't anything bullish in nature. The reality is it was most likely caused by oversold short-term charts on the S&P 500. Dow and Nasdaq. In addition, some leading stocks, which have been crushed recently, hit 30 RSI on their daily charts and that hasn't happened in a very long time. This brought in some bottom fishers expecting a bounce off of oversold not seen in some time.
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Monday, June 24, 2013
China Stock Market Crashes, SPX Gaps Down / Stock-Markets / Stock Markets 2013
The 10-year treasury yield… Is headed for the moon... in yield terms that is. Because if Bernanke's hope was that the handoff from buyers to sellers would be a smooth one, he may want to conference in Kuroda and get some advice on what happens when the bond market is halted limit down.Good thing Bernanke is not a real hedge fund, or else the $35 billion intraday P&L crash (so far), and $250 billion in the past two months, may raise a few eyebrows.
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Monday, June 24, 2013
China Stock Market Falls Hard: What's Going On? / Stock-Markets / Stock Markets 2013
Chinese stocks have plunged considerably to lead Asian equities lower with concerns that Beijing may be reluctant or perhaps politically unable to ease a liquidity crunch in the Shanghai interbank money markets, slamming banks particularly hard. The Shanghai Composite suffered its worst one-day percentage loss in nearly four years, plunging 5.3% -- its first close below the psychologically-important 2,000-point level since December last year. The performance is its worst since a 6.7% drop in August 2009 during the global financial crisis. The Shenzhen Composite Index also dived 6.1%. In parallel, Japan and Korea have also fallen more than a percent and now Europe and America are turning negative yet again.
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Monday, June 24, 2013
How to Play the New Normal: Spiking Stock Market Volatility / Stock-Markets / Stock Markets 2013
Shah Gilani writes: Strap on your seat belts...and get ready for a ride...a very bumpy ride.
After having assumed US equities would keep chugging higher with little deviation from "up," things are starting to look a bit different.
Have you been watching Japan? It's a cautionary tale that is about to play out in the US, and globally.
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Monday, June 24, 2013
Stock Market Correction Reaches Temporary Support Level / Stock-Markets / Stock Markets 2013
SPX: Very Long-term trend - The very-long-term cycles are in their down phases, and if they make their lows when expected (after this bull market is over), there will be another steep decline into late 2014. However, the severe correction of 2007-2009 may have curtailed the full downward pressure potential of the 40-yr and 120-yr cycles.
Intermediate trend - SPX continues to progress according to its structure. An intermediate reversal is on the way.
Analysis of the short-term trend is done on a daily basis with the help of hourly charts. It is an important adjunct to the analysis of daily and weekly charts which discusses the course of longer market trends.
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Sunday, June 23, 2013
Bad Week For Stocks Bulls....Back Testing Long-Term Breakout / Stock-Markets / Stock Markets 2013
This wasn't a great week for the stock-market bulls as a very nasty technical day occurred on Thursday with a big gap down that ran, causing huge losses across the board. The volume was also quite large on that selling. That's a confirmation that big money was letting go of some their holdings. Never great to see big money letting go. The big gap has now allowed the bears to get more aggressive on any attempt higher. That's what finally gives them some ammunition to feel stronger about their stance. They can come in and short on all attempts back towards the breakdown level of 1600 and 1612 respectively. They know that big money let it go at the top, and thus, they won't be running in to buy back at those levels. Like the Fed protecting the bulls before, there's protection now for the bears.
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Saturday, June 22, 2013
Stock Market Downtrend May Have Bottomed / Stock-Markets / Stock Markets 2013
An interesting week. The market started the week by gapping up and rallying to SPX 1654 just before the close on Tuesday. Wednesday, FOMC day, the market hovered just below that level awaiting the FOMC statement and press conference. When traders heard about a potential cut back in QE 3 by year end, and concluding it by mid-2014, the May-June correction resumed. For the week the SPX/DOW were -1.95%, the NDX/NAZ were -2.05%, and the DJ World index lost 3.2%. Economic reports for the week remained positive. On the uptick: the NY/Philly FED, the NAHB, the CPI, housing starts, existing home sales and leading indicators. On the downtick: building permits, the M1 multiplier, the WLEI plus weekly jobless claims rose. Next week we get Q1 GDP, personal income/spending and PCE prices.
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Saturday, June 22, 2013
Similarities To 1973 Stock Market Peak / Stock-Markets / Stock Markets 2013
In last week’s column I showed charts of how the market has alternated between significant bull and bear markets since the top in 2000, and how Warren Buffett has been right so far in his prediction in November, 1999 that, “Over the next 17 years equities will not perform anything like – anything like - they’ve performed over the last 17 years.”
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Friday, June 21, 2013
Finding a Sea of Calm in the Rising Stock Market Mania / Stock-Markets / Stock Markets 2013
Martin Hutchinson writes: The markets have begun to swoon and one of the canaries was two Thai tycoons.
This pair of Thai tycoons, neither of them well-known internationally, has made a total of $27 billion in acquisitions in the past year, more than all Thai companies spent abroad in the preceding three years.
That's the kind of statistic common in today's global deal mania, fueled by the glut of funny money. It raises a dreaded question: what happens when the music stops, and when global leverage stops being so available?
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Thursday, June 20, 2013
Five Signs the Stock Market Is Topping Out / Stock-Markets / Stock Markets 2013
Carl Delfeld writes: It is always a painful “learning” experience.
Like many investors, I have made the unfortunate mistake more than once of investing in booming markets at just the wrong time – right before they go into reverse gear.
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Thursday, June 20, 2013
Thursday Stock Market Thump – Bernanke Blows His Chance / Stock-Markets / Stock Markets 2013
NOW it's getting interesting.
We got our big Wheee! on oil overnight to $96.37 (/CL) with the old contract (/CLN3) at $96.11. If it weren't a scam, then why would the August contract fall just because July is expiring today. In fact, wouldn't the Aug contract be more in demand from rolling while the July is selling off? But no, they go down together to make sure the NYMEX boys can do those rolls as cheaply as possible to keep the scam going another month.
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Tuesday, June 18, 2013
One Simple Measure for Investing in a Volatile Stock Market / Stock-Markets / Stock Markets 2013
George Leong writes: Volatility has been edging higher since the end of 2012, but so far, the stock market has held up pretty well.
Take a look at the chart below of the CBOE Volatility Index (VIX), also known as the “Fear Factor Index,” based on the S&P 500 Index. The VIX reading is holding around 16.8—well below some of its high readings since 1990, as shown on the chart. When the VIX is low, it suggests traders are relaxed and not concerned about the current stock market climate; but you need to remain alert, because investor mistakes occur when people are too confident.
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Tuesday, June 18, 2013
Stock Market Top Called to Within One Day by Contracting Fibonacci Spiral...Now What? / Stock-Markets / Stock Markets 2013
It is nearing two years since I first published an article describing a theory titled "Contracting Fibonacci Spiral". For further information, simply Google "Contracting Fibonacci Spiral" and a plethora of articles should be listed to provide a more thorough description. Further to this, I published an article in the April 2013 issue of Technical Analysis of Stocks and Commodities (Submitted in October 2012) to attempt to bring more mainstream exposure to this concept.
In a nutshell, the theory indicated important tops of 1966, 1987, 2000, 2008, with the next sequential date due in 2013. The ideal date was December 27th, 2012, but a 5% extension in time generated a date of May 21st, 2013. The broad stock market indices topped on May 22nd, 2013, which is either a fluke or is following the CFS, but with an extended time post for this move. The next CFS date is 3 years away and has already been determined and posted on our site.
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Tuesday, June 18, 2013
Can Bernanke Keep the Stock Market Rally Going? / Stock-Markets / Stock Markets 2013
The markets are rallying today because Bernanke and the Fed meet on Wednesday and will announce their new policies (if any).
Someone might want to explain to them that the Nikkei just collapsed in spite of Central Bank policy. The bank of Japan announced it would buy $1.4 trillion worth of assets (roughly 25% of Japan’s GDP) in early April. The Nikkei has already wiped out almost all of the gains since that time.
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Tuesday, June 18, 2013
Stock Market Violent Whipsaw Continues.... / Stock-Markets / Stock Markets 2013
It was a very, very wild day today. We saw weak action late on Friday. It figured to mean we'd likely see lower this morning in terms of those pre-market futures. Sometimes you get a clue from how a day closes and what takes place on the futures right away after hours. We saw the weak close and the futures move down some as well. So today would be weak for sure, right? Wrong. Strong futures simply got stronger as the morning went along. We blasted higher once the marked opened, and then things got very interesting. We kept running higher. The first two sixty-minute sticks suggested the market would hold up for the day. That reality lasted until we saw the 2pm hour hit.
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Monday, June 17, 2013
Stock Market Caught in a Wide Trading Range, Odds Favor Resolution to Downside / Stock-Markets / Stock Markets 2013
SPX: Very Long-term trend - The very-long-term cycles are in their down phases, and if they make their lows when expected (after this bull market is over), there will be another steep decline into late 2014. However, the severe correction of 2007-2009 may have curtailed the full downward pressure potential of the 40-yr and 120-yr cycles.
Intermediate trend - SPX continues to progress according to its structure. An intermediate reversal is on the way.
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