Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Tuesday, November 03, 2009
Jeremy Grantham, Stock Markets Being Silly Again / Stock-Markets / Stocks Bear Market
My long time readers are familiar with Jeremy Grantham of GMO as I quote him a lot. He is one of the more brilliant and talented value managers (and I should mention very successful on behalf of his clients). He writes a quarterly letter which I regard as a must read. I have excerpted parts of his recent letter, where the chief investment strategist really takes the current financial system follies to task. Typical of his great writing and thinking is the quote from this week's Outside the Box selection:
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Tuesday, November 03, 2009
Investing in Preferred Shares Dividend Stocks / Stock-Markets / Investing 2009
When I talk about dividend stocks here at Money and Markets, I almost always mean common shares of a company.
But today I want to tell you about another class of stock that some income investors gravitate toward: “Preferred” shares.
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Tuesday, November 03, 2009
Has the Stock Market Broken Major Support? / Stock-Markets / Stocks Bear Market
In our last video on the S&P 500 (10/27), we indicated that this market may have topped out for the year. Today’s action puts in place a weekly “Trade Triangle” which indicates that a temporary or a permanent top is now in place for this market.
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Tuesday, November 03, 2009
Possibility of Dow Stock Market Trend Change / Stock-Markets / Dow Theory
The two charts above of the Dow Transports and The Dow Industrials indicate that there is the possibility of a Dow Trend change. The trend altered on the transports over the last three days but is unconfirmed at the moment by the Industrial 30.
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Tuesday, November 03, 2009
Is The Stock Market Starting to Fail? / Stock-Markets / Stock Index Trading
The proverbial question is we in a V shaped recovery or a Bear Market Rally. Without predicting (One word every true trend follower hates) there are signs becoming apparent the stock market rally from March might be coming to an end. There are technical indicators which are pointing to weakness as well as recent economic figures are beginning to disappoint investors hoping for a recovery.
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Monday, November 02, 2009
Stock Market Support Holds..Nothing Good Either Way.... / Stock-Markets / Stock Index Trading
The bears are trying. I'll give them that. After all, they've taken out the 50-day exponential moving average on the Nasdaq and have kept it below for a few days now. The S&P 500 is playing leap from the 50-day exponential moving average.
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Monday, November 02, 2009
Long Term Equity Valuation, Replacing the P/E Ratio for DR3 / Stock-Markets / Stock Market Valuations
Is the S&P 500 undervalued from the current level? To answer this question, one might be tempted to look at the actual P/E (Price / Earnings) and establish a comparison with its historical data. You most likely have seen this chart before:
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Monday, November 02, 2009
Gold, Silver and Stocks Analysis, Forecast / Stock-Markets / Financial Markets 2009
The S&P 500 was down over 4% for the week. This was the second week in a row that the market closed down. A short term correction is underway. It remains to be seen if the short term correction turns into a medium term move down.
Up first is the daily chart of the SPX. It shows lower diagonal support broken below. If the October low marked by the blue horizontal line is broken below it would raise the possibility that an intermediate term move is unfolding.
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Monday, November 02, 2009
Stocks, Dollar and Gold Bull Markets Inter-market Analysis / Stock-Markets / Financial Markets 2009
This analysis seeks to update the trend prospects for all three major markets into at least the end of this year by taking into account their inter-market relationships which should resolve in a more accurate projection for each individual market.
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Monday, November 02, 2009
Stocks Bull Market Forecast Update Into Year End / Stock-Markets / Stocks Bull Market
The update on the stocks bull market of early September called for a continuing trend towards a target range of 9,750 to 10,000 by late September / Early October to be followed by a correction in the region of 10% towards a target zone of 8,900 to 9,100, as illustrated below.
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Sunday, November 01, 2009
Nailed the Stock Market Top? Probably / Stock-Markets / Stocks Bear Market
For the past month, as both market technical indicators and macroeconomic fundamentals have deteriorated, I’ve been warning of a possible market top in my Always a Winner newsletter. In preparation for that market top, I took my profits from the March run-up by closing almost all my long position.
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Sunday, November 01, 2009
Stock Market Down Draft Warning / Stock-Markets / Stock Index Trading
Since October 10, I have been singing a new tune and warning that "there is probably greater risk of a market down draft now than in past weeks," and on October 17, I even underlined these words for emphasis. I think this past week's high volume selling would qualify as a market down draft.
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Sunday, November 01, 2009
Stock Markets Sharply Lower on Sustainability Worries of Global Economic Recovery / Stock-Markets / Financial Markets 2009
Rewind the movie to before the stock market lows of March 9: stocks down, corporate bonds down, commodities and gold down, emerging-market currencies down, safe havens in fashion, including the US dollar and government bonds. In short, risky assets closed sharply lower over the past few days as concerns mounted over the outlook for central bank policy and the sustainability of the global economic recovery, with investors only warming momentarily to the US emerging from recession as shown by the Q3 GDP report (announced on the 80th anniversary of Black Tuesday, October 29, 1929).
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Saturday, October 31, 2009
U.S. Dollar Fiat Reserve Currency Root of the Global Financial Crisis / Stock-Markets / Credit Crisis 2009
Chapter 4: “James Ross Clemens, a cousin of mine, was seriously ill two or three weeks ago in London, but is well now. The report of my illness grew out of his illness, the report of my death was an exaggeration.”1
The matters discussed thus far in the first three chapters of our report, Credit and Credibility, may be summarized as follows:
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Saturday, October 31, 2009
Financial Markets React Negatively to Reducing Emergency Economic Stimulus / Stock-Markets / Financial Markets 2009
Incomes are steady, but confidence is waning. -Spending by U.S. consumers fell in September for the first time in five months after the government’s auto-rebate program expired.
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Saturday, October 31, 2009
Is the Debt Fuelled Economic Recovery Sustainable? / Stock-Markets / Financial Markets 2009
The U.S. Economy bounced backed strongly in the third quarter, following Euro-zone second quarter recovery which is not so surprising given the amount of debt fuelled economic stimulus spending. Britain lags behind awaiting its bounce back in the fourth quarter due to the relative size of its financial sector.
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Saturday, October 31, 2009
Ominous Technicals for S&P 500 Index / Stock-Markets / Stock Index Trading
Friday's action could have been one of the more destructive technical sessions in recent memory. Not only did the day's weakness totally reverse Thursday's upside reversal gains, it closed on the low for the day and for the week. Furthermore, let's notice that on the enclosed weekly chart that this week's close broke and sustained beneath 1) the Aug-Oct support line; 2) the 10-week (or 50-day) MA; and 3) the major up trendline that originated off of the March 2009 low at 666.79. Finally, let's notice the very negative juxtaposition of the weekly slow stochastics and the weekly RSI.
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Saturday, October 31, 2009
Stock Market Negative Divergences Kick In Hard... / Stock-Markets / Stock Index Trading
I've been talking quite a bit lately about the very nasty negative divergences across the major indexes on the daily charts. In many cases, quadruple negative divergences. That's not something you see very often. When it takes place, at some point in time there will be a price to pay for that type of set up. We are seeing that take place now. The sad thing is, if you're a bull, these set ups often end a bull market. Once the wedges go, there's no looking back.
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Friday, October 30, 2009
The Recession Has Ended! Has the Stocks Bull Market Also? / Stock-Markets / Stock Index Trading
The Great Recession has ended. Halleluiah! It was the worst recession in many ways since the Great D. Just imagine. After four straight negative quarters the economy recovered in the third quarter. Not only did it recover, but GDP rose 3.5% in the third quarter, even more than the consensus forecast of a gain of 3.2%.
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Friday, October 30, 2009
Financial Fairy Tale Antidotes Springboard For Garnering Gains / Stock-Markets / Financial Markets 2009
“…the Federal Reserve established and refined a program that permitted banks to pledge virtually any security as collateral…a guaranteed way for taxpayer capital to evaporate in the context of a disintegrating financial system, all with the purpose of bailing out Wall Street's major institutions…
…We uncovered numerous bankrupt companies' equities that were being pledged as collateral for what ultimately was taxpayer exposure. To our surprise, this discovery is not an exception, and in fact in the days immediately preceding the collapse of Bear Stearns…
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