Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Tuesday, August 31, 2010
3 Reasons Now is Not the Time to Speculate in Stocks / Stock-Markets / Stocks Bear Market
When it's sunny, you head outside without a thought, but when it's rainy, you look for your umbrella.
When the markets are trending up, you don't worry about your investments much, but when the markets turn bearish ... what do you do?
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Tuesday, August 31, 2010
Prelude to Meltdown: An interview with Bert Dohmen / Stock-Markets / Credit Crisis 2008
When Bert Dohmen talks, smart investors listen.In 2007 when most investment analysts and economists were downplaying the developing credit market troubles, Bert warned investors that the probability was very high that the troubles would escalate into full-blown crisis and would produce a crash of historic proportions. He chronicled the developing credit crisis in the pages of his newsletter and also published a book in early 2008, Prelude to Meltdown, which provided his insightful views on the emerging crisis in depth. The book will surely go down as a landmark written by a financial visionary who was several steps ahead of his peers.
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Tuesday, August 31, 2010
Stock Markets Pare Losses On Housing Data / Stock-Markets / Stock Markets 2010
As I warned yesterday double dip fears returned to trump the temporary respite from Bernanke’s holding exercise at Jackson Hole & a flurry of M&A activity following yet more disappointing economic data which showed weaker than expected growth in US household personal income sending. This all helped push US equity indices to a 1.1% loss Monday. The 1020 area on the S&P 500 remains the key level to watch as this is the point from which we bounced back in early July. A break there I feel would see the market push substantially lower.
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Tuesday, August 31, 2010
Total Stock Market Returns For USA, EAFE and Emerging Markets / Stock-Markets / Emerging Markets
Emerging stock markets are generally held to have the highest growth potential in the future. Their economies are generally in better debt/GDP shape than the aggregate developed stock market countries. Their GDP growth rates have been, are currently, and are expected to be higher than aggregate developed stock market countries.
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Tuesday, August 31, 2010
M&A Fails to Inspire Stock Market Investors... / Stock-Markets / Stock Markets 2010
The usual lift from sizable M&A activity failed to emerge as the major indexes gave back most of Friday's gains...
Recommendation: Take no action.
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Tuesday, August 31, 2010
Stock Market Indices Spike Down into Close / Stock-Markets / Stock Markets 2010
The stock market indices suffered a down day to start the week, but did start with a little strength early on in the Nasdaq 100, when it retested that 1799-1800 zone unsuccessfully. The S&P 500 got up to 1064 and change and then began a slide that lasted the entire the session in stair-step fashion, which was fairly orderly until the last 15-20 minutes when it spiked down, leaving the SPX at the session lows.
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Tuesday, August 31, 2010
Stock Market Warnings From Tech Sector – Bad News For Economy! / Stock-Markets / Tech Stocks
Much of the hope for the economic recovery picking up momentum again has been driven by expectations that the technology sector will lead the way, the key expectation being that it’s about time for the ‘computer replacement cycle’ to kick in.Supposedly corporations and households have not been keeping up with the latest computer models, operating systems, and software from Dell, HP, Apple, and Microsoft, etc., and should begin purchasing to catch up.
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Tuesday, August 31, 2010
Bullish Shanghai Stocks Index a Harbinger for SPX? / Stock-Markets / Chinese Stock Market
Today's sharp 2.5% upmove in the Shanghai Composite from Friday's close shows that the price structure held above -- and lifted off of -- its prior (Aug 13) pullback low at 2564, as well as near-term MA support in and around 2610. Today's up-move and close near the high of the day positions the China equity index for another test of key 4-month resistance at 2700, which if hurdled and sustained should trigger upside continuation towards an optimal measured target zone of 29.25/50, and possibly as high as 3000 to 3100. At this juncture, only a decline that breaks Friday's low at 2589 will compromise the current constructive technical set-up.
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Monday, August 30, 2010
QE II Money Printing Not Enough To Save Credit Cycle / Stock-Markets / Credit Crisis 2010
That should read widely anticipated Quantitative Easing (QE) is not enough to save the economy from a contraction in the larger credit cycle, however titles need to be catchy. And that’s basically what sparked the sell-off in stocks yesterday, reflected in a reversal of high yield bonds, which as you know we have been expecting to lead equities (hot money) lower. We were of course not disappointed in this regard, however sentiment readings still leave scope for increasing volatility (both up and down) over the next week or so, as options expiry approaches on the 20th.
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Monday, August 30, 2010
Stock Market Investment Opportunities in the Bad News? / Stock-Markets / Investing 2010
There’s been plenty of bleak news coming out of the equity markets and the U.S. economy as a whole. Are there opportunities hidden within that bad news? Are we now in one of those “blood in the streets” scenarios that Rothschild (and many investors after him) found so appealing?Read full article... Read full article...
Monday, August 30, 2010
Stock Market Positive Reversal Sets Up Buying Opportunities / Stock-Markets / Stock Markets 2010
MARKET STAGES POSITIVE REVERSAL FRIDAY
Friday’s action can be summed up in one picture:
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Monday, August 30, 2010
M&A Flurry Can’t Deflect Attention From Dire Market Dataflow / Stock-Markets / Stock Markets 2010
Late on Friday, equity markets set up for a relief rally despite bellwether tech giant Intel guiding down its earnings forecast (a development which I for one, thought was mightily disturbing). The trigger for the rally came from the speech of Ben Bernanke in Jackson Hole. He remarked that the Fed stood ready to boost economic growth and had the tools to do so, including increasing the purchase of long-term assets. So although Bernanke tilled no new ground at Jackson Hole in Wyoming, re-launching QE remains an option this Autumn as deflation risks intensify. Additionally over the weekend, the Bank of Japan expanded credit support for banks. These are indications that central banks are willing to support the fragile economic development.
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Monday, August 30, 2010
Russell-2000 Leads Stock Market Relief Rally... / Stock-Markets / Stock Markets 2010
The major indexes followed the Russell-2000 as it rallied strongly after a retest lower...
Recommendation: Take no action.
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Monday, August 30, 2010
Fear is Driving the Markets, But Don't Let it Drive You / Stock-Markets / Stock Markets 2010
Jon D. Markman writes: Pessimism increased again among investors last week, as a slew of economic data stoked fears of a double-dip recession.
Indeed, housing and unemployment continue to weigh on the U.S. economy. But don't panic. Remember that the prospects for a full economic recovery are much better outside the United States, and that it's often good to be greedy when others are fearful.
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Monday, August 30, 2010
Pakistan Cricket Shame, Floods Disaster Maximum Point of Market Pessimism Is Coming For Investor Opportunity / Stock-Markets / Pakistan
Bilal Khan writes: Pakistan was again in the news over the weekend but not for the recent floods. Its cricketers were in the headlines and for all the wrong reasons. Commenting now on an ongoing investigation would be premature and would only be fair after the authorities have conducted a comprehensive investigation. However one comment that can be made is that it will further erode what ever credibility the country had left after decades of blatant corruption by its leaders and will make donors already reluctant to give to Pakistan shy away further.
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Sunday, August 29, 2010
Stock Market May be Ready to Break Out of its Short-term Downtrend / Stock-Markets / Stock Markets 2010
Current Position of the Market
Very Long-term trend - Down! The very-long-term cycles are down and if they make their lows when expected, the bear market which started in October 2007 should continue until about 2014-2015.
SPX: Intermediate trend.The index made an intermediate top at 1220 and is now in an intermediate downtrend which should come to an end in October 2010.
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Sunday, August 29, 2010
UK Economy Booms Whilst U.S. Stutters, Stocks Fail to Follow Crash Script / Stock-Markets / Financial Markets 2010
Did the stock market crash Monday ? Nope, Tuesday ? Nope. How about Wednesday, Thursday or Friday ? The Dow closed down 63 points on the week at 10,150 (10,213) which given the much publicised Hindenburg Crash Omen, is not exactly following the script though off course the Hindenburg Omen has plenty of get out of jail cards in the small print which ensures that all eventualities are covered ( The Hindenburg Stock Market Omen Doomed to Crash and Burn? ).
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Sunday, August 29, 2010
High Volume Resistance Plagues Gold, Silver, Crude Oil & SP500 Index / Stock-Markets / Financial Markets 2010
Last week was a relatively strong week for stocks and commodities. Although the SP500 closed slightly lower on the week the price action Friday was strong. The recent pop in commodities has everyone feeling good and bullish again and we all know how the market works… When everyone is feeling good the market has a way of shaking things up.
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Sunday, August 29, 2010
Stock Market Dumb Money Turns Bearish Which is Bullish / Stock-Markets / Stock Market Sentiment
As expected, the "dumb money" has turned bearish on the markets, and this is a bullish signal.
The "Dumb Money" indicator (see figure 1) looks for extremes in the data from 4 different groups of investors who historically have been wrong on the market: 1)Investors Intelligence; 2) Market Vane; 3) American Association of Individual Investors; and 4) the put call ratio. The "Dumb Money" indicator has turned bearish and this is a bullish signal.
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Sunday, August 29, 2010
Investors Don’t Get Trapped by Market Micro-Bubbles, the Silent Wealth Killers / Stock-Markets / Financial Markets 2010
Today's article is about market bubbles. Right now, you're probably wondering why I am talking about market bubbles when the S&P 500 is trading down 6.5% since the first trading day of January this year, and down 33% from the 2007 highs. On top of that, home prices have fallen 30% (on average) to 2002-2003 levels, and unemployment is nearly 10%. Frankly, most of the globe is struggling to pay its bills. So doesn't all of this mean any kind of market bubble has burst? Well, the answer is, not all of them.
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