Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Sunday, April 01, 2012
Foreign Stock Markets Weakening Again / Stock-Markets / Stock Markets 2012
Somewhat of a volatile week in the US markets, as the SPX rallied to 1419, dropped to 1392, and ended the week at 1408. The market made a new uptrend high, but the pullback that followed was more than expected. For the week the SPX/DOW gained 0.9%, as did the NDX/NAZ. Foreign markets were again less fortunate. Asian markets ended the week flat, European markets lost ground again this week, (-1.7%), and the DJ World index gained 0.2%. On the economic front there was a slight bias to the downside. On the uptick: durable goods orders, Q3 GDP, personal spending, consumer sentiment, the WLEI, the M1 multiplier, and new home prices. On the downtick: pending home sales, Case-Shiller, consumer confidence, personal income, PCE prices, the Chicago PMI, the monetary base, and weekly jobless claims rose. Next week we get a look at the Payrolls report, ISM and the FOMC minutes. Best to your week.
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Saturday, March 31, 2012
Dr Copper suggests, its the longs that are the Gamblers / Stock-Markets / Financial Markets 2012
Copper is known as a base material for construction and manufacturing, it is also known that China imports 35% of all its copper. If true risk on was built on solid foundations copper prices would reflect this, lets see what you think.Copper is sensitive to PMI (Purchasing Manufacturing Index) data, the HSBC China PMI has post 5 consecutive drops. Makes you wonder who is doing all the buying.
Saturday, March 31, 2012
S&P 500 Best Quarter Since 1998 / Stock-Markets / Stock Markets 2012
Courtesy of Doug Short. : The S&P 500 closed the day with a modest gain of 0.37%, breaking a three-day losing streak. But the financial media was quick to point out that this is the best quarterly gain in the index (and the Dow) since 1998.
In honor of this achievement, I’ve added a chart below, courtesy of BigCharts.com, to illustrate the quarterly behavior of the S&P 500 since the mid-1990s — hardly a random walk!
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Saturday, March 31, 2012
Stock Market Trend Similarities to the Last Two Aprils / Stock-Markets / Seasonal Trends
Almost a year ago in this column I pointed out the eerie similarities in April (2011) to conditions the previous April (2010). And sure enough the similarities continued into almost identical 20% market corrections before the bull market resumed.And here we are again this year looking at eerie similarities as March draws to a close, this time to the last two Aprils.
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Friday, March 30, 2012
Investor Profit and Protection from Two Mega Trends / Stock-Markets / Financial Markets 2012
“Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens….while the process impoverishes many, it actually enriches some …Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.” John Maynard Keynes, The Economic Consequences of the Peace, 1919
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Friday, March 30, 2012
Stock Market Multi-Year Top, Is European Socialistic Decay Ahead of US? / Stock-Markets / Stock Markets 2012
The DAX by breaking below 6908 today confirms a major correction is due! Most likely appears all the way below its 09 low of 3695 over the next year or 2 before its long term trend turns up again!Looking from the 07 high we see a clear 5 wave count to the 09 bottom.
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Wednesday, March 28, 2012
Stocks Bull Continues.... / Stock-Markets / Stock Markets 2012
We can try to pull this apart from many different angles, but the reality is the bull market continues, because we have Fed Bernanke, who will do whatever it takes to float the markets. With interest rates low, there's no other place to really put your dollars. Keep it simple. This doesn't mean that at any time we can't go into a prolonged period of going nowhere. The market is showing continued solid action on weakness, and will likely do this type of behavior for a long time to come. If we pulled back 5%, it would feel like death. But in truth, it would do little to the bull market technicals.
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Monday, March 26, 2012
Financial Markets Week Ahead Trading Video / Stock-Markets / Financial Markets 2012
Here is my video analysis on what to expect this week in silver, gold, oil and the SP500.
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Monday, March 26, 2012
Stock Market Rally Another Pause or Something More? / 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 is forming.
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Sunday, March 25, 2012
Was it really going to work, Operation Twist / Stock-Markets / Financial Markets 2012
The last two QE programs boosted stocks and bonds, the third QE program known as operation Twist (they buying of long dated bonds) is supposed to keep stocks high and long dated bond yields down. It seems the Fed Operation Twist may be running out of wind, the 10yr Treasury yield jumped up a 0.5% after higher inflation and better economic numbers in the last few weeks. Maybe it was a silly idea after all.
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Saturday, March 24, 2012
Stock Market Uptrend Likely to Resume Next Week / Stock-Markets / Stock Markets 2012
After five weeks of uninterupted gains in the SPX the market pulled back this week and ended with the SPX/DOW -0.85%. The NDX has risen for 12 consecutive weeks, and the NDX/NAZ were +0.50% this week. Foreign market fared much worse. Asian markets lost 1.0%, European market were 2.6% lower, and the DJ World index was down 1.1%. On the economic front positive reports edged out negatives 5 : 4. On the downtick: the NAHB housing index, housing starts, new home sales and the FHFA housing price index. On the uptick: building permits, existing homes sales, leading indicators, the WLEI and weekly jobless claims declined. While our leading indicators suggest housing has entered a new bull market, trailing indicators are still lagging.
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Saturday, March 24, 2012
The Fed, Gold, Stock Market and the Retail Investor Mindset / Stock-Markets / Financial Markets 2012
The recent rally has been breathtaking, however the majority of investors have missed out on a large portion of these gains as significant levels of cash have been either moved to bond funds or taken out of equity markets consistently during this rally. Let’s face it, financial markets around the world are not what they once were.
U.S. equity markets in particular are manipulated by high frequency trading which is wreaking havoc in the marketplace in terms of potential short term volatility expansions and “flash crashes” that can be isolated to one underlying stock.
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Saturday, March 24, 2012
Stock Market Investor Capital Safety: Is There Such a Thing as "TOO Safe" / Stock-Markets / Stock Markets 2012
We all know that the stock market has been rising for 3 years. Many economic measures -- unemployment, consumer spending and confidence, etc. -- also show strong improvement. Yet is that a good reason to stay bullish on stocks?
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Saturday, March 24, 2012
Stock Market Seasonal Trend, Here We Go Again Already? / Stock-Markets / Stock Markets 2012
What is it about the economic recovery so far that allows good news to last for only six months at a time before fears rise again and the economy needs another adrenaline fix from the Fed? The pattern has been clearly reflected in the stock market, which saw its historical pattern of making its gains in the winter months and suffering corrections in the summer months even more pronounced in 2010 and 2011.
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Friday, March 23, 2012
When Central Banks Fail / Stock-Markets / Central Banks
Thursday, March 22, 2012
When Will the Stock Market Freight Train Rally Top? / Stock-Markets / Stock Markets 2012
When will this rally top, when will there be sign of distribution. The truth is the SP500 has been a freight training to higher highs. Yet with the Fed operation Twist soon to end in the coming months one must feel we are very close to a mighty peak of this rally.
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Thursday, March 22, 2012
Stock Market Consolidating... / Stock-Markets / Stock Markets 2012
There's nothing wrong with the market consolidating. The consolidating would be even more beneficial if it did this for another month. However, it's unlikely that it will. As we've seen, this market has been tough to sell short-term. There are very "itchy" buyers, once the market does any type of small pullback. People want to get into the market that has been in before, and people want in the market that has missed it altogether. Some people just have a real inclination to be in the market as interest rates are simply too low for anyone to do anything else with their dollars. Why fight the tape is what they're thinking. While it seems unlikely from a fundamental point of view, the market understands something we don't for the time being. The energy of the stock market is a lot smarter than our collective intelligence. Let the market do the talking.
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Wednesday, March 21, 2012
Examining the Top S&P Components / Stock-Markets / Stock Markets 2012
I have embarked on a project to constantly view and analyze the major sectors of the S&P in an effort to get a grasp of where the potential weakness is showing up within the SPX itself.
I've looked at the major SPDR ETFs in 9 major sectors (leaving out telecom, which does not show me much), and examined the top 10 components of those ETFs.
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Tuesday, March 20, 2012
Full Steam Ahead for China Railroad Stocks / Stock-Markets / China Stocks
China's economic engines of growth have begun to accelerate again, but you wouldn't know it by looking at the chart below. After approvals for new railroad projects spiked to a five-year high in the third quarter of 2010, the number of new plans slowed, then completely halted throughout 2011, decreasing 89 percent by value, says J.P. Morgan.
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Tuesday, March 20, 2012
Dow Stock Index Forecast Rise to 260,000 by 2032 / Stock-Markets / Stock Markets 2012
Secular tops in US stocks were 2000, 1968 and 1937 – 3 solar cycles apart (roughly 33 years). Secular nominal bottoms in stocks were 2009 (expected), 1976, 1944 and 1913 – 3 solar cycles apart (roughly 33 years). Secular tops in commodities were 1980, 1948 and 1918 – 3 solar cycles apart (roughly 33 years). Secular bottoms in commodities were 2000, 1968, 1938 and 1906 – 3 solar cycles apart (roughly 33 years). All these tops and bottoms fell very close to solar peaks and minima.
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