Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Thursday, October 08, 2009
The Ultimate Stock Market Buy and Hold Investors are Betting Big Here / Stock-Markets / Investing 2009
We’re entering earnings season once again and most investors are on edge.
Will companies be able to top estimates again? Earnings estimates are low, but they’re not as low as they were last quarter when 70% of the S&P 500 beat estimates.
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Thursday, October 08, 2009
Kiss the New Stocks Bull Market Theory Good-bye / Stock-Markets / Stocks Bear Market
I’ve also been tracking the S&P 500 in relation to its 88-weekly moving average: THE definitive metric for what establishes a bull vs. bear market. As I said in the last two issues, if the S&P 500 breaks ABOVE the 88-weekly moving average and stays there, then YES, we’re in a new bull market. However, if it’s turned away and falls below the 88-weekly moving average… THEN LOOK OUT BELOW.
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Thursday, October 08, 2009
How to Trade China Stock Market Sectors with ETFs / Stock-Markets / Chinese Stock Market
Right now, China is celebrating 60 years of Communist party rule. Most of the party-goers aren’t old enough to remember anything else, of course, but that isn’t stopping the nationwide festivities.
The sheer scale of China is mind-boggling! Just think about it …
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Thursday, October 08, 2009
Stock Market Consolidation Day Closes Strong, Ends Mixed / Stock-Markets / Stock Index Trading
The markets were mixed at the close, as today was mostly a consolidation-type day until the last hour or so. The indices vacillated between 1700 and 1710 on the Nasdaq 100 and between 1050 and 1057 on the S&P 500 over the first couple hours. Then they meandered sideways, drifted lower, tested the lows, and when that was successful they moved steadily higher over the last two hours of trading.
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Wednesday, October 07, 2009
Stock Market Thin Range... Earnings Upon Us... / Stock-Markets / Stock Index Trading
Often we explain why a market gets thin, meaning why it loses its volatility and trades in a narrow range. We have good support at 1044 with 20 resistance at 1060 or the bottom of that now often talked about gap. It's going to take something special, either positive or negative, for this market to make a move and open up things. It could be earnings folks. It should be earnings. We are at the precipice of another earnings season but this earnings season is not an ordinary one.
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Wednesday, October 07, 2009
Stock Market Rally Warning, Investors Should Adopt a Defensive Posture / Stock-Markets / Credit Crisis 2009
Markets worldwide have been rallying on the assumption that more of the very same interventionist policies and malfeasance that caused the global financial crisis can in fact cure it. Our analysis of recent events concludes this assumption is misguided for a number of reasons, not least being:
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Wednesday, October 07, 2009
Three Reasons Why The Stock Market is Doomed... / Stock-Markets / Stocks Bear Market
It never ceases to amaze me. After the market turns – even a little bit, as it has the past couple weeks – there seem to be no shortage of I-told-you-so analysts pushing over each other to loudly proclaim on CNBC that we "may" have had a top and there "may" be a pullback, and hand you an umbrella for yesterday's rain. Few tasks prove easier than predicting a 5-10% pullback when 3-4% has already occurred.Read full article... Read full article...
Wednesday, October 07, 2009
Why this is a Bear Market Bounce and Not a New Stocks Bull Market / Stock-Markets / Stocks Bear Market
My view that we are in a market bounce is now in the minority but I am still strongly convinced that this is the case for the following reasons:
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Wednesday, October 07, 2009
Where and Who Are the Stock Market Bulls? / Stock-Markets / Stock Market Sentiment
Bull markets are said to climb a wall of worry. And during the past week this valued adage came to my mind again and again.
You see, I’ve been travelling quite a bit in Europe … giving speeches and presentations. This gave me the opportunity to talk to many institutional and private investors, and entrepreneurs. And was I ever surprised about how much things have changed!
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Wednesday, October 07, 2009
Stock Market Top, Were So Close! / Stock-Markets / Stocks Bear Market
I’ve shown the below chart several times before. It depicts the S&P 500’s performance since its March 2009 bottom. As you can see, the market has been carving out a near perfect rising bearish wedge: a rally in which the trading range becomes tighter and tighter the higher the market rallies.
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Wednesday, October 07, 2009
Gold Tit for Tat, Stocks Are Still A Lousy Investment / Stock-Markets / Stocks Bear Market
NOTE: This is a sort of tit-for-tat rebuttal of a classic hatchet piece on Gold as an investment class that recently appeared in the Wall Street Journal (see the article here). All plagiarism is intentional to show the ridiculousness of such articles and if you haven't read the original article, this rant may not make a whole lot of sense.
Wednesday, October 07, 2009
Stock Market Bulls Take Back The 20s..... / Stock-Markets / Stock Index Trading
And the bulls say take that. The emotion of the game is what always makes this the toughest game on the planet. We all have to admit that things looked pretty dire for the bulls there. Negative divergences finally playing out.
Overbought at extremes finally playing out. We were plunging down pretty fast. Right through the 20-day exponential moving averages on all the major indexes on only the second try by the bears.
Tuesday, October 06, 2009
S&P 500 Stock Market Trends Analysis for October 2009 / Stock-Markets / Stock Index Trading
Starting with the indexes gives an overall perspective to the markets. This is monthly chart for the S&P 500 showing 20 years of performance. Since this index is the one used by professional traders, it is important to understand how it is performing. This chart is also excellent for defining the longer-term trends for the market.
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Tuesday, October 06, 2009
Stocks Bear Market Rally Will Soon Be Over / Stock-Markets / Stocks Bear Market
The bear market rally will soon be over. It rallied 1,300 Dow points that it should have. All the back up data as to why this is in process was included in the last issue. The rally induced many investors to stay long and they did recoup as much as 80% of their losses in some instances. Now it is time to exit and move into gold and silver shares. Probably the biggest key is that gold recently spent two weeks above $1,000 and we believe gold is prepared for a breakout that will take its price anywhere from $1,200 to $1,700 an ounce. Gold’s long-term reverse head and shoulders pattern, one of the most powerful patterns in charting is in a breakout mode.
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Tuesday, October 06, 2009
Stock Market Back Testing The 20's...Daily's Still Oversold... / Stock-Markets / Stock Index Trading
I had talked about the likelihood of a bounce as we got to the 50-day exponential moving averages on the daily charts. Yes, it was possible to just blow through those 50's but with the market trading above them for the past three months without a test of any kind, it was extremely unlikely that we'd just break down and through that level.
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Monday, October 05, 2009
Stock Market Snapback Rally Starts the Week / Stock-Markets / Stock Index Trading
It was a choppy morning, particularly on Nasdaq, but the S&P 500 worked its way higher all day and never broke intraday moving averages. It pulled back in the last hour in a nice bullish flag and ended not far off the highs for the day near key overhead resistance, as did the NDX.
Net on the day the Dow was up 112.08 to 9599.75, the S&P 500 up 15.25 to 1040.46, and the Nasdaq 100 up 13.15 to 1675.54.
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Monday, October 05, 2009
Why The Dow /Gold Ratio Could Be On Its Way To Unity Soon / Stock-Markets / Stock Index Trading
As suggested in our last meeting, and supported in continuing technical analysis by Dave (which you can review at your convenience on the site), equities have yet to top out, however we are likely within just a few days / weeks of such an event. And as you know from our ongoing discussion of the seasonal inversion which we have posited as the causal factor behind ongoing strength in equities / stocks through this normally weak period that occurs yearly, this analysis jives with such a view as well, setting the stage for an important top stocks to be put in place sometime between now and the end of October. (i.e. or possibly the beginning of November, but it’s unlikely to run that long past a testing process, possibly in the form of a double top.)
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Monday, October 05, 2009
The Stock Market’s Next Move May Surprise You / Stock-Markets / Stock Market Sentiment
“The main purpose of the stock market is to make fools of as many men as possible.” – Bernard Baruch
The market is set to make a move…a very big move.
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Monday, October 05, 2009
U.S. Dollar, Gold and S&P Mega Trades for Q4 / Stock-Markets / Futures Trading
Three Potential Mega Trades In Q4
It seems to me that we are at an inflection point in the economy. The government has blown pretty much all of its money and the economic recovery and the economy is still sputtering along. No surprise there.
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Monday, October 05, 2009
Stock Market Toppy and Trendless / Stock-Markets / Stock Index Trading
Overall, the evidence is mounting that some kind of a top in equities and commodities and some kind of a bottom in the US Dollar is in the process of being produced. Short term, an oversold condition and a spike in bearishness may combine with the proclivity of traders to buy every dip off the March bottom with abandon producing a bounce to resistance. What happens then will be very telling. A period of indecision and trendless, choppy trading is likely as either a top is created or markets break out again. This is a good time to be on the sidelines waiting for the markets to resolve in either direction.
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