Category: Stocks Bear Market
The analysis published under this category are as follows.Monday, April 06, 2009
Stock Market Rebound? Or... Just Bouncing? / Stock-Markets / Stocks Bear Market
This week has been a head scratcher. The government is dictating who should be running General Motors and gave Chrysler an ultimatum – merge or die. Home prices continue to fall, and do so at a faster rate over the past three months than over the past year (not getting “less worse”!). Unemployment (a lagging indicator) continues to deteriorate, as do the weekly jobless claims.Read full article... Read full article...
Saturday, April 04, 2009
Stocks Bear Market and Dow Theory Update / Stock-Markets / Stocks Bear Market
The primary bearish trend change that occurred on November 21, 2007 still remains intact in accordance with classical Dow theory. However, in accordance with my cycles work the March low was indeed expected and my model immediately triggered a short-term buy signal that quickly evolved to the point at which an intermediate-term buy signal was also triggered. Thus, we have a cyclical advance within the context of an ongoing primary bear market.Read full article... Read full article...
Saturday, April 04, 2009
Stock Market Trends for April 2009- The Bear Market Rally / Stock-Markets / Stocks Bear Market
Analyzing monthly stock market trends uses the S&P 500 charts to indicate important trend lines. Trend following is a proven strategy to beat the market and grow your stock portfolio. Technical analysis provides the tools to analyze and identify trends in the stock market. Since the S&P 500 trend line chart is the one used by professional traders for their analysis, it is important to understand how it is performing.Read full article... Read full article...
Friday, April 03, 2009
Stimulus Commitments and Stock Market Confusion / Stock-Markets / Stocks Bear Market
Talk about mixed signals. Confusion reigns supreme. On Thursday the economy was recovering because factory orders went up for February, breaking a multi-month downtrend. However, today, there is no end in sight as the employment report was released and another 663,000 Americans have lost their jobs. There is another storyline there, but we'll save that for a different time. It would seem that commentators, economists, and policymakers alike are in a race to call the bottom. Fundamentals and economic analysis have all but disappeared under what is a seemingly never-ending wave of distortion caused by monetary creation.Read full article... Read full article...
Thursday, April 02, 2009
What Does the Bottom of a Bear Market Look Like? / Stock-Markets / Stocks Bear Market
Today, we posted our second study on "How a Bear Market ends".The first was a study of what the Institutional Investors did relative to "Accumulation" and the end of the 2002-2003 Bear Market.
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Thursday, April 02, 2009
Don't Be Fooled by the Stock Market Rally, More Pain Ahead / Stock-Markets / Stocks Bear Market
The G20 protestors have got it all wrong. They shouldn't be on the streets of London , carping about bankers. They should be barricading the German embassy, demanding a stimulus package from German Chancellor Angela Merkel. You see, it's all the exporters' fault, this economic crisis we're in. Irresponsible countries like Germany , Japan and China have selfishly forced their top-notch cars and their cheap clothes on the innocent Americans and British.Read full article... Read full article...
Tuesday, March 31, 2009
Stock Market Rally Built On Sand? FASB Can Help! / Stock-Markets / Stocks Bear Market
It is apparent many have jumped on the "a low is in" bandwagon in recent weeks. Given the environment we are operating in (a bear market), it makes sense for us to adopt a skeptical view of the "good" news that lifted stocks in recent weeks. The rally began after Citigroup's talk of being "profitable" somehow found its way to the media on March 10, 2009. Below is a skeptical recap of some of the drivers of the impressive rally in stocks since the March 9, 2009 low.Read full article... Read full article...
Tuesday, March 31, 2009
Stocks Bear Market Bounce / Stock-Markets / Stocks Bear Market
The chart below (courtesy decisionpoint.com) says it all: Based on rolling 12 months historical earnings – adjusted for Generally Accepted Accounting Principles – the Price/Earnings ratio of the Standard and Poor 500 Industrial Index in the USA was 54.51 as at March 27th 2009Read full article... Read full article...
Monday, March 30, 2009
Stock Market Seasonal Inversion Patterns / Stock-Markets / Stocks Bear Market
The Boys From Brazil - As postured on these pages for some time now, seasonal inversions in trading patterns of markets tend to occur in mature markets due to sentiment / structural irregularities. In the case of the US stock market, what has essentially occurred is because the general investing population has been ‘dumbed down' due to excessively good economic conditions over an extended period, along with powerful mind-numbing corporate propaganda, their aversion to risk has been dangerously tempered.Read full article... Read full article...
Monday, March 30, 2009
Stock Market Rally has Bearish Underpinnings / Stock-Markets / Stocks Bear Market
We Are Driven - Taken for the Ride of Our Life - Over the last few weeks, the very bearish technical readings in daily sentiment have reversed. A few days ago, the US Census Bureau reported that, after sinking to the lowest level on record in January, sales of newly constructed homes rose unexpectedly in February, rebounding nearly 5%. The Commerce Department reported that durable orders jumped 3.4%. Clearly, if these numbers are not revised, which is increasingly frequent with government stats lately, they are positive signs for the beginning of a recovery. The day they were released, the Dow moved up more than 200 points its first hour of trading, and since March 9th we've seen a rally of almost 1400 points. Why be bearish now? Why not jump on board?Read full article... Read full article...
Monday, March 30, 2009
Stocks Bear Market Targets Dow 2,122 and S&P 409 / Stock-Markets / Stocks Bear Market
Glenn Thorpe writes: Charts of the DJIA and the SP500 provide a much clearer picture when they are inflation adjusted. This is achieved simply by dividing the index by the CPI at each date. To correlate the two indices the SP500 can be adjusted to equal the the DJIA on 3 Jan 1950, the date the SP500 was created.Read full article... Read full article...
Friday, March 27, 2009
Stock Market Bottom Hopeful Signs- NOT! / Stock-Markets / Stocks Bear Market
Although long-time Market Oracle visitors are likely familiar with the GAMCO Mathers and Ned Davis Research versions of the graph, Morgan Stanley has put together a more comprehensive and colorfully up-to-date rendition of the now (in)famous chart of total U.S. debt as a percentage of gross domestic product. As you can see, not much has changed over the past two years as far as our precarious financial condition is concerned. (Hat tip to Infectious Greed .)Read full article... Read full article...
Friday, March 27, 2009
Stocks Bear Market Has Not Seen Its Bottom Yet / Stock-Markets / Stocks Bear Market
As things stand, US equities are on course to complete the biggest monthly gain since 1987, with the S&P 500 closing up 2.3% yesterday. Big tech starred, with Intel up 5.9% and HP jumping 7.1%, pushing the Nasdaq to back to flat for the YTD - fairly remarkable. Sentiment continues to be boosted by an economic dataflow that is no longer weaker than expectations. Indeed some houses (Barclays for example) are squinting hard, thinking we have seen the trough and are even seeing the green shoots of recovery in the US. And I think that a better 7-year Treasury note auction (which went off at close to market expectations) helped too.Read full article... Read full article...
Thursday, March 26, 2009
Stocks Bear Market Rally Nearly Over and Zimbabwe Economic Solutions / Stock-Markets / Stocks Bear Market
The bear market rally in the broad US stock market is thought to have about run its course, although it could run as far as 900 on the S&P500 for reasons set out below. The rally had its origins in extremes of negative sentiment before it started, so that once it got underway it was fuelled by short covering and media hype, especially the Obama optimism effect. In particular the big jump on Monday was portrayed almost as the start of a new bull market. Actually, Wall St had good reason to celebrate on Monday, for as Dr Housing Bubble makes clear in his article Public - Private Investment Plan for Dummies , the PPIP as it is known is just another gigantic scam to funnel taxpayers money into Wall St's pockets.Read full article... Read full article...
Thursday, March 26, 2009
Respect The Stock Market Rally Until Proven Elsewise / Stock-Markets / Stocks Bear Market
Many seem to be in disbelief of this rally given the poor economic backdrop. However, technically the rally needs to be respected until proven otherwise. Let's take a look.Read full article... Read full article...
Wednesday, March 25, 2009
A Stock Market Bottom, but Maybe Not The Bottom… / Stock-Markets / Stocks Bear Market
The spring in the financial sector's step last week has some wondering if bottoms are finally forming in for the equities market. This is based on an assumption that weak banks couldn't get much cheaper and that, to Wall St 's way of thinking, a “real” bull rally has to be led by financials. Certainly its true there is much less $ (or £, or €) value that can be chopped off them than has already been. Early year profits indicated by some the larger and weaker US banks, and comment by US Fed Chairman Bernanke that the recession could be over by year's end if the banking sector stabilizes, also helped the cause.Read full article... Read full article...
Tuesday, March 24, 2009
Protect Your Wealth from the Secular Stocks Bear Market / Stock-Markets / Stocks Bear Market
Almost exactly six months ago, I wrote in these pages to deliver you a message of warning. In a special edition of Money and Markets * on September 22, 2008, I warned you NOT to expect a quick end to this epic bear market in stocks. I also outlined several steps that could help you defend and possibly even grow your wealth in this turbulent market.
The reason for my warning last September is one and the same with my biggest concern today … we remain locked in a punishing, long-term, secular bear market, and I'm concerned your investments may not be fully prepared to weather this financial storm.
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Monday, March 23, 2009
Stock Market Spring Rally Ahead of Summer Lows Retest / Stock-Markets / Stocks Bear Market
As we race toward the close of another (negative) quarter, spirits are getting a lift from the fact that Spring has sprung and the markets have put on a rally, making March statements (for now) look a bit brighter than many of the past six months. The focus of Wall Street is not on the economy, but the circus that is Washington. (Warning: political comment!) It is funny to see Congress chastise executives for paying bonuses then turn around and ask for political contributions from the same group – hypocrisy at its best!Read full article... Read full article...
Sunday, March 22, 2009
Global Stock Markets Enter Extended Bear Markets, Reflation Ain't Going to Work / Stock-Markets / Stocks Bear Market
Back in October when that stimulus package was being discussed I wrote a couple of articles, which were posted here, stating that it “Ain't Gonna Work.” This past Wednesday the Fed announced their latest intentions with a plan to buy $300 billion in long-term Treasuries and $750 billion of mortgage-backed securities. I'm now beginning to wonder if the powers that be are really in their minds trying to “fix” things or if they are actually trying to destroy the dollar, the free markets and perhaps even the nation.Read full article... Read full article...
Saturday, March 21, 2009
More Weakness Likely for Stock Market S&P 500 Index / Stock-Markets / Stocks Bear Market
The S&P 500 had an interesting week. In the aftermath of the FOMC announcement on Wednesday, the SPX climbed to 803.24 to make new recovery highs off of the March low. However, let¹s notice that the high for the week failed to penetrate significant resistance represented by the declining 10-week moving average and the Jan-Mar down trendline, and, in fact, reversed to the downside to close the week at 768.54.Read full article... Read full article...