Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Wednesday, July 13, 2016
Italy on the Brink of a Full Blown Banking Crisis / Stock-Markets / Financial Crisis 2016
As several articles over the past few days have indicated (here, here, here and here), Italy is on the brink of a full-blown banking crisis. Bad debts, or "non-performing loans," held by the banking sector total 360 billion euros, which is a remarkable 17 percent of all the outstanding bank loans in Italy and equal to about one-fifth of the annual Italian GDP. It is also many times the level of bad debt held by Italian banks at the peak of the financial crisis in 2008. Since the beginning of 2016, prices of bank stocks have decreased by more than 50%. In the case of Italy's oldest and most troubled bank, Banca Monte dei Paschi di Siena, its share price has declined more than 75%. It doesn't help that the Italian economy is struggling mightily to recover from the last financial crisis and is still 8% smaller than it was in 2008 and roughly the same size as it was at the end of the twentieth century.
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Wednesday, July 13, 2016
Hong Kong, Signapore, and India Emerging Stocks Bull Markets / Stock-Markets / Emerging Markets
With the recent resurgence in the US indices, and the potential new leg up in the 2009 bull market, took a look at the foreign indices we track. The objective was to find indices that had dramatic selloffs during 2015-2016, and appear to have completed bear markets. Of the twenty indices we track three in particular look the best longer term.
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Wednesday, July 13, 2016
Stocks Bull Market Crash Apocalypse Resolves to New All Time Highs - Again! / Stock-Markets / Stock Markets 2016
The stock market commentariat that had convinced themselves all year that a stocks bear market or worse a crash was always imminent, tending to reach their most vocal fever pitched cry's of doom each time stocks bottomed and where BrExit is concerned, well that was expected to be the icing on the bear cake, that if it happened would surely have herald an stock market apocalypse. Though of course most never saw it coming because the pollsters, markets and bookies ALL got the EU Referendum outcome WRONG which meant that WHEN it happened the expectations of doom reached a new level of intensity as their worst expectations appeared to finally becoming manifest. Worse still because FEAR SELLS the usually clueless mainstream press liberally regurgitated and magnified the utterance of financial sales industry so as to ensure few would ever be in a position to capitalise on the stock rally.
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Wednesday, July 13, 2016
Americans favour Coffee over Financial Freedom / Stock-Markets / Investing 2016
A little and a little, collected together, becomes a great deal; the heap in the barn consists of single grains, and drop and drop make the inundation.
Saadi
Towards the end of last year, we published an article titled Americans favour coffee to stock market investing where we demonstrated that an overwhelming majority drink coffee as opposed to investing in the stock market’ 61% of Americans drink coffee on a daily basis as opposed to the 48% that invest in the market. On aannual basis, Americans spend about $1200 on coffee. If they put this money into the market and allowed compound interest to do its magic, it could grow into a nice tidy sum over a period of 20 years.
Wednesday, July 13, 2016
Not Too Late For Real Money In A World, Distracted / Stock-Markets / Global Financial System
It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. - Henry Ford
A recent IMF study estimated that the profits of the big banks in the United States are almost entirely due to the government sponsored backstops. It’s not just bailouts, but also cheap credit, and judicial negligence.
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Wednesday, July 13, 2016
Jubilee Disasters Are Sinking Europe Fast as Italy Unravels and Deutsche Bank Collapses / Stock-Markets / Financial Crisis 2016
There is much going on in Europe and most of it very bad. When we add what’s going on in Europe to what’s happening in Britain, the US and China, we end up with a comprehensive portrait of a world plunging off a precipice.
Of course if you’ve been visiting us regularly, you’re quite aware of the disasters of 2016. They are a continuation of 2015. We’ve been warning about it tirelessly for over a year now.
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Tuesday, July 12, 2016
Stock market, leading sectors, and the price of Coffee / Stock-Markets / Stock Markets 2016
It was a relatively dull session yesterday (Monday July 11th) with stocks gapping higher only to trade sideways up till now. As I talked about in the morning’s video I expected stocks to grind higher, and for vix ETF to keep moving lower for another day or three.
Coffee continues to be on caffeine-high today testing near today’s high, which looks as though it will continue to run higher in the coming days.
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Tuesday, July 12, 2016
Stock Market Topping Internals, Buy This Rally and See What Happens! / Stock-Markets / Stock Markets 2016
Everyone is Bullish, perfect time to short with stops in place of course. Below is a simple chart of one way to look at market internals. Lets see what is going on under the hood.
The chart shows OEX or SPY with NYSE 3 month new highs using a line chart. The purple line going up is OEX or SPY. Basically what this is saying is the market is going higher on less participation not more.
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Tuesday, July 12, 2016
A Fed Bondsy Scheme / Stock-Markets / Stock Markets 2016
Who needs the Fed's QE when the world is seemingly beating down the doors to buy US bonds? But like all Ponzi schemes, the end eventually comes. Last week's record low in bond yields arrived at the same time as an expected 6 month low in yields and may have marked at least a temporary end to the scheme. Stay tuned for a reversal in interest rates and its effect on equity markets as liquidity in global markets dries up.
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Tuesday, July 12, 2016
SPX Rally Nearing Completion. USB Maybe Finished / Stock-Markets / Stock Markets 2016
I have been reviewing the Cycle Model and have a few observations to pass on. There is little doubt why Ben Bernanke went to visit Abe and Kuroda last weekend. The June 27 Master Cycle low is the last of its kind until October 4, 2016. It appears that this is the last chance they have of igniting a rally in order to preserve the uptrend.
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Tuesday, July 12, 2016
Stock Market Rally May be Complete / Stock-Markets / Stock Markets 2016
SPX has now completed a 60-hour rally from the 1991.68 low after a 13-hour decline from the 2113.32 high. It appears to be complete.
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Monday, July 11, 2016
SPX testing the Cycle Top Resistance / Stock-Markets / Stock Markets 2016
The SPX Premarket is challenging the 2-hour Cycle Top at 2136.81 this morning. Indications are, we may see a probe higher at the open. Although it did not go above the 2134.72 high of May 20, 2015 on Friday, it may do so this morning.
Does that hurt the bearish case? Probably not. You will note that May 19 was exactly 8.6 years (3141.6 days) from the October 11, 2007 high. The time has arrived fro a change of trend. However, I believe that the central banks have been pushing against that change of trend. Thus we have the Orthodox Broadening Top. A move above the upper trendline, called a throw-over, does not invalidate the formation.
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Monday, July 11, 2016
Stocks VIX & SP500 Comparison of 2008 Market Top / Stock-Markets / Stock Markets 2016
Today I like to share my thoughts about the S&P 500 index, the volatility index, and what I believe will be the trigger/event which sends stock markets around the world to new multi-year lows.
While the charts shown here are very simple there is a lot of information behind the scenes that backup the analysis/predictions on the charts below.
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Monday, July 11, 2016
Stock Market VIX Strategy, Maximum Profits $ / Stock-Markets / Stock Index Trading
Proshares UVXY 2x ETF
Everyone wants to find ways to maximize profits and minimize losses. That's part of the game in trading the market. I would consider this an extremely high risk/high reward trade.
Monday, July 11, 2016
Stock Market Challenging the High / Stock-Markets / Stock Markets 2016
Current Position of the Market
SPX Long-term trend: The long-term trend is near its all-time high
SPX Intermediate trend: The uptrend from 1810 is now challenging the 2135 high.
Analysis of the short-term trend is done on a daily basis with the help of hourly charts. It is an important adjunct to the analysis of daily and weekly charts which discuss longer market trends.
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Sunday, July 10, 2016
Japanese Stock Market Nikkei and Yen Preparing to Reverse Trends / Stock-Markets / Japanese Stock Market
On Friday the Yen hit our long term target of par (100).
A declining C wave should begin shortly to resume its bear market.
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Sunday, July 10, 2016
2007 All Over Again, Part 5: Banking Crisis Imminent / Stock-Markets / Credit Crisis 2016
Our good friend Michael Pollaro just sent a chart from the St. Louis Fed that shows the US drifting back into yet another banking crisis.
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Sunday, July 10, 2016
Stock Market - INFLATION – DEFLATION / Stock-Markets / Stock Markets 2016
I listened to the debate between Rick Ackerman and Mike Shedlock on the Kereport today and I wanted to comment on the inflation side. We have a perfect example of two analysts locked into the deflationary crash scenario by what happened in 2009. Both are deflationists and both have been wrong all year long, and basically wrong since the bottom in 2009.
I’ll say it again: In a purely fiat system there is no level of debt that can’t be inflated away. We proved that in the 70’s when we inflated away the Vietnam war debt.
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Friday, July 08, 2016
Why Stock Market Investors Should Expect the Unexpected / Stock-Markets / Stock Markets 2016
Read our forecast for a market rally in the wake of Brexit
[Editor's Note: The text version of the story is below.]
Investors who jump on "sure things" in the stock market usually lick their wounds with regret.
The decision of British voters to leave the European Union appeared to represent low-hanging fruit to short sellers.
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Friday, July 08, 2016
Is the Stock Market Rally Over? / Stock-Markets / Stock Markets 2016
It appears that SPX may be waiting for the Jobs Report tomorrow morning at 8:30 am to reveal its intent. This is my primary Wave structure for SPX. It follows an irregular Wave pattern that fits within the Orthodox Broadening Top. Although the Broadening Top allows for a probe to or beyond 2120.55, but does not require it. As it stands, Wave [v] of 5 is very nearly equal to Wave [i] of 5, satisfying a wave relationship and indicating a probable completion.
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