Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Thursday, October 09, 2008
Stock Market, Gold, and the U.S. Dollar / Stock-Markets / Financial Markets
In a July 24, 2008 article, Commodity Breakdowns Warrant Defensive Action , I wrote the following based on the ugly look of the chart of financial stocks (XLF): "While financial stocks have hit a violent intermediate bottom and could rally for a while longer the odds favor lower lows in the months ahead as housing prices continue to decline. The chart below illustrates the structural nature of the problems facing the housing and financial industry.Read full article... Read full article...
Thursday, October 09, 2008
NYSE Extreme New Lows Amidst Panic Stock Market Selling / Stock-Markets / Financial Crash
Which index is now 101.3% higher than the highest reading during the last Bear Market?
The answer is the New Lows on the New York Stock Exchange. The highest level of new Lows was 912 in 2002. Yesterday, the New Lows reached an unprecedented level of 1836. This is a clear sign of panic selling with NO buyers interested in perceived bargains.
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Thursday, October 09, 2008
Stock Market Trouble and Strife, Catch a falling knife? Not on your life / Stock-Markets / Stocks Bear Market
Hundreds, if not thousands –perhaps even millions– of traders, investors and technicians are waiting eagerly on the sidelines like the boomer sooners of the Oklahoma land rush hoping to catch the bottom of the panic. This is known in the trade as catching the falling knife. It is not a recommended strategy (what is the difference between a tactic and a strategy? as John McCain would say).Read full article... Read full article...
Thursday, October 09, 2008
U.S. Treasury To Take Ownership Stake In Banks / Stock-Markets / Credit Crisis Bailouts
The Fed and Treasury are perplexed. Liquidity schemes like the TAF, PDCF, TSLF, TARP, ABCPMMMFLF, and the CFFF did not help stimulate bank.Liquidity measures cannot solve the crisis or stimulate lending for reasons stated in Pushing on a String In Academic Wonderland and Thoughts On The Commercial Paper Funding Facility .
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Thursday, October 09, 2008
Stock Market Tickertape Death March towards Financial Collapse / Stock-Markets / Financial Crash
Pardon the jumpy style, not burdened by depth, preferring breadth instead. The events of the last few days continue to be remarkable, alarming, chaotic, surreal, and desperate. The globe is slowly realizing that the United States is careening toward a probable financial death experience. Nothing has worked to date, and nothing will work in the present, not bailouts, not liquidations, not nationalizations, not papered over fraud, and surely rate cuts. The stark reality contains a blur of a massive locomotive derailed, having run over the mountain ledge, heading downward in a freefall, subjected to the force of gravity, and ripping through a gigantic erected paper net designed to halt its crash.Read full article... Read full article...
Thursday, October 09, 2008
Stock Market Indices Unable to Hold Snapback Rally Gains / Stock-Markets / US Stock Markets
The markets had an extremely volatile session today with wild and wide swings both ways. The day started out with a move lower and sharply from the get-go as pre-market futures were sharply lower. At that point the Nasdaq 100 dipped under 1300 to 1296, and the S&P 500 got down to just under 971.Read full article... Read full article...
Thursday, October 09, 2008
European Government's Panic Triggers Stock Market Crash / Stock-Markets / Credit Crisis 2008
October 6th , 2008 Issue #32 Vol. 2Black Monday ended with European stock markets down by between 7% and 9%, wiping out more than $2 trillion from global market capitalisation as markets collapsed in response to the disunified panic moves by individual european governments to guarantee all deposits at 100% which is contrary to the outcome of the weekend crisis meeting of European leaders that's only significant result was for a £12billion package of loans for small businesses.
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Wednesday, October 08, 2008
Russian Stock Market Crash and the Currency Factor / Stock-Markets / Emerging Markets
After taking yet another beating on Monday, Russia found its stock market down 60% on the year-- sixty percent!Read full article... Read full article...
Wednesday, October 08, 2008
Financial Crisis 2008 Similar to 1987 Stock Market Crash / Stock-Markets / Financial Crash
It's been almost five years since my oldest son and I produced a 45 minute film to see what could be learned from studying the history of certain monetary trends that have been unfolding for decades. And, in our July 2007 newsletter, when I told our readers that we appeared to be at the beginning of a worldwide credit contraction, I quoted from President Franklin Roosevelt's May 7th , 1933 fireside radio chat to the nation.Read full article... Read full article...
Wednesday, October 08, 2008
Financial Markets Regulations, Baseball and the Law of Unintended Consequences / Stock-Markets / Market Regulation
With the World Series coming up soon, it seems timely to compare some key financial regulations to the rules of baseball.
Say the visiting team scores on an error in the top of the first and the home team fails to score in the bottom of the inning. Under the current mark-to-market rule for securities, known as FAS 157, the game would be over at that point -- there would be no chance to play the other eight innings so the home team could try to get the run back.
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Wednesday, October 08, 2008
Nasdaq QQQQ Trends Remains Bearish / Stock-Markets / Tech Stocks
In a few of my recent updates in the Q's (NASDAQ: QQQQ), I mentioned an optimal next trading target zone of 33.00 to 31.50. With this morning's low at 31.35, I am on alert, watching the pattern development off of the new low in an effort to determine if the Q's are a high confidence buy (yet). With that in mind, let's notice the near-term declining tops line off of yesterday's mid-session peak prior to the last hour plunge.Read full article... Read full article...
Wednesday, October 08, 2008
Stocks Bear Market Returns With a Vengeance / Stock-Markets / Stocks Bear Market
The bear has returned with a vengeance. It looks like the Paulson bailout package was too little too late. The lines in all the major averages that were being drawn since June have now been crashed to the downside. Thus our decision to wait on the sideline last month has been vindicated. It was one of the worst stock market months in years and it is bound to get much uglier before a bottom is reached. Hopefully capitulation will come sooner rather than later.Read full article... Read full article...
Wednesday, October 08, 2008
Stock Market Crash- Where's the Bottom? / Stock-Markets / Financial Crash
Our Wizards Harry Boxer, Mike Paulenoff and Jack Steiman weigh in this week on the direction of the markets.
According to Boxer, author of The Technical Trader : We are in a critical mode in the market. From mid-August to early October, literally only 6 weeks, that's all it's taken for the NDX to go from 1973 down to 1329, nearly 650 points, or about a third of its value, culminating with a spike down into what looks like perhaps very close to an important major low. We'll see if that occurs. There are very difficult fundamentals right now in the economy and we're not getting any good news. But we are stretched to the downside way more than we'd expect, and the oscillators, the VIX/VIXN and many other technical indicators I follow are at multiyear, if not historical, levels.
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Tuesday, October 07, 2008
Stock Markets to Fall Another 25% Due to Margin Debt Deleveraging / Stock-Markets / Stocks Bear Market
There is one concrete reason why US indices could lose at least another 20-25% from current levels. The powerful correlation between margin debt usage by member firms of the NY Stock Exchange and the trend of major indices such as the S&P500 and the Dow Jones Industrials Average suggests further selling ahead in the main indices.Read full article... Read full article...
Tuesday, October 07, 2008
Stock Market Elliott Wave Analysis and Silver Recessions / Stock-Markets / Stocks Bear Market
When is it going to end for the stock market woes and for silver? The Elliott Wave analysis which helped us see this major top for silver and gold is giving a signal for the general stock market as we find it in the S&P 500. The chart below sums it up and tells us that the S&P bear market is almost over.Read full article... Read full article...
Monday, October 06, 2008
European Government's Panic Triggers Stock Market Crash / Stock-Markets / Financial Crash
Black Monday ended with European stock markets down by between 7% and 9%, wiping out more than $2 trillion from global market capitalisation as markets collapsed in response to the disunified panic moves by individual european governments to guarantee all deposits at 100% which is contrary to the outcome of the weekend crisis meeting of European leaders that's only significant result was for a £12billion package of loans for small businesses.Read full article... Read full article...
Monday, October 06, 2008
Stock Market Rebounds from Crash Low Amidst Extreme Volatility / Stock-Markets / Financial Crash
The markets had another historic day today with extreme volatility both up and down, mostly to the downside early. The indices opened sharply lower on a gap-down and slid hard, had a sharp morning bounce that took the NDX from 1358 back to 1406 , nearly a 50-point rally. At the same point the SPX went from 1027 to 1056, but they were unable to sustain.Read full article... Read full article...
Monday, October 06, 2008
Bailout Plan Continuation of a Corrupt Banking System / Stock-Markets / Credit Crisis Bailouts
Welcome to the Weekly Report. A couple of weeks ago one of my subscribers asked me this question: "Does your scenario change of how you think things will play out i.e. bubble, easy money, inflation in fiat money supply, inflation in commodities and hard assets, inflation, fear of inflation, rising rates, YC inverting, flattening, rising and inverting again, tightening, withdrawal of liquidity, corrections, crashes, talk of stagflation, FEAR, withdrawal of speculative funds, further corrections and crashes, demand collapse.......Deflation.Read full article... Read full article...
Monday, October 06, 2008
Global Credit Freeze Prompts Panic Bailouts to Prevent Financial Collapse / Stock-Markets / Financial Crash
In a sea of red, government bonds and are gold both rising as the world's banking system cracks under the weight of the biggest debt expansion in history.Credit Freeze Prompts New Bailouts
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Monday, October 06, 2008
The Big Bailout of 2008 Will FAIL to Rescue Crashing Financial Markets / Stock-Markets / Credit Crisis Bailouts
The chickens come home to roost - You get a sense that America's chickens have come home to roost. Instead of learning from our past mistakes though, as the idiom above is meant to suggest, the nation appears intent on compounding them. The Great American Bailout of 2008 is simply more of the same -- more debt, more easy money, more moral hazard, more taxpayer responsibility, and more government intervention. Quite literally, the government has once again applied a band aid, papered the problem over and delayed once more what will certainly be an even worse day of reckoning. Yes, the chickens have come home to roost, but for all the roosting all we have gotten is more chickens.Read full article... Read full article...