Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Saturday, November 27, 2010
Stock Investors Should Give the Fed Some Love! / Stock-Markets / Stock Markets 2010
It would seem that the Federal Reserve has few fans these days. Fed Chairman Bernanke is castigated in blogs. Members of Congress are questioning his strategies. Finance Ministers in Germany call him “clueless”. His QE2 tactic has prompted near universal scorn from economists throughout the world. Einstein taught us that everything is relative. Depending up one’s point of view, maybe it’s time to give Bernanke and the Fed some love.
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Friday, November 26, 2010
North Korea, Euro Crisis… Trading News Psychology / Stock-Markets / Stock Market Sentiment
Overnight Tuesday, selling pressure slammed futures on the ominous news of North Korea shelling a South Korean island. What ought to have been a relatively-quiet market day heading into Thanksgiving was suddenly filled with anxiety. How would the South Koreans retaliate? Was a new war erupting?
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Friday, November 26, 2010
Room For Additional Economic Stimulus Continues To Shrink, Stock Market Trend / Stock-Markets / Stock Markets 2010
Most analysts view the current correction on stock markets worldwide as unavoidable. Tensions in Europe linked to the public finances are on the rise, China is trying to restrict domestic credit supply, and the Fed faces a torrent of criticism at home and abroad regarding its policy to increase quantitative easing by $600bn with an option to draw down more. It is feared that further quantitative easing would only weaken the dollar further and push up commodity prices. As a result of the latter the rapidly growing Asian economies would come under additional inflationary pressures.
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Friday, November 26, 2010
The Dogged German Dax / Stock-Markets / European Stock Markets
The Technical Trader’s view:
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Friday, November 26, 2010
Stock and Commodity Markets Now Entering the Most Dangerous Period Since Mid 2008 / Stock-Markets / Stock Markets 2010
“The best way to understand Wall Street is to view it as a heist movie, like “The Sting,” “The Italian Job” or “Ocean’s Eleven.”. There’s just one difference: In your traditional caper, a bunch of little guys get together to steal money from the big guys — a tycoon, big bank or major corporation. On Wall Street, it works the other way around.” – Bret Arends, Marketwatch, November 2nd 2010.Read full article... Read full article...
Thursday, November 25, 2010
Is Santa Claus Dead, Will the Stock Market Tumble? / Stock-Markets / Stock Markets 2010
The wall of worry is about as steep as it gets. The weight of evidence points to a top in the market. Here are a few of the negatives that are stacking up like cord wood.Read full article... Read full article...
Thursday, November 25, 2010
Trin Rocks The Stock Market Higher / Stock-Markets / Stock Markets 2010
The trin is a way of measuring very short-term sentiment. Whenever it hits levels of 2.0, or higher, it almost guarantee's a rally of some magnitude the very next day. Yesterday I mentioned in the final update how we were seeing a print of 2.94, and should expect a good day today. That's what we got fortunately. Our stocks were lucky enough to perform quite well today, which gives us a little breathing room as we await the markets next intentions.
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Thursday, November 25, 2010
Gold & U.S. Dollar Rise Together? / Stock-Markets / Financial Markets 2010
The past week and a half has been as choppy as it gets for the stocks market. Thankfully the herd mentality (fear & greed) stays the same. Understanding what others think and feel when involved in the market is one of the keys to making money consistently from the market. The crazy looking chart below I will admit is a little tough on the eyes, and I should have used red and green for holiday colors but green just was not going to work today so bear with me J.
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Thursday, November 25, 2010
Stock Market S&P500, Gold, Crude Oil and Banking Stocks Trading Patterns / Stock-Markets / Financial Markets 2010
Stocks were back on sale Tuesday when the S&P 500 suffered more than a 1.40% decline by the closing bell. Some market prognosticators pointed their fingers at the dollar, other pointed at the Korean situation, and still others had their eyes fixed on Ireland and the Eurozone as potential causes for the sharp selloff. The S&P 500 is currently oversold on the short term chart and either a bounce or period of consolidation is likely. At this point, chasing stocks in either direction will only satisfy the desires of the smart money, who will likely blow these anticipatory traders into trading fodder in coming weeks.
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Wednesday, November 24, 2010
The Commodities and Equities Circus / Stock-Markets / Financial Markets 2010
The Mystery of Yellow Metal: We’d be very much interested in seeing how Gold trades today. Yesterday the Korean peninsula put a bid in Gold just as it put a bid in Green back and Yen and we had no option but to term Gold as safe haven almost of the caliber of a Reserve instrument. Why, we are interested is to find out whether Gold is better than even a reserve instrument! It enjoyed a perfect rally yesterday but as we expect weakness in Green back today would it then switch sides and conform to inverse correlation as commodities move opposite to Green back.
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Wednesday, November 24, 2010
S&P 500 Levels to Watch After Spain Says No Debt Problems Here / Stock-Markets / Stock Markets 2010
The situation in Europe reminds us of a general manager’s dreaded vote of confidence for his underperforming and embattled coach. We will expand on some risk-management concepts today after the dreaded ‘we do not need a bailout’ comments coming out of Spain. From Bloomberg:
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Wednesday, November 24, 2010
Nasty Spill for Stocks / Stock-Markets / Stock Markets 2010
The stock market indices suffered a nasty spill today as world markets were lower, partially because of the saber rattling between North and South Korea.
The indices dropped sharply at the opening, gapped down, tried to rally midmorning and went lower, and made session lows before noon. The rest of the day was spent backing and filling, and trying to consolidate. They did have a little bit of a late bump, but closed off sharply.
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Wednesday, November 24, 2010
Stock Market Perception is More Important than Ireland, Greece, Portugal, and Spain Combined / Stock-Markets / Stock Markets 2010
The trials and tribulations of these four countries (that have run up huge deficits) have been well known for quite some time. What is more important in my opinion is not the size of the debt, which is staggering, but rather what is going on with market perception.
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Tuesday, November 23, 2010
Awaiting Confirmation of SDS UltraShort SPY Bottom / Stock-Markets / Stock Index Trading
The e-mini S&P 500 is approaching key support at 1171.00, and the S&P 500 Depository Receipts (SPY) is approaching key support at 118.00-117.60. So why aren't I positioning myself long the UltraShort SPY (SDS)?
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Tuesday, November 23, 2010
This Is Where The Stock Market Got Into Trouble Last April ... / Stock-Markets / Stock Markets 2010
The next week or two could be an important test for the markets.
Why? Because the same pattern could be developing that preceded the May drop.
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Tuesday, November 23, 2010
Stock Market Short-term Consolidation, Finding Support at Bottom of Expanding Bullish Channel / Stock-Markets / Stock Markets 2010
Current Position of the Market
Very Long-term trend - The very-long-term cycles are down and if they make their lows when expected, the secular 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. Cycles point to a continuation of this trend into 2011.
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Tuesday, November 23, 2010
Why was Euro’s rally short lived? And Other pairs / Stock-Markets / Financial Markets 2010
Now, the Irish bailout package seems to be a “limited relief”, to us market had plenty of time to observe and then act accordingly before the markets opened around the world as Ireland went to IMF on “Sunday”.
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Tuesday, November 23, 2010
Ireland's $130 Billion Bailout When Irish Banks are Ailing / Stock-Markets / Stock Markets 2010
$130 Billion!
That's how much money Ireland will be getting in the bailout package they said they didn't need as recently as Friday. I just want to make it perfectly clear that I also DO NOT need a bailout of tens of Billions of dollars so whatever you do - DON'T give me a bailout this weekend. Let's hope that works! The U.K. and Sweden may contribute bilateral loans, the EU said in a statement. Irish Finance Minister Lenihan declined to say how big the package will be, saying that it will be less than 100 billion euros but Goldman Sachs said yesterday the government needs 65 billion euros to fund itself for the next three years and 30 billion euros for the banks.
Monday, November 22, 2010
S&P 1200 Remains Too Difficult... For Now.... / Stock-Markets / Stock Markets 2010
And that's not bad news at all. The market could definitely use more to refresh. A longer time to pause to sell off slowly but gradually. Enough time to unwind those oscillators from neutral to oversold on those daily charts. The longer we sell off slowly the more sentiment will erode. The market wouldn't be best served if we just flew up here. Won't happen in all likelihood, but anything is always possible.
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Monday, November 22, 2010
Fibonacci, Elliott Wave Theory and the Stocks Bull Market, Gold Top / Stock-Markets / Financial Markets 2010
There are a number of well known technicians and fundamentalists who believe and continually write about and talk about a long term bear market in the stock indexes that has much further to go. There are long term charts that may be telling us that a bear market in the S & P 500 and the D. J. I. A. ended in March 2009. A third chart may be telling us that a fifth and final wave in the long term bull market in stocks that began in 1913 is underway. It appears to have begun at the bottom in March 2009. Thirty four years is the key number.
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