Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Wednesday, September 03, 2008
Stock Market Crash Opportunities, Broken Printing Presses, Cattle and Hogs / Stock-Markets / Financial Markets
As we mentioned two months ago , a speculative commodity bust would fit with the onset of a deflationary collapse. During the month of July, commodities began this correction with the largest monthly decline in 28 years . They are still falling. Similarly, Lombard Street Research 's measure of M3 fell in July the most on record (since 1959). The chart of the percentage change in money growth is below.Read full article... Read full article...
Wednesday, September 03, 2008
Stock Market Bears Ready to Strike During September / Stock-Markets / Stocks Bear Market
We just had the summer rally. You may have missed it, but the S&P 500 managed to finish the month of August up a whopping 1.1% while the Nasdaq ended with a gain of 1.8%. You might detect some sarcasm here and there is a bit. You see despite the lack of conviction in the market action many people are calling for a new bull market in the financial media and on TV.
This week's Barrons has a story titled The Reluctant Bulls. It quotes Francois Trahan as saying that the "the US is the best stock market to be in." He claims that oil is going into a bear market, wage growth is shrinking and therefore inflation should fade. Combine that with interest rate cuts made by the Fed earlier this year that should begin to kick in to the economy and you have a recipe for "reviving domestic economic prospects," he says.
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Wednesday, September 03, 2008
Once in 100 Years Credit Crisis, World Heads for Deflationary Collapse / Stock-Markets / Credit Crisis 2008
“The credit crunch of the past year has not followed the path of recent economically debilitating episodes characterized by a temporary freezing up of liquidity ─ 1982, 1989, 1997-8 come to mind. This crisis is different ─ a once or twice in a century event deeply rooted in fears of insolvency of major financial institutions.
This crisis was not brought to a closure by the world's central banks' injection of huge doses of short-term liquidity.
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Wednesday, September 03, 2008
Sectors Rotating into Recession as Credit Contraction Deepens / Stock-Markets / Recession 2008 - 2010
Things are about to get really bad. Rotating bubbles are now becoming rotating sector recessions as the positive feedback loops, created as money and credit growth ballooned over the last 25 years, have reversed and are now becoming negative feedback loops. I expect to see those 25 years of excesses to dramatically unwind over the course of the next few years. The evaporation of paper wealth will be breathtaking. A "buy on the dips" mentality has been replaced by "sell on the rallies." Declining house values will further hinder the finance sector which will impede the real economy, causing asset prices to further plunge. The tipping point for debt creation's positive impact has been reached and we can expect economic convulsions similar to what a drug addict experiences after kicking the habit "cold turkey."Read full article... Read full article...
Tuesday, September 02, 2008
Nasdaq Q's Trying to Break out of Dowtrend / Stock-Markets / Tech Stocks
After 90 minutes of trading, let's notice that the Q's have put in an intraday high so far at 47.07 which is right at the down trendline off of the 8/15 high, and which preserves the down-channel as well. From a strict technical perspective, as long as the 47.00 to 47.30 resistance zone continues to put a lid on strength, the near-term downtrend from mid-Aug will remain the dominant direction. Should the Q's continue to slide, a break below 46.30 will argue that the bulls have given up today's attempt to reverse and to sustain near-term trend direction.Read full article... Read full article...
Tuesday, September 02, 2008
Global Stock Markets Decimated: China Retraces 75% of Gains of Last 3 years / Stock-Markets / Global Stock Markets
“All the things they said would happen to you
Don't you know they're all coming true
Goin' nowhere fast
“Nothing's strange as when it seems
You're living out all your worst possible dreams
Goin' nowhere fast”
Sunday, August 31, 2008
Stock Market Dead Cat Bounce —What to do... / Stock-Markets / US Stock Markets
Martin Weiss writes: Don't let last weeks rally in the Dow fool you. There are two crucial reasons why I'm convinced it was nothing more than a dead-cat bounce:
First, it was on extremely light volume. With most of Wall Street traders already on their Labor Day vacations, a handful of traders can easily move the market no matter how dire the underlying fundamentals are.
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Sunday, August 31, 2008
Credit Crisis Set to Intensify as Economies Begin to Crumble / Stock-Markets / Credit Crisis 2008
The gyrations of financial markets ahead of the Labor Day weekend tested the patience of bulls and bears alike. As big swings took place in thinly-traded markets, I was reminded of Albert Schweitzer's words: “As we acquire more knowledge, things do not become more comprehensible but more mysterious.”
None the wiser, I also did not succeed in capturing a leprechaun and finding the gold during my visit last week to the Emerald Isle. However, the beautiful Irish scenery, hospitality and “open for business” attitude resulted in a very successful trip and will keep me going back in search of the “buried treasure”.
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Sunday, August 31, 2008
Credit Crisis Financial Armageddon / Stock-Markets / Credit Crisis 2008
Where are we now in the credit crisis, and why isn't the massive Fed and ECB weekly lending working to loosen interbank lending? Why is the credit crisis not really improving? Where is this going next? We describe what may happen next as Credit Crisis II in this article.
Now that the credit crisis that started in 2007 is a year old, there has been a debate about whether the financial system will recover, or will the Western/world financial system end up like the Japanese financial system after the stock and real estate crashes in the 1990's. In that case, the Japanese banks more or less carried their tremendous losses for ten years, and Japan entered a mild but painful decade of deflation. To this day, Japan is battling some of the deflationary forces from that time.
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Sunday, August 31, 2008
Fed Imposes Financial Sector Imperialism over US Economy / Stock-Markets / Market Manipulation
Michael Hudson: "Greenspan saw his job as a cheerleader for people who were able to get rich fast; sort of like a pilot fish for sharks"Mike Whitney Interviews Michael Hudson
1 Mike Whitney: The United States current account deficit is roughly $700 billion. That is enough "borrowed" capital to pay the yearly $120 billion cost of the war in Iraq, the entire $450 billion Pentagon budget, and Bush's tax cuts for the rich. Why does the rest of the world keep financing America's militarism via the current account deficit or is it just the unavoidable consequence of currency deregulation, "dollar hegemony" and globalization?
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Sunday, August 31, 2008
Stimulus Checks Spent, Stock Market Optimism Turns to Pessimism / Stock-Markets / Financial Markets
Personal income decreased $89.9 billion, or 0.7 percent, in July, in contrast to an increase of $7.4 billion, or 0.1 percent, in June and an increase of $218.0 billion, or 1.8 percent, in May. Disposable personal income (DPI) decreased $114.7 billion, or 1.1 percent, in July, compared with a decrease of $208.0 billion, or 1.9 percent, in June and an increase of $595.9 billion, or 5.7 percent in May. Personal consumption expenditures (PCE) increased $24.1 billion, or 0.2 percent, in July, compared with an increase of $65.5 billion, or 0.6 percent, in June. The pattern of changes in income reflects the pattern of payments associated with the Economic Stimulus Act of 2008.Read full article... Read full article...
Saturday, August 30, 2008
Is This the Epicenter of the Biggest Financial Crisis in History? / Stock-Markets / Credit Crisis 2008
Cut Off Your Tail To Save My Face! refers to Aesop's tale about the wolf that has lost his tail in a trap. As he felt uncomfortable being so different from others in the pack, he tried to persuade his fellow wolves that they, too, should get rid of this cumbersome and useless appendage. He declared that "the tail of a real wolf is a barbarous relic". Read on to find out how an experienced wise old wolf answered him.Read full article... Read full article...
Saturday, August 30, 2008
Stock Markets Heading for a Retest of July Lows / Stock-Markets / US Stock Markets
The good news is: Since the July lows the secondaries have been stronger than the blue chips.
Short Term The market is playing a disappearing act. Volume and new highs are at their lowest levels in years. Identifying strength or weakness under these conditions is challenging.
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Saturday, August 30, 2008
Broken Financial Systems & Dysfunctional Regulatory Mechanisms / Stock-Markets / Credit Crisis 2008
The highest functions of the financial system have finally broken to the point where smart and connected people are openly making comments. Shortages are acute, to the point where low prices for gold & silver, for instance, render supply as inadequate to meet huge growing demand that wants to exploit the artificially low prices. Even the USTreasury Bonds are enjoying artificially high prices, undoubtedly an extension of the colossal usage of US Federal Reserve lending swap facilities. They print new USTBonds and exchange new third world ( US ) government debt securities for acidic US mortgage bonds, some hastily cobbled into securities by ailing lending institutions from cratered mortgage loans portfolios. It seems the US Federal Reserve and the Euro Central Bank might accept bonds from English, German, and possibly Swiss sources soon. That seems fair, since they contributed to making vacant US mortgage bonds look attractive.Read full article... Read full article...
Saturday, August 30, 2008
Trading the Stock Market and Commodities With Elliott Wave Theory / Stock-Markets / Elliott Wave Theory
Readers who've joined and finally understand what we do at TTC, and how we do it, often tell me they used to see these updates every week but just couldn't believe we were actually making in real time all the trades they contained. It seemed too implausible that week after week we'd find easy trades in various markets and buy tops and sell bottoms with such frequency.Read full article... Read full article...
Friday, August 29, 2008
Nasdaq UltraShort Q's New Upleg / Stock-Markets / Tech Stocks
The UltraShort QQQQ ETF (AMEX: QID) has hurdled Tuesday's recovery high at 42.32 (as the Q's broke below Tuesday's low at 46.12), which my pattern and momentum work argues is the initial confirmation of the start of a new upleg in the QIDs (downleg in the Q's). Next near-term target for the QIDs is 43.00/20.Read full article... Read full article...
Friday, August 29, 2008
Stock Market Rally Does Not Change Fundamentals / Stock-Markets / Financial Markets
While Thursday's gains in stocks appear to be impressive, they do little in terms of making an impact on longer-term trends. We do not need any complicated technical indicators to discern the long-term trends on the following charts. Thursday's rally in stocks cannot even be seen on the six-year chart of the S&P 500 Index below.Read full article... Read full article...
Friday, August 29, 2008
Psychology of Financial Markets Conspiracy Theories / Stock-Markets / Market Manipulation
In recent posts I have taken a look at various conspiracy theories on the rise of the dollar, the shortage of silver, and the manipulation of gold. Here is a synopsis. (Warning, some of these are very lengthy)I discussed US dollar manipulation claims in
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Friday, August 29, 2008
Nasdaq Q's Nearing Completion of Recovery Rally / Stock-Markets / Tech Stocks
My hourly pattern work is starting to warn me that the Q's (Nasdaq: QQQQ) are nearing the completion of its 3-session recovery rally. Where is the peak? I come up with a target window of 47.19 to 47.57, both of which are located beneath the prior significant recovery rally peak at 47.68 (8/22). As long as 47.68 remains a viable prior high, I will consider the action off of the 46.12 low (8/26) as a countertrend move ahead of the next downleg and within the dominant bear trend. A decline beneath 46.95 will begin to compromise the current rally effort.Read full article... Read full article...
Friday, August 29, 2008
Bear Stock Market Investment Secrets or Long-term Profits / Stock-Markets / Stocks Bear Market
Keith Fitz-Gerald writes: During a two-year stretch every 20 years or so, the Standard & Poor's 500 Index can be expected to lose 35% or more of its value.
In 1974, according to research by Ibbotson Associates, that truism manifested itself as a 37.25% downdraft. It was even worse in 2002, when investors received a 41.65% haircut.
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