Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Tuesday, March 30, 2010
Interest Rates Surge Higher on Debt Crisis, Stock Market Dow Non-Confirmation / Stock-Markets / Financial Markets 2010
The big news this week was the rise in interest rates, especially on the long end of the yield curve: 10 year yields were up 16 basis points to 3.85%; and 30 year rates added 17 basis points to 4.75% (see charts in the bond section). What’s behind this sudden move?
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Tuesday, March 30, 2010
U.S. Stock Market Returns, What's in Store? / Stock-Markets / Stock Markets 2010
It has been some time since we have looked at stock market valuations and expected future returns. I made a large point in Bull's Eye Investing that long term returns are closely correlated with the valuation of the stock market upon entry. In fact, I argue that secular bull and bear markets should be viewed in terms of valuation and not prices. The market clearly goes from high valuations to low and back to high again over very long periods of time. The average length of a secular bull or bear cycle is 17 years.
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Tuesday, March 30, 2010
Stock Market Grinding Further..... / Stock-Markets / Stock Markets 2010
So much of the move lately has been a grind. Makes sense as an overbought market on the daily charts just can't keep exploding higher. Now you have a few small negative divergences showing up making the job of the bulls tougher, but definitely not stopping them from a nail to the chalkboard move higher. Day by day we inch upward in to the teeth of these problems for the bulls and it makes you wonder when this market will finally take a right to the chin it just doesn't see coming.
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Monday, March 29, 2010
Three Breakouts That Could Break the Stock Market Rally / Stock-Markets / Stock Markets 2010
Three “breakouts” of recent days – interest rates, the U.S. dollar and China trade tensions – give ample reason to be cautious.
Upside breakouts are normally seen as bullish. But in the past few trading days, we’ve seen a few that are anything but.
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Monday, March 29, 2010
When The Stock Market Music Stops Will You Have A Chair? / Stock-Markets / Stock Markets 2010
When the music stops, will you have a chair to sit on? What we mean by that is the market can't keep going up like this forever. At some point in time we will get a correction -- quite possibly a meaningful correction. And when we do, will you be prepared?
In the weekend newsletter we pointed out a lot of extended names that needed to come back down to earth. That would be in line with the 5th wave needing some work. When we said it needed work we mean that it's got 3 waves up but yet no clear 4 or 5 (SPX daily chart below).
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Monday, March 29, 2010
Economic Optimism Lifts Stocks / Stock-Markets / Stock Markets 2010
For the most part equities, commodities and debt traded within a narrow range on Friday. Most of the action was in FX-land with the Euro benefiting from confirmation that the EU leaders had reached an accord to provide backstop financing to Greece if needed. According to the EU leaders, “As part of a package involving substantial IMF financing and a majority of European financing, Euro Area Member States are ready to contribute to coordinated bilateral loans… Interest rates will be non-concessional, i.e. not contain any subsidy element.” Beyond that, the details are as sketchy as ever, perhaps because most (including the Greek PM) believe that the package will not require implementation.
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Monday, March 29, 2010
Critical Week for Stock Market Ahead of March U.S. Employment Report / Stock-Markets / Stock Markets 2010
This week is going to be one of the most critical in a long time to the markets. The Government releases the employment report for March on Friday (a market holiday), expected to be the first positive data on additions to payrolls in months.
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Monday, March 29, 2010
Stock Market Set To Surprise / Stock-Markets / Stock Markets 2010
Within the space of 24-hours we discover the Fed is still scared stiff (of deflation), the ECB is bailing out Greece (because deflation is already occurring), and the Japanese are doubling recent monetization efforts (because they have been deflating for decades), all pointing to a continuation of a highly accommodative stimulus disposition world wide. This is a large part of the reason stocks are enjoying a record advance, where now we also know why bonds look precarious moving forward, with US Treasuries center stage given a breakout from long-term resistance (see Figure 2) is in the making.
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Monday, March 29, 2010
India's Stock Market Sensex Index Up More Than 100% In Just Over A Year! / Stock-Markets / India
A little over a year ago, famed newspaper columnist Dan Dorfman of The Huffington Post phoned to ask me what other Asian economy I would invest in besides my favorite, China.
My response: “It’s a no-brainer Dan, India!”
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Monday, March 29, 2010
Emerging Markets Decoupling, The Great Dichotomy Continues / Stock-Markets / Emerging Markets
While the U.S. economy is still bogged down by massive federal deficits and a new wave of home foreclosures, key foreign economies are already leaping ahead without those heavy burdens.
Just look at the scoreboard:
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Monday, March 29, 2010
Should Investors Believe in the Stocks Bull Market? / Stock-Markets / Stock Markets 2010
Jon D. Markman writes: Bears have been scratching for a vulnerable spot in the bulls' narrative in the past few weeks, but have been coming up empty, as they logged a blistering March.
Sellers tried to sink the market back in February as the long-simmering Greek debt fiasco roared into the headlines, but that didn't work out so hot for them. And early last week they tried again by both highlighting new reports of discord between the European Monetary Union authorities and Greece, and by flogging the news of a Fitch Ratings Inc. downgrade of Portuguese debt.
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Sunday, March 28, 2010
Stock Market Pending Crash? / Stock-Markets / Financial Markets 2010
Pending Crash?
Well take a look at our crash monitor here...
Sunday, March 28, 2010
You're Not Hearing the Reasons Why Stocks Will Rise / Stock-Markets / Stock Markets 2010
Frank Curzio writes: It's not difficult to find a bearish opinion on the market these days...
After all, the S&P 500 is up more than 70% from its March 2009 lows. The Russell 2000 index of small-cap stocks is up 100%. As of Tuesday, the market was higher 27 out of the last 30 days. It's only natural for the market to take a break.
Sunday, March 28, 2010
Gold and Dow Stocks Index Congestion Zone Trading / Stock-Markets / Stock Index Trading
Last week the general market continued to grind its way higher for yet another week. Overall I feel the market is very much over bought. We all know the market can stay in extreme overbought levels for extended periods of time making it very difficult to pick tops.
This is the reason I do not try to pick tops, but rather wait for a top to form before putting my money to work. While a bottom can be made in 1 day, tops tend to take days and some times months to complete.
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Sunday, March 28, 2010
Stock Market Investing Game Plan / Stock-Markets / Stock Markets 2010
Stocks:
I’m going to start off with a few breadth charts.
The NYSE new highs – new lows chart is now on a sell signal as both the slow and fast average have rolled over and are accelerating downward.
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Sunday, March 28, 2010
Stock Market Rally and Economic Recovery Blowing in the Wind / Stock-Markets / Financial Markets 2010
“You’ll notice that Bush never spoke when Cheney was drinking water; check it out!" Robin Williams
We are seeing some interesting developments in the markets so I want to jump right into it and save all the social and political commentary for the end. I would first like to focus on the US dollar since it is the hot topic of conversation in the media, and its price movement is subject to a lot of misinterpretation. The general line of thinking espouses a new bull market for the greenback given the fact that the US economy is on the mend.
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Sunday, March 28, 2010
Stock Market S&P Index Readying For a Crash / Stock-Markets / Financial Crash
This week COT data was quite illustrative of what the big boys are doing. Infact it was deja vu for me as it gave me taste of what the big boys aim to do when they need to get off their positions. I was part of all this as we used to unload huge and massive speculative postions and leaving the small guys holding the batter.
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Sunday, March 28, 2010
Stock Market Sentiment Indicates Investor Nirvana And New Paradigm / Stock-Markets / Stocks Bear Market
The sentiment indicators would suggest that this is not investing nirvana. While prices can certainly go higher, the lack of buying power should be obvious. Who is left to buy if everyone is all in? But judging by the emails I receive, most market participants believe that this is a new paradigm, where the Fed is engineering a new prosperity founded on gains in the market. Investing nirvana? I think not. This market environment is more like a high wire act. A new paradigm? Every era is new, but fear and greed never go away. I have yet to convince myself that "this time will be different".
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Sunday, March 28, 2010
Dow Theory Stocks Bear Market Rally Update / Stock-Markets / Stocks Bear Market
As the averages advanced out of the February lows, it was the Transports that beat the Industrials back above the January highs. As a result, a Dow theory non-confirmation was born earlier this month. At the time of my last article posted here, I had received numerous e-mails about that non-confirmation as it seemed to draw a lot of attention and many were viewing it as a death sentence for the market. I warned that this non-confirmation was not necessarily as negative as it was being made out to be and that jumping to conclusions just because one average beat the other one back above its previous closing high was premature.
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Saturday, March 27, 2010
Major Stock Market Sell Off Warning, Investor Defensive Plays / Stock-Markets / Stock Markets 2010
Mike Burnick writes: Since Bryan is on vacation this week, Martin asked me to pinch-hit as a guest editor today. And it couldn’t come at a better time, because at present, the Weiss Capital Management† investment team is on high alert for a potential market sell-off.
We’ve had a nearly uninterrupted market rally over the past 12 months, but now we believe it’s time to play good defense … and take steps to help protect your gains. Let me explain why …
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