Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.
Tuesday, January 31, 2023
Here's a Strong Indication That the Stocks Bear Market Has Legs / Stock-Markets / Stocks Bear Market
By: EWI
This is what investors look for at or near a stock market low
Elliott Wave International's analysts have been observing financial markets for decades. They monitor dozens of stock market indicators, in addition to Elliott wave patterns.
No single indicator can tell the whole story of what's going on with the market, but sometimes, a single observation can carry a lot of weight.
One current observation is that many investors are still looking for reasons to be bullish, even though stocks have been in a downtrend for more than a year. In other words, they think the bear market is over.
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Monday, January 30, 2023
Stock Market Big Week Ahead / Stock-Markets / Stock Market 2023
By: Monica_Kingsley
S&P 500 charge higher continued, and high beta plays didn‘t disappoint. Energy, financials, Russell 2000, emerging markets – all on fire. After Thursday‘s climb of bear market rally wall of worry (we‘re rather to meet recession and not soft landing – the contraction will be mild till Q3 2023), we‘re in for a daily deceleration today as I don‘t think yesterday‘s complacency would last till the closing bell.
The weakness will likely show up in bonds first, underpinning the dollar – and the rest would be history. All on a daily basis – you can look forward for extensive pre-FOMC analysis next week!
Monday, January 30, 2023
Riding the Stock Market FOMO Rally in Tech Stocks - Investing 2023 / Stock-Markets / Stock Market 2023
By: Nadeem_Walayat
Stock Market FOMO rally us underway, were you already fully invested months ago or have you been watching too much of CNBC cartoon network and are thus sat on the sidelines or worse FOMO-ing in right now, here's how I am riding the FOMO rally off the October 2022 low.
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Tuesday, January 24, 2023
Stock Market on the Launch Pad for Post CPI To the Moon Rally / Stock-Markets / Stock Market 2023
By: Nadeem_Walayat
Santa's Stock Market sledge is on the launch pad, t-minus 2 hours to go until release of November CPI data at 1.30pm UK time. Octobers release was 7.7%, consensus for November is for 7.3%, and 6,1% for Core CPLIE. A quick review of the monthly data suggests to expect CPI of 7.4%, so whilst not a beat would be a relief that CPLIE is at it's lowest since November last year, so would be taken as a cue for SANTA to deliver the last leg of the rally off the October low that has already achieved my base case target of 4100 thus should set the scene for the over shoot phase to at least 4160, with ample time to propel stocks for an assault on S&P 4200, break of which we would send stocks into the FOMO phase that would target a break of the August high of 4316 which has basically been my view for over month.
Therefore my expectations are for Santa to take the rally a notch higher north of 4100, for an over shoot to about 4160, beyond which is the 4200 barrier above which FOMO froth, that could be triggered by CPI of 7.2% or lower, though that is not what the actual data suggests toe expect, i.e. 7.3% or 7.4% looks more probable. Still it is good to remember that the S&P has already had a 17.7% bull run off it's MId October low of 3481 to it's recent high of 4100, so to achieve 4160 and above would be the icing on the cake. Swing projections that have proven reliable concur with this outlook by projecting to 4340 into the end of the year.
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Thursday, January 19, 2023
Stock Market Changing Bias / Stock-Markets / Stock Market 2023
By: Monica_Kingsley
S&P 500 didn‘t take kindly to deteriorating data – after a long time, bad news was indeed taken as bad news. The pivot hopes are receding, and recession prospects come to the fore, which was the subject of Tuesday‘s extensive analysis.
The turn in sentiment was fast, however our long S&P 500 and copper gains were protected by tightened stop-losses, taking the model portfolio significantly higher - .above $280K from $50K starting Jan 2021 (check my homepage for descriptions - no slippage, commissions, taxes. Past performance is no guarantee of future results).That‘s the proper long-term view with odds heavily in your favor through diligent analytics!
Wednesday, January 18, 2023
State of the Global Stock and Financial Markets / Stock-Markets / Financial Markets 2023
By: EWI
Hi,
FACT: Most mainstream market pundits were BULLISH THE WORLD at the start of 2022.
FACT: CASH outperformed stocks AND bonds AND cryptos AND gold AND real estate in 2022.
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Monday, January 16, 2023
Stock Market SEASONAL ANALYSIS Trend Forecast 2023 / Stock-Markets / Stock Market 2023
By: Nadeem_Walayat
The seasonal pattern suggests after a pause in Feb, higher into late April, then correct from early May into late June followed by a volatile summer terminating in a swing low during September that should set the scene for a bull run into the Christmas Holidays with of course intra month volatility during October that resolve to the upside just as the perma-bears are crowing at their loudest that the end is neigh.
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Sunday, January 15, 2023
Stock Market Q1 and Q2 Pull Back Forecast / Stock-Markets / Stock Market 2023
By: Donald_W_Dony
This report is our fifth article since September about the maturing bull market and the multiple road signs that are developing.
One of the signs of a maturing economy is the rise in inflation. As the economy continues to expand, there is ongoing pressure for goods and services. Employment is usually at a record high and consumer spending continues to rise (as they both are now).
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Wednesday, January 11, 2023
The Perfect Storm For Stock Market Investors To Lose Big In 2023 Is Upon Us, Unless… / Stock-Markets / Stock Market 2023
By: Chris_Vermeulen
Last week I rang the bell telling investors and traders to wake up and smell the hot coffee because 2023 is going to be a life-changing year, and likely, not for the better.
The 30,000-foot view of where we are in the stock market cycle is shown on my gauge.
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Wednesday, January 11, 2023
Stock Market Dialing Back Fears / Stock-Markets / Stock Market 2023
By: Monica_Kingsley
S&P 500 refused a panicky decline into Powell‘s speech, and swiftly recovered on no fresh hawkish clues. Market breadth improved, and the sellers weren‘t falling over themselves. 3,910 held, and there were no tests of the bottom border of the support zone at 3,895. While real assets didn‘t spurt to the upside yesterday, they‘re likely to catch up today and tomorrow.
Tomorrow, because after initial turbulence over CPI (and especially core CPI!) not declining as fast as the market (and the central bank!) wishes with regard to Fed pivot dreams, I think the positive market reaction to a still reasonably fast declining inflation figure, would prevail (6.6 – 6.7% is enough) – and that we would continue on the march to making a Jan top. Remaining nimble is the name of the game!
Monday, January 09, 2023
Are Stocks In a New Uptrend? / Stock-Markets / Stock Market 2023
By: Paul_Rejczak
On Friday the S&P 500 was the highest since mid-December - will the short-term uptrend continue?
The S&P 500 index gained 2.28% on Friday, as investors reacted to better-than-expected monthly jobs data release. The broad stock market’s gauge broke above its recent trading range and it went the highest since December 15, as the daily high was at 3,906.19.
The broad stock market is expected to open 0.5% higher this morning, so stock prices will likely extend their short-term advance. There may be a selling pressure and some profit-taking action as the market gets closer to the resistance level of around 3,920-3,930, marked by the previous local lows, as we can see on the daily chart:
Monday, January 09, 2023
Stock Market Bad Is the New Good / Stock-Markets / Financial Markets 2023
By: Monica_Kingsley
Fitting summary of S&P 500 rally – we‘ve seen one of the largest 2y yields daily declines on slowing wage inflation. ISM Services PMIs also added to the Fed hawkishness reappraisal. Squeezing the bears, credit markets were confirming with a risk-on turn likewise.
Daily market breadth was really good, and spells that the move isn‘t over in the least. It progressed fast on the double punch – NFPs not coming in too hot, and real economy slowdown. Where does that leave us? With more prospects for LEIs moving lower, real estate declines, earnings downgrades and ultimately unemployment increase.
All in the name of fighting inflation, after the transitory debacle I called Apr 2021 vocally. Now, the Fed is to keep tightening into a slowing economy (and ready to overdo it), and its targets of CPI below 5% in 2023 and at 2.5% in 2024, are too rosy.
Apart from the shape of the recession, and how well it would be cushioned by the U.S. consumer (look at confidence, expectations, retail sales, deliquencies etc), the key questions are just how far the Fed would take the Fed funds rate, and how long it wishes to keep it at its own evolving definition of a restrictive level.
Saturday, January 07, 2023
Financial Markets Outlook 2023 - Recession Will Create Opportunities / Stock-Markets / Financial Markets 2023
By: Submissions
Owen WIlliams writes: As we close out 2022, the worst year for stocks since 2008, we enter 2023 with an elevated risk of seeing an economic recession. From a U.S.-perspective, 2022 was a rare year during which both stocks and bonds suffered major losses. The fastest pace of interest rate hikes since the Volker era, with a 425 bp increase in the Fed Funds rate, penalized both major asset classes and will certainly have repercussions beyond 2022. As many market observers and Fed officials often remind us, interest rate hikes have a long and variable impact on the economy and markets.Before presenting our outlook for each asset class, we share a few general observations for the new year. First, we have never seen two consecutive years during which BOTH equities and bonds have had dismal years. One of the two asset classes should turn in a much stronger performance in 2023. As we explain below, our bet is on fixed income, although there are many attractive areas in equities (outside of the indexes) which are already worth moving into for a long-term position.
Second, we see the extreme reversal in central bank interest rate policy as all part of the Covid episode. The central bank monetary policy, along with the Federal government fiscal policy, reaction to the Covid shutdown was disproportionate, maintained too long, and in our opinion was unnecessary. Policy mistakes in one direction often must be reversed by policy mistakes in the other direction. We believe that this is what is playing out. The Covid episode in its entirety (including the lagged policy mistakes) will become what we refer to as a “watershed moment” for markets. A watershed moment is a major dislocation in markets after any type of excess, be it market-drive (Tech Bubble) or policy-driven (Covid and Housing Bubble). After each dislocation in the past 40 years, we have seen a change in market leadership. As we explain in the Equity section below, the change in leadership we are expecting in this cycle is for relative equity market leadership to shift to international stocks and away from U.S. stocks, which have massively dominated since the Financial Crisis.
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Friday, January 06, 2023
How High Could the Impossible Stocks Bull Market Fly / Stock-Markets / Stock Market 2023
By: Nadeem_Walayat
Dear Reader
Temperate CPI sends stocks soaring to the moon with Fridays close of 3992 literally within touching distance of breaking above 4000. A week ago I wrote - "there may be more sideways to down price action given the drags we have this week with the Mid-terms and the 10th of November CPI release that could hold stocks back until after their conclusion. Nevertheless as long as the 3620 low holds then the pattern remains in tact for an eventual break higher of 3920 to target 4000+ where I would expect the S&P to achieve 4100 by Christmas and by the time this rally is done we may even see a break above 4300."
And so as soon as the CPI dark clouds were lifted the stock market soared, though you would not think it had if you read or watched any of the usual suspects, that's tweeters, youtubers, and the blogosfear. Not a bull in sight! Were they all caught with their short pants down? Glum faces all round! A collective case of WTH is going on! Confounded disbelief which I suspect will only lift towards the end of this rally when the herd FOMO's into the top similar to August.
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Monday, January 02, 2023
THE TWIN TOWERS OF BABEL ARE COMING DOWN EQUITIES AND BONDS / Stock-Markets / Financial Markets 2023
By: Darryl_R_Schoon
When leveraged debt is money, what’s to worry?
For three hundred years, the banker’s ponzi-scheme of debt-based money brought wealth to the bankers and power to governments. Nothing lasts forever, however. In 2023, the dangers long dormant beneath the bankers’ debt-based markets are going to erupt.
BlackRock says get ready for a recession unlike any other and 'what worked in the past won't work now' – December 8, 2022
A worldwide recession is just around the corner as central banks boost borrowing costs aggressively to tame inflation — and this time, it will ignite more market turbulence than ever before, according to BlackRock.
The global economy has already exited a four-decade era of stable growth and inflation to enter a period of heightened instability — and the new regime of increased unpredictability is here to stay, according to the world's biggest asset manager.
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Sunday, January 01, 2023
Stock Market Trend Forecast Into End 2023 / Stock-Markets / Stock Market 2023
By: Nadeem_Walayat
What if someone told you where the Dow stocks index will be trading at in 3 months time and by that time the index was within 1% of where it was forecast it would be. How much would you value such analysis, furthermore without the benefit of hindsight that forecast did not just end there but continued on for a further whole year, what's that worth? Given that many so called analysts can't even go beyond a trading day.
Well that is what you are going to be in receipt of in this the final part of my 6 part series that concludes in a detailed Dow stock market trend forecast into the end of 2023 which my Patrons gained access to on 5th October 2022, that forecast that the Dow by now would be trading at 32,850 against actual last close of 33,147 (30th of December 2022), which represents a less than 1% deviation against the trend forecast.
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Saturday, December 31, 2022
Dow Stock Market Trend Forecast to December 2023 / Stock-Markets / Stock Market 2023
By: Nadeem_Walayat
Dear Reader
What if someone told you where the Dow stocks index will be trading at in 3 months time and by that time the index was within 1% of where it was forecast it would be. How much would you value such analysis, furthermore without the benefit of hindsight that forecast did not just end there but continued on for a further whole year, what's that worth? Given that many so called analysts can't even go beyond a trading day.
Well that is what you are going to be in receipt of in this the final part of my 6 part series that concludes in a detailed Dow stock market trend forecast into the end of 2023 which my Patrons gained access to on 5th October 2022, that forecast that the Dow by now would be trading at 32,850 against actual last close of 33,147 (30th of December 2022), which represents a less than 1% deviation against the trend forecast.
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Saturday, December 31, 2022
Stock Market and 10 Year U.S. Treasury Bond Yields - Trend Forecast 2023 / Stock-Markets / Stock Market 2023
By: Nadeem_Walayat
The consensus view is that falling bond yields are good for stocks. However that is not accurate, what stocks like is mildly falling OR rising bond yields. What stocks do not like is what we have witnessed since the start of the year, that is fast moving bond yields as the bond bubble burst in the wake of HIGH INFLATION.
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Friday, December 30, 2022
Stock Market Cool as a Cucumber Despite Earnings and Fed Noise / Stock-Markets / Stock Market 2022
By: Nadeem_Walayat
I got my COVD AUTUMN BOOSTER JAB (Pfizer Biontech) Saturday afternoon, unfortunately I have since been paying the price in terms of side effects that kicked in some 12 hours afterwards with shivers and chills, and continue as I write some 36 hours later I am feeling like I have a light flu, lethargic, lack of energy, drowsy despite having slept for over 12 hours. some Brain fog. Still I will see this article posted even if it is the last thing I do!
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Friday, December 30, 2022
Dow Stock Market Annual Percent Change Analysis - Trend Forecast 2023 / Stock-Markets / Stock Market 2023
By: Nadeem_Walayat
In my extensive analysis of September 2021 this indicator warned to expect the Dow to drop to 28k, the low to date has been 28.7k! For the bull market proper to resume this indicator needs trade above the thick black line, until then the market remains in no mans land of trading within range with the risks of worse to come. Most probable is the market trades in a range i.e. to trade above the blue dotted line, until the market has worked through it's bear phase. At this point I am discounting a re-run of 2008, as so far the indicator is showing a tendency to remain above the grey line, however this also implies that the bull market proper could be as much as a year away! In terms of price, the Dow is not going to see a new all time high anytime soon, probably beyond the end of 2023.
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