Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Monday, October 25, 2010
Stock Market Investing, We're "All In" Still and Sitting Tight / Stock-Markets / Investing 2010
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
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Monday, October 25, 2010
Stock Market Increasing Evidence of Approaching Short-term Top, Gold Consolidating / Stock-Markets / Stock Markets 2010
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.
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Monday, October 25, 2010
Weekend SPX, Dollar, Oil and Gold Analysis / Stock-Markets / Financial Markets 2010
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.
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Sunday, October 24, 2010
Stock Market October Curse vs Objective Analysis / Stock-Markets / Stock Markets 2010
Over the weekend, I went shopping for Halloween decorations. In the store, one of the clerks was wearing a white T-shirt with a puff-paint rendering of the Dow Jones Industrial Average. The line representing prices was the color of blood red, dripping and splashed across the front. When I asked him what it was, he said "the October Curse."
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Sunday, October 24, 2010
The Fed’s Inflation Crusade, POMO Making its Presence Felt Across the Markets / Stock-Markets / Financial Markets 2010
Dr. Mark Skousen writes: The Obamas’ pet is a Portuguese water dog named Bo.
But President Obama likes another dog a lot more.
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Sunday, October 24, 2010
It's the Money Stupid / Stock-Markets / Financial Markets 2010
Dazed and Confused - Why did the stock market crash in 2002, and then again in 2008? Why has the value of real estate declined so much since 2007? What has happened to the economy? Why do stocks continue to soar in the aftermath? Why does Gold suddenly cost over $1300 an ounce? Why can't we get a loan? Have we hit bottom yet?
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Saturday, October 23, 2010
Stock Market Stalls at the Diamond Top / Stock-Markets / Stock Markets 2010
FDIC’s Workload is Picking Up.
The FDIC Failed Bank List announced seven new bank closures this week. Here we go - the rating agencies are now officially in the game. Next up - collateral calls and other nasty stuff: "Today, Fitch Ratings issued a number of separate press releases placing on Rating Watch Negative most U.S. bank and bank holding companies' Support Ratings, Support Floors and other ratings that are sovereign-support dependent. The two companies mostly impacted by this announcement are Bank of America Corporation and Citigroup, Inc." BBB+ coming up.
Saturday, October 23, 2010
Make a Fortune in Stocks... Even If the Market Goes Nowhere / Stock-Markets / Dividends
Dan Ferris writes: Now more than ever before, investors must focus on dividends.
It's the ONLY way you're going to safely, steadily grow wealth in the stock market in the coming years.
Saturday, October 23, 2010
Global Stock Markets Weekend Elliott Wave Analysis Update / Stock-Markets / Elliott Wave Theory
Economic reports and the equity market ended the week mostly positive. On the economic front; industrial production, building permits and weekly mortgage applications all declined. Capacity utilization and the BEA leading indicators were positive but flat. There were improvements, however, in the NAHB housing price index, housing starts, weekly jobless claims, the Philly FED, the WLEI, the monetary base and the M1 multiplier.
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Saturday, October 23, 2010
Stock Market Holding Up Very Well..... / Stock-Markets / Stock Markets 2010
It's an old story already. The market remains in its confirmed up trend that has been in place for several months now. The bears keep thinking the story is over, yet the market keeps telling them otherwise. The moment we see some selling, the bears rush in as evidenced by the big spike in the put-call ratio. This tells me that the thinking is still waiting for something very bad to take place. The other day, when the market was down quite a bit we saw the put-call trade over 1.0 for the entire day, including a reading of 1.35.
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Saturday, October 23, 2010
Flight From Safety of U.S. Treasury Bonds into Stocks? / Stock-Markets / Financial Markets 2010
Although the current market dialogue between Bulls and Bears is focused on the Inflation vs. Deflation dichotomy, it's possible that a dynamic between Risk vs. Safety is the better framework for analysis.
The possible transition from Safety to Risk took a big leap forward recently as the most favored repository of investor fears, the US Treasury market, showed significant signs of breaking down and putting in a long term top. SPX:USB, the ratio of Risk to Safety as measured by the S&P 500 / US Treasury 30 Year Bond price, closed well above its 200 day EMA after having broken out of a declining wedge pattern. After the breakout the EMA was successfully retested:
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Saturday, October 23, 2010
More Signs of a Stock Market Top / Stock-Markets / Financial Markets 2010
As Freddie Mac Reports An Uptick In The 30 Year Mortgage Rate, Have Mortgage Rates Hit A Floor?(ZeroHedge) Is the floor in mortgage rates in? After hitting a record all time low of 4.19% in the week ended October 14, the Freddie 30 Year Fixed mortgage rate has risen slightly but appreciatively to 4.21% (chart below). This is not all that surprising considering the 10 Year UST has been meandering around the 2.5% spot for a while now. What it does indicate, however, is that absent QE2 mortgages may have just hit their floor for the current regime. As it is no secret the Fed is intent on lowering mortgage rates as low as possible the question becomes whether a level in the low 4%'s is enough for mortgage activity to finally pick up.
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Saturday, October 23, 2010
America has Become an Asterisk, Which means it Only Exists Conditionally / Stock-Markets / Financial Markets 2010
The conditions are explained by asterisks. For instance, big banks earn a lot of money as long as minor details like expenses, losses, and derivative valuations are ignored. The governments car company, GM, will soon release an 'electric' car that gets 280 miles per gallon equivalent. However, it is not really 'electric' as it has a small gasoline motor and at highway speed, the motor kicks in. In truth, it will return mileage equivalent to a Toyota Prius. Only, the US taxpayer will have to chip in about $7k per car sold to even make it seem competitive. It is ‘electric’ with an asterisk.
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Saturday, October 23, 2010
U.S. Screwflation Nation - Ben and Tim at it Again! / Stock-Markets / Financial Markets 2010
Strong dollar? Hahahahahahahahahahahaha....That is was the answer to a question I had this summer when I met with an unnamed Treasury official whose name might rhyme with Jimothy. The unnamed official nearly fell off his chair laughing when I said "So, does the US still have a strong dollar policy?" It was meant as a joke. I was sitting at Treasury with Yves Smith, John Lounsbury, Steve Randy Waldman and a couple of other writers on Aug 16th, with the dollar at 82.5, down from 88.7 in May. I mentioned in my Aug 17th post that, based on my meeting at Treasury: "we’re certainly not going to be expecting a "strong dollar" policy." At the time, I summed up the meeting saying:
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Friday, October 22, 2010
Avoiding The Trip to Q.E. Hell / Stock-Markets / Financial Markets 2010
“Quantitative Easing will some day be looked back upon as we now look at healing the sick through bleeding back in the 1700s. It is terrible economic policy, in fact should be considered criminal activity. Criminal for many reasons, such as debasing the value of the Dollar, but more importantly because it will be the final nail that destroys our economy. Wall Street is the key beneficiary. Households (consumers) which account for 70 percent of GDP, and small businesses, which account for 70 percent of employment, will not benefit from this fraudulent activity by the Federal Reserve. Where on earth is it right for someone to print trillions of Dollars out of thin air and then buy legitimate legally binding debt instruments in exchange for this printed paper? Anyone else doing this would be arrested and thrown in jail, with the key tossed into the deep blue sea&h
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Friday, October 22, 2010
Dangers of Seeking Fast Profit in High Speed Trading / Stock-Markets / Financial Crash
Benoit Mandelbrot, world renowned mathematician from Harvard and Yale, passed away last week at the age of 85.
He coined the term “fractal” (a shape comprised of smaller similar shapes). He determined that derivative pricing in financial markets follows this self-similar characteristic, which leads to infinite variance (e.g., black swan, fat-tail events)
Friday, October 22, 2010
FTSE 100 Stock Market Index Forecast To Go Higher / Stock-Markets / UK Stock Market
Global equity markets have been bullish in recent weeks supported by expectations that the Fed will restart its QE program and buy more US Treasuries. The Bank of Japan too, recently cut rates to zero and announced a Bond purchase program which is seen as a prelude to full blown QE.
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Friday, October 22, 2010
Getting Some Stock Market Perspective / Stock-Markets / Stock Markets 2010
From a Dow Theory point of view this is the situation as I see it. The market is giving very strong signals particularly on the Transports side. My key break point is 5265 to give the first indication that the new Bull Run has commenced. We are currently at 4735. Near but not quite there. My key break point on the Dow Industrials is 13566. WE are currently at 11146 some 2420 points away.
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Thursday, October 21, 2010
What's Next for the U.S. Dollar, Stocks and Gold? / Stock-Markets / Financial Markets 2010
The equities market reversed to the upside Wednesday posting a light volume broad based rally. Remember light volume tends to have a neutral to upward bias on stocks, But it was mainly the sharp drop in the dollar which spurred stocks and commodities higher.
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Thursday, October 21, 2010
Small Investors Miss Out on Stocks Bull Market and Hot Commodities / Stock-Markets / Stocks Bull Market
All investors can recall the horror during the five months from October 2008 through early March of 2009 as day after day the markets continued to make new lows. That type of catastrophic drop leaves many psychological scars and probably spooked millions of investors out of the stock market for good. To wit, since the March 2009 lows and throughout this new Bull Market Cycle, Investors are pulling money out of equity funds in droves and piling into Bonds. This is the fight or flight mentality taking hold of the herd, and as they continue to disbelieve in the new bull cycle in stocks, the market continues to power higher.
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