Analysis Topic: Stock & Financial Markets

The analysis published under this topic are as follows.

Monday, November 22, 2010

Investing Strategy for Switching from Bonds to High Dividend Paying Stocks / Stock-Markets / Investing 2010

By: Richard_Shaw

This is a follow-up to last week's letter suggesting that the best days for bonds are behind us for a while, and that reduction of bond positions is in order. We have been replacing bonds in managed accounts with high quality, above average dividend stocks with long histories of paying and growing dividends, and shortening duration among the substantially reduced bond positions we hold.

Monday, November 22, 2010

Can the Stocks Bull Market Continue as Uncertainty Recedes? / Stock-Markets / Stocks Bull Market

By: Money_Morning

Jon D. Markman writes: Stocks rose briskly in the second half of last week as investors cheered the return of General Motors Co. (NYSE: GM) shares to the Street and the return of Irish budget officials to the debt negotiating table. It's amazing how quickly people forget what a horrible company GM was and what a mess Dublin has made of governance. In a twinkling of an eye, all was forgiven. Must be a bull market.

Monday, November 22, 2010

Federal Reserve Actions and Their Economic and Market Consequences / Stock-Markets / Financial Markets 2010

By: Bob_Kirtley

It is generally accepted that the recent financial crisis was brought about by excessive borrowing due to cheap and easy credit, and this excessive borrowing increased the risk in the financial system as market participants leveraged up to the hilt. Therefore it appears to be somewhat hypocritical to claim that the best action to take after such a crisis is to lower borrowing costs and make credit more accessible. This essay will explore the recent quantitative easing actions by the Federal Reserve, the repercussions of these actions and what implications similar policies may have on the financial markets and the global economy going forward.

Sunday, November 21, 2010

Chinese Stocks, Is Red China Rolling Over? / Stock-Markets / China Stocks

By: Peter_Navarro

I have begun to cash out of many of my positions and take profits in anticipation of a flat to down US market until the end of December. Both tax selling and the taking of profits coupled with uncertain outlooks in communist China and in the PIGG portion of Europe suggest less upside reward than an undeniably strong technical market trend might suggest at this point. Better to be early than late is my motto.

Sunday, November 21, 2010

Global Inflation Watch as Gold and Silver Hit Good Support, QE2 Aimed at Breaking Stocks Higher / Stock-Markets / Financial Markets 2010

By: Anthony_J_Stills

“Pure truth, like pure gold, has been found unfit for circulation because men have discovered that it is far more convenient to adulterate the truth than to refine themselves.” - Charles Caleb Colton

There is so much going on out there that it’s difficult to pick a starting point. China, Ireland, quantitative easing and even Greece pop in and out of the news like a cork bobbing around on rough seas. One day everybody is selling everything due to deflationary fears and the very next day they are buying everything because of the threat of inflation. Then the next day deflation back on the tip of everybody’s tongue…

Sunday, November 21, 2010

The Sum of All Fears for Investors / Stock-Markets / Stock Markets 2010

By: Wink_Twyman

The Sum of All Fears (2002) is a dramatic movie about a nuclear detonation outside of Baltimore, Maryland during the Super Bowl. The plot is riveting. I can still see the face of Morgan Freeman (CIA Director William Cabot) as he recognizes the unthinkable, that a stolen nuclear device is about to remove Baltimore from the face of the planet. Freeman scrambles to leave the Super Bowl with the President and Secret Service but it is too late. It is...too late.

Sunday, November 21, 2010

Stock Market Moving Along Laterally To Down In Good Fashion...... / Stock-Markets / Stock Markets 2010

By: Jack_Steiman

Which really means that the market has now traded for two weeks within a range that should last for many weeks more if not a bit beyond that. This is what is normal and takes place once you make your measurements on all the key index daily charts. This is also what happens when you add in the fact that we were massively overbought for quite some time indeed. Months to be honest. A lot longer than you usually ever see. This tells me that although healthy, this market will need an extended period of time basing out before trying to move appreciably higher once again.

Sunday, November 21, 2010

SPX Retraces 50% of Decline, VIX Another False Break? / Stock-Markets / Financial Markets 2010

By: Anthony_Cherniawski

FDIC Keeps a Low Profile. - The FDIC Failed Bank List announced three new bank closures this week. 

 (ZeroHedge)  Ben Bernanke has made a very dangerous bet.
 The Fed’s Quantitative Easing 2 announcement of $600 billion in additional Treasury purchases is literally a “bet the farm” move. True, the Fed had already engaged in an unbelievable amount of bailouts both known and unknown. However, the Fed’s previous moves were all made when 1) the world financial system was teetering on the brink of collapse and 2) other countries were engaging in similar practices.

Saturday, November 20, 2010

Marc Faber on China Interest Rate Hike and Still Expects Stock Markets to Fall / Stock-Markets / Financial Markets 2010

By: Videos

Marc Faber discusses China interest rate hike for the fifth time this year as inflation surges. Inflation hits people all over the world, official CPI do not reflect real cost of living increases, which is worse in emerging markets as per capita income is lower. Real chinese inflation is running at about 10% per annum. Still expects stock markets to fall, no new imminent high.

Saturday, November 20, 2010

Global Stock Markets SPX, DJW, FTSE, TSX, BSE, and HSI Elliott Wave Analysis and Forecasts / Stock-Markets / Elliott Wave Theory

By: Tony_Caldaro

The equity market started the week by extending the pullback, and then rebounded to end the week nearly unchanged. Economic reports for this past week were mostly positive. On the negative side were the NY FED index, weekly MBA mortgage applications, housing starts and weekly jobless claims. The BEA leading indicator led the positive economic reports, along with retails sales, the PPI/CPI, the Philly FED, industrial production, business inventories, building permits, and the weekly WLEI. The monetary base and the NAHB housing index remained steady.

Saturday, November 20, 2010

Stock Market Hindenburg Crash Omen Meets the Heisenberg Uncertainty Principle / Stock-Markets / Stock Markets 2010

By: David_Knox_Barker

Tracking Market Cycles as “Fields” in Price and Time - The rather ominous sounding Hindenburg Omen was the latest in a long line of one-off indicators said to be heralding an imminent global stock market crash. The basic premise of the Hindenburg Omen is worthy of contemplation. Extreme readings in the number of shares reaching new highs and shares reaching new lows simultaneously are the basic concept behind this signal of imminent market disaster.

Saturday, November 20, 2010

Here’s What Stock Market Investors Should Be Watching! / Stock-Markets / Stock Markets 2010

By: Sy_Harding

The market is in what is usually its favorable season of November to May, when it typically makes most of its gains each year. But it hasn’t been that way so far.

Among other worries, analysts are concerned that the market’s consistent annual seasonality of ‘Sell in May and Go Away (until November1)’ has failed to work over the last two months. The market topped out on schedule in late April and was down 16% by July. This fall it began what is historically the worst three-month period of the year, August, September and October, with a big decline in August, which was the worst August in years. But then, usually negative September and October turned out to be just about the most positive two months of the year.

Saturday, November 20, 2010

S&P 500, Treasuries, Gold, & Dollar are At Key Price Levels / Stock-Markets / Options & Warrants

By: J_W_Jones

Another example of Mr. Market playing games with traders and investors as equities and precious metals took part in a strong rally. Some market prognosticators noted short-term oversold conditions across the board while others discussed the potential for a strong reversal that could potentially take out recent highs. In addition to the regular banter, to the average retail investor the market sure looks rigged when the government decides to sell a large stake in a massive IPO offering and a shaky tape suddenly becomes stronger than garlic.

Saturday, November 20, 2010

Stock Market Hanging on a Thread as Bernanke Steps up QE2 Stimulus Defence / Stock-Markets / Financial Markets 2010

By: Anthony_Cherniawski

General Motors IPO looks good on day one…
(Bloomberg) General Motors Co., which went bankrupt last year after almost a century on the New York Stock Exchange, advanced in its return to public trading following an initial public offering that raised more than $20 billion.

GM gained 3.6 percent to $34.19 today, after climbing 9.1 percent in the first hour of trading. Its owners, including the Treasury, sold $15.8 billion of common shares at $33 each in the second-largest U.S. IPO on record. The automaker’s $4.35 billion offering of preferred shares and an overallotment option may boost the total to $23.1 billion, more than the $22.1 billion raised by Beijing-based Agricultural Bank of China Ltd. in the biggest IPO of common stock in history.

Friday, November 19, 2010

Keeping an Eye on Spain and Portugal Stock Markets / Stock-Markets / European Stock Markets

By: Chris_Ciovacco

Currently, our fundamental concerns primarily center on the possibility Portugal will become the market’s next target soon after some bailout is finalized in Ireland. Eventually, market participants will come after both Portugal and Spain; the question is how much time will the Ireland bailout buy the markets. We will need to keep an eye on Europe for the foreseeable future.

Friday, November 19, 2010

Safeguard Your Financial Future with Robert Prechter's Exclusive 10 Page Letter / Stock-Markets / Financial Markets 2010

By: EWI

An exclusive only for Market Oracle readers, FREE access to Robert Prechter's recent 10 Page The Elliott Wave Theorist Letter:

Why are the truly big economic catastrophes so "big"? Put simply, it's that such a small number of people prepare themselves beforehand. Think about 2008 and you'll realize it's true. What's more, once you read Bob Prechter's recent 10-page Elliott Wave Theorist, you'll see that even fewer people will be ready for the soon-approaching worst leg down of the unfolding depression.

Friday, November 19, 2010

Countertrend Rallies in Dollar, Euro, Stocks, Silver, Gold, and VIX May Be Over / Stock-Markets / Financial Markets 2010

By: Chris_Ciovacco

The countertrend rallies in the U.S. dollar (UUP), euro (FXE), stocks (SPY), silver (SLV), gold (GLD), and the VIX (VXX) may be relatively short-lived. On November 10th, we stated, “The odds of short-to-intermediate-term reversals are elevated for numerous markets”. From their recent lows to their recent highs, the VIX rallied 29% and the U.S. dollar gained 5%. From their recent highs to their recent lows, gold dropped 6.6%, silver fell 14.6%, the S&P 500 lost 4.4%, and the emerging markets index gave back 7.3%. These all qualify as ample corrections within ongoing trends. Given the developments in Ireland, and more importantly the initial bullish response by the markets, we need to be open to the reemergence of the “risk on” trade.

Friday, November 19, 2010

Stock and Commodities Market Risk Trade Continues to Flourish on Band Aid Solutions / Stock-Markets / Financial Markets 2010

By: Puru_Saxena

BIG PICTURE – Lets face it, governments always try to ‘kick the can down the road’.  Rather than deal with economic issues in the here and now, they prefer to postpone the pain.  Unfortunately, in their attempt to avoid painful economic recessions, the policymakers sacrifice the purchasing power of their currencies and they end up creating even bigger troubles for the future.  

Friday, November 19, 2010

U.S. Infrastructure Investing 101 / Stock-Markets / Infrastructure

By: Frank_Holmes

When you envision America’s future, do you picture collapsing bridges, cracking dams and reoccurring brownouts? That’s certainly not the picture of America many would like to paint but it is a possibility if our country’s long-term infrastructure needs aren’t addressed.

A new article from researchers at the Wharton School of the University of Pennsylvania (America’s Aging Infrastructure: What to Fix, and Who Will Pay?) details the precarious nature of neglecting our nation’s network of pipelines, ports and power lines.
Here are some of the paper’s eye-popping statistics:

Thursday, November 18, 2010

Stocks, Gold, and Municipal Bonds Get Abused / Stock-Markets / Financial Markets 2010

By: J_W_Jones

Tuesday's stock market action reminded overconfident bulls that bears might be hibernating, but they are not dead. The S&P 500 lost nearly 20 points during intraday trading while most commodities, specifically oil and precious metals took it on the chin. Treasuries finally caught a bid, but did anyone notice the absolute meltdown that has been going on in municipal bonds? The Ishares National Municipal Bond ETF (MUB) was down only 0.50% on the day, but the chart below speaks for itself.