Category: Stock Markets 2013
The analysis published under this category are as follows.Friday, May 31, 2013
NYSE Margin Debt Hit New Record, Surpasses 2007 Peak / Stock-Markets / Stock Markets 2013
Michael Lombardi writes: Is it just me, or have investors completely abandoned the concept of risk and reward?
The reality of the situation is that the key stock indices are treading in shark-infested waters and the risks are piling up daily. I see bearish signals all over, but the theme among investors, even conservative investors, continues to be “keep buying.”
Thursday, May 30, 2013
Stock Market Pop and Drop Today / Stock-Markets / Stock Markets 2013
This morning I had a chance to review the Elliott Wave structure of the SPX and found an error which allows for a higher correction to be finished this morning. With the Pre-market positive, it appears that the SPX will challenge the lower trendline of the Broadening Wedge one final time.
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Thursday, May 30, 2013
Stock Market Partying Like the Great Gatsby? / Stock-Markets / Stock Markets 2013
George Leong writes: Wall Street reclaimed its merry ways on Tuesday as the Dow surged over 200 points in the first hour of trading, while strong small-cap buying pushed the Russell 2000 up over two percent to above the 1,000 level for the fourth time since its initial break on May 20.
All I can say, folks, is enjoy the stock market ride.
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Thursday, May 30, 2013
Stock Market Preview of What Will Happen as Feds Pull Back on Money Printing / Stock-Markets / Stock Markets 2013
Sasha Cekerevac writes: There’s nothing a market hates more than uncertainty. Investors, both large and small, build a model from which they can then generate an investment strategy. The greater the uncertainty, the more difficult it is to come up with an investment thesis.
Over the past few years, the Federal Reserve, through its aggressive monetary policy stance, has tried to reduce uncertainty and bring confidence back to the stock market. But due to the long period in which there has been a lack of volatility, this has brought complacency into the market—a dangerous situation for investors.
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Thursday, May 30, 2013
Stock Market Needed Selling...... / Stock-Markets / Stock Markets 2013
That's what the market needed and that's what it got today. Some selling that helped unwind things at least a little bit and every little bit helps when you have a combination of events that tells us the market could use a break. We had overbought RSI's on the daily index charts. We had elevated oscillators such as those MACD's and stochastic's. We had a high number of bull- to-bears coming in to this week. Some selling would help things on many fronts for the bigger picture bull market. This began last night when the futures were quite nasty heading in to the pre-market hours.
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Wednesday, May 29, 2013
What Was Behind the Stock Market’s Massive Breakout? / Stock-Markets / Stock Markets 2013
Something big happened at the beginning of the year—Wall Street gave up on Washington.
I’ve been trying to figure out how this incredible stock market action started at the beginning of the year. Things were trending fairly normally, and then institutional investors just started buying—blue chips first, a little break in February, then blue chips again, with a broadening out into the NASDAQ.
Wednesday, May 29, 2013
The Dow Could Easily Correct to 14,000 / Stock-Markets / Stock Markets 2013
Predicting a stock-market correction is a rough business these days. The Dow Industrials seems to add a few hundred more points each and every week.
It makes sense to expect a market correction. No stock, commodity, or sector runs higher without taking a break. That's just how the market works. But if stocks do sell off, how much can we expect from a natural, healthy market decline? Today's chart provides a clue...
Tuesday, May 28, 2013
Stock Market Bounce is Nearly Finished / Stock-Markets / Stock Markets 2013
I am coming of an unbelievably busy weekend. After spending two days helping our friends prepare their duplex at Lake Charlevoix for the summer season, we came back to host my wife’s 87 year-old mother and family on Sunday. Aunt Betty (age 84) and uncle Al (age 94) decided to visit their sister on Monday and a dozen cousins decided to come as well to make a family reunion out of it. We hosted 26 guests yesterday and were completely exhausted by the end of the day. Suffice it to say there will be no Weekend Update this weekend.
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Tuesday, May 28, 2013
Stock Market Bubble: Wait for it to Pop / Stock-Markets / Stock Markets 2013
I'm going to start off today and show you what Fed policy has given us over the last decade and a half. What the Fed has accomplished has been one bubble after another.
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Tuesday, May 28, 2013
Stock Market Correction In Progress / 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. If the count is correct, an intermediate reversal could be on the way, but this may also be only a short-term reversal followed by new highs.
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Monday, May 27, 2013
Stock Market No Confirming Signal for a Top, Yet / Stock-Markets / Stock Markets 2013
There is a reason why the trend is the most important consideration when positioning in any market. The number of profitable shorts, as of last week, can still be counted on one hand, at least those who remain amongst the ranks of the devastated ones still trying to pick a top. The most money is lost picking tops and bottoms, but top-pickers are always at odds with that fact. Richard Dennis lost more money trying to buy sugar under 5 cents than he did buying at higher prices on previous occasions. He ranks as a poster child for money lost in bottom-picking, and he was a highly regarded professional player.
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Monday, May 27, 2013
Stock Market Rally Takes a Pause / Stock-Markets / Stock Markets 2013
After four weeks on steroids, the worldwide rally took step back, a big one for Japan’s Nikkei 225. Seven of the eight indexes on my watchlist posted losses. China’s Shanghai Composite was the one index to show a gain for the week, a rather unimpressive 0.25%. Four seven losers gave back between 1% and 1.25%. Hong Kong’s Hang Seng dropped two percent, India’s SENSEX slipped a more dramatic 2.87%, and the Nikkei plunged 3.47%, which, of course, was little more than a rounding error, since it was up 45.6% at the previous weekly close.
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Saturday, May 25, 2013
Stock Market Week Of Overall Selling..... / Stock-Markets / Stock Markets 2013
Finally a bit of selling. Nothing to write home about if you're an ardent bear, but at least you have some lower prices this week for the first time in quite a while. The bears didn't do anything in terms of taking out any major support, which will be their goal in the days and weeks ahead, but for now, they've at least stopped the upside bleeding that have their short positions in a lot of pain. The real question for the bears now that we look back on the week that was, is did the Fed Bernanke really say anything relevant to their bearish case, or was the selling really more a function of overbought daily and weekly index charts? The answer to me is clear.
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Saturday, May 25, 2013
Stock Market Trend, There’s More To Consider Than Just The Fed! / Stock-Markets / Stock Markets 2013
Fed Chairman Bernanke spooked investors with his testimony before Congress on Wednesday by indicating that the Fed could begin to withdraw the punch bowl of stimulus as soon as at one of its next monthly FOMC meetings.
What? The Fed might abandon investors? Might remove the ‘Bernanke put’ and let market forces return to normal? That’s not fair! Since the economic recovery and bull market in stocks began in 2009 we’ve been guaranteed the full force of central bank stimulus to keep them going, with the Fed even rushing in with more stimulus, QE2, Operation Twist, QE3, each of the last three summers when the economy and markets faltered.
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Friday, May 24, 2013
Rising Stock Market Investor Fear / Stock-Markets / Stock Markets 2013
Typically, volatility rises when emotions run high. Low volatility is associated with investor complacency.
On May 23rd (yesterday in the US), a signal was given on the Point & Figure charts that points to a possible rise in volatility (fear). (Courtesy stockcharts.com)
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Thursday, May 23, 2013
Fed Talk Triggers Stock Market Reversal..... / Stock-Markets / Stock Markets 2013
So today we had Mr. Bernnake speaking in front of Congress and they were asking the usual ridiculous questions about quantitative easing and how long he intended to keep it going, etc. Would he stop soon? What were the parameters he was using to decide when to stop, and so on. He gave perfect answers. He said if things stay bad he'll continue to flood with cash. If things get really good he'll slow down. Send in the marching bands. Wow! Really? The market eventually sold off. Folks on television saying it was due to the Fed "confusing" people with his remarks. Really???? You think that's why the market sold off? Well folks, the reason the market sold off was because it was brutally overbought with sentiment readings getting well into the red-flag area. The market was simply looking for any excuse to sell as there were basically no buyers left.
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Thursday, May 23, 2013
Stock Market Back in Dangerous Bubble Territory / Stock-Markets / Stock Markets 2013
As the global equity and bond markets grind ever higher, abundant signs exist that we are once again living through an asset bubble – or rather a whole series of bubbles in a variety of markets. This makes this period quite interesting, but also quite dangerous.
With equity and bond markets at or near all-time record highs, with all financial assets consistently shrugging off bad – or worse – news as the riskiest of assets continue to find consistent upward bids, we find ourselves in familiar and bubbly territory.
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Wednesday, May 22, 2013
Stock Market Nosebleed Rally / Stock-Markets / Stock Markets 2013
I just wanted to comment on the extremes to which this market has gone. The normal standard deviation used to mark the top of a cycle is 2.0 above the six-month moving average price. Normal market tops will either touch the upper Cycle Top line and almost immediately will be repelled. Thus, I call it Cycle Top resistance. In a very few rare instances the price of the SPX will briefly move above it, but drop back beneath the resistance area quickly.
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Wednesday, May 22, 2013
Dow, FTSE, Stock Market Panic, Euphoria, Irrational Rally Continues, What I am Doing / Stock-Markets / Stock Markets 2013
The stock market continues to soar with the Dow closing at 15,387, and the FTSE at 6803, my conclusion as of late March is that the current stage of the stocks rally underway was as a direct consequence of the Cyprus debacle that literally poured gasoline onto the stock market rally fire as for the first time Bank Depositors LOST money (stolen) and not just by a few percentage points, but in real life examples of as much as 85% of their bank balance being stolen. The rally was then further boosted to by the Japanese pouring rocket fuel onto the fire through the policy of Hyper QE Inflation.
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Tuesday, May 21, 2013
Lookout For A Stock Market Spike High Top / Stock-Markets / Stock Markets 2013
HighRev writes: When attempting to put shorter term price action into a longer term perspective, I couldn't help but notice the tendency over recent years for markets to put in spike high tops on the intermediate term time frame. I also couldn't help but remember what Alexander Elder said when briefly recounting the origins and historical background of TA in his book Trading For A Living; specifically, on page 70, when commenting on changes in overall market behavior occurring on the generational time frame he said:
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