Category: Financial Markets 2012
The analysis published under this category are as follows.Tuesday, March 06, 2012
Financial Markets Waiting on European 'Surprise' / Stock-Markets / Financial Markets 2012
Last month, we compared the investment herd to the buffalo that were stampeded over the cliffs of the Great Plains by Native American hunters.
Buffalo don't meander over cliffs. Neither does the stock market. The stampede is on and investors won't see that the ground has given way until it's too late.
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Tuesday, March 06, 2012
Financial and Commodity Markets Support and Trendlines Being Broken / Stock-Markets / Financial Markets 2012
IWM (Russell 2000) has the most noticeable breakdown, but the other indices appear to be on a similar pattern. The initial impulse establishing the new trend is not yet complete. However, IWM seems to have broken through intermediate-term Trend Support at 80.78 and its hourly Cycle bottom support at 80.65. The 50 day moving average at 78.85 is the next potential level of support. If IWM exceeds it, then it may become resistance for the wave i bounce, which may take yet another day or two.
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Tuesday, March 06, 2012
Economic and Financial Market Assumptions are Getting Very Ugly / Stock-Markets / Financial Markets 2012
We are now just over two months into that oft-dreaded year of 2012, and the economic and financial projections/assumptions by public and private institutions across the world have noticeably worsened. These are the same institutions (i.e. politicians, bureaucrats and executives) that have everything to lose by painting an accurate portrait of their position in the global economy, so it’s an extremely safe bet that they are still over-estimating their prospects. Nevertheless, the fact that their inflated, yet worsening projections completely destroy the myth of an economic recovery is telling.
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Monday, March 05, 2012
U.S. Dollar and Crude Oil Hold Clues About Stock Market Future / Stock-Markets / Financial Markets 2012
The past few months have been a difficult environment for anyone that was bearish. The next few months may prove to be difficult for everyone regardless of directional bias.
We live in a world where headlines can move the market in split seconds as high-frequency trading robots cause flash rally's and flash crashes regularly.
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Sunday, March 04, 2012
Broad Market Recap for Currencies, Metals and Stocks / Stock-Markets / Financial Markets 2012
The US dollar index staged a bullish engulfing candle last week putting in a bounce off the 50% retracement level and then pushed upwards in chart action staging an advance that pushed gold and silver lower.
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Sunday, March 04, 2012
Stock Market Ending an Diagonal Top? / Stock-Markets / Financial Markets 2012
Current Position of the Market
SPX: Very Long-term trend - The very-long-term cycles are down and, if they make their lows when expected (after this bull market is over) there will be another steep and prolonged decline into late 2014. It is probable, however, that the steep correction of 2007-2009 will have curtailed the full downward pressure potential of the 120-yr cycle.
SPX: Intermediate trend - The intermediate uptrend is still intact, but a short-term top is forming.
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Saturday, March 03, 2012
Groundhog Day Meets the Markets / Stock-Markets / Financial Markets 2012
Another day, another week passed and it feels like we are all living a dream and playing the role Bill Murray did in the movie Groundhog Day. Virtually the past week felt like February 2nd.
Still there were some trades around for those traders that were keeping in touch with the markets. The obvious ones were gold and silver.
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Friday, March 02, 2012
Gaining From Gargantua Until it Collapses / Stock-Markets / Financial Markets 2012
“I’d rather write about laughing than crying. For laughter makes men human and courageous.”
La vie de Gargantua et de Pantagruel
Francois Rabelais
There is indeed a Gargantuan Giant growing in the International Economy and Markets. It is growing, and will continue to grow, until it collapses, inevitably.
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Friday, March 02, 2012
Why is the Financial World So Messed Up? / Stock-Markets / Financial Markets 2012
Why is the financial world so messed up? Because it’s run by Central Bankers. And those folks view money very differently from the businesspeople who actually create businesses, jobs, and wealth.
For your average Central Banker, the professional relationship between money and risk is a distant one. This has much to do with the fact that your average Central Banker is an academic, someone whose income has been fixed based on his or her status at a particular academic institution (tenure vs. non-tenured).
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Tuesday, February 28, 2012
Gold Stocks and U.S. Dollar What To Expect Next / Stock-Markets / Financial Markets 2012
This morning we are seeing the US Dollar index move higher retesting a short term breakdown resistance level. What this means is that the dollar fell below support and is not slowing drifting back up to test the breakdown level. As we all know once a support level is broken it then becomes resistance. So if that holds true with the current move in the dollar we should see stocks and commodities find a short term bottom and continue higher today or tomorrow from the looks of things.
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Monday, February 27, 2012
2012 & Beyond: Pain at the Pump is Here to Stay, But it Won't Doom the Economy / Stock-Markets / Financial Markets 2012
Wednesday, February 22, 2012
Don't Buy Government Bonds / Stock-Markets / Financial Markets 2012
Lee Cooperman, the billionaire chief executive officer of Omega Advisors Inc., spoke to Bloomberg TV's Erik Schatzker this morning about his hedge fund's investments. Cooperman said investing in U.S. Treasuries "makes no sense," he considers stocks the best investment today and that he likes gold, the S&P and Apple.
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Wednesday, February 22, 2012
Stock Market Frustrates the Bears Whilst a Falling Dollar Will be Bullish for Commodities / Stock-Markets / Financial Markets 2012
Tom De Mark pins us around a top here, still suggesting roughly a 5% retreat from here in total, in an up-down manner that frustrates bears, before the market then advances again. He makes the following analogy with 1987:
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Saturday, February 18, 2012
Where To Wait Out the Great Correction / Stock-Markets / Financial Markets 2012
Tired of running out of time and money? Scrimping and saving just to make ends meet?
Try moving to Harlingen, Texas. The cost of living there is only about 40% of the cost of living in Manhattan.
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Friday, February 17, 2012
Vanguard's Bogle: Tax Breaks For Private Equity Firms are 'Ridiculous' / Politics / Financial Markets 2012
Vanguard Group founder John Bogle spoke with Bloomberg Television's Betty Liu yesterday at the Bloomberg Link Portfolio Manager Mash-Up conference in New York.
Bogle said that lower tax rates for certain types of gains earned by private equity firms are "ridiculous" and "I'm arguing for the capital gains rate taxable as ordinary income."
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Friday, February 17, 2012
THE KEY to Markets Performance Until November, 2012 / Stock-Markets / Financial Markets 2012
“Financial currency inflated hell by global debt monetization is the condition from which there is no escape, except through burning down the old system and making a new one. This is the dead end sign at the end of the road for can kicking. It is the condition of financial perdition. It is not something coming in a distant future. It is here and now, clear and present, if you have the eyes to see.
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Wednesday, February 15, 2012
Financial Markets, Why We Are Headed to Where We Are Headed... / Stock-Markets / Financial Markets 2012
...(More on the Theory and Reasoning of the Contracting Fibonacci Spiral)
My old history teacher in high school once said that "It is amazing that we live in a period of time where access to historical records have been thoroughly documented so that humankind can learn from mistakes of former civilizations. Instead we as a society tend to choose the easy way out, make the same mistakes and never learn from history". Governments throughout history have attempted to manipulate the masses so that the upper elite can have access to greater control. This has been done through propaganda etc. with no consideration for the future or examination of historical consequences.
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Friday, February 10, 2012
Superb Investor Opportunities Created by 3 False Premises / Stock-Markets / Financial Markets 2012
“In one of the most shamefully disingenuous reports we’ve seen in years, the US Labor Department released the latest employment figures on Friday showing that the headline US unemployment rate had fallen to 8.3%.
“Champagne and sound bites were pre-positioned in Washington as the self-congratulatory praise flowed like the bubbly. President Obama, beaming like he’d just caught the winning touchdown pass, told the American people on Sunday that he ‘deserved’ a second term.
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Wednesday, February 08, 2012
Markets Risk Train Chugs Along, Overbought Does Not Mean a Correction is Coming / Stock-Markets / Financial Markets 2012
This market has been overbought since mid January 2012 and it has shown very little signs of slowing down leave alone reversal. The action post Ben speech yesterday was another breakout and this time unless its fake in which case we will know in the next 48 hours, this train is picking up speed. While we were not along in fading this market in feb but we have quickly reversed positions with strong evidence (laid below) of a new wave of risk buying if we get through key levels and days (feb 9 is imp day)
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Wednesday, February 08, 2012
How Corporate Debt Deleveraging Looks / Stock-Markets / Financial Markets 2012
I found an interesting pattern in studying corporate debt. Specifically yield spreads which is the difference between investment grade and below investment grade yield. As investors grow risk averse they prefer to move to the safety of investment grade debt thus driving yields lower. They do this buy selling below investment grade debt thus driving yields higher. The result are higher spreads.
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