Category: Stock Markets 2013
The analysis published under this category are as follows.Monday, June 17, 2013
Stock Markets Risks Unacceptably High and Rising / Stock-Markets / Stock Markets 2013
Post GFC, US corporate profits have been very likely rising for reasons that are more related to cost savings and margin increases than to real revenue growth. These cost savings have now worked their way through the system and future US corporate profit growth will be more dependent on price inflation and/or sales volume growth.
US balance of payments may improve as a result of improved energy exports but, because the country is now oriented to a service economy, any growth in export volumes of manufactured goods is unlikely to impact significantly on the economy as a whole. In any event, with the rest of the world in recession, the likelihood of a growth in export volumes is low. With government spending sequestered, an implication is that employment opportunities will have to be driven by private enterprise.
Read full article... Read full article...
Sunday, June 16, 2013
Stock Market Longer Trend Weakening, Daily Trend Turning / Stock-Markets / Stock Markets 2013
Charts are not predictive in nature, rather they are instructive on how to best prepare and get an edge when deciding to enter into a position, [or exit one]. It is of the utmost importance to have a game plan in place, beforehand, otherwise, one is relying upon factors more emotionally driven than fact driven.
The function of reading a chart is to gain insight from the most reliable source available, the market itself. What a market does is generate information that reflects the outcome of all source decision-makers, from the most highly informed and experienced to the least informed and weakest, with varying degrees of skills in between.
Read full article... Read full article...
Saturday, June 15, 2013
Stock Market Correction Continues / Stock-Markets / Stock Markets 2013
Another choppy week in the US as foreign markets continue to confirm downtrends. For the week the SPX/DOW were -1.10%, the NDX/NAZ were -1.45%, and the DJ World index dropped 0.60%. On the economic front positive reports continue to outpace negatives ones. On the uptick: wholesale/business inventories, retail sales, the PPI, the WLEI and the monetary base, plus both weekly jobless claims and the current account deficit improved. On the downtick: export/import prices, consumer sentiment and the budget deficit worsened. Next week we have the FOMC meeting, housing reports and leading indicators.
Read full article... Read full article...
Saturday, June 15, 2013
Stock Market Bulls Ignore Japan’s Implosion and Pray for More Printing / Stock-Markets / Stock Markets 2013
The markets in the US have entered a mania in which investors look for any and all excuses to push the markets higher.
Case in point, yesterday Japan’s Nikkei fell 6%. This happened in spite of the fact the Bank of Japan is currently engaged in a QE policy equal to over 25% of Japan’s economy.
Read full article... Read full article...
Saturday, June 15, 2013
Stock Market Back And Forth...Good Medicine.... / Stock-Markets / Stock Markets 2013
So Thursday we're up 180 points after struggling just prior. The market is ready to blast out, right? Well, not exactly. You see, in an agnostic, sideways, unwinding situation you get a lot of head fakes both ways. You think things are bad and then they rise. You think things are good and then they fall. This process continues the medicine the market needed, which again, was two-fold. Unwind overbought and very top heavy oscillators and unwind too many bulls, and thus, get more folks bearish or least unsure of themselves. Days like today are so good for the bigger picture in that it made folks angry.
Read full article... Read full article...
Thursday, June 13, 2013
Why Central Bankers Are Terrified / Stock-Markets / Stock Markets 2013
Japan continues to implode. We’ve now taken out the trendline that supported this rally since November.
Read full article... Read full article...
Thursday, June 13, 2013
Stock Markets In Dangerous Territory / Stock-Markets / Stock Markets 2013
As I alluded to in my previous report both stocks and gold are due to mean revert. Short-term the stock market is getting significantly oversold and if we get a down day tomorrow I would expect some kind of bounce off of the 1600 level. If that bounce fails and we break below last Thursday's low it should confirm that stocks have begun an intermediate degree correction.
Read full article... Read full article...
Thursday, June 13, 2013
Fear Sneaking Back into the Stock Market / Stock-Markets / Stock Markets 2013
Moe Zulfiqar writes: In just a matter of a few months, the S&P 500 is up more than 14%. To say the very least, these gains are nothing short of amazing—much better than what investors can get with the long-term U.S. bonds that currently yield less than 3.5%.
Consider this: on average, in the first five months of this year, the S&P 500 went up by about 2.8% per month (14% divided by five months). Assuming the stock market keeps the same pace, the S&P 500 will gain way more than 30% this year (12 times 2.8%).
Thursday, June 13, 2013
Healthy Stock Market Selling Kicks In.... / Stock-Markets / Stock Markets 2013
There's good selling and there's bad selling. Selling that comes with a massive breakdown is never good if you're a bull. Not something you really ever want to see from a bull-market perspective. Then there's selling that comes which serves two very important purposes. Both from an unwinding standpoint. Look folks, the market stayed overbought, obnoxiously so, for a very, very long time. It just refused to sell very much. RSI's constantly in the 70 range, often well above with some RSI's reaching up near a ridiculous 90 on those froth stocks. Stochastic's staying near 100 with readings 90, and above, for a very long time. MACDs very highly compressed. No move down, just staying at the top for weeks and months. Add in how the bull-bear spread went from the teens to the red flag reading of 36.4%, and the market was pretty much full to say the least.
Read full article... Read full article...
Thursday, June 13, 2013
Stock Market SPX Support Broken / Stock-Markets / Stock Markets 2013
SPX broke the minor support at 1622.90 and has now gone back to retest it. The next support is the Cycle Bottom and 50-day moving average at 1610.00. SPX behavior here will tell us whether it will accelerate immediately to the downside or hesitate yet a few more days.
Read full article... Read full article...
Wednesday, June 12, 2013
Why this Economic Statistic Scares Me to Death for the Stock Market / Stock-Markets / Stock Markets 2013
William Patalon writes: A year ago at this time, a U.S. Federal Reserve study found that the median net worth of the American family fell by almost 40% between 2007 and 2010, wiping out 18 years of economic progress and cutting middle-class wealth back to levels not seen since the early 1990s.
A year later, a new study has found that - despite the continuation of the strongest-bull-market rebound in history - America's finances haven't improved.
Read full article... Read full article...
Wednesday, June 12, 2013
Did the ECB Mega Bailout Just Hit the Wall? / Stock-Markets / Stock Markets 2013
Few analysts know or admit it, but the only thing that held Europe (and ultimately the financial system) together since May 2012 was the promise of unlimited bond purchases from the ECB.
The reason this worked was because traders poured into European bonds in an effort to front run the coming ECB purchases (much as they have done with Treasuries during every new QE plan in the US).
Read full article... Read full article...
Tuesday, June 11, 2013
Is the Stock Market Ready to Take the Plunge? / Stock-Markets / Stock Markets 2013
SPX behaved as expected today, stopping at mid-Cycle resistance and the Lip of its Cup with Handle. The sell-off may now begin. The institutional traders will be coming into play this hour, so be alert to what is going on.
Read full article... Read full article...
Tuesday, June 11, 2013
Anatomy of a Stock Market Top / Stock-Markets / Stock Markets 2013
There has been much speculation from the media and market pundits regarding the end of the bull market. Whenever there is a day or two of weakness on the S&P 500, predictions of the bull's demise multiples. Yet market tops typically have a distinct pattern that is recognizable and often lasts for months.
Market peaks normally develop over a period of four to eight months. A price ceiling occurs that investors and traders can not push through. This level is usually tested several times over the course of months.
Read full article... Read full article...
Monday, June 10, 2013
Stock Market Index Trend, Facts, Rules Equals Successful Results / Stock-Markets / Stock Markets 2013
Markets provide an opportunity to grow one's capital, and create a return on capital, in addition to a return of capital, its preservation being the benchmark to ensure it remains fully intact. Is there a magical formula for success in the markets? No. However, there is a realistic approach to increase the odds of consistent returns while keeping exposure to risk at an acceptable level.
The S&P used to be our mainstay market concentration, but we stepped away from that market when central planners took over, starting with POMO, [Permanent Open Market Operations], conducted by the privately owned Federal Reserve. With fiat being pumped into the markets on an ongoing basis, it was a fatal blow to free market operations, where supply and demand were the true measures of value. Now, [then], there was only an artificial demand that took quarrel with any attempts by supply to alter the Fed's upward trajectory.
Read full article... Read full article...
Monday, June 10, 2013
Stock Market Rally in an Intermediate Downtrend / Stock-Markets / Stock Markets 2013
Current Position of the Market
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.
Read full article... Read full article...
Sunday, June 09, 2013
Stock Market Support Holds...For Now... / Stock-Markets / Stock Markets 2013
The markets sold hard for a couple of weeks and when they hit the 50-day exponential moving averages on the key index daily charts they found a way to bounce which is not a great shock since some short-term charts got oversold. The combination of those 50-day tests and oversold sixty minute charts gave us a nice bounce. The real question on everyone's mind is whether the market has seen the lows from this correction or whether there's more to come once this bounce is over. There are a few ways to look at it. It's possible that the market will just whipsaw about for some weeks as the MACD's try to improve their current position.
Read full article... Read full article...
Sunday, June 09, 2013
Positive End to a Volatile Stock Market Week / Stock-Markets / Stock Markets 2013
Courtesy of Doug Short: The S&P 500 closed an exceptionally volatile week with a gain of 0.78%, thanks to the Friday gain of 1.28%. Today’s employment report for May was a perfect signal to the bulls: Nonfarm employment met or slightly beat expectations, so that key economic indicator is still in the green, but the unemployment rate ticked up ever so slightly from 7.51% to 7.56%. And since we round to a single decimal, it registered as a full tenth higher at 7.6%. Why the uptick? Labor force participation grew faster (up 420K) than the new jobs (175K). That uptick suggests that the Fed won’t be tapering QE in the near term, and it was that fear of tapering that created the high volatility this week.
Read full article... Read full article...
Friday, June 07, 2013
This Weeks Stock Market Reversals Explained / Stock-Markets / Stock Markets 2013
This week has played out perfectly thus far. The expected volatility of intraday price swings and lower prices for stocks has happened. The Vix has collapsed the 15% which I mentioned would happen just 2 days ago and money is flowing out of precious metals and miners today in a big way as that risk off money is now moving into Risk-On Stocks.
Read full article... Read full article...
Friday, June 07, 2013
Stock Market Going the Wrong Way for the Bulls / Stock-Markets / Stock Markets 2013
SPX broke its 50-day moving average at 1605.00 a short while ago. It is now retesting its 50-day and may rise above it to the hourly Cycle Bottom at 1613.00. The SPX now has permission to Flash Crash once it loses its grip on the 50-day.
Read full article... Read full article...