Analysis Topic: Stock & Financial Markets

The analysis published under this topic are as follows.

Thursday, June 13, 2013

Fear Sneaking Back into the Stock Market / Stock-Markets / Stock Markets 2013

By: DailyGainsLetter

Moe Zulfiqar writes: In just a matter of a few months, the S&P 500 is up more than 14%. To say the very least, these gains are nothing short of amazing—much better than what investors can get with the long-term U.S. bonds that currently yield less than 3.5%.

Consider this: on average, in the first five months of this year, the S&P 500 went up by about 2.8% per month (14% divided by five months). Assuming the stock market keeps the same pace, the S&P 500 will gain way more than 30% this year (12 times 2.8%).

Thursday, June 13, 2013

Healthy Stock Market Selling Kicks In.... / Stock-Markets / Stock Markets 2013

By: Jack_Steiman

There's good selling and there's bad selling. Selling that comes with a massive breakdown is never good if you're a bull. Not something you really ever want to see from a bull-market perspective. Then there's selling that comes which serves two very important purposes. Both from an unwinding standpoint. Look folks, the market stayed overbought, obnoxiously so, for a very, very long time. It just refused to sell very much. RSI's constantly in the 70 range, often well above with some RSI's reaching up near a ridiculous 90 on those froth stocks. Stochastic's staying near 100 with readings 90, and above, for a very long time. MACDs very highly compressed. No move down, just staying at the top for weeks and months. Add in how the bull-bear spread went from the teens to the red flag reading of 36.4%, and the market was pretty much full to say the least.

Thursday, June 13, 2013

Financial Crisis 2008 Style Can Absolutely Still Happen Again / Stock-Markets / Credit Crisis 2013

By: Bloomberg

John Thain, former chairman and CEO of Merrill Lynch and COO at Goldman Sachs, told Bloomberg Television's Erik Schatzker and Sara Eisen on "Market Makers" today that a crisis like the one in 2008 could "absolutely" happen again." Thain said, "If anything, too big to fail is a bigger problem because the biggest financial institutions are more concentrated today than they were. Dodd Frank did not solve too big to fail."

Thursday, June 13, 2013

Stock Market SPX Support Broken / Stock-Markets / Stock Markets 2013

By: Anthony_Cherniawski

SPX broke the minor support at 1622.90 and has now gone back to retest it. The next support is the Cycle Bottom and 50-day moving average at 1610.00. SPX behavior here will tell us whether it will accelerate immediately to the downside or hesitate yet a few more days.

Wednesday, June 12, 2013

Why this Economic Statistic Scares Me to Death for the Stock Market / Stock-Markets / Stock Markets 2013

By: Money_Morning

William Patalon writes: A year ago at this time, a U.S. Federal Reserve study found that the median net worth of the American family fell by almost 40% between 2007 and 2010, wiping out 18 years of economic progress and cutting middle-class wealth back to levels not seen since the early 1990s.

A year later, a new study has found that - despite the continuation of the strongest-bull-market rebound in history - America's finances haven't improved.

Wednesday, June 12, 2013

Did the ECB Mega Bailout Just Hit the Wall? / Stock-Markets / Stock Markets 2013

By: Graham_Summers

Few analysts know or admit it, but the only thing that held Europe (and ultimately the financial system) together since May 2012 was the promise of unlimited bond purchases from the ECB.

The reason this worked was because traders poured into European bonds in an effort to front run the coming ECB purchases (much as they have done with Treasuries during every new QE plan in the US).

Tuesday, June 11, 2013

The Truth About "Dark Pool" Trading / Stock-Markets / Market Manipulation

By: Money_Morning

Shah Gilani writes: Well, this ought to be interesting - not for what might be revealed, but for what will likely remain in the shadows.

One of the weakest, least effective regulatory bodies around, the Financial Industry Regulatory Authority (FINRA), is now saying they want to shed some light on "dark pools."

Tuesday, June 11, 2013

"Abe-doom" How to Profit From Japan's NEXT Lost Decade / Stock-Markets / Japanese Stock Market

By: Money_Morning

Keith Fitz-Gerald writes: A few weeks ago The Economist depicted Japanese Prime Minister Shinzo Abe as a super-hero on its May 17 cover. Noting specifically, "Is it a bird? Is it a plane? No....It's Japan."

Knowing what I know about how magazine covers tend to affect the markets, I could only shake my head.

Tuesday, June 11, 2013

Is the Stock Market Ready to Take the Plunge? / Stock-Markets / Stock Markets 2013

By: Anthony_Cherniawski

SPX behaved as expected today, stopping at mid-Cycle resistance and the Lip of its Cup with Handle. The sell-off may now begin. The institutional traders will be coming into play this hour, so be alert to what is going on.

Tuesday, June 11, 2013

Anatomy of a Stock Market Top / Stock-Markets / Stock Markets 2013

By: Donald_W_Dony

There has been much speculation from the media and market pundits regarding the end of the bull market. Whenever there is a day or two of weakness on the S&P 500, predictions of the bull's demise multiples. Yet market tops typically have a distinct pattern that is recognizable and often lasts for months.

Market peaks normally develop over a period of four to eight months. A price ceiling occurs that investors and traders can not push through. This level is usually tested several times over the course of months.

Tuesday, June 11, 2013

Indian Government Tells Banks to Stop Telling People to Buy Gold / Stock-Markets / Financial Markets 2013

By: Profit_Confidential

Michael Lombardi writes: India, the biggest consumer of gold bullion, is witnessing over-the-top demand—to the point where the government is trying to curb demand.

The Finance Minister of India said last week, “Banks have a role to play in dampening the enthusiasm for gold. I think the RBI [Reserve Bank of India] has advised banks that they should not sell gold coins.” He added, “I would urge all banks to please advise their branches that they should not encourage their customers to invest in or buy gold.” (Source: “P. Chidambaram hints banks likely to stop gold coin sales to curb demand,”The Indian Express, June 7, 2013.)

Monday, June 10, 2013

Critical Financial Markets and Economic Indicators You Need to Check Every Day / Stock-Markets / Financial Markets 2013

By: Money_Morning

Greg Madison writes: Everyone has a different opinion on how best to take the measure of the markets and the economy at large.

Hairs standing up on end, a knee that aches with the weather, tea leaves, earnings estimates, the Hindenburg Omen - it seems like all of these are significant in some way at one time or another.

Monday, June 10, 2013

Why the Markets Really Loved the Bad U.S. Jobs Report / Stock-Markets / Financial Markets 2013

By: Money_Morning

Diane Alter writes: When bad news is good news for stock markets you know just how convoluted the current economic environment is.

According to the May jobs report out today (Friday), the U.S. unemployment rate ticked up to 7.6% in May from 7.5% in April, the first increase since the start of 2013. And, markets rallied on the news. The Dow Jones soared more than 200 points by mid-day.

Monday, June 10, 2013

Who Really Benefits from Inflation and Why You’re Not Wealthier / Stock-Markets / Financial Markets 2013

By: InvestmentContrarian

Sasha Cekerevac writes: The Federal Reserve Bank of St. Louis released an interesting report analyzing the underlying fundamentals of why America’s economic growth level still remains quite anemic. The results won’t surprise many people—most American households have rebuilt only a fraction of the wealth lost during the recent recession.

According to the Federal Reserve Bank of St. Louis, household net worth peaked at $67.4 trillion during the fourth quarter of 2007. Household net worth then sunk to a low of $51.4 trillion in 2009, and has since rebounded to $66.1 trillion. (Source: “Annual Report 2012,” Federal Reserve Bank of St. Louis web site, May 2013, accessed June 6, 2013.)

Monday, June 10, 2013

Stock Market Index Trend, Facts, Rules Equals Successful Results / Stock-Markets / Stock Markets 2013

By: Michael_Noonan

Markets provide an opportunity to grow one's capital, and create a return on capital, in addition to a return of capital, its preservation being the benchmark to ensure it remains fully intact. Is there a magical formula for success in the markets? No. However, there is a realistic approach to increase the odds of consistent returns while keeping exposure to risk at an acceptable level.

The S&P used to be our mainstay market concentration, but we stepped away from that market when central planners took over, starting with POMO, [Permanent Open Market Operations], conducted by the privately owned Federal Reserve. With fiat being pumped into the markets on an ongoing basis, it was a fatal blow to free market operations, where supply and demand were the true measures of value. Now, [then], there was only an artificial demand that took quarrel with any attempts by supply to alter the Fed's upward trajectory.

Monday, June 10, 2013

Stock Market Rally in an Intermediate Downtrend / Stock-Markets / Stock Markets 2013

By: Andre_Gratian

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. An intermediate reversal is on the way.

Sunday, June 09, 2013

Big Brother Is Watching! Worlds Bond Markets Could Seize Up / Stock-Markets / Financial Markets 2013

By: Robert_M_Williams

“In life we all have an unspeakable secret, and unreachable dream, an irreversible regret, and an unforgettable love.”  Diego Marchi

A month ago we learned that the FBI was bugging the phones in the cloakrooms of Congress and listening to personal conversations of reporters and politicians. Then two weeks ago we read that the IRS was using their power against Obama’s political opponents. So I guess it shouldn’t come as a surprise to learn that the National Security Agency is currently collecting the telephone records of millions of US customers of Verizon, one of America's largest telecom providers, under a top secret court order issued in April. The order, a copy of which has been obtained by the Guardian, requires Verizon on an “ongoing, daily basis” to give the NSA information on all telephone calls in its system, both within the US and between the US and other countries.

Sunday, June 09, 2013

Stock Market Support Holds...For Now... / Stock-Markets / Stock Markets 2013

By: Jack_Steiman

The markets sold hard for a couple of weeks and when they hit the 50-day exponential moving averages on the key index daily charts they found a way to bounce which is not a great shock since some short-term charts got oversold. The combination of those 50-day tests and oversold sixty minute charts gave us a nice bounce. The real question on everyone's mind is whether the market has seen the lows from this correction or whether there's more to come once this bounce is over. There are a few ways to look at it. It's possible that the market will just whipsaw about for some weeks as the MACD's try to improve their current position.

Sunday, June 09, 2013

Positive End to a Volatile Stock Market Week / Stock-Markets / Stock Markets 2013

By: PhilStockWorld

Courtesy of Doug Short: The S&P 500 closed an exceptionally volatile week with a gain of 0.78%, thanks to the Friday gain of 1.28%. Today’s employment report for May was a perfect signal to the bulls: Nonfarm employment met or slightly beat expectations, so that key economic indicator is still in the green, but the unemployment rate ticked up ever so slightly from 7.51% to 7.56%. And since we round to a single decimal, it registered as a full tenth higher at 7.6%. Why the uptick? Labor force participation grew faster (up 420K) than the new jobs (175K). That uptick suggests that the Fed won’t be tapering QE in the near term, and it was that fear of tapering that created the high volatility this week.

Saturday, June 08, 2013

How to Protect Your Cash in Times of Crisis / Stock-Markets / Credit Crisis 2013

By: Don_Miller

The large depositors at Cypriot banks are shouldering a heavy burden. You’ll recall what happened back in March when the Eurozone financial wizards forced average citizens to participate in what was called a “bail-in.” It seems downright unfair for depositors with more than 100,000 euros to suffer a levy on up to 60% of their deposits. That’s about $140,000, give or take, at current exchange rates. And if you’re a retiree, having the government swipe $84,000 from your $140,000 account just to bail out feckless bankers is a pretty big deal