Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Wednesday, July 10, 2013
China Economic “Miracle” Has Failed… What’s Next For the Stock Market? / Stock-Markets / Chinese Stock Market
China, which the investment world blindly continues to believe will power the global economy to growth, just posted its single worst export data since 2009.
All in all, Chinese exports fell 3.1% from a year earlier. Analysts had forecast growth of 3.7%. The reason? They continue to believe China will somehow pull a rabbit out of a hat and grow exports at a time when the global economy is sharply contracting.
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Wednesday, July 10, 2013
Stock Market Rally Eight Gains in Ten Sessions / Stock-Markets / Stock Markets 2013
Courtesy of Doug Short. Premarket futures were positive and the S&P 500 opened at its intraday low, up 0.15% from Monday’s close, surged for a couple of minutes but gave back much of the gain by the end of the first hour of trading. Rally mode then resumed, and the index rose to its 0.84% intraday high in the final 30 minutes of trading. It closed off its high with a gain of 0.72%, stretching the latest rally to four consecutive days and eight positive closes out of the last ten sessions.
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Wednesday, July 10, 2013
Stock Market Bad Omens / Stock-Markets / Stock Markets 2013
We have clearly been in a recent run of higher interest rates, with a looming "threat" that there might be less quantitative easing before the end of the year. It would appear now that Bernanke wants to leave his successor to implement what everyone knows must be coming at some point: a return to a normal interest-rate environment. While rising interest rates are bad for me personally (for another four months), a return to normalcy would be good for our future – though the transition is likely to be bumpy.
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Tuesday, July 09, 2013
U S Stock Markets… Chartology’s Best Kept Secret…The Bullish Rising / Stock-Markets / Stock Markets 2013
As most of you know I’ve been bullish on the stock markets for quite sometime now. I know there are a lot of investors that are bearish on the US markets and are looking for them to crash on burn. From my perspective nothing is broken that would tell me at this point in time to expect a major correction. So far the charts have been playing out beautifully and if nothing is broken there is no need to fix it.
The first chart I would like to show you is a very long term monthly look at the INDU that seems to be repeating a pattern that formed back in 2002 to 2007 rally phase. I’ve shown this chart several times in the past that shows the bullish rising wedge that formed as a halfway pattern in the middle of the 2002 to 2007 rally. No one at the time recognized this pattern, the bullish rising wedge, because everyone always considers these patterns as bearish. Nothing could be further from the truth as I have shown many times they act and perform just as any other consolidation if the price action breaks out through the top rail. The chart below shows the bullish rising wedge that formed in 2002 to 2007 as a halfway pattern that measured out perfectly in time and price to the 2007 high just before the crash. You can see our current bullish rising wedge that I’ve been showing since the breakout about 6 months or so ago.
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Tuesday, July 09, 2013
Stock Market Holding 1628.... Nasdaq Lags… Nothing Bad... / Stock-Markets / Stock Markets 2013
Today was an important day for the bulls. They finally captured the gap resistance level of 1628 on the S&P 500 on Friday after numerous failures. They didn't clear cleanly as the close was only approximately four points above, but it was good to see the close above 1628. Today the bulls were able to get a gap up again putting some further distance away from 1628. Every point counts when you're trying to move through a key level of resistance such as 1628. The move today wasn't huge, but it was decent and that's really all that matters as you can't have explosive days every day.
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Monday, July 08, 2013
Stock Market Flash Crash Warning / Stock-Markets / Financial Crash
US Equities opened higher this morning and are setting up for a sharp pullback based on technical analysis using trends, cycles, momentum, volume, market breadth and key resistance zones.
Take a look at the charts below for a quick flash of what I think.
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Monday, July 08, 2013
The Inflation Trades Are Your Friend / Stock-Markets / Financial Markets 2013
Ignore the pundits and pay attention to the action and what you see around you. Last time I walked down the cereal aisle I thought maybe I needed glasses, but no… the boxes keep shrinking. That’s inflation as seen in food being priced in via smaller servings at the same or higher prices. Gold has likely put in a massive cyclical bottom in the 1180′s with 1156 the likely support now for any further pullback and analysts continue to downgrade the better Gold miners right near the cycle bottom.
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Monday, July 08, 2013
Gold, Stocks and Bonds Financial Respite / Stock-Markets / Financial Markets 2013
When volatility spikes the economy in certain ways, it can cause some leveraged positions to implode which can, through paper markets collapse the price of a given commodity etc. Some event is looming that will serve as a trigger for the next down leg in the broad stock market indices...the rising US Dollar Index is serving that at present and as mentioned earlier this week, there are thousands of potential dominoes out there waiting to be knocked over to start the cascade...just which one and when this occurs is an unknown. And with volatility comes government to try and maintain stability through financial respite. There are many definitions of respite in the dictionary, but the short and sweet version is “To delay the carrying out of (punishment)...or to relieve temporarily, especially of anything distressing or trying”.
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Monday, July 08, 2013
QE, The Velocity of Money And Dislocated Gold / Stock-Markets / Quantitative Easing
From time to time, it's nice to look at a series of graphs, and let them tell their thousand words worth - each - of stories. In this case, I started out looking at US monetary base at the St.Louis Fed website and it sort of went from there. Curious trends and intriguing numbers, beyond what I would have thought. To refresh memory and avoid confusion, first a few definitions:Read full article... Read full article...
Monday, July 08, 2013
Stock Market Uptrend Asserting Itself? / 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 continues to progress according to its structure. After reaching 1687,an intermediate reversal took it down to the 1560 level, from which it rebounded strongly. That rebound appears to be evolving into the beginning of a new uptrend.
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Monday, July 08, 2013
U.S. Stock Market is Uptrending / Stock-Markets / Stock Markets 2013
After a gap up Monday to SPX 1627, the market pulled back to 1605 on Wednesday, then gapped up again Friday and hit 1632. For the week the SPX/DOW were +1.55%, the NDX/NAZ were +2.00%, and the DJ World index was +0.70%. On the economic front positive reports continued to lead negative ones. On the uptick: ISM manufacturing, factory orders, the ADP, the Payrolls report and weekly jobless claims improved. On the downtick: ISM services, the WLEI, the M1 multiplier and the trade deficit widened. Next week we get the FOMC minutes, the PPI and Consumer sentiment.
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Sunday, July 07, 2013
Stock Market (Bernanke) Demand Cannot be Sustained As Is / Stock-Markets / Stock Markets 2013
If central planners were put in charge of managing the Mohave Desert, out West, it would eventually run out of sand. When central planners manage anything, they distort natural market forces, and that ultimately creates an exaggerated effect in the opposite direction. At some point, and now sooner rather than later, the Fed's [Bernanke] interference with the stock market is going to make the 2008 crash seem like a minor correction.
There is one thing, and one thing only, driving the stock market, and that is debt. It is not new capital. It is not new investment in plants and machinery, the "old fashion" way of creating a sustained bull market. It is borrowed money, and the cost of cheap money is going to become dear. When that happens, the [overly] leverage factor is going to destroy everyone who is leveraged. This "party" to the upside will end, and when it does, those who chose to believe in the lies will suffer dire financial consequences.
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Saturday, July 06, 2013
Investor Mega Trend Nuggets / Stock-Markets / Financial Markets 2013
“More than three quarters of Americans say they are living paycheck to paycheck, with barely enough to scrape by in an emergency. In a survey of 1,000 adults, fewer than one in four said they had enough money to cover expenses for six months. Half said they had less than a three month cushion, while a quarter said they had no savings at all.” CNN.com, 7/2/2013
Successful Investors are typically those who keep in mind the Great Trends And Fundamental Realities when making their decisions. And these Trends are not usually those on which the MainStream Media, with its addiction to “reporting” Politically Correct GroupThink, focuses.
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Thursday, July 04, 2013
The Greatest Threat to the U.S. Economy and An Easy Way to Protect Yourself / Stock-Markets / Financial Markets 2013
America is staring down a fiscal catastrophe, says Porter Stansberry, the outspoken investment analyst who has coined the phrase "the end of America." Americans are living beyond their means, he says, and the global economy is tired of holding our debt. Nothing short of economic disaster will befall us. But amid such grim predictions, in this interview with The Gold Report, Stansberry takes a moment to praise the enduring value of timeless investments, such as farmland and. . .Krispy Kreme. Stansberry shares his thoughts on everything from the Federal Reserve to Hong Kong.
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Wednesday, July 03, 2013
Has the Stock Market's Next Down Leg Begun? / Stock-Markets / Stock Markets 2013
Well we got right to the trendline noted in earlier articles. We’re now beginning to roll over as we predicted.
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Wednesday, July 03, 2013
Stock Market Drop Forecast by Leading Sectors, Cycles and Momentum / Stock-Markets / Stock Markets 2013
As talked about almost two weeks ago when the SP500 trend reversed to the down side we have been waiting for a bounce in price to short the market (buy and inverse ETF). That happened last week and now we are waiting for the market to shake out the short positions and suck in as many traders to get long before the next wave of major selling takes place.
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Wednesday, July 03, 2013
Stock Market Flash Crash Still Probable / Stock-Markets / Financial Crash
SPX revisited the 50-day moving average this morning at 1624.06 and has since declined toward Short-term support and rally trendline at 1650.50. Once beneath these supports, we should see the SPX fall away pretty rapidly. The probability of a Flash Crash is very high, with a potential bottom date of Tuesday, July 9. Beyond that, there may only be a short but powerful bounce that will rollover into a deeper decline ending in the first week of August.
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Wednesday, July 03, 2013
Inflation’s Shot Across the Bow, Deflationary Pressure is Expected to Resurface / Stock-Markets / Deflation
On May 3, the bond market fired the proverbial “shot heard ‘round the world.” Treasury yields began a two-month climb to levels not seen in almost two years. Many analysts proclaimed the end of the 30+ year interest rate decline. The true significance in the yield rally isn’t that the long-wave deflationary trend in interest rates is over, however. Rather, it’s that the commencement of long-term inflation is within sight.Read full article... Read full article...
Wednesday, July 03, 2013
The Stock Bull Market Top / Stock-Markets / Stock Markets 2013
It looks increasingly likely that the high in the Dow on 5/22/13 was the top of the bull market. Let’s go through the process used by George Lindsay to discover why.It is true that the window for the top (as defined by the 15year interval from October 1997) is open until the end of September, as is the time span of a short basic advance (630-718 days) from the low of the basic cycle on 10/4/11.
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Tuesday, July 02, 2013
Brady Bonds Euro-zone Solutions, Rising Interest Rates Impact on Gold and Silver / Stock-Markets / Financial Markets 2013
Brady Bonds For the Eurozone Are the Only Long Term Solution:
Ireland’s presidency of the European Union ended last Friday. One of its last acts was to finalize the banking policy whereby future troubled Euro banks will be restructured using the Cypriot “bail-in” model. Ostensibly it would appear that the banking crisis is now behind us and the path is clear on how to move forward and achieve banking stability and re-capitalization.