Category: Stock Markets 2014
The analysis published under this category are as follows.Sunday, November 09, 2014
Understanding the U.S. Election Stock Market Rally / Stock-Markets / Stock Markets 2014
Michael E. Lewitt writes: The week was dominated by the mid-term elections that produced a sweeping victory for Republicans. Whether this will translate into meaningful economic policy initiatives remains to be seen, however.
The Republican agenda includes the Keystone XL pipeline, corporate tax reform, lifting trade barriers, peeling back the Affordable Care Act and potentially making some changes to the Dodd-Frank law.
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Saturday, November 08, 2014
FrankenFed Stock Market Non-Farm Payroll Flop / Stock-Markets / Stock Markets 2014
There was intraday commentary on the Non-Farm Payrolls report.
It was fine, if you want less jobs than expected at lower wages that can sustain anything like a recovery.
Things are not going smoothly for those required to live in the real world.
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Saturday, November 08, 2014
Gold and Silver Short Squeeze / Stock-Markets / Stock Markets 2014
"Oh what a tangled web we weave,
When first we practise to deceive!"
Walter Scott, Marmion, Canto vi, Stanza 17
Watching the trade in gold and silver last night was interesting.
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Saturday, November 08, 2014
Destroy A Currency, Extend A Stock Market Rally / Stock-Markets / Stock Markets 2014
What was I thinking? Goodbye All Time Highs? I must have lost my mind to have forgotten that central bankers have unlimited tools to inflate stock bubbles.
Actually, the last 2 weeks have only shown me even more, how desperate the actions of central banks, and how passionate the majority of traders just to hear the words, "all time high" one more time.
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Friday, November 07, 2014
U.S. Election, Fed, and Stocks / Stock-Markets / Stock Markets 2014
Americans spoke loudly and clearly at the polls this week, repudiating Obama’s and the Democrats’ failed big-government policies. This huge Republican victory has serious implications for the Fed and US stock markets. Republican lawmakers have long opposed this easy Fed, and they will put great pressure on it to normalize its balance sheet and interest rates. This is an ominous omen for these Fed-inflated stock markets.
Prior to Tuesday, the mainstream media dominated by Democratic sycophants did its best to downplay the American anger at Obama and the Democrats. There were endless reports about how awesome the US economy is, despite the fact most Americans aren’t feeling it in their pocketbooks. Recent Republican polling gains were ignored. Without honest coverage leading into the elections, the results seemed shocking.
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Friday, November 07, 2014
Stock Market Secular Cycles / Stock-Markets / Stock Markets 2014
Many investors and analysts are expecting a resurgence in commodity prices. Yet a review of historical data would suggest that the current movement in natural resource prices, the US$, stock markets and the business cycle are all part of a well-defined pattern.
The relative performance between commodities and stocks, based on a 135 years of data, indicates that the two asset classes shift in leadership on average about every 18 years.
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Thursday, November 06, 2014
The Stock Market Great Volatility Crush / Stock-Markets / Stock Markets 2014
Ten years ago, when I worked on the equity index derivatives desk at Lehman, we used to sit around and dream things up. Like, we wondered out loud if you could actually create a volatility ETF.
It seemed like a brilliant idea. Who wouldn’t want to buy volatility? There were some studies going around that said holding volatility as an asset class alongside a diversified portfolio could improve the portfolio’s risk characteristics.
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Thursday, November 06, 2014
Further Stock Market Fluctuations As Indexes Remain Close To Record Highs - Which Direction Next? / Stock-Markets / Stock Markets 2014
Briefly: In our opinion, no speculative positions are justified.
Our intraday outlook is neutral, and our short-term outlook is neutral:
Intraday (next 24 hours) outlook: neutral
Short-term (next 1-2 weeks) outlook: neutral
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish
Thursday, November 06, 2014
Stock Market S&P 500 Index Makes New High.... / Stock-Markets / Stock Markets 2014
And that could basically be the end of this letter, and I'm not kidding. Really folks, what's there to add that I haven't yet spoken about the past many weeks. We have quite interestingly a very bullish set-up on the S&P 500, known as an inverse head-and-shoulders pattern that measures up to 2200, but, I have to admit, it doesn't seem possible to me. But what I think doesn't matter to the market. All the market wants to do is fool the masses as much as humanly possible. The volume trends on both sides of the pattern are what we normally look for, so you have to respect the possibilities. With froth so high, and I mean really out of control, it just doesn't fit with what the pattern is showing. But you still have to say it's possible.
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Tuesday, November 04, 2014
Don't Be Spooked by Stock Market Volatility - Investor Opportunity Is Still Knocking! / Stock-Markets / Stock Markets 2014
One of the greatest fears this October--possibly the most volatile month of the year--has been the correlation between the S&P 500 Index's ascent in the first three quarters of the year and the possible ramifications of the end of quantitative easing (QE).
It's well known that Japan and Singapore have been buying their countries' blue chip stocks with their excessive money printing. Today, about 1.8 percent of the Japanese market is owned by the Bank of Japan. American investors fear the Federal Reserve might do the same and take away the punch bowl, so to speak.
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Tuesday, November 04, 2014
SPX at Trendline Support / Stock-Markets / Stock Markets 2014
SPX may bounce at the trendline, but if this is a third wave, it may not overlap Micro Wave I at 2013.68. Look for a break of the trendline beneath 2000.00. There may be some squiggles beneath the trendline as it “proves” resistance at that level, which is also a probable round number resistance level.
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Tuesday, November 04, 2014
Stock Market Deflationary Vortex Taking Hold / Stock-Markets / Stock Markets 2014
The major stories this morning are all about the price of oil. WTI futures fell overnight to a low of 75.91. The Cycles Model suggests a near-term low near November 11-13. That provides ample time for the Head & Shoulders to be met or exceeded. That should be a wrap for Wave 3 of (3).
Deflationary tendencies have been strengthening since mid-Summer. July 3 has been the peak for many of the most sensitive indexes. This is creating a vortex that may draw in all asset classes as it gets stronger.
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Tuesday, November 04, 2014
Stock Market Inflowing Liquidity is Trending Higher. Is That Good? / Stock-Markets / Stock Markets 2014
Well, it is is good on the short term, but unless the medium term changes, it won't be good.
In order to understand what we mean, take a look at today's chart.
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Monday, November 03, 2014
Don’t Let Greed Lure You Into Stock Market Scams / Stock-Markets / Stock Markets 2014
The market’s favorable winter season has arrived. The market is breaking out to new highs. Investor optimism and confidence are very high.
Unfortunately, this is opportunity time not just for normal investing, but also high season for those perpetrating frauds on unwary but confident investors.
Hampered by limited time, experience, and access to data and information on which to base research, the investment choices of most busy middle-class investors comes down to investing based on brief recommendations gleaned from various sources.
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Monday, November 03, 2014
Stock Market Indexes At Record Highs Following Economic Data Announcements / Stock-Markets / Stock Markets 2014
Briefly: In our opinion, no speculative positions are justified.
Our intraday outlook is neutral, and our short-term outlook is neutral:
Intraday (next 24 hours) outlook: neutral
Short-term (next 1-2 weeks) outlook: neutral
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish
Monday, November 03, 2014
Stock Market Strong Rally Extension in Doubt / Stock-Markets / Stock Markets 2014
Current Position of the Market
SPX: Long-term trend - Bull Market
Intermediate trend - Intermediate correction (primary wave IV) still underway (???).
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, November 02, 2014
Stock Market Rally Surges Back, But There's Trouble Ahead / Stock-Markets / Stock Markets 2014
Michael E. Lewitt writes: The week was dominated by news by central banks as the Federal Reserve ended QE and the Bank of Japan pushed its QE program to new heights. The result was another rally in stocks around the globe that made the mini-correction earlier this month seem like a dream (or a nightmare).
The question is what happens next, and all indications are that markets will continue to ride the wave of central bank liquidity as far as it takes them. Markets were also boosted by a strong initial third quarter U.S. GDP report showing the economy grew at 3.5% and strong corporate earnings reports. With over 360 companies in the S&P 500 having reported third quarter results, profits are up 7.2% and revenue is up 3.9%.
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Sunday, November 02, 2014
Stock Market... What Is Going On? / Stock-Markets / Stock Markets 2014
Its not always like the picture being painted ...
Short term the market is showing oomph and the Fed is happy for now.
What about the Medium term ... what is going on?
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Saturday, November 01, 2014
Stock Market Japan Surprise.... / Stock-Markets / Stock Markets 2014
The market futures were flat early last night until a sudden explosion occurred blasting them way up. Why? Because the BOJ or the bank of Japan announced a massive new QE program. Their market sky rocketed. We followed along on our futures. Desperate times in Japan equates to higher markets. As I've said many times, only when the global economies truly recover can the next bear market begin. That's when the fed will stop bullying the world in to stocks. So we blasted up at the open, spent most of the day drifting slowly lower only to recover quite well at the end. Our fifth gap up in two weeks which is unheard of and none of them have been filled. Absolutely amazing. Never happened before and don't think it will again although why not a sixth gap up on Monday, even with tiny black candles.
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Friday, October 31, 2014
The Fed Has Crossed the Rubicon, Stops Stock Market Correction / Stock-Markets / Stock Markets 2014
The Fed very deliberately stopped a market correction and managed to turn the equity markets around, very consciously, in order to end their taper without any negative effects to Wall Street.
Last night the Bank of Japan announced a more aggressive quantitative easing AND pledged a portion of their national pension fund to buying not only Japanese equities but also the equities of foreign markets.
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