Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Monday, May 16, 2011
Stock Market One More Push Higher Before Correction Sets In / 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.
Long-term trend - In March 2009, the SPX began a move which evolved in a bull market. Cycles point to a continuation of this trend for several more months.
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Sunday, May 15, 2011
Significant Stock Market Correction In Progress Now / Stock-Markets / Stock Markets 2011
I've been long SPX since the September 2010 bottom and an aggressive buyer on pullbacks. Today I exited all long trades and went to 100% cash and then even took on a small short position. My current analysis shows ample reason to conclude that stocks and commodities are in the early stages of a significant correction. Here's my SPX trading record for 2011:
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Sunday, May 15, 2011
Stock Market Headaches, Headaches, and More Headaches..... / Stock-Markets / Stock Markets 2011
The market had a tough close to the week. The number of headaches for this market is starting to add up. The market spent the week testing key support and finding a way to hold above it. 1335 S&P 500 is horizontal support that the bears worked on over and over all week, but somehow they couldn't take it out with any force. Although they did take it below by a few points intraday on one occasion. The problem for the bulls is that they couldn't muster up enough energy each time it held 1335 S&P 500 to blast it higher. 1370 never came close to being tested back on the up side.
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Sunday, May 15, 2011
Compelling Evidence Extended Stocks Bear Market Rally To End / Stock-Markets / Stocks Bear Market
On November 26th 2010 I posted “My view still is that the rally in equity markets since March 2009, with its persistence of upward wedges and broadening top formations across such a broad range of financial entities and time frames, is compelling evidence of an extended bear market rally that will soon end.”In my last posting on January 24th 2011, I wrote that equity markets were overextended, with upward wedge patterns and broadening formations still predominating in most of the leading US and world equity market indices.
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Saturday, May 14, 2011
Stock Market Stuck in No Man’s Land, Plus Silver and Dollar / Stock-Markets / Gold and Silver 2011
US Equities spent most of their time stuck inside the previous weeks range, the major action came from the other “risk” asset markets, like silver, oil and the FX markets, that’s where the better action came, although we simply traded our areas of support and resistance on the ES, as following on from last week’s ideas, we simply still don’t have an edge to which pattern will play out, the range has gone sideways for the past 2 weeks, although we suspect its getting ready to get aggressive next week. So we will let the market doing the talking and we will follow what the market wants to do.Read full article... Read full article...
Saturday, May 14, 2011
Stock Market Weakening Uptrend / Stock-Markets / Stock Markets 2011
The US market started the week at SPX 1340, then gyrated to 1359-1332-1351-1333, and ended the week at 1338. Overall the SPX/DOW were -0.25% and the NDX/NAZ were -0.10%. Asian markets lost 0.4%, European markets lost 1.2%, the Commodity equity group was 2.2% lower, and the DJ World index lost 1.2%. On the economic front positive reports outnumbered negative reports by 11 to 3. The negatives were declines in the Monetary base, the WLEI, and an increase in the Trade deficit. On the positive side were increases in Wholesale/Business inventories, Consumer sentiment and Retail sales. The Budget deficit, M1-multiplier and Jobless claims improved. Remaining positive were the PPI/CPI and Import/Export prices. Next week Housing, Industrial production and the May FOMC minutes.
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Saturday, May 14, 2011
Stock Market Reversal, Without Vision the People Perish / Stock-Markets / Stock Markets 2011
Nobody can see the future, except of course for a real prophet. I'm not one. Real prophets come along to show us the way very rarely. One of the signs of a true prophet is often that they are run out of town on rails, long before the world realizes that they actually had a glimpse of the future and its too late to heed their warning.
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Saturday, May 14, 2011
Stock Market Kicking The Can! / Stock-Markets / Stock Markets 2011
The economic catch phrase of the year has become ‘kicking the can down the road’, applied to all the problems that are not being solved, but are simply kicked further down the road.
It’s an apt description, as it is exactly what’s happening.
Friday, May 13, 2011
Winning in the Hyperinflation Deflation War / Stock-Markets / Financial Markets 2011
“… the U.S. dollar remains on track for an eventual complete collapse in a hyperinflation, and the roots of that hyperinflation remain imbedded in the system. The primary hedge against losing U.S. dollar purchasing power remains physical gold (and silver), with some funds outside the U.S. dollar…
Today (May 6th), stocks are soaring as we go to press, purportedly due to an upside surprise in April nonfarm payroll growth, a gain of 244,000…
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Friday, May 13, 2011
Rajaratnam Guilty On All 14 Counts of Insider Trading - Faces 19+ Years In Prison / Stock-Markets / Market Manipulation
"The tapes show he didn't believe the rules applied to him. Cheating became part of his business model."
"He" is a microcosm of a financial system in which the currency of fraud drives out honest price discovery and displaces productive activity, and large institutions game the markets on a daily basis with near impunity, while the public underwrites their steady gains and occasional but spectacular losses.
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Friday, May 13, 2011
How Weak Japanese Economy Contributes to a Global Stock Market Reversal / Stock-Markets / Stock Markets 2011
Jack Barnes writes: In our ongoing search for possible "inflection-point" catalysts - financial stimulants that could help turn global markets upside down - the Japanese economy has to be a prime candidate.
In the last part of the 1980s, Japan was the world power - so much so that investors on the U.S. trading floors of New York each day watched the Tokyo markets with a mixture of awe and fear. An oft-cited investing aphorism of the day explained this very clearly by holding that "when Tokyo sneezes, Wall Street catches a cold."
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Thursday, May 12, 2011
Gold and Stock Market Sentiment Reaching Extreme Levels / Stock-Markets / Financial Markets 2011
This week we are seeing fear across the board from traders and investors as they dump their long positions is stocks and commodities. Just in the past two trading sessions alone we have seen extreme overbought conditions and extreme oversold conditions which generally mean another big move is brewing…Read full article... Read full article...
Thursday, May 12, 2011
Reasons Why The Cyclical Stocks Bull Market Will Continue / Stock-Markets / Stocks Bull Market
1. Cyclical stocks bulls historically end when 10 year treasury yields exceed 6% - currently 3.2%:
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Thursday, May 12, 2011
Stock Market The Bears Have Dreams / Stock-Markets / Stock Markets 2011
The bears have dreams. Oh, to see those levels get eaten away one by one. Fantasy is nice, and maybe someday it'll come true, but for now it remains a dream unfulfilled. Everyone keeps talking about market death these days, and we certainly could use a longer down trend to unwind all of the bullishness from this market, but no matter what happens, we can't even seem to take out horizontal support at 1335 on the S&P 500. So let's go over the headline title here.
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Thursday, May 12, 2011
Stock Market Key Downside Reversal for S&P? / Stock-Markets / Stock Markets 2011
Let's notice that today's action in the emini S&P 500 initially climbed above yesterday's high at 1356.50 (to 1358.25), but then reversed sharply into a nosedive that so far has pressed to 1334.75, which is 4.25 points below yesterday's low.
The net result from a technical perspective is the potential for a key downside reversal day in the e-SPM (contingent upon a close beneath 1339). Such a signal will indicate strongly that the rally off of last Thursday's low at 1325.25 into this morning's recovery high at 1358.25 was a countertrend rally within a larger corrective process that should break the rising 20 DMA (1335) and the prior low at 1325.25, on the way to a test of the lower BBnd line, now at 1300.
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Wednesday, May 11, 2011
Cycles Analysis Says that the Stock Market Bears are About to Roar / Stock-Markets / Stock Markets 2011
The Stock market pushes higher and higher, what fool would take a short position against this mighty liquidity pump up, however there are a few dark clouds in the next few months: US Summer is seasonly poor, QE2 ending, earnings are peaking, Greek woes. When the SP500 sinks, historically the US dollar rallies, transports fall and funds rotate out of aggressive stocks to defensive stocks. Let's review these cycles to see what we can expected next.
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Wednesday, May 11, 2011
Isn't Economics Fun, If You're an IBank / Stock-Markets / Financial Markets 2011
As Dave Fry notes in his chart on the right, we had a lovely boost yesterday as the Fed pumped $7.24Bn into the IBanks covering a solid 34% of the $20.98Bn of junk that was offered up to them - in this case bonds that were maturing 2018-2021 at toxically low rates. The idiot taxpayers in this country will never know what hit them in this scam until rates begin to fly up and these bonds that the Fed is putting us on the hook for begin to be discounted towards zero.
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Wednesday, May 11, 2011
Stock and Commodity Markets Consolidation Phase Continues / Stock-Markets / Financial Markets 2011
In the follow-up to the May newsletter, equity and commodity markets are continuing to trade in a consolidation phase after the low in mid-March. Both stocks and raw material indexes are moving in tandem and in an average 14-16 week cycle. This would suggests that the next trough should occur by late June.
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Tuesday, May 10, 2011
Stock Market Daily Charts Remain In Control For Now.... / Stock-Markets / Stock Markets 2011
bottom line for the action we're seeing. The weekly charts we know are bearish, but we also know the primary chart to follow is the daily chart. Only when the daily chart confirms the weekly chart can we say with more assuredness that we're about to correct with some force rather than the tiny little selling days we get from time to time. The daily charts for the major indexes are all in bullish inverse patterns and that has to be the focus until broken. The bears can't even remove the 20-day exponential moving averages, let alone the key 50-day exponential moving averages further below.
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Tuesday, May 10, 2011
Hong Kong ETF EWH on the Move / Stock-Markets / Stock Markets 2011
All of the action in the iShares MSCI Hong Kong Index (EWH) from the November 8, 2010 high at 20.24 into the March 17 low at 17.63 has the right look of a completed major corrective period. If accurate, that means that all of the action since March 17 (at 17.63) is part of a new upleg within the dominant, powerful uptrend.
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