Category: Financial Markets 2011
The analysis published under this category are as follows.Wednesday, October 12, 2011
What Next for the Stock Market and Gold? / Stock-Markets / Financial Markets 2011
A lot of eyes were watching the Slovakian Parliament around the closing bell today as they voted on the European Financial Stability Fund (EFSF). The first vote failed to pass the pending legislation, but members of the opposition party have indicated that they will vote for the bill in a second scheduled vote.
The S&P 500 E-Mini futures contract has not sold off sharply on the news, but the trap door risk for equity traders is that the second vote comes up short and the legislation fails unexpectedly. The marketplace is expecting the second vote to pass without issue and if a different scenario plays out selling pressure could become extreme potentially. With earnings season now upon us, there is plenty of headline risk to go around and this Slovakian situation just adds more complexity to the news flow.
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Tuesday, October 11, 2011
Markets Slip Back After Monday Rally / Stock-Markets / Financial Markets 2011
Last night, US markets closed strongly with the S&P 500 up 3.41% and the Dow Jones up 2.97%. This morning the S&P 500 futures have slipped back, but not by much, down 0.10% this morning.
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Monday, October 10, 2011
No Damage (Yet) to Downtrends in Gold, Oil, Euro/USD / Stock-Markets / Financial Markets 2011
Apart from Sunday's announcement from leaders Merkel and Sarkozy that both agree that European banks must be recapitalized (the details of which will have to wait until Nov 2), let's notice that today's almost euphoric reaction has propelled the Euro/USD as well as gold and silver only towards a test of their prior recovery highs.
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Monday, October 10, 2011
Gold, Silver And The US Dollar Analysis and Forecasts / Stock-Markets / Financial Markets 2011
Last week, we wrote that gold and gold stocks could be at – or very close to – a bottom. So far so good, as the miners rallied out of oversold conditions.
Gold found support at the 35 weeks Exponential Moving Average, and RSI held above 50. That’s a good sign so far:
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Monday, October 10, 2011
European bank pledge lifts markets in early trading / Stock-Markets / Financial Markets 2011
The weekend's pledge from Germany's Merkel and France's Sarkozy has been taken as a sign that the Eurozone finally has the will and the unity to get to tackle the crisis. There is increasing belief in the optimistic view that Greek default will be contained by full support of European banks. This comes as French and Belgian authorities guarantee 90bn euros of Dexia debt.
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Sunday, October 09, 2011
Stock and Commodity Markets Bullish Set-Up vs. Europe, Downtrend / Stock-Markets / Financial Markets 2011
For the past eight weeks, this market has been difficult for bulls and bears alike. I do not recall a more difficult two month stretch in terms of volatility and the magnitude of the ups and downs. Here are the peak-to-trough losses for a few ETFs since the spring 2011 highs:
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Saturday, October 08, 2011
Investor Gainful Navigation Aids / Stock-Markets / Financial Markets 2011
"Governments all over the world have created trillions of currency units since 2007 in the mistaken idea that it would create prosperity. The Americans, but also the Europeans, the Chinese and others, have papered things over for the short run mainly by inflating the stock markets, artificially depressing interest rates, and slowing the fall of the real estate market. All that extra currency has made people think they are richer than they are, and has encouraged extra consumption, which is a large part of the problem. Now they [central bankers] are out of bullets. We are coming out of the eye of the hurricane and it is going to be much more serious than it was in 2007, 2008, and 2009. That is because all those currency units they created are causing tremendous price rises on the retail level. It is going to be devastating for the average guy. A complete breakdown in confidence is happening right now in the US dollar. The Chinese, or at least their central bank, have more US dollars than anybody else, and they want to get rid of them. They are trying to offload those dollars, for instance in Africa, to get rid of them for real wealth. Nearly everybody in the world feels this way. The new deals that they cut, with the Iranians and the Argentines for instance, are almost like barter deals. Nobody wants to use the paper currency of an unreliable third party.
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Friday, October 07, 2011
Hyper Oversold Stock and Commodity Markets / Stock-Markets / Financial Markets 2011
The recent sharp selloffs in stocks and commodities have fueled an incessant drumbeat of pessimism plaguing the financial markets. Greece is doomed, Europe is fracturing, China is slowing, the US faces a recession, the sky is falling! You’ve heard all the popular bearish arguments countless times. But as usual at major turning points, popular consensus is dead wrong. Oversold markets are very bullish!
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Thursday, October 06, 2011
Gold, DAX Stocks Index and US. Dollar Still Pointing to Sharply Lower Prices / Stock-Markets / Financial Markets 2011
The past month has been a wild ride for both equity and commodity traders around the globe. Novice traders have had their heads handed to them and their investment accounts drained. When fear, uncertainty and volatility are running high, some of the best opportunities become available to those who know what to look for. These market conditions force you to focus and strive for perfection in finding low risk entry setups and to also actively managing positions with laser focus because within hours a winning trade can turn into a losing trade.Read full article... Read full article...
Monday, October 03, 2011
When Money Dies - a "Live from the Summit" Report / Stock-Markets / Financial Markets 2011
Kevin Brekke, Casey Research writes: Where is the US and global economy going? What will happen to the dollar and euro? And how can investors protect themselves from the fallout? All these questions and more were answered at the Casey Research/Sprott, Inc. Summit When Money Dies. Kevin Brekke reports live from the conference…
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Monday, October 03, 2011
Global Markets And The Mayan Magic Market Wave / Stock-Markets / Financial Markets 2011
GOLD NEWS – The gold price fell sharply on Monday 26 September, plunging $44.25 to $1,615 per ounce. On September 6, the gold price had reached its all-time historic high, at $1,922.20 per ounce.
Never once in the whole year of 2001, even immediately after 9/11 did the New York gold price ever reach $300 per ounce. In September 2011 the price fell by $300 per ounce in one month.
Monday, October 03, 2011
Three Safe Havens Where Big Money is Going / Stock-Markets / Financial Markets 2011
It seems everyone is looking for a place to put their hard earned money as uncertainty around the globe continues to rise. Oil, Gold, and Silver which have been the hot investments for the past few years took it on the chin over the past month with oil falling 13%, gold dropping 15%, and silver with a whopping 30% decline. We did actually see sharply lower prices, but last week these oversold commodities had a bounce and recouped some of their losses.Read full article... Read full article...
Sunday, October 02, 2011
Strong Dollar Equals Weak Stocks, Gold and Silver / Stock-Markets / Financial Markets 2011
For the last several weeks I have had readers mailing me asking why gold and silver have been selling off. The answer is very simple. There is a strong correlation between a strong dollar and weak commodities. The dollar is no different than anything on earth – it will always follow the path of least resistance. As the dollar grows stronger commodities sell off or become cheaper. Take a look at the chart of the dollar below.
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Friday, September 30, 2011
Financial Warfare: How Short Sellers Fleece Investors / Politics / Financial Markets 2011
“Unrestrained financial exploitations have been one of the great causes of our present tragic condition.” -- President Franklin D. Roosevelt, 1933
Why did gold and silver stocks just get hammered, at a time when commodities are considered a safe haven against widespread global uncertainty? The answer, according to Bill Murphy’s newsletter LeMetropoleCafe.com, is that the sector has been the target of massive short selling. For some popular precious metal stocks, close to half the trades have been “phantom” sales by short sellers who did not actually own the stock.
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Friday, September 30, 2011
Markets Signaling Economic Recession / Stock-Markets / Financial Markets 2011
We at EconMatters expected the QE2 froth to come out of markets once the fed experiment of artificially inflating asset prices was over, and for the most part this is exactly where we are today at the crossroads.
Are we going to just trudge along with a slow growth economy until the world finally works its way out of the housing inventory overhang, and the next building phase takes hold and there is a strong surge in the labor markets from the bottom up, or are we going to take the next leg down and head back into a recessionary environment?
Friday, September 30, 2011
Euro Drama Tough Love / Stock-Markets / Financial Markets 2011
The market refrain this month could be summed up with the phrase “just do something!” Growth continues to be slow and the spectre of debt default in Europe has cast a pall over the markets for the past three months. Unfortunately, the EU bureaucracy is not built for speed so the torture is likely to continue for a while yet.
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Wednesday, September 28, 2011
The Most Dangerous Time Ever for Investors / Stock-Markets / Financial Markets 2011
The government has taken control. No longer is Washington about justice and liberty. It's all about money.
This is perhaps the most dangerous time ever to be an investor. Sounds dire, I know, but it is the truth.
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Tuesday, September 27, 2011
Extreme Moves Leave Markets in Rare Territory / Stock-Markets / Financial Markets 2011
If you didn't pay much attention to global markets last week, here's what you missed...fears that the global economy is dangerously close to a recession due to the financial crisis in the eurozone and flatlining growth in the U.S. sent assets of all shapes and sizes into a tailspin.
Among the E7 and G7 countries, only two markets increased for the week--Pakistan (up 2.2 percent) and Japan (up 0.5 percent). Russia (down 12.2 percent) and Indonesia (down 10.7 percent) were the leaders in the opposite direction. The average return for the 14 countries was a 5.7 percent decline.
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Monday, September 26, 2011
A Strong Dollar Means Investor Opportunity / Stock-Markets / Financial Markets 2011
The Fed has been dumping billions of dollars into the US markets each and every trading day since late 2010. Because of this massive money creation the dollar became much weaker.
Movements in the dollar influence commodity prices, commodity prices influence bonds, which then influence stocks:
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Monday, September 26, 2011
Markets to Get Crushed, Gold to Soar / Stock-Markets / Financial Markets 2011
Markets got crushed last week as the main catalysts of economic collapse continued to converge and interact to eradicate risk capital appetite. Both the Fed and European Central Banks are exuding a “deer in the headlights” kind of paralysis. Their only strategy appears to be finding new ways to load up the countries wallowing in debt with more debt at lower rates but for longer durations. Meanwhile, the assets they demand as collateral are the only ones worth anything. Thus, the Greeks are getting raped, and nothing worth anyting in Greece will be owned by Greeks.
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