Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Thursday, July 10, 2014
Signs of Stock Market Trouble Are Looming / Stock-Markets / Stock Markets 2014
Michael E. Lewitt writes Markets are priced to perfection.
Signs of late-cycle behavior and thinking are abundant.
The latest example came from BMO's strategist Brian Belski, who published a report arguing that the bull market in stocks will continue for another ten years with annual gains of 10.5%.
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Thursday, July 10, 2014
Stock Market Down But Not Out... / Stock-Markets / Stock Markets 2014
That's the bulls for you. Just when it looked like it was all over, and it still may very well be, they stage a rally after two open gap downs that held. A rally up, sure, but a gap up made little sense. Now we do know that the gap up was filled back down with some indexes actually going red at one point today, so there's no technical damage to the good work done by the bears over the past two days. That said, it was strange to see such a decent rally today. The score is currently two to zero with the bears in front.
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Thursday, July 10, 2014
Poverty Matters for Capitalists - Stock Market Impact / Stock-Markets / Financial Markets 2014
Having taken Thomas Piketty to the cleaners a few weeks back (see “Gave & Gave … and Hay”), Charles Gave now redresses the balance with regard to the issue of economic inequality in today’s Outside the Box. He makes a forceful case that “poverty matters for capitalists”:
Every US recession that I can recall was preceded by a fall in long rates, and I doubt the next will be much different. As such, do not expect the next US downturn to arise from the Federal Reserve pushing rates higher, an overvalued dollar or even mal-investments. Expect it to result from a decline in the income of the working poor. Early warning signs are likely to show up in the shopping aisles of stores such as Walmart, average driving miles, and the price of houses at the cheaper end of the market. I suspect the lesson that will eventually be learnt is that in a modern industrialized economy there are few worse things a central bank can do than deliberately attack the spending power of the poor.
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Thursday, July 10, 2014
The Fake Stock Market / Stock-Markets / Stock Markets 2014
For the average person trying to decide how to feel about the economy, the single biggest data point is the stock market. When share prices are rising, the implicit message is that finance professionals — who, after all, dedicate their lives to understanding such things and should therefore know what’s happening — have decided that life is good and getting better.
So the rest of us relax and go shopping. Known as the “wealth effect,” this tendency of asset prices to affect consumer behavior is now a key policy goal of the US and pretty much every other major government.
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Wednesday, July 09, 2014
Stock Market Rising / Stock-Markets / Stock Markets 2014
Good Morning!
Considering that the FOMC minutes are being released at 2:00 pm today, it would normally follow that equities may stay elevated until then.
There are three waves in the decline so far. If the SPX has a limited bounce and declines at least to mid-Cycle support at 1955.96, then SPX would have a clean 5 waves. A 50% retracement may limit the bounce this morning to 1972.52 which would still allow a fifth wave.
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Wednesday, July 09, 2014
Stock Market 3-Wave Decline Underway / Stock-Markets / Stock Markets 2014
S&P 500 made a downward extension yesterday, close to 1950. The move is very strong, so it appears that the rally from 1935 is already done, that can be a fifth wave within a bigger impulsive rally. We know that after every five wave move market, it will turn into the opposite direction with minimum three legs. With that in mind, we suspect that price will remain bearish for another, third leg of decline, maybe after hitting 1967 resistance.
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Wednesday, July 09, 2014
Stock Market Second Day of Selling / Stock-Markets / Stock Markets 2014
Courtesy of Doug Short.
Another day of no economic news coupled with fretting about Q2 earnings took its toll on the market. The S&P 500 opened in the shallow red at its intraday high and sold off to its -0.92% intraday low early in the lunch hour. A 90-minute afternoon rally lost traction and gave up about half its gain. The index closed with a 0.70 loss.
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Wednesday, July 09, 2014
QE: Quantitative Easing or Questionably Effective / Stock-Markets / Stock Markets 2014
We all know the S&P 500 Index has been on a 5+ year rally to all-time highs – thanks to ultra-low interest rates and the levitating wonder of “printing money” via QE – Quantitative Easing. Examine the following chart of the S&P for the past 20 years.
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Tuesday, July 08, 2014
How to Profit from the Improved Jobs Numbers / Stock-Markets / Stock Markets 2014
George Leong writes: The stock market is looking higher. The DOW and the S&P 500 closed up for the fifth straight month as we enter into the second half of what has largely been a mixed and cautious year.
For growth investors, the good news is that small-cap stocks came back in June with a 5.15% advance and are easily leading the broader market. Technology also fared well with the NASDAQ up 3.9% in June. Blue chips and large-caps trailed the growth side. In the first half, the S&P 500 leads with a 6.07% gain followed by the 5.54% advance in the NASDAQ.
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Tuesday, July 08, 2014
Stock Market Gap Down That Holds / Stock-Markets / Stock Markets 2014
That is a change of trend, but it's not confirmed yet. At least the bears can say they have an open gap now. This hasn't been the case of any magnitude in quite some time as this gap is decent in size. The bears need a second gap down in the next few days without allowing the bulls to fill this open gap. If that does indeed take place then the bears will get more aggressive. Two open gaps make a bear very happy as they know they will be defended on any attempt to get back through. Today is an important first step, but it is only step number one and to take it a bit further, the volume on the gap down was not strong enough to give the bears that all over fuzzy feeling.
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Tuesday, July 08, 2014
Airplanes, Automobiles and Stock Market Crashes / Stock-Markets / Financial Crash
Shah Gilani writes: By the time you’re reading this, I’ll be 30,000 feet in the air – if my plane’s not delayed further.
While that doesn’t matter to you, it does to me… if we crash.
What’s relevant about my flying today is that this morning on my way to the airport, in the back of a cab in dead slow traffic, I started thinking about airplanes and stock-market crashes.
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Monday, July 07, 2014
Thriving in a Crisis Economy - 2014 Fall Casey Summit / Stock-Markets / Financial Markets 2014
Even though I sometimes have trouble remembering what I ate for breakfast, I vividly remember watching John Wayne's movie The Alamo, even though I was only seven years old at the time.
That it made such a big impression on my young self was due to a combination of the heroics of the small band fighting against overwhelming odds, as well as a fascination that fate brought Davey Crockett and Jim Bowie - two of my favorite historical characters as a kid - together in the doomed fort.
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Monday, July 07, 2014
U.S. Stock Market Analysis and Forecast / Stock-Markets / Stock Markets 2014
Gary Tanashian writes: The following is an excerpt from NFTRH 298′s 38 pages of hard hitting, no b/s market analysis, which also included extensive work on the precious metals along with commodities, currencies, global markets and market sentiment.
Stock Markets – US
Happy Independence Day America! Your markets are bullish… and over bought, over loved and running on increasing momentum.
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Monday, July 07, 2014
Stocks Extend Uptrend As Investors Sentiment Remains High – Will It Continue? / Stock-Markets / Stock Markets 2014
Briefly: In our opinion, no speculative positions are justified.
Our intraday outlook remains neutral, and our short-term outlook is neutral:
Intraday (next 24 hours) outlook: neutral
Short-term (next 1-2 weeks) outlook: neutral
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish
Monday, July 07, 2014
S&P 500, Dow and Nasdaq Since Their 2000 Highs / Stock-Markets / Stock Markets 2014
Courtesy of Doug Short. Here is a update in response to a standing request from David England, a retired professor now actively educating investors through his Trader’s Eye website. In his presentations, he likes to disprove the standard message of Wall Street, “Don’t worry! The market will always come back.” I furnished David with some charts, and I now share them with regular visitors to my Advisor Perspectives pages.
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Monday, July 07, 2014
The Truman Show Stock Market - How Things Look And What They Are / Stock-Markets / Stock Markets 2014
We hugely underestimate what it means not to have a functioning financial system and economy. It even feels sort of fine for a while, both to the richer part of our population who get richer, and to the rest who fall for the dream that things in their lives will get better again soon. But there is still a big difference between what things look like, and what they really are. And one day we will need to snap out of the dream and face reality.
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Monday, July 07, 2014
Japanese Stock Market Still Leads – You Need To Look Close / Stock-Markets / Japanese Stock Market
Forex Kong writes: We’ve all got a thesis ( or at least I hope you do ) as to how we see things moving in the future. Some base it on their knowledge of fundamentals, others purely from a technical perspective and then fewer still - those who attempt to take both disciplines into account, to formulate a picture of things to come.
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Monday, July 07, 2014
Another Minor Stock Market Top / Stock-Markets / Stock Markets 2014
Current Position of the Market
SPX: Very Long-term trend - The very-long-term cycles are in their down phases, and if they make their lows when expected, there will be another steep decline into late 2014. However, the Fed policy of keeping interest rates low has severely curtailed the full downward pressure potential of the 40-yr and 120-yr cycles.
Intermediate trend - The DOW may be tracing out an ending diagonal pattern.
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 discusses the course of longer market trends.
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Sunday, July 06, 2014
How Wall Street Plays the Dark Pools Game / Stock-Markets / Market Manipulation
Shah Gilani writes: Most people who are just "in the market" don't understand high-frequency trading and dark pools. And that's okay.
However, as I've been writing about over the past couple of years, apparently that unknowledgeable group also includes people whose job it is to understand these things, including institutional money managers, brokers, investors, and, evidently, most regulators... though I don't buy their ignorance one bit.
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Sunday, July 06, 2014
Stock Market Primary III Wave Continues / Stock-Markets / Stock Markets 2014
The holiday shortened week started on Monday with new bull markets highs, and continued making higher highs nearly every day this week. For the week the SPX/DOW were +1.3%, the NDX/NAZ were +1.3%, and the DJ World index gained 1.4%. Economic reports for the week were mixed. But the big news was the 288k jump in payrolls and the decline in the unemployment rate to 6.1%. On the uptick: pending home sales, construction spending, the ADP index and the Trade deficit improved. On the downtick: the Chicago PMI, factory orders, ISM manufacturing/services, and weekly jobless claims rose. Next week we get reports on Consumer credit, the Treasury deficit, and the FOMC minutes.
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