Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Saturday, July 28, 2007
The Four Year Stock Market Cycle Statistics Continue to Suggest that this Low Lies Ahead / Stock-Markets / Cycles Analysis
It certainly seems that the controversy surrounding the 4-year cycle is still alive and well and has been ever since the June/July 2006 low. I have studied many of the works by Edward Dewey, J. M Hurst, N.D. Kondratieff, Walter Bressert, and numerous other writings through what used to be the Foundation for the Study of Cycles. The consensus among credible cycles analysts is that cycles are not rigid in nature, but that they are somewhat flexible in their ebb and flow.Read full article... Read full article...
Saturday, July 28, 2007
Looking Back to The Stock Market Crash of 1987 / Stock-Markets / US Stock Markets
“History does not always repeat, but sometimes it rhymes.” Mark Twain.
A lot of traders and investors are asking the question: “Is it too early to buy, or should I expect more volatility like we saw during the past few days?”
Sometimes, by looking at the past, we can find some clues as to what might happen during similar situations in the present.
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Saturday, July 28, 2007
The Past Year's Stock Market Rally Has Not Been Economically Driven / Stock-Markets / US Stock Markets
What accounts for the 18.4% increase in the S&P 500 stock price index in the 12 months ended June 2007? Was it profit growth? Hardly. The Commerce Department's National Income and Product Accounts (NIPA) measure of corporate profits adjusted for prices (the GDP chain price index) shows the year-over-year change at minus 0.8% as of Q1:2007, the latest data available (see Chart 1). In nominal terms, year-over-year NIPA profit growth was only 2.1% in Q1:2007 vs. 10.1% in Q1:2006 (see Chart 2).Read full article... Read full article...
Friday, July 27, 2007
Buying the Market Dip? - Let the Buyer Beware / Stock-Markets / Financial Markets
Doug Wakefield and Ben Hill write: “Cheap money policies have allowed us to continue to borrow. We have taken this money and maintained or increased our rate of consumption and purchased assets. The swell in dollars has created a swell in demand. While consumption prices have stayed low because of globalization, asset prices have inflated greatly. The primary effect of asset inflation can be seen most clearly in real estate prices, yet the stock and commodity markets reveal this as well.Read full article... Read full article...
Friday, July 27, 2007
This Week in Reality for the Financial Markets / Stock-Markets / Financial Markets
The past few weeks have seen a rude ending to the gala ball which Wall Street, the media and most of America has been attending for the first half of 2007. The drops have come like sudden, swift punches in the stomach. Hard, well-placed and in many cases, almost out of nowhere.Read full article... Read full article...
Friday, July 27, 2007
Delusions of a Goldilocks Economy Shattered - What a difference a Week Makes! / Stock-Markets / US Stock Markets
Last week, as the Dow breached the 14,000 mark for the first time, bullish swagger on Wall Street went into overdrive. Some of the bulls that I'm often pitted against on television used the occasion to specifically heap scorn on my assessment of the U.S. economy and my investment advice. Although the attacks on my economic views were inaccurate on many levels, perhaps their largest oversight was that the Dow was propelled to its milestone largely as a result of multinationals that had seen their foreign earnings increase with the weak dollar. While many of these stocks set new 52 week highs, stocks primarily dependant upon the U.S. economy and American consumers were setting fresh 52 week lows. This divergence of performance provides strong evidence that the U.S. economy remains on track for a severe disruption.Read full article... Read full article...
Friday, July 27, 2007
Flash Alert: Wall Street Financial Meltdown! / Stock-Markets / Financial Crash
Martin Weiss writes: Wall Street is suffering a meltdown, and in a moment I'll tell you what to do about it.
The big picture: Anyone who thinks the meltdown is limited to a decline in stock prices should wake up and smell the coffee:
- The big money that Wall Street was pouring into mortgages is drying up …
- The big equity deals that were pouring still more money into the economy are bombing …
- The U.S. economy, hooked on all that Wall Street money like a dope addict, is about to suffer one heck of a hangover …
- The dollar is continuing to plunge virtually nonstop, and …
- The worst is yet to come! But …
Friday, July 27, 2007
What's Behind the Dow's Swan Dive ... / Stock-Markets / Financial Crash
Mike Larson writes : Let's not mince words. This week has been simply awful for the Dow. The Industrials plunged 226 points on Tuesday alone, put in an anemic bounce Wednesday, then sank another 311 yesterday. The carnage was even worse in several sectors I've flagged for months — home builders, financials, commercial REITs and more.
What's going on? What's behind this swan dive? Well, investors can be fickle:
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Friday, July 27, 2007
Dow Jones Index Plunge! Global Economic and Financial Market Inversion! / Stock-Markets / Emerging Markets
With yesterday's big plunge, the Dow is down nearly 600 points this week. Yet, at the same time, key foreign markets have been mostly rising.
This market action makes two things increasingly evident:
- The U.S. economy is being hampered by a worsening housing crisis, while …
- Most global economies continue to expand at a strong pace.
Thursday, July 26, 2007
FTSE 100 Index Crashes to 6250 - Whats Next ? / Stock-Markets / UK Stock Market
The long awaited summer stock market correction finally kicked into gear this week. The FTSE fell sharply by its largest one day fall in some five years to 6250. Before I get to the current technical picture, the writing for the sell off has been on the walls ever since the warnings flashed to financial markets during the China initiated February 2007 sell offs.Read full article... Read full article...
Thursday, July 26, 2007
What To Do As Stocks Go BUST! / Stock-Markets / Financial Crash
Stock prices plunging around the world today, some value investor tips come to mind.
1) Do not short the market . If you are thinking of going short because stocks must fall further, think again. Not only have bears that have waited for a sharp fall before entering the market short since 2003 had their heads handed to them, but as volatility returns to the marketplace put option premiums quickly shoot-up. In other words, trying to time the plunge can be dangerous, especially right after a sharp sell off.
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Thursday, July 26, 2007
Deja' vu, Spike Rally in Japanese Yen Spooks Global Financial Markets / Stock-Markets / Financial Crash
Perhaps the most important market in the world today is the vast network of foreign currencies, where total trading volume, including derivatives and futures, average around $2.9 trillion a day. This is ten times the size of the combined daily turnover on all the world's equity markets. And as world's economies have become increasingly integrated, so have the foreign exchange and global capital markets.
And the size of the foreign exchange market is mushrooming each year. FX trading increased by 38% between April 2005 and April 2006 and has more than doubled since 2001. That's not surprising, since 18 of the top-20 central banks around the world are tolerating double-digit growth of their money supply. Therefore, fluctuations in the foreign exchange market are bound to become more violent.
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Wednesday, July 25, 2007
If Leveraged Buybacks, Why Not Leveraged Dividends? / Stock-Markets / Stock Market Valuations
The equity investing community seems to get giddy when it hears the words “stock buyback.” And why not if the stock is being bought back out of current profits? But what if the corporation is increasing its debt to fund its stock buybacks? The chart below suggests that is what is occurring now and what occurred in the late 1980s and late 1990s. The red bars in the chart represent the dollar amount of the net issuance of equities of nonfinancial corporations. Readings below zero, which predominate, signify the net “retirement” of equities.Read full article... Read full article...
Tuesday, July 24, 2007
MPTrader - Stock Market Bulls Not Dead.... Yet / Stock-Markets / US Stock Markets
Inability of the Q's (Nasdaq: QQQQ) to follow-through to the downside after breaking beneath two prior pullback lows at 49.74 and 49.64 was my first indication that the correction off of last Friday's high might be complete. Secondly, the ease with which the Q's recovered half of today's early loss was another clue that the bulls are not dead…yet, and that a new upleg likely is underway that should propel prices to new highs.Read full article... Read full article...
Tuesday, July 24, 2007
China's Earth-Shattering Growth News / Stock-Markets / China Stocks
Tony Sagami writes: Last week, I told you how typhoon Man-yi, which forced more than 30,000 people from their homes in southwestern Japan, completely disrupted our travel plans.
Then, once we arrived in Nagano, an earthquake shook our room at the Saihokukan Hotel! The tremors were so powerful that they damaged the tracks on the Nagano-Dentetsu train line.
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Monday, July 23, 2007
MPTrader - Stock Market Recovery Ended in the S&P Index? / Stock-Markets / US Stock Markets
Based on the intraday pattern, the S&P 500 Depository Receipts (AMEX: SPY) looks like it ended the recovery rally off of Friday's low (152.84) at this afternoon's high of 154.72 and has turned down. The extent and form of this pullback should reveal to us if the SPY started a new upleg at Friday's low or merely ended the first part of a larger corrective process.Read full article... Read full article...
Monday, July 23, 2007
Investment Flash: Ah, The Summer of 1929! / Stock-Markets / Financial Crash
“As the advertisements in the Ladies Home Journal declare, “This is a sun-worshipping year….all the world has gone in for sun-tan.” ( Since Yesterday by Fredrick Lewis Allen.) The July 6 th 1929 cover of The Saturday Evening Post would also agree:Read full article... Read full article...
Monday, July 23, 2007
Global Megatrends and Among all the successes we've enjoyed together ... / Stock-Markets / Financial Markets
Martin Weiss writes: Among all the successes we've enjoyed together in recent years, one of the most gratifying to me has been the outpouring of positive feedback regarding my online video briefing.
Now, I'm doing two things:
First, I'm getting ready to take advantage of the minor pullback we saw last week in China and other foreign markets — to take action!
And second, I'm providing the transcript of the video for your review …
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Sunday, July 22, 2007
Market Update - Trading The Charts / Stock-Markets / Technical Analysis
It's no secret that I've been getting closer and closer to calling a major top while maintaining the unbiased flexibility to trade both sides of the market as we approach our final destination. We've been perfectly cautious of overextended rallies, while also avoiding panic on the dips and buying bottoms. IF I could have my way from here, I would want to see this market attempt one more screaming rally to just above its recent highs and, at that point, if all things remained the same, I'd be willing to call for a substantial turn, not only in the stock indices, but in several other major markets.Read full article... Read full article...
Sunday, July 22, 2007
Trouble in Hedgefundistan: “Its gonna get a lot worse” / Stock-Markets / Credit Crunch
Two columns of black smoke can be seen rising over Wall Street and disappearing into the ice-blue New York sky.Terrorism?
Not quite. The plumes of smoke are all that's left of two major hedge funds which blew up just weeks ago leaving nothing behind but a few smoldering embers and a mound of black soot.
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