Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Wednesday, December 09, 2009
Stock Market Indices Close Moderately Lower / Stock-Markets / Stock Index Trading
The markets opened lower and despite a strong snapback rally in the morning rolled over in the afternoon and closed moderately lower today.
The day started out with a gap lower. They rallied back with a 3-wave rally, with the third leg of the wave being a very sharp one, but overhead resistance at the declining tops lines prevailed. They then moved steadily lower in an orderly fashion for the rest of the session, closing not far off the session lows on the S&P 500, but substantially above them on Nasdaq 100.
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Tuesday, December 08, 2009
What “Intrinsic Value” Really Means in Inflation Proof Investing / Stock-Markets / Investing 2010
Analysts, financial planners and so called “experts” tout a variety of anti-inflation investments, ranging from commodities like oil and coal to sophisticated instruments like inflation-protected treasuries and annuities. Although all these products may seem to be inflation-proof on paper, none have the intrinsic value of gold, silver or any other precious metals.
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Tuesday, December 08, 2009
Shanghai’s Stock Market Not A Bubble, SSE Targets 4000 / Stock-Markets / Chinese Stock Market
The talk about a bubble in China that was all over the place in July and August appears to be subsiding. I confess I know practically nothing about China. But what I know has always made me wary, it still does.
What I bring to the debate is simply that I claim to know something about bubbles, and although many people think I am a simple minded village idiot, my initial attempts at applying my models to the real world did at least give the right answer (the model predicted in January that the S&P 500 would bottom at 675 and that the rally would go up at least until the DOW hit 10,000).
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Tuesday, December 08, 2009
Good News to Bring Bad News Bears For Stocks / Stock-Markets / Stock Index Trading
The title of this piece actually says it all if you have been following our work for any length of time. The understanding here is because our faulty and fraudulent markets are based more on speculator betting practices rather than fundamentals, regularly assaulting the sensibilities of unwary participants, the majority of time a steady flow of bad news actually supports stocks, not the opposite as most straight forward thinking people would assume. How can this be? As mentioned above, for the majority of time bad news causes most speculators to naturally be bearish, which in turn unfortunately causes them to run out and buy puts or bear funds on stocks, who in turn buy puts on your behalf.
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Monday, December 07, 2009
Stock Market and Gold Crash, Are We About to Repeat 2008? / Stock-Markets / Financial Crash
A few weeks ago on November 10, I wrote an article Three Reasons Gold Might be Making a Head Fake.
In it, I noted that Gold’s recent rally was largely due to Dollar devaluation (Gold had failed to hit new highs in other world currencies) as well as several other factors that disconfirmed the precious metal’s explosive rise. I wrote:
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Monday, December 07, 2009
Stock Market Another Day Of Nothing..... / Stock-Markets / Stock Index Trading
And that's what we have basically every single day. The hardest part being is how difficult it is to short or go long stocks. Stocks set up to fall blast higher and stocks set up to soar fall apart. That's pretty much an every day occurrence. The market is getting lots of good economic news but this 1100 area is not allowing the market to move further along. Any time we get a bit over 1100, no matter what good news hits, it falls back from the breakout zone.
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Monday, December 07, 2009
Stock Market Sloppy Way to Start the Week / Stock-Markets / Stock Index Trading
The markets had a sloppy session to start the week and ended mixed. The day started out with a little bit of firmness. They reached resistance at 1110-11 on the S&P 500 and 798-800 on the Nasdaq 100, but were unable to punch through. Then they backed off and retested the lows on 2-3 occasions, narrowed and got very quiet mid-morning and then tried to rally around mid-day. When the indices failed to break through, they rolled over hard in early to mid afternoon and then over the last hour or so bounced back in what appeared to be bear-flag consolidations.
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Monday, December 07, 2009
Interesting Longer Term Bets Developing in Currency, Stock Markets / Stock-Markets / Stock Index Trading
A couple of very interestng stories on Bloomberg today, regarding some long term directional bets by what I assume to be big players. Effectively it's the same "dollar inverse" trade but in reverse ...keep in mind dollar down = stock market up is not the traditional relationship, it's just something that has taken a life of its own as Ben Bernanke has provided an unlimited fire hose of US dollars to make us all feel better via inflated asset values. There are some fascinating tidbits in these stories.
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Monday, December 07, 2009
Top Sentiment Expert Says Short the Stock Market / Stock-Markets / Stock Index Trading
Tom Dyson
writes: Jason Goepfert is America's leading expert on stock market sentiment...
Sentiment shows you how the majority of investors are positioned in a market. Most of the time, it's useless information. Bulls and bears will be roughly balanced and there won't be any opportunity.
Monday, December 07, 2009
U.S. Dollar Breakout Would Impact Hard on Stocks, Bonds, Gold and Commodities / Stock-Markets / Financial Markets 2009
First up is the daily $USD chart. The dollar’s relentless fall is clearly evident. Price has broken above its downward sloping trend line, and is presently attempting to clear horizontal resistance marked by the yellow band.
MACD has made a positive crossover and the histograms have moved into positive territory as well. RSI has turned up above 50 (55). The indicators look promising, but the dollar has a habit of disappointing.
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Monday, December 07, 2009
Stock Market , Gold, Commodities and Economic Forecasts for 2010 / Stock-Markets / Forecasts & Technical Analysis
Martin Weiss: Two recent mega-events — the Wall Street collapse in 2008 and the Washington response in 2009 … the debt implosion and then the money printing explosion — are mind-boggling in their dimensions.
Neither you nor I can know with certainty what the future will bring. But at this particular juncture, we don’t have to poke around in hidden crevices of the economy. Nor must we stretch our imagination to conjure this or that scenario. To get a pretty good idea of what’s likely to happen next year, all we have to do is follow the path of natural consequences from these two mega-events. And that’s what we’re going to do right here and now.
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Monday, December 07, 2009
U.S. Dollar Jump and Gold Price Decline / Stock-Markets / Financial Markets 2009
On the anniversary of the “date that will live in infamy”, many are looking around and wondering whether the US has past our best days and is now slowly sliding into a sunset. Buoyed by a much better than expected jobs report, investors initially cheered and then rethought their buying as the markets finished slightly higher on the day. The key to the day was the huge jump in the dollar/decline in gold. The big question is can the dollar find new strength or is it just a one-day wonder? The job report continued the slow improvement of the recent past, however the near zero loss was not corroborated by other economic reports over the past month.
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Monday, December 07, 2009
Is Friday's Financial Market Trading Signaling Reversal of Carry Trade? / Stock-Markets / Financial Markets 2009
Jon D. Markman writes: Although it’s too early to know for sure, Friday’s action suggests we could be seeing the earliest stages of a carry trade reversal. Remember that hedge funds and other highly leveraged institutional investors have been borrowing here in the United States at ultra-low interest rates, selling the dollar short, and using the proceeds to snap up stocks, bonds, and gold.
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Monday, December 07, 2009
130 Bank Failures and Complacency in the Markets / Stock-Markets / Credit Crisis 2009
This last week the Fed closed 6 more banks making total to 130 bank failures since the crisis started. There are strong expectations that even more small and regional banks will fail. Just these 6 banks cost the FDIC $2.3 Billion dollars.I believe there is something like 500 banks on the FDIC watch list. However all this time there is complacency in the markets. Bad loans are still out there…you name it from credit card debt to residential housing to a more menacing threat the commercial real estate markets.
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Monday, December 07, 2009
Pondering the Stock Markets Next Move / Stock-Markets / Stock Index Trading
Heres our indicator positioning and our thoughts on the week ahead...
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Monday, December 07, 2009
Stock Market Rally Devil’s Advocate / Stock-Markets / Elliott Wave Theory
A Contrarian Bullish Perspective On The Zombie Dia And The Status Quo Powers That Keep It Alive
How the Deck is Currently Stacked
Despite the unequivocal failure of the entire global financial system, the prescient minority bearish contingent whom saw the writing on the wall years ago, are duly disappointed with the present outcomes since March. This persistently bearish free-market contingent views the presently unfolding outcomes as a complete waste of a-once-in-a-lifetime crisis in which nothing of sustainable utility has been resolved to reconcile such an unmitigated disaster. This contingent is largely of the belief that the worst is yet to come.
Sunday, December 06, 2009
Stock Market Trends Update, Short Down, Medium Up, Long Down / Stock-Markets / Stock Index Trading
LONG-TERM TREND (> 1YR) OF THE MARKETS: DOWN -
(See Long-Term Chart of the Dow Jones Industrial Average since 1974 for further details)
Sunday, December 06, 2009
Financial Market Trends For Gold, 10 Year Treasury Yields, And Crude Oil / Stock-Markets / Financial Markets 2009
On Friday, yields on the 10 year Treasury spiked higher by little over 3%. Our composite indicator that assesses the strength in the trends of gold, 10 year Treasury yields, and crude oil is back into the extreme zone. This represents a headwind for equities.
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Sunday, December 06, 2009
Stock Market Short-term Rally More Probable than a Decline / Stock-Markets / Stock Index Trading
Current Position of the Market
SPX: Long-term trend - Down! The very-long-term cycles have taken over and if they make their lows when expected, the bear market which started in October 2007 should continue until 2014. This would imply that
much lower prices lie ahead. As illustrated by the current market performance, this will not be a straight-down
decline, but will consist of a series of intermediate-term rallies and declines until we have reached the low
point.
Sunday, December 06, 2009
Stock Market Cross Currents / Stock-Markets / Stock Market Sentiment
The trading range that has developed over the past several weeks is emblematic of the cross currents confronting this market. New highs seem to be made daily and then boom, the rug is pulled out from the market, and prices plunge for a couple of hours. Buyers appear and back to the highs we go and selling begins again. If you are looking for some support area where you might think it is "safe" to find a low risk entry, then this isn't the market for you. Sell offs are clearly unpredictable although they are occurring at the upper reaches of the trading zone that I had expected when I stated this over two months ago:
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