Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Thursday, May 12, 2011
Stock Market Key Downside Reversal for S&P? / Stock-Markets / Stock Markets 2011
Let's notice that today's action in the emini S&P 500 initially climbed above yesterday's high at 1356.50 (to 1358.25), but then reversed sharply into a nosedive that so far has pressed to 1334.75, which is 4.25 points below yesterday's low.
The net result from a technical perspective is the potential for a key downside reversal day in the e-SPM (contingent upon a close beneath 1339). Such a signal will indicate strongly that the rally off of last Thursday's low at 1325.25 into this morning's recovery high at 1358.25 was a countertrend rally within a larger corrective process that should break the rising 20 DMA (1335) and the prior low at 1325.25, on the way to a test of the lower BBnd line, now at 1300.
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Wednesday, May 11, 2011
Cycles Analysis Says that the Stock Market Bears are About to Roar / Stock-Markets / Stock Markets 2011
The Stock market pushes higher and higher, what fool would take a short position against this mighty liquidity pump up, however there are a few dark clouds in the next few months: US Summer is seasonly poor, QE2 ending, earnings are peaking, Greek woes. When the SP500 sinks, historically the US dollar rallies, transports fall and funds rotate out of aggressive stocks to defensive stocks. Let's review these cycles to see what we can expected next.
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Wednesday, May 11, 2011
Isn't Economics Fun, If You're an IBank / Stock-Markets / Financial Markets 2011
As Dave Fry notes in his chart on the right, we had a lovely boost yesterday as the Fed pumped $7.24Bn into the IBanks covering a solid 34% of the $20.98Bn of junk that was offered up to them - in this case bonds that were maturing 2018-2021 at toxically low rates. The idiot taxpayers in this country will never know what hit them in this scam until rates begin to fly up and these bonds that the Fed is putting us on the hook for begin to be discounted towards zero.
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Wednesday, May 11, 2011
Stock and Commodity Markets Consolidation Phase Continues / Stock-Markets / Financial Markets 2011
In the follow-up to the May newsletter, equity and commodity markets are continuing to trade in a consolidation phase after the low in mid-March. Both stocks and raw material indexes are moving in tandem and in an average 14-16 week cycle. This would suggests that the next trough should occur by late June.
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Tuesday, May 10, 2011
Stock Market Daily Charts Remain In Control For Now.... / Stock-Markets / Stock Markets 2011
bottom line for the action we're seeing. The weekly charts we know are bearish, but we also know the primary chart to follow is the daily chart. Only when the daily chart confirms the weekly chart can we say with more assuredness that we're about to correct with some force rather than the tiny little selling days we get from time to time. The daily charts for the major indexes are all in bullish inverse patterns and that has to be the focus until broken. The bears can't even remove the 20-day exponential moving averages, let alone the key 50-day exponential moving averages further below.
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Tuesday, May 10, 2011
Hong Kong ETF EWH on the Move / Stock-Markets / Stock Markets 2011
All of the action in the iShares MSCI Hong Kong Index (EWH) from the November 8, 2010 high at 20.24 into the March 17 low at 17.63 has the right look of a completed major corrective period. If accurate, that means that all of the action since March 17 (at 17.63) is part of a new upleg within the dominant, powerful uptrend.
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Tuesday, May 10, 2011
Warren Buffett and Wall Street Boys / Stock-Markets / Market Manipulation
One of my long-time New York friends said: "If you have three people working in a McDonald's there will be politics and grandstanding. Wall Street isn't much different." There's more fame, and the fortune is much greater, but he's on to something.
One of the reasons Warren Buffett has cultivated an image of trustworthiness is because his public persona seemed to be above it. Some contrast from my personal experiences may illustrate the point.
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Monday, May 09, 2011
Key Levels to Watch in Stocks, Dollar, and Commodities / Stock-Markets / Financial Markets 2011
If you follow the markets closely, it is easy to produce a back-of-the-envelope bull/bear analysis given the mixed bag of fundamentals and technicals. On the bullish side of the equation:
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Monday, May 09, 2011
Commodities Crash Pain Eased by Dividends From Large-Cap Stocks / Stock-Markets / Financial Markets 2011
Jon D. Markman writes: After several weeks of quiet in the markets, economy and geopolitics, last week exploded with excitement and volatility, seeing commodities tumble and large-cap stocks end strong.
It started with news that Seal Team Six had taken out Osama bin Laden in Pakistan and ended with silver crashing 26%, crude oil plunging 15%, and corn down 6.5%. Determining how these events are connected will provide historians with rich material to ponder in years to come.
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Monday, May 09, 2011
2011 Has Not Been Kind to BRIC Nation Stock Markets / Stock-Markets / Emerging Markets
While the U.S. market (with the help of the orphaned dollar) has already hit most Wall Street strategists' year end price targets (1350-1375), the story has not been so good for the much loved BRIC nations. India started the year in horrible fashion, has rebounded somewhat, but is straining under a series of interest rate hikes to contain rampant inflation.
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Monday, May 09, 2011
Stock Market Odds Favour a Rise to SPX 1420 Before the Next Correction / Stock-Markets / Stock Markets 2011
Very Long-term trend - The continuing strength in the indices is causing me to question whether we are in a secular bear market or two consecutive cyclical bull/bear cycles. In any case, 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.
Long-term trend - In March 2009, the SPX began a move which evolved in a bull market. Cycles point to a continuation of this trend for several more months.
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Monday, May 09, 2011
Financial Crisis Next Wave, The Consequences of QE2 / Stock-Markets / Credit Crisis 2011
Martin A. Armstrong writes: We are approaching the end of this current 8.6 year wave come June 13th, 2011. What awaits us on the other side is a change in the overall trend. When we approached the same turning point in 1985.65, PEI took full page advertisements and ran them on the back of the English magazine, the Economist for 3 of the 4 weeks that month. Therein we warned that there would be a change back to inflation and that the steep economic decline that followed the insane peak in interest rates during 1981 was over. Now as we approach this same period after a tumultuous 4.3 years down that saw the collapse of real estate, the demise of legendary firms such as Lehman Brothers and a score of bankruptcies that followed, if anything, these past 4.3 years have certainly not been but boring.
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Sunday, May 08, 2011
Stock and Commodity Markets Wild Week, Elliott Wave Analysis / Stock-Markets / Stock Markets 2011
The ongoing weakness in the Asian markets, and the Commodity equity group caught up to the western markets this week, as they experienced their first decline in three weeks and largest weekly decline since mid-March. Commodities were the biggest losers as Silver lost 25.6%, Crude dropped 16.6%, and the GSCI index dropped 11.2%. For the S&P GSCI Commodity index this was the largest weekly drop since, oddly enough, the first week in May 2010. The equity markets held fairly well considering these declines. The SPX/DOW were -1.5%, and the NDX/NAZ were -1.3%. Asian markets lost 1.8%, European markets lost 1.3%, the Commodity equity group dropped 3.3%, and the DJ World index lost 2.3%.
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Saturday, May 07, 2011
What's Next for the Stock Market, Gold, Silver and Crude Oil / Stock-Markets / Financial Markets 2011
The price action in precious metals and oil this past week has been breathtaking. The last time we have seen this much volatility in commodity prices was amidst the financial crisis in 2008 and the early part of 2009. Does this mean we are at the brink and risk assets are going to decline precipitously? Obviously that question cannot be answered with any certainty, but the underlying price action in the S&P 500 has been relatively strong compared to gold, silver, and oil.
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Saturday, May 07, 2011
Bin Laden...Jobs....Sentiment....Weekly's...Daily's......Down Week...Commodities Crushed.... / Stock-Markets / Financial Markets 2011
So much took place this week it's hard to keep up with it all. The week began with an eye sore. The weekly charts on the small caps, mid caps, Nasdaq, Dow, and S&P 500 all flashed nasty negative divergences. The daily charts were also showing negative divergences on the small and mid caps. The S&P 500, Dow, and Nasdaq had no negative divergences on their daily charts, which was a savior for this market. You don't want all the major indexes flashing negative divergences on both the daily and weekly charts.
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Friday, May 06, 2011
Investor Opportunity-Lifeboats for Investors on Today’s Economic Titanic / Stock-Markets / Financial Markets 2011
“We are supposed to be two years into an economic recovery. Tell that to those with stagnant wages who have to fight against 10% inflation, which our government ingeniously tells us, is 1.9%. Some $900 billion or more will have been created out of thin air by the Fed and spent buying Treasury and Agency bonds, notes and bills and the $862 billion consigned to the economy in December will all have been spent…
The downgrade from AAA for US government debt is 100% surety over the next couple of years. It looks like it has been decided that European debt is to collapse first.
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Friday, May 06, 2011
Commodities Plunge Calls for Stock Market Contingency Plans / Stock-Markets / Financial Markets 2011
While we still believe the S&P 500 can hit 1,400 to 1,440 sometime in 2011, the next few trading sessions are very important for intermediate-term outlook for stocks and commodities. If you own stocks you should be concerned about the May 5 plunge in the commodity markets. Why? Commodities, especially silver and copper, have been the leaders of the current bull market in risk assets. When the leaders of a bull market become weak, it is prudent to become concerned about the entire market.
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Friday, May 06, 2011
Greece Stocks New Bull Market? / Stock-Markets / European Stock Markets
When I saw the CDS prices for Greece debt, I was wondering “How High will they go?”
I thus started to dig deeper, and had a look at some long term charts of the Greek Stock market.
Thursday, May 05, 2011
From Bin Laden To Ben Bernanke, From War On Terror To War On Debt / Stock-Markets / Financial Markets 2011
The notion that "war on terror" events have a large negative impact on the economy, when the terrorists are winning, and a large positive effect when they are losing is well anchored in market mythology. Gold and silver prices, and of course oil prices have been falling since May 1.Read full article... Read full article...
Thursday, May 05, 2011
Rising Stock Markets = Signs of Inflation / Stock-Markets / Inflation
In 2007 or 2008, "While markets across the world have been crashing, the Zimbabwe Stock Exchange has being seeing record gains as citizens turn to equities to protect their money from the country's hyperinflation.
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