Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Thursday, March 13, 2008
What Advice have the Big Wall Street Firms Given their Large Clients this Year ? / Stock-Markets / Stocks Bear Market
The answer: Sell on rallies.
Is that what has been happening this year?
The chart below provides the answer. This chart shows the New York Stock Exchange Up-Volume plotted against the Dow Jones Industrials on a 60 minute chart going back to the beginning of the year.
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Wednesday, March 12, 2008
True Cost of This Global Banking Crisis / Stock-Markets / Credit Crisis 2008
"...If only the big central banks would sit on their hands and let this crisis work out, they could save Western taxpayers up to 98% of the potential mopping-up costs..."
HOW TO KEEP YOUR HEAD when all about you are losing theirs?
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Wednesday, March 12, 2008
How to Beat the Stock, US Dollar and Credit Market Bears / Stock-Markets / Stocks Bear Market
The recent action on Wall Street is enough to send shivers up the spine of even the biggest bull. Despite yesterday's Fed-induced rally, we have multiple bear markets closing in simultaneously, with everything from stocks to the U.S. dollar to the credit markets getting clawed to pieces.
But there is one sector that is still in a raging bull market — commodities. And the bearish action in the other markets could actually pump up commodities even more.
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Wednesday, March 12, 2008
Dow Transports Set to Trend Higher / Stock-Markets / US Stock Markets
After a morning dip on profit-taking and because of still-higher oil prices (ahead of the API report), the iShares DJ Transportation Index ETF (AMEX: IYT) pivoted to the upside and has thrust above its nearest-term resistance line at 82.40, which triggers higher projections in my work to 83.80-84.20 next, on the way to a retest of much more important resistance at 86.40/50.Read full article... Read full article...
Wednesday, March 12, 2008
Why the Rich are Getting Poorer / Stock-Markets / Credit Crisis 2008
As our consumer dominated economy faces the threat of imminent stagflation (economic recession and financial inflation at the same time), losses will not be limited to the poor. Many get-rich-quick investors also will become poorer!
The effects of recession, falling asset prices, insolvency, inflation and a falling dollar are set to have a sometimes devastating effect on the real value of many investment portfolios, including those of the wealthy.
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Wednesday, March 12, 2008
Fed's $200 Billion Baillout Is Positive, But Not a Cure for Credit Markets / Stock-Markets / Credit Crisis 2008
From a perspective of investor confidence, yesterday's move by the Federal Reserve to allow banks and brokerages to temporarily swap mortgage-backed bonds for U.S. Treasuries was important. Stock market reaction was broad based and could be the beginning of a sustained rally. However, previous moves by the Fed aimed at restoring investor confidence were quickly counteracted by more announcements of credit writedowns in the banking and brokerage sector. Therefore, to call a long term bottom in stocks with any degree of confidence you have to believe the Fed's actions will address the root cause of the problem in the credit markets.Read full article... Read full article...
Wednesday, March 12, 2008
George Soros and the Worst Financial Market Crisis in 60 Years / Stock-Markets / Credit Crisis 2008
“Blood in the streets” is the central theme of the financial news lately. Barely a day goes by without a barrage of bad news hitting investors like a runaway freight train. In just the past few weeks in the Financial Times newspaper we see the following headlines:Read full article... Read full article...
Wednesday, March 12, 2008
Stock Market Leading Indicators: All Showing Major Weakness / Stock-Markets / Stocks Bear Market
The important key leading indicators on the Dow Jones Industrial Average have one item in common now that has not been shown before; they are all displaying weakness. This unified first signals that the U.S. bear market has now moved into a stronger phase and can be expected to show more of its teeth over the next 1-2 years.Read full article... Read full article...
Tuesday, March 11, 2008
Nasdaq Q's Have More Room to Advance / Stock-Markets / Tech Stocks
Earlier when the Q's (NASDAQ: QQQQ) were at 41.60, they had retraced just about 50% of the entire upmove from yesterday's low at 40.98 to this morning's high at 42.19, which is where they held and turned back to the upside. The initial upside exhibits bullish form, while the intraday weakness exhibits corrective form and tells me (so far) that the Q's have additional upside remaining prior to the completion of a larger developing recovery rally period. My sense is that the Q's are only partially finished with the advance, and that they will thrust towards a test of 43.00 in the upcoming hours.Read full article... Read full article...
Tuesday, March 11, 2008
Definitive Proof The Stock Market Bear Is Alive And Well / Stock-Markets / Stocks Bear Market
Well – so much for follow through. With the increase in volume in the stock market rally on Wednesday, yesterday's sell-off was a bit surprising, especially combined with the fact it was on declining volume. As mentioned yesterday however, price managers need to keep equities low going into the Fed meeting on March 11 th to justify more rate cuts, so it's not surprising to see the rally fail from this perspective. What more, it's important to note that not only do nominal rates need to fall further in aiding a failing credit cycle, but real rates need to fall more as well, meaning commodities need to cool off.Read full article... Read full article...
Tuesday, March 11, 2008
Plan to Save the US Financial System From Collapse / Stock-Markets / Credit Crisis 2008
Caroline Baum is one of my favorite financial columnists, who writes with a voice of calm reason. She writes for Bloomberg, and I encourage you to read her regularly. This week she touches on the problems in the markets and the continuing calls for government intervention.
Things are coming loose in an ever-widening array of markets in the financial world. No one is suggesting that the subprime problems will be contained, as almost every authority figure did last summer. We now know that everything is seemingly connected, a theme that I have written about for years.
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Tuesday, March 11, 2008
Stock Markets To Follow Housing and Unemployment Sharply Lower / Stock-Markets / Stocks Bear Market
BEWARE: The Ides of March, aka FIRESTORM!Volatility is opportunity and we are seeing it in spades. The markets are jumping and thus creating juicy opportunities for the prepared investor. Currencies, interest rates, stocks and commodities are roaring all over the place. The moves are big but in general quite ORDERLY. This is set to continue as far as the eye can see. It also provides you with a measuring stick to how well you and your investment advisors have done in preparing to capture these opportunities and not be harmed by them. Just look at your portfolio bottom line and that will tell you whether you and your advisors get an A for excellent, something less or even an F for failure. Take note!
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Monday, March 10, 2008
UltraShort S&P Climbs to New Recovery High / Stock-Markets / US Stock Markets
Although the ProShares UltraShort Inverted SPY ETF (AMEX: SDS) has climbed to a new recovery high at 70.52 today, my work continues to warn me that unless the buyers propel the price structure into a vertical thrust right from here, the likelihood is that the SDS will reverse from the channel resistance line and make another attempt to swoon towards the 68.00 support area, which is why I don't want to be long the SDS "up here."Read full article... Read full article...
Monday, March 10, 2008
Stock Market Pricing in a Recession / Stock-Markets / Recession
Investors are beginning to price into the markets a recession. The non-farm payroll figures out last Friday were worse than the street expected, showing a loss in jobs that for many, solidified a recessionary outlook. Calls for more rate relief from the Fed pushed the expectations for not just a half percent cut in rates later this month, but a strong likelihood of three quarters, if not a full percent cut. While a nice thing to do to get the economy going, the impact of any rate cut this month will not likely be felt until early 2009 due to the lag effect of changes in monetary policy.Read full article... Read full article...
Monday, March 10, 2008
Credit Crunch of 2007 Turning Into Credit Collapse of 2008 / Stock-Markets / Credit Crisis 2008
The Credit Collapse of 2008 has begun. The place is every home, business and government. The time is now.
The credit collapse is not just an ordinary recession that repeats itself with each new business cycle of the 21st century. Nor is it the Great Depression returning to haunt us from the depths of the 1930s.
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Monday, March 10, 2008
Stock Market Hit by "V" for Vendetta Long-term Pattern / Stock-Markets / US Stock Markets
V for Vendetta is a 2006 film set in a dystopian future United Kingdom, where “V”, a mysterious anarchist wearing a Guy Fawkes costume, works to bring down an oppressive fascist government, profoundly affecting the people he encounters.
The following are some notable quotes from the film:
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Monday, March 10, 2008
Stock Market Expected to Trend Lower Into April 08 / Stock-Markets / US Stock Markets
Current Position of the Market
SPX: Long-term trend - Election years that fall in the 8th year of the Decennial pattern call for consolidation in the early part of the year followed by a strong finish. But the 6-yr cycle which is scheduled to bottom in late Summer/early Fall could also play a restraining role, followed by an eventual bull market top in 2009-2010.
SPX: Intermediate trend - an extended intermediate-term consolidation is in process with a potential low in mid-April.
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Sunday, March 09, 2008
Financial Markets Vulnerable Due to Credit and Energy Crisis / Stock-Markets / Credit Crisis 2008
Society at a crossroads - On February 12th 2008, this analyst took a decision that prevarication was no longer an option. A judgement call was needed and the judgement call was made, as follows: “Despite many conflicting signals from many different quarters, this analyst believes we have entered a Primary Bear Market for Industrial Equities.”. On that day the Dow Jones Industrial Index stood at 12,240.01.
Of course, it was to be expected that the authorities would fight the Bear with everything at their disposal, but the core issue seemed to be that the state of mind of the investing public had turned negative.
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Sunday, March 09, 2008
Stock Market Technically Damaged: Is a Crash & Economic Depression Coming? / Stock-Markets / Stocks Bear Market
This week saw a new all-time low in the Dollar, new all-time highs in Gold and Oil, but the damage continues in stocks. There was a lot of technical damage done to stock averages Friday. We got confirmation of 18 month, very Bearish Head & Shoulders tops patterns in several indices, as prices completed their right shoulders and fell decisively below necklines. These patterns are huge, and the downside targets are 20 percent below where we stand now in several averages. In other words, these patterns are calling for a stock market crash. These patterns are saying that the Bear Market is nowhere near over .Read full article... Read full article...
Saturday, March 08, 2008
Stocks Primary Bear Market- Dow Industrials vs Transports / Stock-Markets / Dow Theory
From a Dow theory perspective, the primary bearish trend confirmation that occurred on November 21, 2007 remains intact. According to Dow theory, it's the close that counts and up until March 7, 2008, the averages have both been operating within the boundaries of the previous two secondary high and low points. According to Dow theory such movement is of no forecasting value. In other words, once the trend is authoritatively established it must be considered to be intact until it is reversed and price movement between two secondary high and low points does not reverse the trend.Read full article... Read full article...