Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Tuesday, August 13, 2013
Reasons to Fear Major Stock Market Correction During the Fall / Stock-Markets / Stock Markets 2013
I generally shy away from making time-specific economic and stock market predictions simply because they are extremely difficult to accurately pinpoint. During 2006 I warned about a coming real estate collapse that would cause a severe recession in 2007. Back in January of 2009, I urged investors to start buying the stock market because I felt the majority of the selling was behind us. In general, making such predictions is a dangerous game and should be avoided in most cases because odds are very low you’ll be correct on both the prediction and the timing.
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Monday, August 12, 2013
Japan's Econcomy Stalling, Quadrillion Yen Stimulus Not Enough / Stock-Markets / Financial Markets 2013
Japan's economy is already stalling.
Japan’s economy slowed more than forecast in the second quarter as businesses cut investment, undermining gains in consumer and government spending that helped reduce deflationary pressures. Q2 GDP rose an annualized 2.6%, down from Q1, when it rose 3.8%, the Cabinet Office reported today in Tokyo. The median of 32 estimates by leading Economorons was for a 3.6% gain. While consumers continue to propel Japan’s rebound, companies have yet to commit to the Abenomics project, paring capital spending for a sixth straight quarter.
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Monday, August 12, 2013
Stock Market Enters Period for Major Correction / Stock-Markets / Stock Markets 2013
Market close to confirming new correction. 1685 support is KEY!
The SP 500 has been on a tear since late 2012 with the SP 500 bottoming at 1266. The rally though we have been charting out as part of a “Primary wave 3″ uptrend for this Bull market cycle from March 2009, and we are likely entering a Major correction or what we would label “Major wave 4″. Since the 1266 lows, we have had Major Wave 1, 2, and now 3 completed at 1710. We are entering Major wave 4 which should correct 23-38% of the entirety of Major wave 3, which was 444 points.
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Monday, August 12, 2013
Important Stock Market Warning Signs / Stock-Markets / Stock Markets 2013
George Leong writes: With the summer months drawing to a close, it has been a somewhat warm few months for the stock market with the S&P 500 and Dow recently at record highs.
Yet we are now seeing a pause, which may or may not be an indication that the current stock market rally has fizzled out after sizzling higher on the charts. Now, I would not be surprised to see a five-percent (or more) stock market correction.
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Monday, August 12, 2013
European Stock Market Looks Stronger – But Don't Be Fooled / Stock-Markets / Stock Markets 2013
Tara Clarke writes: A few economic reports over the past two weeks have fueled optimism that a Eurozone recovery will trigger bullish performance in the European stock market.
abb euro market
The German Economy Ministry released a report on Friday saying that economic activity has increased notably in Q2, supported by both private consumption and investment in building construction.
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Monday, August 12, 2013
Stock Market Significant Correction Decision Time / 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 – SPX May be in the process of forming an important intermediate top. Confirmation is needed.
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, August 12, 2013
Financial Markets – Preview for Week Starting 11th August 2013 / Stock-Markets / Financial Markets 2013
John Allen writes: Major Events of Last Week
The stock markets continued to slump last Friday by registering their worst weekly trading performance since June. For example, the US major indices struggled on the last day of the week typified by the Dow Jones Industrial Average crashing by almost 73 points; the S&P slipping lower by nearly 7 point and the NASDAQ dropping by almost 10 points.
Sunday, August 11, 2013
Effects of Malaysia Credit Squeeze on the Housing and Stock Market / Stock-Markets / Credit Crisis 2013
Malaysia’s current Household debt problem is not the result of our government’s recent policies to encourage private expenditure. In actuality the current debt problem has been accumulated from the past 15 years. The history of Malaysia’s Household debt can be traced back to 1997 where the household debt to GDP was only 39% then. This was also the year Malaysia is engulfed by the Asian Financial crisis.
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Sunday, August 11, 2013
Analysing Marc Faber's Stock Market Crash Forecast / Stock-Markets / Financial Crash
Courtesy of Doug Short: Thursday on CNBC, Marc Faber made front headlines across the web calling for a 1987-style crash in the stock market. Faber cites a strong rally in the face of lackluster corporate earnings growth and weakening market breadth to characterize the backdrop to 1987, and says we have a similar outcome today.
Given the enormity of the crash that occurred then, and the fear that many investors have for such a repeat event, let’s take a look at the comparisons between now and then and see how close they match up.
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Sunday, August 11, 2013
Banking and Financial Collapse - We Can’t Take the Chance / Stock-Markets / Credit Crisis 2013
What would it have been like to be in the decision-maker's seat at a central bank in the midst of the crisis in 2008-09? You'd know that you won't have the luxury of going back and making better decisions five years later. Instead, you have to act on the torrent of information that's coming at you from every quarter, and none of it is good. Major banks are literally collapsing, the interbank market is almost nonexistent, and there is panic in the air. Perhaps you feel that panic in the pit of your stomach. This week we'll perform a little thought experiment to see if we can extrapolate what is likely to happen in when the next crisis kicks in.
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Saturday, August 10, 2013
The Euro-Zone Crisis Will Be Back Very Shortly / Stock-Markets / Eurozone Debt Crisis
The financial media continues to talk about how Europe is saved.
It’s odd that somehow everything is starting to look so much better now than Angela Merkel is up for re-election in Germany. Could it be coincidence that the worst Crisis in years suddenly went away right as the women with her finger on the “bailout” button needed to convince German voters that she’s doing a great job?
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Saturday, August 10, 2013
Stock Market Uptrend May Have Topped / Stock-Markets / Stock Markets 2013
The week started off with a gap down on Monday, rallied back to within one point of the uptrend high, and then did not recover for the rest of the week. Disappointing after last week suggested some more upside potential. For the week the SPX/DOW were -1.30%, the NDX/NAZ were -0.80%, and the DJ World index lost 0.4%. Economic reports for the week had a slight positive bias. On the uptick: ISM services, the WLEI, the monetary base, and the trade deficit improved. On the downtick: consumer credit, wholesale inventories and weekly jobless claims rose. Next week, a busy one, will include Industrial production, Retail sales, the CPI/PPI, reports on Housing and Options expiration. Best to your week.
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Saturday, August 10, 2013
Key Hot Market Sectors Ready to Launch / Stock-Markets / Stock Markets 2013
Key Sectors and Subsectors are poised to launch up in the next few weeks or very few months, depending on the sector.
Others will languish or crash.
However, very few of the Sectors poised to launch up soon are multi-year holds, because the Developing Trends in the Economy, Markets and Central Bank Policy (see our Forecasts) will likely not allow that.
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Saturday, August 10, 2013
Stock Market Withdrawal From Stimulus Addiction Will Be Difficult / Stock-Markets / Stock Markets 2013
Markets around the world panicked in May when Fed Chairman Bernanke hinted that the Fed could begin dialing back QE stimulus as early as at its June meeting. Oh no! That June meeting was only a month away. The FT World ex-U.S. Index plunged 13% over the next four weeks. The MSCI Emerging Markets Index (19 countries) plunged 14%. Even the S&P 500 in the U.S. declined 6% to the June 22 low.
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Thursday, August 08, 2013
Japan Stock Market Flashing a Warning For What is Coming Our Way / Stock-Markets / Stock Markets 2013
The markets fell yesterday despite the Fed pumping over $5 billion into the system. The primary reason is that the Fed is once again talking about tapering QE. There’s also the uncertainty of who the next Fed Chairman will be (Larry Summers’ odds of filling the roll can be correlated to the dips in the market as Summers has been critical of QE in the past).
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Thursday, August 08, 2013
What a QE Taper Means for Markets and the Next Fed Chair / Stock-Markets / Quantitative Easing
Garrett Baldwin writes: On Tuesday, Federal Reserve Bank of Chicago President Charles Evans announced that he wouldn't be surprised if the central bank begins to taper its $85 billion monthly bond-buying program in September.
Evans is the third official this week to signal a QE taper. Richard Fisher, president of the Dallas Fed, and Dennis Lockhart, president of the Atlanta Fed, parroted Evans' sentiment.
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Thursday, August 08, 2013
Some Stock Market Selling Continues....Sentiment Poor Again..... / Stock-Markets / Stock Markets 2013
The futures began to fall not much after the market had closed last night. Slowly but surely the selling began. But there was nothing that made you believe we were about to blast up again, since we also closed a few points below 1700 on the S&P 500. Not forcefully below, but the churning the past few days just above 1700, and then they closed slightly below last night, didn't give you a warm and fuzzy feeling about the market heading in to today's action. The market gapped down some, and then headed lower with some force, until it got to the 20-day exponential moving average at 1684. Buyers naturally came in there as this was only the first real test of the 20's. In a bull market the bears aren't likely to succeed at removing critical support levels on the first try, although it can always happen.
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Wednesday, August 07, 2013
Shocking Economic Numbers About China, Now is the Time to Buy Chinese Stocks / Stock-Markets / Stock Markets 2013
Keith Fitz-Gerald writes: There are few things more exciting in the investment business than finding a golden opportunity staring you in the face.
That's why I do a lot of research. Because I know that the more I dig, the greater the chance I will find something that others miss, that leads to big opportunity.
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Wednesday, August 07, 2013
Is the Stock Market Top In? / Stock-Markets / Stock Markets 2013
I keep hearing that whenever “stocks are rising” it’s a good thing.
I completely disagree. If a market move is warranted by earnings and fundamentals, then yes, a sharp move higher is great. But if the market is rallying based on false hopes, or even worse, is in a bubble, then it’s actually very bad for stocks to move higher because it means the ensuing collapse will be even more violent (a la 2000 and 2008).
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Wednesday, August 07, 2013
Stock Market 3 Peaks and a Domed House Price Pattern / Stock-Markets / Stock Markets 2013
An odd looking 3PDh pattern has occurred over the last year in the Dow. Lindsay wrote that when these patterns cap secular bull market highs (rather than cyclical highs) they often look atypical.Three peaks formed on 4/2/12, 5/1/12, and 10/5/12 which meet Lindsay’s requirement that peaks one and three be within 6-10 months apart.
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