Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Tuesday, November 19, 2013
Stock Market S&P Surge Above 1800 That Does Not Hold / Stock-Markets / Stock Markets 2013
Courtesy of Doug Short: The S&P 500 rose at the opening bell and broke out (briefly) above 1,800 — hitting its 0.23% intraday high 10 minutes later. The index then used Friday’s closing price as a trampoline while trading in a narrow range until the final 90 minutes of the day, when a wave of profit-taking dropped the index to a modest closing loss of 0.37%. Reuters, always eager to explain daily market behavior, attributes the late selling to Carl Icahn’s comment that he is “very cautious” about equities.
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Tuesday, November 19, 2013
U.S. Debt Crisis, Evidence Fed Does Not Control Markets / Stock-Markets / US Federal Reserve Bank
Dear Reader
Ever heard of a wedding crasher? You know -- that distant “cousin” who shows up uninvited, hangs around the open bar all night, chugs down double-everythings and falls on his butt on the dance floor -- all before mysteriously vanishing and leaving his night of indulgence on the father of the bride’s tab.
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Tuesday, November 19, 2013
The Dow Jones Stocks Index Probably Peaked Monday (18th Nov 13) / Stock-Markets / Stocks Bear Market
I recognise that I’m sticking my neck out here, but this post will be short and to the point. It seems to me that, barring significant Fed intervention, the US equity market probably peaked today. Please take the time to read my “Author Comments” that follow the Conclusion.
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Tuesday, November 19, 2013
Stock Market Late Selling..... Not Anything Terrible / Stock-Markets / Stock Markets 2013
It wasn't anything terrible, but it did come from some nasty looking MACD's on those daily-index charts. When studying them we see that they are making lower highs on the MACD's while printing higher highs in price. The small-cap stocks and Nasdaq look particularly poor, although with this market who knows if they'll ever play out, but you can't like what you see when looking at those charts. Add in the poor readings on sentiment and the combination, one would think, would bring about a fairly reasonable pullback, but who knows for sure. The market has been so strong it's hard to bet against it but you need to be safe when things show themselves and with today's reversals it seemed appropriate to raise some cash.
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Monday, November 18, 2013
Stock Market Bubble Melt-Up Scenario for 2014 / Stock-Markets / Stock Markets 2014
Market mavens have increasingly turned their talk to a possible “melt-up” scenario in the stock market. The big fear entering 2014 is that another runaway freight train-type stock market, like the one preceding the 2008 crash, is gathering momentum. The latest comment by incoming Fed president Janet Yellen only added to that speculation.Read full article... Read full article...
Monday, November 18, 2013
Stock Market Closing In on Primary Wave III / Stock-Markets / Stock Markets 2013
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 (after this bull market is over), there will be another steep decline into late 2014. However, the severe correction of 2007-2009 may have curtailed the full downward pressure potential of the 40-yr and 120-yr cycles.
Intermediate trend - Important top formation is in the making.
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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Monday, November 18, 2013
One More Reason Stocks Could Go Higher From Here / Stock-Markets / Stocks Bull Market
Brett Eversole writes: After 28% gains so far this year, U.S. stocks are on pace for their best year since 1997.
But like the rest of the world, this probably has you worried.
Most investors see high prices as a bad thing. They believe higher prices mean higher risk. And they expect a crash to come any day to fix the problem.
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Monday, November 18, 2013
Yellen as a Predictor of Market Bubbles? / Stock-Markets / Liquidity Bubble
Economics is an ironic science (if it is science at all by physicists' standards). One can be perfectly correct about various phenomena in general, but offer completely wrong predictions in detail. Nevertheless offering correct predictions is still a significant skill, even if your theories are wrong. Living aside Janet Yellen's theories for the moment, we should praise her for the prediction abilities. As the study of Wall Street Journal confirms, she was the best predictor from the group of the Federal Reserve Policy makers.
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Monday, November 18, 2013
New Dow Jones Record? Stock Market Actually in Freefall Since the Year 2000 / Stock-Markets / Stocks Bear Market
Lately, the Dow Jones Industrial Average and most every other market index have been on a tear, setting new records every week. There should be hairy asterisks aside these "records" that belie the larger truth: these aren't records at all. They aren't even close to the January 2000 record of 11,720 in terms of real stuff.
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Sunday, November 17, 2013
World Stocks Markets Rally Resumes / Stock-Markets / Stock Markets 2013
Courtesy of Doug Short: Six of the eight indexes in my international focus group posted gains over the past week, with Japan’s Nikkei making an impressive 7.66% advance. The S&P 500 was a distant second with a more modest gain of 1.56%, largely in response to the dovish stance of Fed chair nominee Janet Yellen. At the other end of the scale, India’s SENSEX lost 1.29% in a holiday shortened four days of trading.
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Sunday, November 17, 2013
Stocks Market Talks, Few Listen - Profit Is The Only Objective / Stock-Markets / Stock Markets 2013
What if you had someone, or something, to act as a reliable advisor telling you what to buy and when, and also how to manage your risks? Would you pay attention? Who would say "No" to such a proposition? Yet, almost everyone does ignore the source. Instead, people listen to brokers, [foolish]talking heads on financial networks, or whatever other source one may choose for advice or direction.
The best and most reliable source is the market itself. It provides all available information from all available sources condensed into a bar, depicting the open, high, low, and close of whatever time frame one chooses: intra day, daily, weekly, monthly, annually, etc. What is interesting about this is that the information is available to everyone, at the same time any price is executed in the marketplace.
Sunday, November 17, 2013
The Stocks Bull Market No One Believes In / Stock-Markets / Stock Markets 2013
Despite a string of new all-time highs, many investors are sitting out what has been one of the most impressive stock market rallies in years. A “buyer’s strike” has materialized this year in which value-oriented investors have deemed the market to be too expensive. Their collective response: taking no action while the bull market passes them by.
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Sunday, November 17, 2013
Stock Market All Time Highs / Stock-Markets / Stock Markets 2013
The market opened the week higher, tried to break out above SPX 1775, pulled back to 1761 Wednesday morning, then made all time new highs for the rest of the week. For the week the SPX/DOW were +1.45%, the NDX/NAZ were +1.70%, and the DJ World index was +1.5%. On the economic front negative reports out numbered positive ones 7 to 4. On the uptick: wholesale inventories, the monetary base, the WLEI and the Treasury deficit improved. On the downtick: export/import prices, the NY FED, industrial production, capacity utilization, plus both the trade deficit and weekly jobless claims were higher. Next week we get a look at the Philly FED, CPI/PPI, Retail sales and the FOMC minutes.
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Saturday, November 16, 2013
Yet Another Stock Market All-Time High / Stock-Markets / Stock Markets 2013
Courtesy of Doug Short: The S&P 500 gained 0.42% today, closing its sixth consecutive week of gains at yet another all-time high. Janet Yellen support for dovish monetary policy was the key driver of this week’s market optimism — first with her prepared statement and then with the testimony itself. Meanwhile, today’s economic data was a bit on the weak side: Empire State Manufacturing showed contraction with the weakest numbers since January and the Fed’s report on October Industrial Production came in below expectations. But the market is more focused on the odds of more Fed stimulus, which weak economic data supports.
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Saturday, November 16, 2013
Technical Evidence Dow's Bew high is Not a Stock Market Breakout / Stock-Markets / Stock Markets 2013
Complacency does not equal buying hysteria
There’s too much “loose talk” that the public is going to pile into the market for the third, and final, blow-off phase.
The first chart below (bigcharts.com) shows that, since August 2011, the index has been rising on falling volume. Over a two year period (+- 700 days) at an average daily volume (visually) of around 150 million, (700 X 150 million =) 105 billion shares changed hands. By contrast, OBV has risen from around 2.5 billion to 7.5 billion = 5 billion.
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Saturday, November 16, 2013
Stock Market Status Quo....More Red Flags.... / Stock-Markets / Stock Markets 2013
Nothing has changed. After trading sideways for three weeks and refusing to really fall with any force, the market heated back up this week with some decent gains, basically across the board. The bulls were bored not having gains for a few weeks, thus, they decided it was time, once again, to get moving, since the bears were unable to do anything of significance for that period of time prior. No great blow up and out, but there was one very strong day this week, which also included your typical grind higher most of the other days. Classic bull-market action for sure. Spend some time calming things down a bit, and then rock things up again once oscillators unwound some on the key daily-index charts.
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Saturday, November 16, 2013
Why Still Only A Cyclical Stocks Bull Market Within Long-Term Secular Bear / Stock-Markets / Stocks Bear Market
In 1999 Warren Buffett famously warned that “The next 17 years will be quite unlike the last 17 years. It might not look much better than the dismal 1965-1982 period.”
He was referring to the market’s history of cycling between long-term ‘secular’ bull and ‘secular’ bear markets, as it has done for at least 113 years.
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Saturday, November 16, 2013
Investors Profit and Protect from The Great Race to Debase / Stock-Markets / Financial Markets 2013
"’I would like to see the truth come out of these confirmation hearings to discuss how completely clueless Janet Yellen was during the housing bubble,’ Schiff suggests by way of warming to the topic. Not only did Yellen fail to see the crash coming, but she was dismissive of the dangers related to our over-leveraged housing economy even as Schiff himself was doing his best to alert the public. ‘She was wrong about everything in the past and I think she will continue to be wrong once she's chairwoman.’
“Schiff says it is Yellen's faith in the fed's ability to cure what ails the economy that will prove to be America's undoing. Having learned nothing from the crisis Yellen will continue to print money until the long-anticipated currency crisis arrives and ‘brings an end to the madness,’ he argues.
Friday, November 15, 2013
Stock Market SPX Topping Valuations / Stock-Markets / Stocks Bear Market
2013’s incredible stock-market melt-up persisted this week, with the flagship American stock indexes surging to fresh record highs. The euphoric bulls continue to claim today’s lofty stock prices are justified by reasonable valuations. But nothing could be farther from the truth. Stocks are actually very expensive these days, with high valuations seen at major bull-market toppings. This makes for super-risky markets.
Successful investing demands buying low then selling high, so the price paid for any stock is absolutely critical to its ultimate return. Paying too much, buying even a great company’s stock when it is too expensive, virtually assures poor future gains at best. And overpaying when a bull market happens to be topping will lead to severe losses, as subsequent bears cut in half even the mightiest blue-chip stocks.
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Friday, November 15, 2013
Stock Markets Set Another All-Time High - Thank You, Janet Yellen! / Stock-Markets / Stock Markets 2013
Courtesy of Doug Short: The S&P 500 posted another all-time high with a closing gain of 0.48%. The popular financial press (e.g., CNBC, Bloomberg and Reuters) attributes the market’s merry mood to Janet Yellen’s congressional testimony before the Senate Banking Committee, where she has underscored her support for the Fed’s policy of Quantitative Easing.
Meanwhile, key segments of the real economy, represented by the likes of Cisco (down 13% after revenue warning) and Wal-Mart (forecasting a disappointing profit for the holiday season), are sending less happy signals.
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