Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Thursday, March 18, 2010
The Economy Does Not Always Drive the Stock Market Trend / Stock-Markets / Stock Markets 2010
In the long run, economic development and — especially — corporate earnings are the main drivers of stock market performance. But this relationship is very loose. It becomes tight only if your time horizon is measured in decades.
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Thursday, March 18, 2010
Stock Market Sentiment Remains Positive / Stock-Markets / Financial Markets 2010
We have seen some more negative commentary on China over the past 24 hours, including from the likes of the World Bank (which in its latest quarterly report called for a tighter monetary policy stance to combat the risk of large asset prices increases and bad debts from the financing of local government projects). Yet the overall tone of markets has remained distinctly positive, with key European bourses approaching new highs for the year, US markets making new cyclical highs and commodity prices and commodity currencies generally strengthening.
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Thursday, March 18, 2010
How Capital Waves Are Creating the Biggest Profit Opportunities in Today’s Markets / Stock-Markets / Investing 2010
Shah Gilani writes: Back when oil was trading at a record high of $145 a barrel - and was generally expected to go higher - I concluded that the forces at play were speculative, not fundamental - driven by new institutional money looking to diversify away from too many concentrated equity bets. I argued these forces were temporary, and not entrenched, meaning that oil prices were actually headed for a fall.Read full article... Read full article...
Thursday, March 18, 2010
What the Stock Market Cycles are Saying Now!! / Stock-Markets / Cycles Analysis
Since my last article back in February, I have received a number of emails asking me for an update on the current cyclic position of the markets. While I have to reserve the most up-to-date analysis for our subscribers, in this article I am pleased to offer up my detailed comments on the current U.S. stocks indexes, and also on their relationship with the various cycles that I track.
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Thursday, March 18, 2010
Stock and Commodity ETF Trading Sector Rotation / Stock-Markets / Financial Markets 2010
Earlier this week I noticed a pattern in the market throughout an entire trading session that has inspired me to write a short piece on sector rotation.
On Tuesday March 16th, my quote screen was flashing green as sectors reached new intraday highs or 52 week highs. The interesting part was that every sector that was flashing green happened to be in sectors that strengthen at the end of a bull market cycle or strong rally. This would include basic materials, staples, services, utilities and financial.
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Thursday, March 18, 2010
Stock Market Still Grinding Higher..... / Stock-Markets / Stock Markets 2010
Amazing to watch the most overbought market in seven years continues to defy the odds. RSI's along with the combination of stochastics printing numbers you just don't see very often and more than that stay at these levels for so long. RSI's on the 60-minute charts today reaching 80 across the board before pulling back later in the day. The daily charts still have grossly overbought oscillators as of the close of action today and some way or other they will have to be worked off. Not worked off to oversold but worked off to at least not overbought. In bull markets the oscillators stay up for very extended periods of time without getting oversold. 60-minute charts will flash oversold again and again but not the daily charts.
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Thursday, March 18, 2010
Gold, Stocks and Falling Inflation Producer Price Index / Stock-Markets / Financial Markets 2010
The Producer Price Index (PPI) fell a large 0.6% in the month of February, twice the projected decline. The poor performance was blamed on declining oil prices, but if the crude oil futures pit is to be believed, the April contract opened the month of February at 74.91 and closed out the month of February at 79.66. That’s a gain in my book! Of course there is nothing to worry about since the “core” number, excluding food and energy, still rose by 0.1%.
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Wednesday, March 17, 2010
Stocks Stealth Bull Market Closes At New Dow High / Stock-Markets / Stock Markets 2010
The stocks stealth bull market that bottomed in March 2009 confounded widely held expectations by both the bulls and bears of immediate term price action lower to dissipate its overbought state that has failed to materialise, instead the stock market has broken to a new bull market high by closing at Dow 10,733 (trading high 10768).
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Wednesday, March 17, 2010
Scoop Up Resource Stocks on Dips On Stock Market Corrections / Stock-Markets / Resources Investing
Over the course of the last 12 months, many analysts and newsletter writers have been discussing precious metals stocks as an alternative to fiat currencies. What opportunities remain—new and old—in Mexico, Colombia and elsewhere for investors? In this exclusive interview with The Gold Report, Mike Kachanovsky, aka 'Mexico Mike', (Investor's Digest of Canada), discusses why he believes the market is better than ever for precious metals, as well as the abating political risk for mining companies in countries such as Mexico, Colombia and Vietnam.
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Wednesday, March 17, 2010
China FXI ETF Blasting Higher! / Stock-Markets / Chinese Stock Market
In just the last nine trading sessions, my favorite investment to capitalize on China’s blistering economic growth iShares FTSE/Xinhua China 25 ETF (FXI) — has soared more than eight full percentage points, thrusting through the $41 level.
And in the past month, this China-focused ETF is up more than 13%!
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Wednesday, March 17, 2010
Stock Market S&P 500 Parts and Pieces Performance / Stock-Markets / Stock Markets 2010
Good news or bad news on the fundamental and macroeconomic front, US stocks are on a clear up trend. The small-cap and mid-cap stocks are farther above their January highs than the large-cap stocks, but the large-cap stocks are doing well too.
Pretty much no matter how you slice it (market-weighted, equal weighted, sector equal weighted, earnings weighted, revenue weighted, or dividend weighted), the S&P 500 (and large-cap) US stock market is in a clear up trend.
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Wednesday, March 17, 2010
Nothing Performs Better in Times Like These Than Real Estate REITs / Stock-Markets / Housing Stocks
Dr. Steve Sjuggerud writes: Darn it. I should have known better...
Wednesday, March 17, 2010
Stock Market Run Run Away / Stock-Markets / Stock Markets 2010
Last week I hypothesized that the markets are “On the Brink of an Asset Explosion”. If this is going to play out then we can probably expect to see runaway moves develop in virtually all assets soon.
The rally out of the `06 bottom to the February `07 mini crash is a classic example of a runaway move (chart below). Note the brief measured corrections. Needless to say, if something like this develops soon, one doesn’t want to get caught on the bearish side of the tracks.
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Wednesday, March 17, 2010
Fed Keeps The Cheap Money Tap Running / Stock-Markets / Financial Markets 2010
Leading into the release of the US Federal Reserve minutes yesterday evening, the unknown was what the wording of the statement would be like. Some traders were afraid that the Fed would ease back on its promise to keep rates low for an “extended period”. But in the end, the market bulls got what they wanted as the statement included the sentence “are likely to warrant exceptionally low levels of the federal funds rate for an extended period.” (For a second consecutive meeting, Kansas City Fed Pres Hoenig dissented, saying that the “extended period” is no longer warranted).
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Wednesday, March 17, 2010
My YouTube Stock Market Sentiment Index / Stock-Markets / Stock Market Sentiment
I take my trading and market analysis very seriously. But once in a while you have to let your hair down (what's left of it, anyway) and have a little fun.
I had noticed that on YouTube it seemed that bearishly apocalyptic market and economic analysis (most of which should be referred to as "analysis") received far more views than bullish or neutral postings. I also noticed that such videos would receive many concurring comments and favorable ratings while bullish analysis was frequently targeted for denigration.
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Wednesday, March 17, 2010
Global Stocks Bull Market Gathering Steam / Stock-Markets / Stock Markets 2010
The ongoing bull-market in global stocks is gathering steam and over the past few days, the momentum has shifted in favour of the West. Yesterday, the S&P500 Index closed at a 17-month high and we expect further gains over the following weeks. Over in Asia, our preferred markets are performing well, with India leading the way. Furthermore, it seems to us as though China and Vietnam are also about to commence another upleg within their primary uptrends. Given the fact that the Asian economies are in a much better shape than the West, we continue to believe that stocks in India, China and Vietnam will produce solid growth over the course of this business cycle. Therefore, we are holding on to our positions and believe that near-term weakness represents a buying opportunity.Read full article... Read full article...
Wednesday, March 17, 2010
Stock Market Oscillators Extremely Overbought...Market Very Strong..... / Stock-Markets / Stock Markets 2010
We are in a bull market. This isn't news to anyone by now. We've been in from the lows and have ridden this puppy all the way up. However, there comes a time in the evolution of a bull market where you have to start reining it in. It doesn't mean you can't be in some or in good set ups but it does mean that entering more plays from this point forward carries extreme risk for the short term. Not the medium term, the short term. The S&P 500 broke through 1151 today with some decent force and may want a bit higher before selling to retest but let's go over the RSI's and stochastics on the daily charts across the major index charts.
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Wednesday, March 17, 2010
All Eyes on the Fed / Stock-Markets / Stock Markets 2010
The Fed is meeting today and that’s all we’ll hear about on the financial news networks as they hang on every word in the statement fashioned from the get-together. There have been inklings that the Fed is now considering how they’ll siphon liquidity from the system and a lot of analysts will be looking for indications as to how that will happen. Two weeks ago the idea was floated that the Fed would use reverse repos’ to get the job done, but the market was not impressed.
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Tuesday, March 16, 2010
The Climax of the Stock Market Broadening Top / Stock-Markets / Stock Markets 2010
The picture above is a basic outline of the broadening top formation as described by John J. Murphy in his book, “Technical Analysis of the Futures Markets,”(pp. 150-152) published in 1986.
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Tuesday, March 16, 2010
Financial Market Investors & Traders Beware The Ides of March / Stock-Markets / Financial Markets 2010
“Beware the Ides of March”, Soothsayer to Julius Caesar
Last night the Chinese market treaded water with little change and I would like to continue the discussion started over the weekend with respect to the US’s largest creditor. China’s recent stimulus package was instrumental in preventing a major slowdown in their export sector as the world economy cooled. Now they are busy reigning in an economy that is growing at more
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