Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Tuesday, July 13, 2010
Corporate Earnings Season, And They're Off... / Stock-Markets / Stock Markets 2010
The earnings season is upon us and tonight we saw the first important group of stocks report. The two most important being Alcoa, Inc. (AA) and CSX Corp. (CSX), a leading railroad shipper of goods. CSX said things weren't bad at all. Not exactly knocking the ball out of the park but nothing bad. At the time of this writing I've watched CSX stock go up a dollar after hours, then reverse two dollars to go red by one, and then back to slightly up. In other words, the market doesn't know what to do with this report. As if the market wasn't difficult enough, we're now seeing traders clueless on what to do with this puppy. Ridiculous really.
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Tuesday, July 13, 2010
Stock Market 40% Over Valued, Hussman on Valutions and Earnings Estimates / Stock-Markets / Stock Market Valuations
Once again John Hussman has written an excellent weekly column. This week, in Misallocating Resources, Hussman talks about stock market valuations, PE ratios, bailouts, and other things.
Let's start with a look at stock market valuations.
Monday, July 12, 2010
Stocks Bear Market and Depression: How Close to the Bottom? / Stock-Markets / Stocks Bear Market
While many people spend time yearning for the financial markets to turn back up, a rare few have looked back in time to compare historical markets with the current situation -- and then delivered a clear-eyed view of the future informed by knowledge of the past. One who has is Robert Prechter. When he thinks about markets and wave patterns, he goes back to the 1700s, the 1800s, and -- most tellingly for our time now -- the early 1900s when the Great Depression weighed down the United States in the late 1920s and early 1930s. With this large wash of history in mind, he is able to explain why he thinks we have a long way to go to get to the bottom of this bear market.
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Monday, July 12, 2010
Corporate America’s $2 Trillion Cash Pile, Let’s Kick Some Corporate Ass / Stock-Markets / Financial Markets 2010
$2,000,000,000,000 is a lot of cash.
That’s about how much America’s 500 largest NON-FINANCIAL companies have on their books. This is up about $500,000,000,000 from last year as 2010 has been very, very good for corporate profits, which are growing at a 36% pace this year and we’ll get a better insight into that this earnings season. Right now, our biggest problem is a lack of faith in the economy. As we noted last week, temp hiring is near records but real hiring is not there at all - companies are using what turnaround there is to save up for the next rainy day.
Monday, July 12, 2010
Stocks Mixed Ahead of the Earnings Season Kickoff / Stock-Markets / Stock Markets 2010
After the world cup fiesta, its time for the US earnings season to kickoff with Alcoa (after the bell tonight) and Intel, Google, Bank of America, JP Morgan among the big corporations due to communicate results to the market. Over the past 10 years there have been seven quarterly reporting seasons where more than 70% of S&P500 constituents have beaten consensus forecasts, and in six the market responded favourably posting an average gain of 6.3% over a three-month period.
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Monday, July 12, 2010
Investors Profiting From Economic Schizophrenia / Stock-Markets / Financial Markets 2010
If last week’s massive price swings in the U.S. stock market proved anything, it’s that the world’s investors are massively confused.
They have every right to be. After all, even the world’s most respected authorities — the experts with access to every scrap of data an economist could ever want — are talking out of both sides of their mouths.
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Monday, July 12, 2010
The Next Stop for the S&P 500 Stocks Index / Stock-Markets / Stock Markets 2010
Jon D. Markman writes: Stocks zipped higher in the past week, capping the first four-day rally since early 2009. Get out the party hats and confetti, right? Bears tried to knock shares lower on Tuesday and early Thursday, but after they failed bids hit the tape in a big way and gave it lift.
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Monday, July 12, 2010
Stocks and Bonds, Shun These Two Bad Investments / Stock-Markets / Investing 2010
The public has been told that the way to wealth is investing. The way to invest, Ph.D. economists tell the public, is to allocate your portfolio between stocks and bonds. Which stocks? An index of American stocks, preferably the S&P 500. Buy a no-load fund. Same with bonds: a mix of mid-term and long-term AAA-rated corporate and Treasury bonds.
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Monday, July 12, 2010
Stock Market Making Bearish Lower Lows, Gold Bull Market Intact / Stock-Markets / Stock Markets 2010
"What do we mean when we say that first of all we seek liberty?
I often wonder whether we do not rest our hopes too much upon constitutions, upon laws and upon courts. These are false hopes; believe me, these are false hopes.
Liberty lies in the hearts of men and women; when it dies there, no constitution, no law, no court can save it; no constitution, no law, no court can even do much to help it... What is this liberty that must lie in the hearts of men and women? It is not the ruthless, the unbridled will; it is not the freedom to do as one likes. That is the denial of liberty and leads straight to its overthrow.
Monday, July 12, 2010
Stock Market Bulls and Bears Need to Make Their Case / Stock-Markets / Stock Markets 2010
Referring to a close below support levels, I stated the following last week: "There is always hope that the failed signal will just be a fake out. It has happened in the past, and such fake outs have led to very strong upward moves. This scenario seems less likely." Well here we are one week later and the "less likely" occurred as the S&P Depository Receipts (symbol: SPY) closed back above old support or resistance levels at 107.58. Of course, this reversal was on shrinking volume.
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Sunday, July 11, 2010
Can the Stock Market and Gold Keep Rising? / Stock-Markets / Financial Markets 2010
The stock market, we know, moves from one emotional extreme to the other. Fear to greed, back to fear then greed, and so on.
And a good stock trader should always be asking him/herself, are we at an extreme and if so, which one?
Sunday, July 11, 2010
Max Keiser on The Financial Crisis, Sovereign Debt and more Video / Stock-Markets / Financial Markets 2010
Max Keiser and Damon Vrabel discuss the financial crisis, sovereign debt and more
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Sunday, July 11, 2010
Shanghai NOT Leading S&P-500: But it’s going in a Different Direction / Stock-Markets / Stock Markets 2010
Had a few articles out recently saying that the Shanghai Stock Exchange is (perhaps) a leading indicator of the S&P 500:
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Sunday, July 11, 2010
Stock Market Head and Shoulders Pattern: A Time Symmetry Pattern? / Stock-Markets / Stock Markets 2010
The stock market rebounded quite strongly all week and took the bearish tone off the market for now. Something I wrote about a few days ago was the theory of the Time Symmetry Head and Shoulders Pattern. See the daily chart of the DOW below.Read full article... Read full article...
Sunday, July 11, 2010
Is Gold About To Rocket and SP500 Tank Video / Stock-Markets / Financial Markets 2010
Last week we saw stocks move sharply higher as traders started to cover their short position which added fuel to an already oversold market ready to bounce. Overall volume was not that strong on the move up which is a bearish sign. On Friday afternoon we saw the SP500 continue to move into the $1075 resistance level on very light volume. This indicates to me that buyers are not willing to pay these higher prices because the market has moved up so quickly and the fact that it’s trading at a resistance level.
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Sunday, July 11, 2010
Stock Market Incipient Uptrend / Stock-Markets / Stock Markets 2010
Since last October, we’ve got nothing but a whipsaw market. Trend looks up. Trend looks down. Repeat.
Implicit in this whipsaw is a sideways pattern where it is VERY difficult to make a buck. Implicit in this whipsaw is continued uncertainty over the direction and strength of the economy.
Sunday, July 11, 2010
Stock Market and Gold Summer Correction, Remember White Swans Out Number Black Swans / Stock-Markets / Stock Markets 2010
Seems like every day there is talk about black swans, what about white swans ? Positive developments to the upside ? Since the Stock market has not crashed, collapsed, evaporated into perma- bear abyss targets, it clearly is discounting something positive ? Whilst bears focus on the doom and gloom of double dip recessions, depressions, armageddon's, focusing wholly on the 15% downtrend price action since the April peak, though conveniently forgetting the 70% advance before it. So I will leave Nassim Taleb to See Black Swans everywhere as an excuse for poor analysis rather than anything of any actionable value. I mean Taleb says forecasts are irrelevant but then prances about in the mainstream media issuing economic depression forecasts, perhaps he should read his own book ?
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Saturday, July 10, 2010
Bear Market Rally But No Dow Theory Sell Signal / Stock-Markets / Stock Markets 2010
The Dow theory has certainly been a hot topic of late. Seems that everyone has become a Dow theory expert and the price action into the July 2nd low had everyone tripping over each other to make the call that a Dow theory “sell signal” had occurred. I could not disagree more and I told my subscribers over the weekend that a so-called Dow theory “sell signal” had not occurred and that rather than a melt down, a bottom was expected.
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Saturday, July 10, 2010
SP 500 and Gold More Down Side to Come? / Stock-Markets / Financial Markets 2010
Back on June 30th, I updated my subscribers that I was looking for an interim bounce in the SP 500 from the 1007 Fibonacci Pivot point to about 1071-1074, followed by much further downside. The chart is included here from June 30th for reference:
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Saturday, July 10, 2010
Stock Market Recovery or Trap Door? / Stock-Markets / Financial Markets 2010
The economy may cool as consumers spend less.
(Bloomberg) Economists trimmed their U.S. growth forecasts through the middle of next year, though not enough to show the recovery is in danger of faltering.
Growth in the world’s largest economy will average 2.8 percent from the current quarter through the second quarter of 2011, according to the median estimate of 52 economists surveyed from July 1 to July 8, down 0.1 percentage point from last month.