Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Monday, November 14, 2011
Stock Market Short-term Top in Sight, After New High / Stock-Markets / Stock Markets 2011
SPX: Very Long-term trend - The very-long-term cycles are down and, if they make their lows when expected, there will be another steep and prolonged decline (which appears to have already started) into 2014.
SPX: Intermediate trend - The rally from 1075 has consolidated and is ready to make a new high, followed by another consolidation.
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Monday, November 14, 2011
Final Stock Market Rally Before the Big Leg Down is Near End / Stock-Markets / Stock Markets 2011
Back on October 3rd, I penned a public article forecasting a major low in the SP 500 to occur around 1088. The SP 500 had been declining from the 1370 highs this May and was in the 1130’s and nearing its final descent in a corrective pattern. The next day, the market bottomed intra-day at 1074 and closed north of 1100. Since that time, we have rallied impressively to a high of 1292, with a strong pullback to 1215, and now what I believe is the finally rally to a major top formation.
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Sunday, November 13, 2011
Stock Market Important Short Term Juncture / Stock-Markets / Stock Markets 2011
Volatile week ends mixed to lower in world equity markets. After an 18 day, 20.3%, rally from SPX 1075 to 1293 the market has spent the past eleven trading days between 1215 and 1287. Positive economic reports for the week outnumbered negative reports, for the first time in many weeks, two to one. On the downtick: wholesale inventories, import/export prices and the monetary base. On the uptick: consumer credit, the twin deficits, consumer sentiment, the M1-multiplier, the WLEI and weekly jobless claims improved. For the week the SPX/DOW were +1.15%, but the NDX/NAZ were -0.15%. Asian markets declined 2.2%, European markets gained 0.5%, and the DJ World was -0.2%. Next week we have a slew of important economic reports, and it’s Opex week.
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Sunday, November 13, 2011
Central Bank Turkeys Tell Tall Tales / Stock-Markets / Financial Markets 2011
As the calendar approaches the US holiday of Thanksgiving, we should all reflect on our blessings with thankful humility. For those of us fortunate enough to afford it, we will enjoy a traditional meal of turkey and vegetables. For those of us that seek capital appreciation through the stock markets, we should give thanks that we have money to invest, the brain power to direct our investments, and the courage to risk our capital. Most of all, we should be thankful that our world is now dominated with turkeys telling tall tales. The truth is ugly. Tall tales are pretty. The stock market responds to tall tales and the turkeys that disseminate them. Our brain power allows us to understand the truth and invest with the tall tales!
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Sunday, November 13, 2011
Has the Stock Market Index Been Naughty or Nice? / Stock-Markets / Stock Markets 2011
At the beginning of this week I warned readers that the market was extremely overbought and that a top could be forming. While it is still unclear whether a major top has formed, it is without question that we saw a major correction on Wednesday as yields on Italian debt caused margin requirement adjustments at the London Clearing House.
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Sunday, November 13, 2011
Stock Market Cup With Handles Are Everywhere / Stock-Markets / Stock Markets 2011
While the news is all about Europe this and Europe that, we just look at the charts. And the charts are telling us that this might be the best time to buy stocks. Why? Because the indexes are sporting positive technical structure in tandem with many leading stocks.
But before we talk stocks, let’s talk about a simple way you can profit from the information below. If you don’t act, all of this information is meaningless.
Saturday, November 12, 2011
A Democrat In the White House is Better For Stocks? / Stock-Markets / Stock Markets 2011
The lead-up to next year’s election will bring a lot of claims from both parties. I thought I’d check some likely ones to make sure I don’t fall into the ‘lazy trap’ of repeating popular beliefs as fact when they might not be.
I was more than mildly surprised by my research.
Friday, November 11, 2011
Stock Market Bearish Head and Shoulders Pattern / Stock-Markets / Stock Markets 2011
Yesterday’s action in the indexes left us some clues as to its probable intent as a follow-through. There appears to be a complex Head-and-Shoulders pattern developing with a neckline at 1226. Sure enough, a bounce developed in the pre-market futures, portending a retest of mid-cycle support/resistance at 1243.37 and a right shoulder which completes the pattern.
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Friday, November 11, 2011
Stock Market SP 500 1,215 & 1,191 Key Support / Stock-Markets / Stock Markets 2011
As shown in the chart below, the S&P 500 held at a logical level on Wednesday. Even if stocks eventually break the October 4 lows, another push as high as 1,313 is possible. 1,215 is a widely watched level for the bulls, but 1,191 is also an important area of possible support.
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Thursday, November 10, 2011
Italy Likely Default Kills Stock Market... / Stock-Markets / Stock Markets 2011
We all went to bed last night with the futures fairly flat, but when we woke up this morning, the futures were totally annihilated with the European markets crashing. Italy down over 7% as they saw their 2-year yield rise over the magic 7% mark, up .669 overnight. Once over 75, they believe that they can no longer pay their bills, folks.
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Thursday, November 10, 2011
Global Stock Market Rally Stalls / Stock-Markets / Stock Markets 2011
After a brisk bear market rally in October, global equity indexes have now stalled. The Dow Jones World Stock Index reached the key resistance level of 244 and retreated under growing selling pressure (Chart 1).
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Wednesday, November 09, 2011
Stock Markets Now Most Vulnerable Position For Major Fall Since 2008 / Stock-Markets / Financial Crash
The bull trap has now been set and the rally in equities is showing definite signs of petering out with the USD as a contrary indicator since mid October, indicating strong signs of base building.In fact as I write these words equities are falling due to the growing realisation that no solution to the European economic and financial crisis is in the offing.
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Wednesday, November 09, 2011
UK FTSE 100 Stock Market Index Triple Play Fibonacci Analysis / Stock-Markets / UK Stock Market
Price, time and sentiment represent a three dimensional approach to technical analysis of any market or security. The Fibonacci drill-down grid method is particularly instructive at the current price juncture in the UK FTSE 100. The key to this three-dimensional method is to identify the "hot" Level 1 grid, i.e. the high and low in a Fibonacci grid that produces an extended numbers of clear turns on Level 1 and Level 2 grid lines.
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Wednesday, November 09, 2011
Stock Market Death by 1,000 Cuts / Stock-Markets / Stock Markets 2011
With the US stock market's recent volatility, many investors may be wondering whether or not we are headed for another 2008-style crash where the market drops 30 to 40 percent within a few short weeks. Sensing that timing could be critical, many investors may be sitting on the sidelines waiting for a good entry point. But this dynamic misses that far bigger picture: Notwithstanding the bull and bear cycle over the past decade, the entire market has been slowly sinking. As a result, a well timed entry into US stocks may not be enough to deliver long term results.Read full article... Read full article...
Tuesday, November 08, 2011
Important Stock Market Banking Sector Situation / Stock-Markets / Banking Stocks
Below is a weekly chart of the Banking Index. Take a good look at the lines labeled 1 and 2.
What do you see?
Looking at the chart, you should see that the SPY has been trending up since April 2010, while the Banking Index (symbol: $BKX) has been trending down since April 2010.
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Tuesday, November 08, 2011
Financial Market Madness - Berlusconi Does Hamlet / Stock-Markets / Financial Markets 2011
"So this is how it all ends, not with a bang, but with a status update."
That was the great comment tweeted by Joe Weisenthal this morning as Italian Prime Minister Berlusconi wrote on his facebook page: "The rumors of my resignation are groundless."
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Tuesday, November 08, 2011
Stock Market It's All Bad....Except It's Not..... / Stock-Markets / Stock Markets 2011
I have been around for a long time. Too long in this business, but if there's one thing I have learned more than anything else, is that you don't want to be on the side of the masses. Sure, once in a long while they get it right, but most of the time they get it wrong. I'm not just talking about the masses being the traders of this game. I am talking about the traders, writers, interviewers, and so on. It has been a long time since I've heard such gloom and doom.
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Tuesday, November 08, 2011
Stocks, Bonds, Dollar Cycles Crossroad / Stock-Markets / Financial Markets 2011
The VIX reached what appeared to be its combined Master Cycle and Primary Cycle low on October 17. The two cycles appeared to agree and the VIX made its low at 28.08 that day.
However, another zig zag lower appeared on October 28, corresponding with a lesser Trading Cycle low. This extended the Master Cycle low another 13 days beyond what was normally expected and allowed the equities indexes to go beyond their usual 50-61.8% retracements.
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Monday, November 07, 2011
Long-term Cycles vs. Short-term Market Potential / Stock-Markets / Cycles Analysis
Monday, November 07, 2011
Soveriegn Debt Crisis, It's All Greek To Me / Stock-Markets / Financial Markets 2011
We ended last week’s newsletter “Europhoria” less than europhoric, with Phil’s statement, “We take a series of BALANCED trades – SELLING as much premium as we can so that time (theta decay) is always on our side. We take our profits off the table and, when we have to, we take our losses. However, we try to adjust the losing sides of our positions with the expectation that the markets will remain in a trading range and make the occasional reversals... Our bearish expectations are based on possible Yentervention by the BOJ, negative analysis of the European Financial Stability Facility (EFSF) over the weekend, and LACK of additional stimulus by the US, China and Japan to match the strong but Globally inadequate EU contribution.”
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