Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Wednesday, August 31, 2011
Stocks Bear Market Rally Has Begun / Stock-Markets / Stocks Bear Market
I've been warning bears for a couple of weeks that the market was due for an aggressive bear market rally. That rally has clearly begun.
I have often referenced the Rubber Band theory in my nightly reports. For those not in the know, the rubber band theory is nothing more than the tendency for any market to regress to the mean. And the further a market is stretched away from the mean the more violent the snap back tends to be once the pressure is released.
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Tuesday, August 30, 2011
Stock Market Sentiment...Daily Oscillators Lead To Rally... / Stock-Markets / Stock Markets 2011
There are times when events take place that are predictable to some, but not at all to others. Take the stock market today, for instance. Not many understand the rally today, nor what will happen in the days to come. It's based purely on two events. The bull-bear spread, and the 21-day put/call levels, are bullish. Simply too much negative sentiment out there short-term.
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Monday, August 29, 2011
Stocks, Gold, Silver and Bonds Market Analysis Video / Stock-Markets / Financial Markets 2011
- Gold and silver have had a nice little bounce on Friday but are now trading at resistance. Be cautious of lower prices.
- Crude oil continues to form a base on the daily chart and is showing some strength today with the weak dollar.
- Bonds look as though they are about to top out and sell off meaning a TBT etf could be a great play going forward.
- SP500 is gapped up and should find resistance at the 1200 level today or later this week which will likely be sold into.
Monday, August 29, 2011
Europe, Bearish Technicals Drag Down Longer-Term Outlook for Stocks / Stock-Markets / Stock Markets 2011
With Ben Bernanke’s Jackson Hole speech in the rear-view mirror, the markets will most likely turn their attention back toward Europe. In the short-run, it is doubtful market-calming news will emerge concerning debt and slowing growth in Europe. Add in a bear-market-like technical back drop (see video below) and we have a recipe for continued stress-inducing volatility in the stock, bond, commodity, and currency markets.
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Monday, August 29, 2011
After the Stock Market Peak / Stock-Markets / Stock Markets 2011
The S&P 500, along with all global stock indexes, has started another bear market decline. The peak developed in April, after over two years of advancing (Chart 1).
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Monday, August 29, 2011
What's Next for the Stock Market S&P500 and Gold? / Stock-Markets / Stock Markets 2011
Now that Mr. Bernanke’s speech is old news, what was the financial media thinking exactly? A significant number of financial writers have been anticipating discussion of QE III or QE III Lite which clearly were never even on the Fed Chief’s radar this week. The focus of the Jackson Hole Summit was how to achieve long-run growth, not conduct discussion of monetary policy.Read full article... Read full article...
Monday, August 29, 2011
Are We Really In A Stocks Bear Market Yet? / Stock-Markets / Stock Markets 2011
SPX: Very Long-term trend - The very-long-term cycles are down and, if they make their lows when expected, there will be another steep and prolonged decline into 2014-16.
SPX: Intermediate trend - The 1101 low of 8/22 appears to be holding and may mark the bottom of the intermediate downtrend which started at 1370 on 5/02.
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Sunday, August 28, 2011
Gold, Stock Market Key Inflection Points / Stock-Markets / Financial Markets 2011
Another week, another crazy set of moves, which I am sure are causing issues for some traders, although one thing that is working and working well is our areas, having key support and resistance areas sure does help trading these markets.
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Sunday, August 28, 2011
Global Stock Market Sell-Off Strategy: Blend Winners and Losers / Stock-Markets / Global Stock Markets
Carl Delfeld writes: No question, the global stock sell-off has been brutal, hitting high-quality growth markets and weak performers alike.
But while global emerging markets as a group, via the iShares MSCI Emerging Markets Index (NYSE: EEM), are down about 12 percent so far in 2011, a few countries are bucking the downtrend and remain in positive territory.
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Sunday, August 28, 2011
Synopsis of Bernanke's Speech at Jackson Hole, and What It Means / Stock-Markets / Central Banks
When listening to a speech like this, one has to remember who is speaking and under what conditions. A Fed Chairman has a thousand watt megaphone attached to his chest, and so he must speak quietly and calmly, in order not to disrupt markets and place the Fed in the middle of political controversies. Unless you have actually been close to or in a position of power, where your words carry great significance, it is all too easy to forget this.
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Sunday, August 28, 2011
Stocks Primary Bear Market Dow Theory Update / Stock-Markets / Dow Theory
In accordance with Dow theory, once the trend is confirmed, that trend must be considered intact until it is authoritatively reversed. In the case of an up market, a move below the previous secondary low points are required in order to authoritatively reverse the uptrend and confirm a new downturn. On August 4, 2011 both the Industrials and the Transports closed below their previous secondary low points. In doing so, the bullish primary trend that began at the March 2009 low was reversed with a bearish primary trend change in accordance with classical Dow theory.
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Saturday, August 27, 2011
Stock Market New Uptrend Underway After Bernanke's Jackson Hole Speech? / Stock-Markets / Stock Markets 2011
The equity market reversed last week’s loses with equally impressive gains this week. After hitting a low on monday (SPX 1121) the market surged to 1191 early thursday, and then got struck by a selloff in Germany and concern about FED chairman Bernanke’s Jackson Hole speech. Then after hitting SPX 1136 the market rallied into the friday close. Economic reports were sparse and generally negative. Improving, were durable goods orders, FHFA housing prices and consumer sentiment. On the downtick, were new homes sales, Q2 GDP, the monetary base, the WLEI and weekly jobless claims rose. For the week the SPX/DOW gained 4.5%, and the NDX/NAZ gained 6.0%. Asian markets gained 1.1%, European markets gained 1.9%, the Commodity equity group gained 1.9%, and the DJ World index rose 2.5%. Next week we have an abundance of economic reports: ISM, the Chicago PMI, PCE prices, the Case-Shiller index, and the Payrolls report on friday.
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Saturday, August 27, 2011
Stock Market Bear Flag Continues... / Stock-Markets / Stock Markets 2011
Try to understand why this may be taking place folks. The market had a tremendous move lower over only a two-week time period. Nearly 250 S&P 500 points in such a small amount of time. Markets only have so much energy from which to be able to make such a move before it needs a longer period of resting up. The bear flag (handle) is now three weeks old. It can get a lot older than that. I'll talk more about that later on in this letter. This extended period of time would allow folks to become more confused about what the market is about to do next. Within the bear flag there's a lot of whipsaw action. Totally understandable as the VIX is high, and folks who are confused are looking for other positions to act as protection. The whipsaw is dangerous to play from a trading perspective. The more you play the harder it'll be on up emotionally.
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Saturday, August 27, 2011
Stock Market Intermediate Signals Still Pointing Down! / Stock-Markets / Stocks Bear Market
To put today's upmove in a larger perspective -- certainly larger than my 1-minute or 4-hours chart analytics, let's have a look at my updated weekly pattern and moving average analytics in the cash SPX.
Only twice in the last 11 years (2000 & 2007) have ALL of my directional moving averages turned down into a negative crossing, which subsequently confirmed that an acute, intermediate-term bear phase was underway. In 2000, after the downside MA inflection point, the SPX declined from 1380 to 768 (-45%), and in 2007 the SPX declined from 1475 to 666.79 (-55%).
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Friday, August 26, 2011
The Stock Market Fear Ceiling / Stock-Markets / Stock Markets 2011
Fear is the greatest buy signal ever seen in the stock markets. This overpowering emotion flares fast, driving excessive selling that rapidly hammers stock prices down to irrational oversold levels. These fear-driven lows are the ideal time for investors and speculators to buy low, necessary before selling high later. Provocatively stock fear has an effective ceiling, absolute levels that demand aggressive buying.
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Friday, August 26, 2011
ETF Rankings: Significant Downside Still Possible In Stocks / Stock-Markets / Exchange Traded Funds
On August 3, we commented that recent breakdowns called for a defensive bias. Unfortunately, our concern about the market’s intermediate-term outlook has become more acute in recent weeks as we noted on August 22. The research presented below highlights the significant downside risks that remain in the financial markets. Until conditions improve, we will maintain a very defensive/high cash posture.
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Friday, August 26, 2011
The Next Financial Panic Banking Sector Crash Could Start Tomorrow / Stock-Markets / Credit Crisis 2011
Shah Gilani writes: Fears of a banking crisis and rolling contagion are making global stock and bond markets extraordinarily volatile - and with good reason.
Another financial meltdown, on par with what we saw in 2008, is looming large on the horizon.
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Friday, August 26, 2011
Trading Markets, Reversals for Gold, Silver and Stocks / Stock-Markets / Financial Markets 2011
Clay Tom writes: Gold.. Covered short positions.. Long.. Dgp and nugt, short dzz and dust. .. See the long tail .. Sperm pattern.. That is a bottom reversal. Indicators still point down, but obv started up.
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Thursday, August 25, 2011
The Stock Market's Dumbest Rally of All Time / Stock-Markets / Stocks Bear Market
"Without the destructive power of the banks, hedge funds and other investment companies, the world would not be where it is today — at the edge of an abyss." Der Spiegel, "The Destructive Power of the Financial Markets"
Tuesday's 322 point surge on the Dow Jones must rank among the dumbest rallies of all time. The proximate trigger for the triple-digit moonshot was the feint hope that Fed chairman Ben Bernanke might pull another rabbit out of his hat at his Jackson Hole confab and announce another round of his bond purchasing program called Quantitative Easing.
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Thursday, August 25, 2011
Contracting Fibonacci Spiral Implications for the S&P 500 Stocks Index / Stock-Markets / Stock Markets 2011
One month I wrote a piece titled “Markets Trapped in a Contracting Fibonacci Spiral – Point of Singularity in 2019”. This was based upon the Fibonacci sequence, 1, 1, 2, 3, 5, 8, 13, 21, 34 etc. One item I forgot to mention was that from the 1932 bottom to 1966 was 34 years and 1966 to 1987 was 21 years...subsequently we saw the 2000 top (13 years) and then the 2008 top (8 years). This is rather more than coincidence that every major top since 1932 was identified by following a contracting Fibonacci sequence. There is no indication for how long tops last, but in general, corrections are severe...at least 40-50%.
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