Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Monday, April 09, 2012
Stocks Have Reached the Euphoria Stage / Stock-Markets / Stock Markets 2012
The last bull ended when the leading stock, GOOG, entered a parabolic "bubble" phase. That was the signal that the bull had reached the euphoria stage. When the GOOG bubble popped it signaled the end of the bull market.
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Monday, April 09, 2012
Stock Market Two Month Top in Place? / Stock-Markets / Stock Markets 2012
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 - The intermediate uptrend is still intact, but a short-term top may already have started to take shape.
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Sunday, April 08, 2012
Has the Stock Market Topped? / Stock-Markets / Stock Markets 2012
The current MAP wave count on the S&P 500, 4H-1 of D-1 of W-1 of M-3, indicates we are at the point of a major correction which would be confirmed with a break below 1391.
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Sunday, April 08, 2012
Savings, investment, and the Keynesian preference – a follow-up / Stock-Markets / Economic Theory
There is a general belief that government finances are somehow immune from the financial reality faced by everyone else – an illusion fostered by bond markets and supported by the public’s wishful thinking. Look no further than the plight of the eurozone for evidence of the reality. Not only that, but history tells us that countries regularly default, yet we continue to buy government bonds in the belief they are less risky than any private sector debt. And if we begin to question the status quo, we are even told by financial regulators that government debt is less risky than anything else. Banking regulation enshrines it in Basel Committee guidelines, and modern portfolio theory – which guides securities regulation – casts it in stone.
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Saturday, April 07, 2012
US Stock Market Downtrend Appears Underway / Stock-Markets / US Stock Markets
After making a new uptrend high on monday US markets then began to weaken throughout the holiday shortened week. The SPX/DOW were -0.95% and the NDX/NAZ were mixed. Asian markets were quite mixed again -0.2%, but European markets were all lower for the third week in a row -2.9%. On the economic front positive reports outnumbered negative reports 8 to 6. On the uptick: ISM manufacturing, factory orders, auto sales, the M1-multiplier, investor sentiment, the WLEI, plus both weekly jobless and the unemployment rate improved. On the downtick: construction spending, ADP, ISM services, monthly payrolls, consumer credit and the monetary base. Next week we’ll get reports on the CPI/PPI, Export/Import prices, the twin deficits and the FED’s beige book.
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Friday, April 06, 2012
The Coming China Economic Super Crisis / Stock-Markets / Chinese Stock Market
The big X-factor for the stock market in the coming months will clearly be China. During periods when any of the major weekly or yearly cycles are bottoming and the market is vulnerable to a correction, there's always a news headline event that serves as a scapegoat for the market's weakness. Last year the scapegoat was Greece and the eurozone debt crisis. This year the void will be filled by China's slowing economy.
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Friday, April 06, 2012
Don’t Look to the Stock Market for Advice / Stock-Markets / Learning to Invest
In the classic book The Wizard of Oz, the Wizard decreed that everyone who entered the Emerald City wear green-tinted glasses. Visitors and citizens were told that this was to protect them from the “brightness and glory.” In truth, though, the Wizard had lost his mojo and become a run-of-the-mill charlatan. There was no brightness and glory, just an ordinary city built out of stone and glass.
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Wednesday, April 04, 2012
Stock Market Rally Beginning of the End / Stock-Markets / Stock Markets 2012
As convincing as this rally has been I am confident this is an ending phase and not the start a new secular bull market. Actually the bear market began last year in May but was temporarily aborted by massive Central Bank printing. Let me explain.
The last four year cycle that started in 2002 and bottomed in 2009 was the longest four year cycle in history. It was stretched to these extreme lengths by Bernanke's desperate strategy of debasing the currency to avoid the bear market that should have begun in 2006. Instead the stock market cycle stretched all the way into the spring of 2009.
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Wednesday, April 04, 2012
Has the Fed Boosted the Stock Market? / Stock-Markets / Stock Markets 2012
You bet. And aggregate demand for goods and services, too. If the Fed had not expanded its balance sheet in the past few years, the weakest U.S. economic recovery in the post-WWII era would have been even weaker and U.S. stock prices would have suffered. Chart 1 shows the year-over-year percent changes in monetary financial institution (MFI) credit. Private MFI credit is made up of the sum of loans and securities of commercial banks, savings & loan associations and credit unions. Total MFI credit is private MFI credit plus assets on the books of the Federal Reserve, i.e., Fed credit.
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Wednesday, April 04, 2012
Stock Market Rollover Likely Starting / Stock-Markets / Stock Markets 2012
Equity markets have sustained a steady upward trend over the past four months, many with only a brief pullback in early March. However, with buying pressure in decline since early February, the markets now appear set to retrace some of that advance as the April low approaches.
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Tuesday, April 03, 2012
Investing in a Low Interest Rate Market / Stock-Markets / Investing 2012
Jason Jenkins writes: For the last year, the effective federal funds interest rate has been 0.25%. The federal funds rate is considered one of the most important interest rates in the U.S. markets.
The federal funds rate is used to control the supply of available funds and hence, inflation and other interest rates. Raising the rate makes it more expensive to borrow. That lowers the supply of available money, which increases the short-term interest rates and helps keep inflation in check. Lowering the rate has the opposite effect, bringing short-term interest rates down.
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Tuesday, April 03, 2012
Why the Fed Will Be Powerless to Stop The Real Crash / Stock-Markets / Credit Crisis 2012
Over the last two years, I’ve been caught into believing a Crash was coming several times. In some ways I was right: we got sizable corrections of 15+%. But we never got the REAL CRASH I thought we would because the Fed stepped in.
So what makes this time different?
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Tuesday, April 03, 2012
Are The Stock Markets About to Blink? / Stock-Markets / Stock Markets 2012
Shah Gilani writes: The stock market is off to its best start since 1998, but now what?
The markets could continue drinking the good times Kool-Aid ...
Or April could be the last hurrah before a May hangover has us all reaching for the Alka-Seltzer again.
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Tuesday, April 03, 2012
Global Economies, China Solid...Europe Horrible...USA OK.... / Stock-Markets / Financial Markets 2012
Over the weekend, we had to wait on news from both Europe and China regarding their economic condition. We heard from China first. Their news was surprisingly good. This allowed for our futures to be up quite decently early last night. This morning we got the news from Europe. The news wasn't nearly as good as the news from China. In fact, the news was very bad. It showed a rise in unemployment and a rapid drop in their manufacturing report. The news was met with a sharp drop in their futures that went from very green to red. However, what was quite interesting was how the futures actually hung in there fairly well here in the U.S., considering how nasty the reports were from Europe. I would have thought a big plunge would have occurred. Then, I realized that we had our own huge report to deal with thirty minutes into our trading day. The ISM Manufacturing Report, which would tell us whether we were joining Europe in the big plunge, or China in the good news. The news was good.
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Monday, April 02, 2012
Marc Faber Says Japanese Stocks Will Outperform All Other Stock Markets in 2012 / Stock-Markets / Japanese Stock Market
Marc Faber, publisher of the Gloom, Boom and Doom Report, spoke to Bloomberg Television's Betty Liu this morning and said that the "Japanese market may outperform all the other markets against all expectations in 2012."
Faber said that investors "should be very careful at this stage" because he believes that "earnings may begin to disappoint" and "corporate profit margins could deteriorate." Also that "the economy has bottomed out, but is far from robust."
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Monday, April 02, 2012
Increasing Signs of a Stock Market Top, UK FTSE Leading the Way? / Stock-Markets / Financial Markets 2012
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 - The intermediate uptrend is still intact, but a short-term top may already have started to take shape.
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Monday, April 02, 2012
Stock and Currency Markets, Who is Leading Who? / Stock-Markets / Financial Markets 2012
The US stocks markets continue to chop around, although if you look under the hood there are some startling clues which either will correct themselves or they are suggesting that some markets have already topped and will head lower. Thus I suspect eventually the US markets will follow.
The US markets have held their ground recently but other markets that are interlinked and closely follow US stocks are starting to peel away, so if that continues I suspect US stocks will follow, it's just a matter of time.
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Sunday, April 01, 2012
Stocks Stealth Bull Market Riding Tsunami's of Debt Crisis Fears to New Highs, What's Next? / Stock-Markets / Stock Markets 2012
The Market Oracle NewsletterFebruary 21st, 2012 Issue #2 Vol. 6
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Sunday, April 01, 2012
AAPL Falls....NDX Lags...ISM On Deck.....Stock Market Turning Point? / Stock-Markets / Stock Markets 2012
Three days ago Apple Inc. (AAPL) printed a doji candle after a long run up. In most cases, 90% or more, and especially if you're not Apple, it usually means that the stock has topped out short-term. A doji, meaning a candle that gaps up and shows indecision after that gap up, where buyers no longer can take it up with sellers holding the line for the day. A stock will open and close at basically the same price. Apple, for once, has followed normal protocol. It has fallen off that candle stick the past two days. It has helped the Nasdaq lag behind the Dow and S&P 500.
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Sunday, April 01, 2012
Savings, investment, and the Keynesian preference / Stock-Markets / Economic Theory
Neo-classical economists underestimate the importance of the link between savings and investment. The two should be regarded as linked together: you need savings to be available for investment in new production for the future.
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