Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Sunday, March 01, 2009
Stock Market Downward Spiral Continues / Stock-Markets / Stocks Bear Market
So long, November lows. Last week, the news media, always looking for a headline, were quick to point out the Dow Theory Sell Signal that occurred last week. Of course, there were plenty of analysts that came out of the woodwork to proclaim the Dow Jones Industrial and Transportation Averages as irrelevant indexes, and therefore Dow Theory had no great impact on the market. Since then, the DJIA now sits 7 percent below its November low after only a week and the S&P 500 is now below its November low. The Nasdaq is not far behind. It looks like the Dow Theorists may be right. Sadly, there are not many signs pointing to an improving market.Read full article... Read full article...
Saturday, February 28, 2009
Stock Market Valuations, Siegel vs Standard & Poor's / Stock-Markets / Stock Market Valuations
(WSJ Feb 25, 2009) “The S&P Gets Its Earnings Wrong, Stocks are cheaper than they look”, by Jeremy J. Siegel
Economist Jeremy Siegel (associated with WisdomTree funds, and professor at Wharton) is an important figure. When the Wall Street Journal published his editorial ( read full article ) claiming that Standard & Poor's had a flawed method that massively overstates the S&P 500 P/E, that became something that can't be ignored. In fact, Siegel said if S&P had calculated index earnings correctly, investors would see that stocks are historically undervalued.
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Saturday, February 28, 2009
Oversold Stocks Entering Seasonally Strong Time Period / Stock-Markets / Stocks Bear Market
The good news is: The market is deeply oversold as we enter a brief, but strong seasonal period.
Short Term - Most of the major indices had been down for 6 consecutive days through last Monday's low. Tuesday's rally was followed by 3 consecutive down days as of Friday's low. By virtually all breadth measures, the downside has been exhausted.
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Saturday, February 28, 2009
Stock Market Twelve-Year Weekly Breakdown....Close Below 741 / Stock-Markets / Stocks Bear Market
We have spent time below 775, but never did we close below 775 on a Friday, meaning the weekly charts were able to defend that area from 12 years back. Today it became official as we closed dynamically below this level, leaving no doubt as to the markets intentions. Citigroup (C) was basically nationalized today and Bank Of America (BAC) isn't far behind. Behind that train is Wells Fargo (WFC). On top of that we saw General Electric (GE) cut their dividend to 10 cents from 33 cents quarterly. Not a bad day's worth of action. Bad news from just about every direction.Read full article... Read full article...
Saturday, February 28, 2009
Stock Market Long-term Value Investing Fundamentals / Stock-Markets / Stock Market Valuations
- More About the Long Run
- Stocks for the REALLY Long Run
- If You Don't Like the Numbers, Then Change Them
- Buy and Hope
- A Few Thoughts on Taxes and Budgets
- Nouriel Roubini, Yahoo Tech Ticker, and Me
This week Professor Jeremy Siegel (author of Stocks for the Long Run) had an op-ed in the Wall Street Journal showing that stocks are now cheap. I was on Tech Ticker, and Henry Blodgett challenged me about my e-letter last week, where I talked about how expensive stocks are. So which is it? We look at Professor Siegel's work -- and I let you decide.
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Saturday, February 28, 2009
Long the Semi-conductor Stocks SMH ETF / Stock-Markets / Tech Stocks
Interesting day on Friday. When the dust settled, the Dow and the SPX were on their lows, while the NDX showed relative resillience. Meanwhile, the news was horrendous again, but there was no classic, acute flight-to-safety trade...into bonds or gold or the dollar...that we have become accustomed to seeing since last September.Read full article... Read full article...
Friday, February 27, 2009
Stock Indices Close Near The Lows for the Week / Stock-Markets / US Stock Markets
The indices had a very volatile session, swinging back and forth at least 12 times, failing on several occasions to breakout to the upside, but also holding early morning support lows for most of the day. But, near the end of the day they came down near the session lows and closed in a very negative fashion, particularly on the S&P 500, which closed right at the morning spike lows around 735 and just pennies off the low.Read full article... Read full article...
Friday, February 27, 2009
Robert Pretcher's Greatest Trade Ever! Stocks Bear Market Could See Spike Higher / Stock-Markets / Elliott Wave Theory
With the Dow trading some 50 points lower today at 7120, earlier in the week, the 30 year veteran technical analyst, Robert Prechter announced both in his Elliott Wave Theorist newsletter and publicly on Bloomberg TV that he was covering his stocks bear market short position call that he recommended to subscribers over 18 months ago when the Dow was trading at 13,900.Read full article... Read full article...
Friday, February 27, 2009
United States Sinking Economy as Deficits Soar / Stock-Markets / Financial Markets 2009
Are we rearranging the deck chairs on a sinking ship? - President Barack Obama forecast the biggest U.S. deficit since World War Two in a budget on Thursday that urges a costly overhaul of the healthcare system and would spend billions to arrest the economy's freefall. An eye-popping $1.75 trillion deficit for the 2009 fiscal year underlined the heavy blow the deep recession has dealt to the country's finances as Obama unveiled his first budget. That is the highest ever in dollar terms, and amounts to a 12.3 percent share of the economy -- the largest since 1945. In 2010, the deficit would dip to a still-huge $1.17 trillion, Obama predicted.Read full article... Read full article...
Friday, February 27, 2009
Obamalus To Hurt Corporate Earnings, CNBC Willful Ignorance Continues? / Stock-Markets / Financial Markets 2009
The early market buoyancy yesterday was erased and indices faded badly to finish in the red on fears that the Obamalus would crimp future earnings of heath care and drugs companies. The plan contains provisions to clip Medicare payments to insurance companies and hospitals plus there are provisions to allow consumers to buy cheaper drugs from abroad. Stocks are headed for their worst month since last October.Read full article... Read full article...
Friday, February 27, 2009
Why China's Economy is Booming as Gold heads for $2,000 / Stock-Markets / Investing 2009
Larry Edelson writes: Could the economy and the financial system get any worse than they already are? Absolutely!
As I've often warned here in my Money and Markets columns, central banks and governments of the world will do anything and everything to try and prevent a meltdown of the global economy.
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Friday, February 27, 2009
Collapsing Earnings, Soaring PE Ratio Mean Much Lower Stock Prices / Stock-Markets / Stock Market Valuations
Quick question. Is the current S&P 500 PE ratio trending down or up? If you are like most investors, you believe the S&P 500 PE ratio is trending down as the stock market plunges. After all, the P part of the ratio is dropping.Read full article... Read full article...
Thursday, February 26, 2009
Sharp Afternoon Slide Sends Stocks Indices Lower / Stock-Markets / Stock Index Trading
The markets had a strong slide after a morning rally that sent them to the lows of the day near the close, definitely a bad day for the bulls.Read full article... Read full article...
Thursday, February 26, 2009
Profit from Obama's Real Stocks Bull Market / Stock-Markets / Investing 2009
“The cost of healthcare eats up more and more of our savings each year, yet we keep delaying reform…we can no longer afford to put health care reform on hold. Our recovery plan will invest in electronic health records and new technology that will reduce errors, bring down costs, ensure privacy and save lives.” President Barrack ObamaRead full article... Read full article...
Thursday, February 26, 2009
Bullish Pattern for Semiconductors SMH ETF / Stock-Markets / Tech Stocks
All of the action from October 2009 to the present represents a developing large base pattern prior to a potent upmove, or it represents a sideways congestion period ahead of another major downleg within the dominant bear trend. That said, however, my near-term work indicates that regardless of the outcome of the sideways pattern, the Semiconductor HLDRs ETF (NYSE: SMH) should be in the midst of a loop up to 18.00 and possibly 18.60 in any case. At this juncture, from a big picture perspective, only a smash beneath the 2/24 low at 15.82 will invalidate the current rally scenario.Read full article... Read full article...
Thursday, February 26, 2009
Stock Sectors Worth Watching: Food, Gold and Healthcare… / Stock-Markets / Investing 2009
In a bear market, we're always keen to spot anything that's outperforming its peers. Even the strongest stocks and sectors can get beaten down when panic selling or forced selling wreaks havoc on prices. It's a bit like boxing: even the toughest boxer can get rocked with a hard swing to the jaw. What sets apart the truly tough boxers is their ability to bounce right back up and continue the fight.Read full article... Read full article...
Thursday, February 26, 2009
Stock Market Battling Between Negative and Positive Divergences / Stock-Markets / Stock Index Trading
Can a market positive and a market negative coexists at the same time?
The answer is: For a short period of time.
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Thursday, February 26, 2009
Stock Markets to Recover as Gold Bull takes a Breather / Stock-Markets / Financial Markets 2009
My previous editorial showed the super-bullish intermediate term (12 to 18 month) outlook for Gold. My technical work called for a correction that would lead to a massive surge beyond $1,000 and to $2,000. It now appears that the gold correction is here. More importantly, the near term peak in Gold is coinciding with what will be the first major tradeable rally in stocks during this historic bear market.Read full article... Read full article...
Thursday, February 26, 2009
Credit Default Swaps: How Fleas Kill A Dog / Stock-Markets / Credit Crisis 2009
I‘ve been on the lookout for an article with a concise description of the ongoing saga of the Credit Default Swaps (CDS) markets to pass along to readers and I have found a nice, simple one on the Guardian UK website. This article is written at a level any newbie can understand yet provides current news any veteran would appreciate. As a bonus, it conveys, once again, the scale of the debt bubble the world economy is trying to swallow which is now widely recognized as massive.Read full article... Read full article...
Thursday, February 26, 2009
Late Session Dive Sends Stocks Indices Lower / Stock-Markets / US Stock Markets
The markets were quite volatile swinging down and then back up again and getting hit at the end of the day to close mostly lower on the session. The day started out with a gap down, and then we had a 5-wave decline that took us to the lows for the session around an hour after the opening. They bounced back, failed at resistance, and then retested, but that was successful. When that occurred the indices started an afternoon rally that was interrupted mid-way with a sharp set-back, with the set-back holding intraday moving averages.Read full article... Read full article...