Analysis Topic: Stock & Financial Markets

The analysis published under this topic are as follows.

Thursday, October 28, 2010

What is Quantitative Easing? Fed’s Perspective and Writings / Stock-Markets / Quantitative Easing

By: Chris_Ciovacco

A Wall Street Journal article (10/27/10) on quantitative easing (QE) hints the Fed will take a middle of the road approach in terms of the size and duration of QE2. As we would expect, the stock and commodity markets’ initial reaction is negative. A middle of the road approach to QE seems counter intuitive to the Fed’s own historical analysis of why quantitative easing was ineffective in Japan. In CCM’s July 2010 review of James Bullard’s Seven Faces of “The Peril”, our read between the lines interpretation of Bullard’s take on QE included:

Wednesday, October 27, 2010

Imminent Big Bank Death Spiral Means Gold Price Will Sky Rocket / Stock-Markets / Credit Crisis 2010

By: Jim_Willie_CB

The mortgage & foreclosure scandal runs so deep that ordinary observers can conclude the US financial foundation is laced with a cancer detectable by ordinary people. The metastasis is visible from the distribution of mortgage bonds into the commercial paper market, money market funds, the bank balance sheets, pension funds under management, foreign central banks, and countless financial funds across the globe. Some primary features of the cancerous tissue material are mortgage bond fraud, major securities violations, absent linkage to property title, income tax evasion, forged foreclosure documents, duplicate property linkage to single mortgage bonds, NINJA (no income, no job or assets) loans to unqualified buyers, and more. In fact, more is revealed it seems each passing week toward additional facie to high level and systemic fraud. The world is watching. The growing international reaction will be amplified demand for Gold, from recognition that the USDollar & USEconomy have RICO racketeering components extending to Wall Street banks and Fannie Mae mortgage repositories.

Wednesday, October 27, 2010

What Does Doctor Copper Say on the Health of the Economy? / Stock-Markets / Financial Markets 2010

By: PhilStockWorld

They call it "Doctor Copper" because copper pricing is a pretty good indicator of economic health.  It's more of a demand metal than gold or silver and hard to fake and there aren't any silly ETFs stockpiling it although China has socked away a full-year's supply, which has given copper a very false sense of demand while our masters hoarded the World's substantial excess capacity at an average of less than $2.50 per pound.  China is up 52% on their investment, not bad considering they're holding 300,000 tons of it.  

Wednesday, October 27, 2010

The Market Impact of $100 Billion a Month of Quantitative Easing / Stock-Markets / Quantitative Easing

By: Dr_Jeff_Lewis

Wall Street is going wild with new quantitative easing talk.  However, as the Street moves to front-run Ben Bernanke, one perspective is very much understood: QE2 will be nothing like we've ever seen before.  The new quantitative easing will be monstrous, persistent, and of a size, scope and direction never before seen.

Wednesday, October 27, 2010

U.S. Bank Failures Trend in Slow Motion / Stock-Markets / Credit Crisis 2010

By: Douglas_French

Every Friday evening a few more banks are closed — seized by the various state banking regulators and handed over to the Federal Deposit Insurance Corporation (FDIC) for liquidation. This all happens rather quietly, barely making the news. We're told these bank failures are no big deal. No reason to panic. The names of the banks change over the weekend and many customers don't notice the difference.

We've only had 294 failures this cycle, but it is a big deal: adjusted to current dollars, the Depression banking crisis was $100 billion, the S&L crisis was $923 billion, and the current crisis is nearly $8 trillion.

Wednesday, October 27, 2010

Stock Market Dow Jones Index Priced in Gold, What It Means for the Long-Term Trend / Stock-Markets / Stock Markets 2010

By: EWI

Of the many forward-looking market indicators we at EWI employ, one of the most interesting tools (and least discussed in the financial media) is the DJIA priced in gold -- "the real money," as EWI's president Robert Prechter calls it. What implications might the present position of Dow/gold have for the long-term trend of the nominal Dow? In this video, Elliott Wave International's Steven Hochberg shows you several revealing charts that answer this question.

Wednesday, October 27, 2010

Stock Markets Worried by Watered Down QE2 / Stock-Markets / Stock Markets 2010

By: PaddyPowerTrader

The market put in a respectable performance Tuesday considering the amount of negative news. Despite Ford beating expectations by a whopping 25 percent the stock only rallied 1.5 percent. Three of the major Steel Players (MT, X, AKS) missed and fell 4 percent on average. Meanwhile Kimberly-Clark , the maker of Huggies nappies and Kleenex tissues, lost 5.8 percent as profit dropped amid higher costs for materials. But IBM climbed 0.6 percent after its board authorized buying back as much as $10 billion in shares.

Wednesday, October 27, 2010

Marc Faber Says QE2 to Drive Down Stocks / Stock-Markets / Stock Markets 2010

By: Videos

Marc Faber discusses the potential impact of further quantitative easing by the Federal Reserve on stocks.

Tuesday, October 26, 2010

The Wall Street Buttonwood Gathering - View from the Top / Stock-Markets / Financial Markets 2010

By: PhilStockWorld

This was an interesting event!  
On May 17th 1792, twenty-four stock brokers met under a buttonwood tree outside 68 Wall Street and agreed to set up the New York Stock and Exchange board. The tree was a symbol of Wall Street, but also, it was where people originally met to trade, to discuss and to argue.

Tuesday, October 26, 2010

Quantitative Easing Targets Asset Prices, Not Bank Reserves / Stock-Markets / Quantitative Easing

By: Chris_Ciovacco

With markets coming off of overbought levels, bullish sentiment high, and gold backing off a vertical ascent, we believe investors need to be ready for a quantitative easing (QE) disappointment pullback. A “buy the QE rumor, sell the QE news” event needs to be considered from a portfolio management perspective. Having said that we also believe most investors and many financial professionals do not fully understand how QE works in the real world and that one of QE’s primary objectives is to inflate asset prices.

Tuesday, October 26, 2010

Stocks Tread Water Ahead of Consumer Data / Stock-Markets / Stock Markets 2010

By: PaddyPowerTrader

U.S. stocks rose Monday, sending the S&P 500 Index to a 4th straight gain, after the Group of 20 nations pledged to avoid “competitive devaluations” of currencies and investors bet the Federal Reserve will announce further bond purchases next week. Stocks wise DuPont, Kraft Foods and Walt Disney all climbed more than 1.4 percent to lead gains amongst the largest U.S. companies. And Citigroup rallied 2.4 percent after Goldman Sachs added the shares to its “conviction buy” list. Elsewhere CommScope surged 30 percent on news a private equity firm is considering a takeover while Office Depot also gained 3.5 percent after saying earnings will beat estimates.

Tuesday, October 26, 2010

Why Wall Street Bonuses Will Cost Us All in the Long Run / Stock-Markets / Market Regulation

By: Money_Morning

Martin Hutchinson writes: Wall Street firms may not be reaping the record-breaking revenues of 2004-2007, but they're paying themselves the lofty bonuses of that lavish era - and they're doing it at our expense and with the government's blessing.

Wall Street's pay packages, including bonuses, are set to total 4% more in 2010 than in the already record year of 2009, The Wall Street Journal recently reported.

Tuesday, October 26, 2010

Stock Market Has Another Positive Start to the Week / Stock-Markets / Stock Markets 2010

By: Harry_Boxer

The stock market indices started the week out on a positive note, although a last half-hour sell off took back a chunk of the profits.

The day started out with a gap up and strong early morning rally that took the Nasdaq 100 to new highs at 2127 and the S&P 500 to 1196. They then sold off, backed and filled, consolidated, and tried an afternoon rally, which got up to the morning highs but couldn't quite break out late and run. When that occurred, they rolled over hard in the last half hour to pare back the gains.

Tuesday, October 26, 2010

Stock Market Prints Dojis....Still Strong Overall.... / Stock-Markets / Stock Markets 2010

By: Jack_Steiman

You look at the market and wonder when it will turn a bit. When will it sell off from this up trend to unwind those overbought daily oscillators? We have at, or near, 70 RSI on all the major index charts for weeks now, and a selling phase for a few days would do wonders to set things up very nicely. You often get this to happen when you print a doji or a spinning candle off a nice up trend.

Monday, October 25, 2010

Liquidity Traps, Falling Velocity, Commodity Hoarding, and Bernanke's Misguided Tinkering / Stock-Markets / Financial Markets 2010

By: Mike_Shedlock

John Hussman has an interesting post this week on the misguided policies of the Bernanke Fed and how quantitative easing promotes commodity speculation and hoarding but does nothing for the real economy. Please consider Bernanke Leaps into a Liquidity Trap

The belief that an increase in the money supply will result in an increase in GDP relies on the assumption that velocity will not decline in proportion to the increase in money. Unfortunately for the proponents of "quantitative easing," this assumption fails spectacularly in the data - both in the U.S. and internationally - particularly at zero interest rates.

Monday, October 25, 2010

Upside Acceleration for China Shanghai Stocks Index / Stock-Markets / Chinese Stock Market

By: Mike_Paulenoff

The Shanghai Composite Index rocketed to new post-July highs today, which should continue to benefit names likes Arch Coal (ACI), Walter Energy (WLT), and Freeport-McMoRan Copper & Gold (FCX).

After consolidating for four sessions right around its August 2009-October 2010 down trendline, today the Shanghai index accelerated to the upside to 3,051 in what looks like the start of a new upleg that could be heading for a test of its April high at 3182, or another +4.3%.

Monday, October 25, 2010

How Bernanke Will Pump Stocks Higher Into Year End, Sectors that Will Soar / Stock-Markets / Stock Markets 2010

By: Money_Morning

Jon D. Markman writes: While many investors have solid reasons to remain concerned about the broader economic picture, there are some market sectors roaring forward that no one can afford to miss - and they will continue to provide profit opportunities thanks to the work of U.S. Federal Reserve Chairman Ben Bernanke.

Monday, October 25, 2010

Stock Market Investing, We're "All In" Still and Sitting Tight / Stock-Markets / Investing 2010

By: DailyWealth

After spending many years in Wall Street, and after making and losing millions of dollars, I want to tell you this: It was never my thinking that made the big money for me. It always was my sitting. Men who can both be right and sit tight are uncommon. - – Legendary Speculator Jesse Livermore, from the classic 1923 book Reminiscences of a Stock Operator

Monday, October 25, 2010

Stock Market Increasing Evidence of Approaching Short-term Top, Gold Consolidating / Stock-Markets / Stock Markets 2010

By: Andre_Gratian

Current Position of the Market

Very Long-term trend - Down! The very-long-term cycles are down and if they make their lows when expected, the bear market which started in October 2007 should continue until about 2014-2015.

Long-term trend - In March 2009, equity markets began a corrective move in the form of a mini bull market. Many signs point to a continuation of this trend into 2011 and the surpassing of the April 2010 intermediate top.

Monday, October 25, 2010

Weekend SPX, Dollar, Oil and Gold Analysis / Stock-Markets / Financial Markets 2010

By: Chris_Vermeulen

Last week was volatile thanks to China raising their interest rates a quarter basis point. This rate hike caused the Dollar to spike in value which in turn forced equities and metals to sell off sharply. This one day event caused equities to break below a short term support level causing a large number of protective stops to be triggered. This added more selling pressure causing the market to be down nearly 2.5% at one point but a late day bounce recouped a good chunk of the drop.