Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.
Saturday, August 04, 2012
Jobs Offset The ECB... Market Flat For The Week...... / Stock-Markets / Stock Markets 2012
By: Jack_Steiman
It was a very interesting week in many respects. There were at least three different times when it felt like a bear market and a bull market. The whipsaw continued with many of the usual head fakes for both the bulls and the bears. The action early on in the week was nasty with a strong down side bias. After getting through many huge economic reports and events that shot the market all over the place, the market finished strong, allowing for a flat week of overall action. We had the ISM Manufacturing Rport come on Wednesday, the same day we heard from Mr. Bernanke. The ISM Report disappointed as it showed our country to be slightly in the red regarding recession. The 49.8 reading showed continued economic contraction. The number was supposed to show slight growth. A bad start.
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Saturday, August 04, 2012
Stock Market Corporate Earnings Cycle Analysis / Stock-Markets / Corporate Earnings
By: John_Mauldin
A few weeks ago, Ed Easterling and I updated the work we published almost ten years ago about secular bear and bull markets. This week I am in Maine at the annual Shadow Fed fishing trip (for those of us whose invitation to Jackson Hole keeps getting lost in the mail). Ed has graciously agreed to do another piece with me on the earnings, or business, cycle, which is different in timing than the secular stock market cycle but is part of the total warp and woof of the markets. When you combine them, you get a much clearer picture of the markets.
Saturday, August 04, 2012
Fed Hits Kill Switch On Market Liquidity / Stock-Markets / Financial Markets 2012
By: Clif_Droke
Lately investors have been worried about liquidity, specifically the central bank's willingness (or unwillingness) to continue providing it, and with good reason. Without periodic injections of liquidity, investors eventually lose interest as financial markets begin to languish. And in a financial economy like the U.S., the death of a bull market means the death of the economic recovery.
Bull markets are to a large extent liquidity driven affairs. Without an abundance of excess monetary liquidity sloshing through the financial market, stocks and commodities have little hope of developing the necessary ingredient of forward momentum. Momentum is what attracts an ever-growing number of investors to participate in a bull market, which in turn is what keeps the bull market going. When liquidity dries up, momentum perishes and investors quickly lose interest. This, in a nutshell, is how bull markets turn into bear markets, viz. the absence of liquidity.
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Saturday, August 04, 2012
Stock Market Surge Higher - "The Stage is Being Set / Stock-Markets / Stock Markets 2012
By: EWI
Elliott Wave International has long observed that external events do not alter the dominant trend of financial markets -- not even major events like wars, natural disasters, terrorist attacks, political assassinations or any other news that makes headlines.
Now, it is true that news can sometimes have a near-term effect on market prices.
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Friday, August 03, 2012
Knight Capital and High Frequency Trading Making Markets Skittish / Stock-Markets / Financial Markets 2012
By: Bloomberg
Dinakar Singh, founder of $4 billion hedge fund TPG-Axon Capital, spoke with Bloomberg TV’s Erik Schatzker and Stephanie Ruhle on “Market Makers” today, saying that investors are scared and are paying a lot for safety. Singh said that the commodities “super cycle” is over because of falling Chinese productivity and profits—and that profits are improving the most in Japan.
Singh went on to say that he sees growth in the chemical, health-care and aerospace industries and likes Sirius XM and W.R. Grace. He also said “we are bearish on some financials, U.S. regional banks especially” and that he is betting against telecom stocks.
Friday, August 03, 2012
Euro Crisis - What Crisis? / Stock-Markets / Financial Markets 2012
By: Christopher_Quigley
"The European Central Bank indicated on Thursday (2nd. August) it may again start buying government bonds to reduce crippling Spanish and Italian borrowing costs but the conditions it set and the dissenting voice of its key German member disappointed markets.In the latest move to contain the eurozone crisis, ECB President Mario Draghi indicated that any intervention would not come before September - and only if governments activated the euro zone's bail-out funds to join the ECB in buying bonds.
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Friday, August 03, 2012
Lose $10 Million Per Minute for 45 Minutes Non-Stop, Computerised Trading losses Mount at the Dark Knight / Stock-Markets / Financial Markets 2012
By: DK_Matai
Algorithms Rule This Asymmetric Brave New World
Welcome to this asymmetric brave new world ruled by computerised algorithms that are causing more chaos in minutes than what human-beings were previously able to bring about in decades. The Knight Capital Group, the Jersey City, New Jersey-based brokerage firm -- one of America’s biggest market makers -- announced on Thursday that it lost $440 million because of a mis-firing computer program, which carried out nonsensical trades for three quarters of an hour on Wednesday before it was shut down. The losses caused by computerised trading malfunction are greater than the company’s consolidated revenue of $289 million in the second quarter of this year, never mind its earnings or profits. Knight’s automated high frequency trading algorithmic computer program ran out of control for about 45 minutes, which means the company lost $10 million for each minute the new software was running. A non-human employee of Knight Capital -- not a human rogue trader on this occasion -- executed the crippling damage in less than one hour on one of America's largest brokerage houses which had been going strong for nearly two decades.
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Friday, August 03, 2012
The Bernanke Put is a Lie / Stock-Markets / Market Manipulation
By: Graham_Summers
Now, about that Bernanke Put.
Many people believe that because Bernanke once talked about dropping money out of helicopters to fight deflation that he literally meant that he would do this if push came to shove. He didn’t. The whole thing was a bluff meant to prop up the markets: the famed Bernanke Put.
Truth be told, this bluff is probably the smartest thing Bernanke ever did. By threatening to leave a paperweight on the “print” button, he convinced the market and all of Wall Street that the Fed would always be there to step in and save the day.
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Friday, August 03, 2012
Indian Near Total Power Black Highlights the Dangers India Investing / Stock-Markets / India
By: Money_Morning
Keith Fitz-Gerald writes:
For years now I've preferred China over India.
When invariably asked to compare the two as investments, my answer has always been the same.
Somewhat tongue -in-cheek, I'd point out "that India has trouble keeping the lights on from one end of the country to the other."
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Friday, August 03, 2012
World Economies In Uncharted Financial Territory, Hold Cash and Gold / Stock-Markets / Financial Markets 2012
By: Bill_Bonner
Bill Bonner stakes out “uncharted territory” in an interview with The Money and Wealth Show…
Thursday, August 02, 2012
Systemic Upheaval, Economic Recovery Vs Propaganda Reality Check / Stock-Markets / Financial Markets 2012
By: Jim_Willie_CB
Some extremely powerful differentials in power are setting themselves up, in a manner never seen before in modern history. Those who dismiss the uniqueness of the situation are those who continually are surprised by events as they unfold. The pressure features the managers of the system, complete with corruption and fraud with official coverups in a never-ending sequence of crime scenes, pitted against the forces of justice and fair markets. Not a single fair market exists in USDollar terms. In pure Orwellian style, every single market has a US-based or London-based financial engineer at a control panel doing duty in price intervention. The Western defenders of the syndicate do not wish for the price structure to reflect the reality of physical shortage or the bounty of paper-based surplus, for the currencies to reflect true toxic value, and for the discovery price systems to reflect the raids of private accounts. The system is broken, and the pressure is building.
Tuesday, July 31, 2012
Planets Align for Stock Market Crash / Stock-Markets / Financial Crash
By: Money_Morning
David Zeiler writes:
Of all the tools one might use to predict a stock market crash in 2013, planetary alignments and solar particles are not, for most people, the first options that spring to mind.
But market analyst Arch Crawford has applied his arcane "astro indicators" for 35 years with surprising success.
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Tuesday, July 31, 2012
The Federal Reserve, Gold, Oil, and U.S. Dollar’s Demise / Stock-Markets / Financial Markets 2012
By: Chris_Vermeulen
“We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it”. ~ Congressman Louis T. McFadden in 1932 (Rep. Pa) ~
The above quote coming from the Honorable Louis T. McFadden is a quite prescient statement as it relates to arguably the most evil enterprise in American history.
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Tuesday, July 31, 2012
Facebook, Groupon, Gold - Challenging the Paradigms of Investing / Stock-Markets / Investing 2012
By: Frank_Holmes
It was an exciting and educational week. I was in Vancouver at the Agora Financial Investment Symposium speaking to hundreds of investors who are eager to learn how to grow and protect their wealth. This year’s theme, “Innovate or Die,” fit well with my presentation, as the conference challenged attendees to adapt their investment strategies just as empires and enterprises adjust to changing circumstances.
Monday, July 30, 2012
Sorry Mario Draghi, But Spain is Finished, Here’s Why! / Stock-Markets / European Stock Markets
By: Graham_Summers
As I’ve outlined in earlier issues of Private Wealth Advisory, Spain will be the straw that breaks the EU’s back. The country’s private Debt to GDP is above 300%. Spanish banks are loaded with toxic debts courtesy of a housing bubble that makes the US’s look like a small bump in comparison. And the Spanish government is bankrupt as well.
Monday, July 30, 2012
Dow 36,000, What Enquiring Minds Want to Know / Stock-Markets / Stock Markets 2012
By: Fred_Sheehan
The July 25, 2012, tribute to Barton Biggs received a large response. Biggs was obviously respected as well as loved. In the end, virtue is its own reward. Virtue is rarely rewarded in the world today; in fact, quite the opposite is true. It is refreshing to see such outpouring for a man who stuck to his guns and was also successful.
Monday, July 30, 2012
Stock Market Intermediate Target In Sight, Calm Before the Storm? / Stock-Markets / Stock Markets 2012
By: Andre_Gratian
Current position of the market
SPX: Very Long-term trend – The very-long-term cycles are down and, if they make their lows when expected (after this bull market is over) there will be another steep and prolonged decline into late 2014. It is probable, however, that the steep correction of 2007-2009 will have curtailed the full downward pressure potential of the 120-yr cycle.
SPX: Intermediate trend – SPX is in a limited intermediate uptrend which is estimated to end in the first week of August.
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Sunday, July 29, 2012
Why the Financial System Could Collapse / Stock-Markets / Financial Crash
By: Graham_Summers
In order to understand why we’re at risk of the financial system collapsing, you first need to understand how the global banking system works. When you or I buy an asset (say a house, or shares in a stock, or a Treasury bond), we do so because we’re looking to increase our wealth through either capital gains or through the income that asset will pay us in exchange for us parking our capital there.
Sunday, July 29, 2012
Will the Stock Market’s Direction Determine the U.S. Presidency? / Stock-Markets / US Presidential Election 2012
By: Frank_Holmes
After the first few months of President Barack Obama’s term in office, I wrote about the carnival rollercoaster the market was riding. Looking at the blue line below, that post may have foreshadowed his tenure! The average of four-year presidential cycles from 1953 through 2008 shows that the S&P 500 Index generally remains flat for almost the first two years, before heading higher in the second half.
Sunday, July 29, 2012
Market Bubbles and the Titanic Betrayal of Public Trust / Stock-Markets / Liquidity Bubble
By: Raul_I_Meijer
Robert Shiller, co-creator of the Case-Shiller index for US housing and author of Irrational Exuberance, has an interesting perspective on markets. Unlike the vast majority of economists, he recognizes both the role of speculative fervour in driving prices to over-reach themselves as a bubble develops and the fact that bubbles and their aftermath are swings of positive feedback inherently grounded in ponzi dynamics. As such, his position has considerable overlap with ours at The Automatic Earth: