Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.
Friday, December 21, 2007
Sovereign Wealth Fund Capital Injections Will Fail to Increase Commercial Bank Lending / Stock-Markets / Credit Crunch
By: Paul_L_Kasriel
When economists discuss investment in real capital expenditures they make a distinction between gross and net. If investment expenditures just match the depreciation of capital equipment, then gross investment rises, but net investment is unchanged. Increases in net investment, not gross investment, are what matters with regard to the future productivity of the economy.Read full article... Read full article...
Thursday, December 20, 2007
US Bailout of Bond Insurers to Prevent Collapse of US Banking System / Stock-Markets / Financial Crash
By: Jim_Willie_CB
The hidden bond insurers used by Wall Street firms are in the news, especially ACA Capital and MBIA. Implications are huge, with monumental ripple effects. Financial press reporting of the bond insurers is woefully inadequate. Moodys and Fitch are giving analysis review to nine ‘AAA' rated bond insurers to see if they have sufficient capital to conduct their insurance operations. The list includes ACA Capital, MBIA, Ambac Financial, and Financial Guaranty Insurance. ACA Capital has only $1.1 billion in cash for payout of bond failure claims, but has lost $1 billion in the most recent quarter. More losses are assured. This insurer is very important, since it is widely abused by Wall Street banks to hide cratered bond derivative losses. Read full article... Read full article...
Thursday, December 20, 2007
Fed Liquidity Intervention in Recognition of Credit Crisis / Stock-Markets / Credit Crunch
By: David_Vaughn
Well, Christmas is just around the corner. Bet your kids are excited if you still have little ones around the house. On top of Christmas the world is coming unhinged but really nothing more exciting. Let me get something clear right up front concerning last weeks article. Number one I was not “Bush Bashing.” Heck, I voted for the man. My point in the article was the inevitability of a coming crisis in Iran . Enough said on that. Let's get back to Christmas.Read full article... Read full article...
Thursday, December 20, 2007
Financial Markets about to be Hit Hard by Wall Street Bond Insurers Downgrades / Stock-Markets / US Stock Markets
By: Money_and_Markets
Martin Weiss writes: So much is happening so fast — and so few pundits grasp its true significance — I decided to send you this special afternoon edition to give you a heads up.
Here are the latest developments:
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Wednesday, December 19, 2007
Rule Change on Foreign Investments to Send Chinese Stocks To the Moon / Stock-Markets / Chinese Stock Market
By: Money_and_Markets
If you're feeling a little nervous about the markets ... you're far from alone.
U.S. stocks have been struggling ever since the Federal Reserve Bank disappointed investors with a measly 25-basis-point interest rate cut last week.
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Wednesday, December 19, 2007
Collapse of the Modern Day Banking System - Staring into the Abyss / Stock-Markets / Financial Crash
By: Mike_Whitney
“In past financial crises... the Fed has been able to wave its magic wand and make market turmoil disappear. But this time the magic isn't working. Why not? Because the problem with the markets isn't just a lack of liquidity — there's also a fundamental problem of solvency.” Paul Krugman
Stocks fell sharply last week on news of accelerating inflation which will limit the Federal Reserves ability to continue cutting interest rates. On Tuesday the Dow Jones Industrials tumbled 294 points following the Fed's announcement of a quarter point cut to the Fed Funds rate. On Friday, the Dow dipped another 178 points when government figures showed consumer prices had risen 0.8% last month after a 0.3% gain in October. The stock market is now lurching downward into a “primary bear market”. There has been a steady deterioration in retail sales, commercial real estate, and the transports.
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Tuesday, December 18, 2007
Stock Market Down Movements and the Volatility Index's Concentric Circle Pattern / Stock-Markets / Volatility
By: Marty_Chenard
It has been months since I posted our VIX Concentric Circle chart . It has always been one of the free subscriber favorites in the past.
From 2003 to mid 2006, the Volatility Index followed a perfect concentric circle pattern where the bottom of the circle was the Support for the VIX as seen below.
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Tuesday, December 18, 2007
Value Stocks Crash Reaches 50 Per Cent! / Stock-Markets / US Stock Markets
By: Steve_Selengut
Perhaps this (totally ignored by the media) snippet will pique your attention: on December 18, 2007, nearly 50% of all Investment Grade Value Stocks were down an average of over 30% from their 52-week highs... the Dow and the S&P 500 had fallen just 7%!Read full article... Read full article...
Tuesday, December 18, 2007
Credit Crunch Far From Being Over, Further Economic Uncertainty? / Stock-Markets / Credit Crunch
By: Regent_Markets
To say that Wall Street has been paying close attention to the actions of the US Federal Reserve recently is an understatement to say the least. Last week was no different as the Dow Jones & Co reacted frantically to Fed attempts to stoke greater movement in moribund credit markets.Read full article... Read full article...
Tuesday, December 18, 2007
Small Caps Should Continue to Trail Blue ChipsŠwhile Nasdaq Q's Have Short-term Upside / Stock-Markets / US Stock Markets
By: Mike_Paulenoff
Well, time to dust off the daily QQQQ chart again, which shows the major
channel the Q's carved out from the July 2006 low to the October 2007 high.
My preferred scenario argues (still) that the November 12 low at 48.75 ended
the first portion of an intermediate-term correction that eventually will
resume its decline towards a test of the lower channel support line, now in
the vicinity of 47.30.
"Eventually?" Yes, because from the November 12 low, both my pattern and
oscillator work indicate that the initial rally to the December 11 peak at
52.84 represented the first phase of an "intervening recovery rally" that
has unfinished business on the upside into the 53.00 area prior to the
plunge towards the lower channel support line.
Monday, December 17, 2007
EWI view on the FTSE, Interest Rates and the Super SIV Subprime Rescue Fund / Stock-Markets / Elliott Wave Theory
By: EWI
Hey, Buddy, Can You Spare a Dime for the SIV Superfund? 12/7/2007 2:33:58 PM " Strange to see that Wall Street, which had no trouble raising money before the subprime mess and the ensuing credit crunch, is now scraping for 'spare change.' Here's why the superfund is a good idea for a few people but a bad idea in general. Read MoreRead full article... Read full article...
Monday, December 17, 2007
Hyper-inflationary Paper Promises Poised On Precarious Perch / Stock-Markets / Inflation
By: Captain_Hook
Whether it be due to a global currency crisis , it's effects , or because worse is yet to come , no matter, the ever-growing hyperinflationary mountain of paper promises is precariously perched on the edge of a precipice ready to fall, and in doing so; such an event would accelerate the end of the US Dollar ($) empire, along with its dominance in world affairs and trade . And no amount of fairy tales or interventions will be able to halt the $'s slide from prominence – nothing. This is becoming more evident in the fact the credit crisis is now spreading to Asia , where the stock markets have become destabilized. Read full article... Read full article...
Monday, December 17, 2007
Confusion in The Markets - What Could it Mean? / Stock-Markets / Financial Markets
By: Brian_Bloom
From close up, there is no making sense of what is happening in the markets today. Certainly, in all the years of my involvement in and around the markets I have never seen such confusion at the coalface.
One reason, I suspect, is that there are broadly based vested interests at work which are battling for all they are worth to ensure that the infrastructure doesn't unravel.
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Monday, December 17, 2007
Stock Markets Consolidating Towards a Cycle Bottom by Christmas / Stock-Markets / Cycles Analysis
By: Andre_Gratian
Current Position of the Market
SPX: Long-term trend - The 12-yr cycle is nearing its mid-point and some of its dominant components may already be restraining the bullish effect of the 4.5-yr cycle. 2008 should see a period of correction into the late summer or Fall, followed by an eventual bull market top in 2009-10.
SPX: Intermediate trend - an extended intermediate-term consolidation is in process.
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Sunday, December 16, 2007
FTSE 100 Index UK Stock Market Forecast Into End December 2007 / Stock-Markets / UK Stock Market
By: Nadeem_Walayat
Whilst focusing primarily on the US stock markets during the past 2 to 3 months i.e. Dow Jones and S&P Index, the other western markets have been expected to follow the same or very similar trends which includes the UK's FTSE 100 Index. A recap of the anticipated trend has been for a rally into early October 2007, followed by a corrective decline into November and a strong rally into the new year to new highs for the year. The details of this analysis are contained within the archives. Accompanied by the scenario for the relative under performance of the asian markets as of late October and into the new year, which continues to be borne out by actual price action. Read full article... Read full article...
Sunday, December 16, 2007
Fed Fumbling in The Dark; Investors Hold Anti-Recession Stocks In Uncertain Times / Stock-Markets / US Economy
By: Money_and_Markets
Mike Larson writes: I don't know if you're a fan of the Benny Hill Show or if you've ever watched those old Keystone Cops films, but they both featured madcap comedy skits, with a bunch of people running around, often at cross-purposes, and ultimately accomplishing nothing.
And I was reminded of them this week by the Federal Reserve's latest actions. To recap:
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Sunday, December 16, 2007
Dow Theory Stocks Primary Bear Market Confirmation / Stock-Markets / Dow Theory
By: Tim_Wood
The primary bear market confirmation that occurred on November 21 st when the Industrials confirmed the Transport's break below the August closing low remains in place in spite of the recent rally. In fact, the rally that began out of the November 26th low was anticipated and I stated before this rally began that it was going to cause many to question the integrity surrounding the November 21st Dow Theory primary bear market confirmation. That has definitely proven correct.
Robert Rhea, who was the leading Dow theorist in the late 1920's and 1930's stated: “Charles H. Dow never intended his theory of price movements to be construed as being a method whereby the royal road to riches could be found. While the principles laid down by him and developed by William Peter Hamilton may assist us in understanding something of security price trends, it would nevertheless be a fallacy to undertake any discussion of the subject without making the point very clear that no dependable method of beating the market has yet been discovered. Intelligent observation and study of the ever-recurring formations in the averages which Dow and Hamilton noted can, however, prove invaluable to both investors and speculators.”
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Sunday, December 16, 2007
Stock Market Update: Stop the Insanity! / Stock-Markets / Elliott Wave Theory
By: Dominick
After a rollercoaster week, the S&P closed Friday on the lows of the week with a head and shoulders pattern looming in the 15-minute and hourly charts. Monday morning will have to decide if this bearish pattern gets played out, but it's also up against our bullish setup, so only the trader prepared for either outcome is truly prepared!Read full article... Read full article...
Saturday, December 15, 2007
Bush's Housing Subprime Mortgage Bailout Plan - It's ugly, but it's all we have / Stock-Markets / Financial Markets
By: Anthony_Cherniawski
The Dow Jones Industrial Averages soared 175 points on the day that the Bush Administration announced its housing bailout plan. Wall Street was wrong. It wasn't something to cheer about. The major argument against the bailout plan is that it keeps free market forces from clearing out all the toxic sludge built up in our housing and banking system. It is argued that the bailout will certainly prolong the pain and could exacerbate the housing and mortgage mess over the long haul. Read full article... Read full article...
Friday, December 14, 2007
Worst Over for Banks, Financials and Home Builder Stocks? / Stock-Markets / Housing Stocks
By: Mike_Paulenoff
This is a bottom-fishing expedition, but my technical work on the Home Builders ETF (AMEX: XHB), sentiment, and the relatively strong action in Citigroup (NYSE: C) today despite continued bad financial press questioning its capital base, its breakup value, and the efficacy of its new leadership team all suggest that the "worst" names within the worst sector are about to recover. Read full article... Read full article...