Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Friday, June 24, 2011
Bernanke, A Blinking Idiot and the Banking System / Stock-Markets / Financial Markets 2011
Interview with Lee Adler of Wall Street Examiner
Ilene: Lee, I've gathered from reading your material lately that you think it's time to be out of speculative trades, such as oil, now?
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Friday, June 24, 2011
Upside Breakout for China Stock Market Short ETF / Stock-Markets / Chinese Stock Market
A look at the chart of the inverse China Stock Index ETF -- the ProShares UltraShort FTSE/XINHUA 25 Stock Index (FXP) -- suggests strongly that slowing Chinese growth and climbing inflation remain part of the problem, not part of the solution -- at least, not yet.
As we noted for subscribers last night, Wednesday's sharp afternoon advance in the FXP after the morning's weakness positions the inverse China ETF to accelerate to the upside towards a test of multi-month resistance between 32.00 and 33.00. If hurdled, this will confirm the upside breakout from a major base formation that has the potential to propel the FXP to 39.00-41.00 in the weeks ahead.
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Friday, June 24, 2011
Pimco’s El-Erian Says Greece Debt Crisis Response Risks Wider Contamination / Stock-Markets / Global Debt Crisis
Mohamed El-Erian, CEO and co-CIO of Pimco, spoke to Bloomberg Television’s Betty Liu, Mike McKee and Jon Erlichman this morning. He talked about Greece’s debt crisis, QE2 and whether QE3 should be on the table, as well as the IEA oil reserve release.
El-Erian said that the efforts to resolve Greece’s crisis risks contaminating the entire system because they don’t address structural problems. Excerpts from the interview can be found below, courtesy of Bloomberg Television.
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Friday, June 24, 2011
Stock Market Bear is Back, Deflation in Our Future / Stock-Markets / Stocks Bear Market
Make no mistake, the four-day rally we just saw was nothing more than short covering in front of the Fed meeting just in case Bernanke surprised us with QE3. As expected he confirmed that QE2 would end on schedule. The dollar rallied and the market sold off on the news.Read full article... Read full article...
Thursday, June 23, 2011
Dollar, Gold, Silver, Oil and SP500 Technical Chart Analysis Video / Stock-Markets / Financial Markets 2011
- Yesterday was do or die day for stocks and commodities to breakout but they failed once again at resistance.
- The US Dollar in overnight trading has made a strong move up and that is putting pressure on stocks and commodities.
Thursday, June 23, 2011
The Unfinished Empire, World Financial Markets Hibernating / Stock-Markets / Financial Markets 2011
WAITING FOR MIRACLES - , early this year: their unfinished business is on the back burner. Brokers and operators, in summer operating mode, only trim and adjust positions while awaiting new or decisive global events - which by market folklore only happen in September or October but before then, in fact permanently, they need miracles.
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Thursday, June 23, 2011
The Misery Index vs SP500 and Gold / Stock-Markets / Financial Markets 2011
The Misery Index, the sum of the inflation rate and the unemployment rate reaches a multi-decade high. The index was created in 1976 by Jimmy Carter’s economists in an attack on Gerald Ford, but it backfired when it spiked under Carter.
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Thursday, June 23, 2011
Deflationary Stock Market Collapse In Action / Stock-Markets / Stock Markets 2011
In the modern fiat world, a deflationary-style stock market collapse isn't supposed to happen. And yet that is exactly what Greece has already experienced and I don't think it's over yet. Here's a modified chart any real bear has seen before: the first half of the 1929-1932 Dow Jones Industrial Average stock market bear, which saw a total loss from top to bottom of 89% (chart stolen from chartsrus.com, a great site, and modified):
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Thursday, June 23, 2011
Greece Yard Sale for the Rich / Stock-Markets / Financial Markets 2011
Greece is fixed - now what?
Well, Greece isn't really fixed, of course, but look how fast it all turned out to be nothing and this morning hardly anyone is even mentioning it. The crowds protested but this vote wasn't in their hands - it was in the hands of their corrupted officials and they voted 100% along party lines to keep Prime Minister Papandreou in power, which will now allow him to push through another $40Bn in budget cuts (14% of GDP or $2.25Tn if applied to the US budget - in a single year) that will pretty much turn the Government of Greece into nothing more than a debt collection service for Banksters - as they no longer have the money to provide any Government services to the people.
Wednesday, June 22, 2011
To QE or Not To QE? That Is The Question / Stock-Markets / Quantitative Easing
While the media is customarily thought to disseminate news, there is a far more intriguing purpose in the role of the relationship between the national mindset and the intended purposes of economic establishment.
It has ever been thus, going back to Shakespeare's Salanio character in "Merchant of Venice." Upon meeting colleagues, the characters would greet each other with the question: "Now, what news on the Rialto?"
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Monday, June 20, 2011
Stock Markets Unhappy with Lack of Immediate Greece Bailout / Stock-Markets / Stock Markets 2011
Futures are down again this morning as the perception that there would be a 'solution' (kick the can) to the Greece situation over the weekend has not come to fruition.
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Monday, June 20, 2011
Stock Market S&P500 Index and Decreased Solar Sunspot Output / Stock-Markets / Stock Markets 2011
There were a series of articles put out this past week on sunspots: drop in sunspots, solar minimums and STEREO of sun all came out earlier this week. The take home message is "this could be the last solar maximum we'll see for a few decades. That would affect everything from space exploration to Earth's climate."
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Monday, June 20, 2011
Stock Market Negative Divergence Carrying a Dangerous Message? / Stock-Markets / Stock Markets 2011
Last week we discussed how the Leadership stocks were in retreat. That was a good discussion why the market couldn't hold up since the beginning of June, but today's message is about a longer term Negative Divergence that is potentially very dangerous.
Many investors and technicians are familiar with positive or negative divergences that come from various technical indicators. The problem they have is, that they don't always kick in because the indicator is measuring stock or index movements and it is like trying to take a picture of yourself.
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Monday, June 20, 2011
Stock Market Valuations Can’t Offset Current Concerns / Stock-Markets / Stock Markets 2011
With QE2 winding down, China raising interest rates, and debt problems in Europe, investors have not responded to strong earnings growth. According to Bloomberg:
Read full article... Read full article...Standard & Poor’s 500 Index companies will earn 18 percent more this year than in 2010, according to the average estimate of more than 9,000 analysts compiled by Bloomberg. Higher profits haven’t stopped the gauge from falling 6.8 percent since April 29, pushing valuations to the cheapest levels in 26 years. Even if companies posted no growth, price-earnings ratios would be lower than on 96 percent of days in the past two decades.
Monday, June 20, 2011
Stock Market Investor Sentiment Growing Overly Negative / Stock-Markets / Stock Markets 2011
Right now just about everything that has to do with the financial markets except for bonds has been in a corrective mode since the end of April. That means gold, oil, and most commodity related stocks are down too. It is true that the price of gold itself has held up well during this drop in the broad market, but the HUI gold stock index is down over 19% from its April high.
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Monday, June 20, 2011
What to Watch as the Fed Abandons U.S. Stocks / Stock-Markets / Stock Markets 2011
Jon D. Markman writes: Without any more help from the U.S. Federal Reserve, U.S. stocks are on their own - and they're in for a rocky ride.
Markets have slumped as the Fed has not indicated it will initiate another round of quantitative easing, and last week was a sign that there's more volatility ahead.
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Monday, June 20, 2011
Stock Market Flashing A Buy Signal? / Stock-Markets / Stock Markets 2011
Since the first trading session in May we have seen the stock market sell off. The old saying “sell in May and go away” was dead on again this year. Here we are 7 weeks later with the stock market continuing to lose ground. This extended sell off has everyone all worked up that this is the beginning of another market collapse.Let’s take a quick look at the SP500 hourly chart covering the month of June.
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Monday, June 20, 2011
The Greek Debt Market Theater / Stock-Markets / Financial Markets 2011
In spite of all the turmoil in the Eurozone this week, no matter how bad the situation in Greece seemed to be, or how badly the Euro was battered, none of this was enough to catapult the Dollar above its current upper resistance level of 76. Unless or until patterns change (when the Dollar pops, stocks drop), if the Dollar cannot move above this level, we don’t expect to see stocks to fall significantly.
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Monday, June 20, 2011
Stock Market May be Ready for Short-term Uptrend / Stock-Markets / Stock Markets 2011
Very Long-term trend - The continuing strength in the indices is causing me to question whether we are in a secular bear market or two consecutive, cyclical bull/bear cycles. In any case, the very-long-term cycles are down and, if they make their lows when expected, there will be another steep and prolonged decline into 2014-16.
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Sunday, June 19, 2011
U.S. Seeks to Curtail OTC Highly Leveraged Trading in Paper Commodities and Currencies / Stock-Markets / Market Regulation
As part of the reform of derivatives, Dodd-Frank is seeking to prohibit Over the Counter (meaning non-exchange) trading of commodities at leverage of greater than 10:1.
The off exchange traders, particularly those trading in currencies, had expanded their markets into various commodities, offering non-product backed paper trading at very high rates of leverage.