Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Saturday, March 12, 2011
What the VIX is Saying for the Stock Market... / Stock-Markets / Volatility
The VIX is regarded as the Fear Index by many, so you would expect it to be screaming "Fear" after yesterday's market drop, the Libyan and Saudi troubles, and the huge earthquake in Japan.
It isn't ... instead it is showing that the market is acting like it is relatively undaunted by all the above concerns.
Read full article... Read full article...
Saturday, March 12, 2011
Stock Market Trends Impacted by Social Moods / Stock-Markets / Stock Markets 2011
We can now add the recent uprisings in North Africa and the Middle East to the category of life imitating art -- specifically, music lyrics. Those who lived through the 1980s might be forgiven for hearing an unbidden snatch of music run through their heads as they watched first Hosni Mubarak and now Moammar Gadhafi try to hold onto power -- "Should I Stay or Should I Go" by The Clash. In Libya, where Gadhafi has used air strikes and ground forces against the rebels, The Clash's other huge hit from 1981, "Rock the Casbah," describes the current situation so well it's almost eerie:
Read full article... Read full article...
Saturday, March 12, 2011
SPX has a Classic Reversal Pattern / Stock-Markets / Financial Markets 2011
Hundreds killed in tsunami after 8.9 Japan quake(AP) A ferocious tsunami spawned by one of the largest earthquakes ever recorded slammed Japan's eastern coast Friday, killing hundreds of people as it swept away boats, cars and homes while widespread fires burned out of control.
Hours later, the tsunami hit Hawaii and warnings blanketed the Pacific, as far away as South America, Canada, Alaska and the entire U.S. West Coast.
Friday, March 11, 2011
Markets Rocked By Japan Megaquake, Gold Mixed as Yen Surges / Stock-Markets / Financial Markets 2011
The massive earthquake and tsunami that has rocked Japan is being digested by markets and the economic ramifications and uncertainty is leading to risk aversion.
The massive earthquake measured 8.9 on the Richter scale and is the largest earthquake since 1896 and the 6th largest earthquake ever measured. It has triggered alarm that tsunamis may hit coastlines throughout the Pacific including on the U.S. western seaboard. A state of emergency has been declared at one of Japan’s nuclear stations due to a fire and the process for cooling the nuclear reactor is 'not going as planned'.
Read full article... Read full article...
Friday, March 11, 2011
Stock Market Correction Over? / Stock-Markets / Stock Markets 2011
In my analysis of March 2nd I suggested the stock market correction should last around 4 weeks (based on cycles and previous corrections) and sufficiently reset overbought or extreme indicators in order for the cyclical bull to continue. Today the correction is 3 weeks old, and we have seen just over 50 points wiped off the S&P500. So is it shortly a buy again?
Read full article... Read full article...
Friday, March 11, 2011
Back to the Well? / Stock-Markets / Financial Markets 2011
There is a rather popular cliché that those who don’t know their history are doomed to repeat it. I tend to like the variation, that the only thing we have learned from history is that we have learned nothing from it. Sounds like a clever oxymoron, but given the state of affairs in the world today, it is more than apropos. It would seem that once again, we are defying logic and trying to go back to 2005 when it was all roses, honey, easy mortgages, and big trade deficits. Have we really not learned a thing?
Read full article... Read full article...
Friday, March 11, 2011
Gold, Stocks and Commodites: Save, Invest, Speculate, Trade or Gamble? / Stock-Markets / Financial Markets 2011
Doug Casey, The Casey Report writes: For some time I've been saying that the economy is in the “eye of the storm” and that when it emerged, the weather would be far rougher than in 2008. The trillions of currency units created since the Greater Depression began in 2007 have papered over the situation, but only temporarily.
In some ways, the immediate and direct effects of this money creation appear beneficial. For instance, by averting a sharp and complete collapse of financial markets and the banking system – or by allowing a return to some approximation of normalcy in the daily lives of most people.
Read full article... Read full article...
Friday, March 11, 2011
S&P 500 Remains Overly Bullish / Stock-Markets / Stock Markets 2011
The recent sell-off of the S&P 500 has brought many investors to question the sustainability of the bull market. Spiking oil prices and the outlook for even high energy costs as demand increases, has resurfaced concerns of another major market decline. However, this outlook is very unlikely given the underlying strength of the index.
Read full article... Read full article...
Thursday, March 10, 2011
The SPX Stocks Index Dances Between Danger and Excitement / Stock-Markets / Stock Index Trading
Many readers might remember that exactly two years ago the S&P 500 tagged the infamous 666 price level before putting on a monster 2 year rally that saw it surge over 100% to the February 2011 highs. Investors today are staring at a rising wall of risk while corporate credit spreads remain bullish, corporations have been able to expand margins and produce increasing profits, and Federal Reserve Chairman Ben Bernanke has declared that there are no inflationary concerns. Quite frankly I am going to leave Ben Bernanke alone simply because so many other people will do a better job of declaring him incompetent and the creator of massive bubbles in risk assets, but I digress.Read full article... Read full article...
Thursday, March 10, 2011
Stock Market Flash Crash Risk Assets, Bears Are Gaining Traction / Stock-Markets / Financial Crash
Traders, money managers, and individual investors have numerous concerns relative to the ‘risk-on’ or inflation trade:
Read full article... Read full article...
Thursday, March 10, 2011
Industrial Stocks Will Drive the Stock Market Higher, Regardless of High Oil Prices / Stock-Markets / Stock Markets 2011
Jon D. Markman writes: Some investors are worried that high oil prices will drag down the U.S. recovery - and the stock market rally it's spawned.
But even though some stocks look to be topping out, the major industrial stocks behind this bull market are plowing ahead.
Read full article... Read full article...
Wednesday, March 09, 2011
Quarterly Stock and Commodity Markets Brief / Stock-Markets / Financial Markets 2011
Short term traders love volatility and I reckon they are going to get it over the next few months. The catalysts will be oil price instability, rising interest rates worldwide, dollar gyrations and higher inflation. Accordingly note that the VXX is intimating a significant breakout.
The current market correction, which was nicely anticipated, is providing smart traders with ample opportunities. Sectors to watch are oil (ETF: USO), Silver (Ultra ETF: AGQ) Financials (Direxion Bear ETF: FAZ) Mid Caps (Direxion Bear: TZA) and Technology (Ultra Bull ETF: QLD).
Read full article... Read full article...
Wednesday, March 09, 2011
Dow Jones Stocks Index in Silver / Stock-Markets / Stock Market Valuations
The Dow Jones Industrial Average has had tremendous nominal growth since bottoming in March of 2009. Although the Dow has risen to over 12,000 it is important for investors to keep in perspective that nominal point gains of the Dow don't necessarily mean stock investors have increased their overall wealth and purchasing power versus other asset classes.
Read full article... Read full article...
Tuesday, March 08, 2011
Manpower Survey Bullish, But Stock Market Correction Threat Remains / Stock-Markets / Stock Markets 2011
We have some good news on the hiring front this morning, which aligns with our longer-term bullish outlook. However, we remain concerned short-term, and will be patient in terms of redeploying the cash we have raised in recent weeks. According to Bloomberg:
More U.S. employers said they plan to boost payrolls in the second quarter, and fewer expect to reduce headcounts, a private survey found. Manpower Inc. (MAN), the world’s second-largest provider of temporary workers, said today that 16 percent plan to add workers in the April-June period, up from 14 percent in the first quarter. The share of those projecting workforce reductions fell to 6 percent from 10 percent.
Read full article... Read full article...
Tuesday, March 08, 2011
Who’s Going to Regulate the Regulators? / Stock-Markets / Market Regulation
The single most dominant theme among political commentators is the belief that government should do something – anything – to fix the financial system. Regardless of party affiliation, there is a near universal agreement that government should be charged with the task of regulating the financial realm in order to prevent another catastrophe.Read full article... Read full article...
Tuesday, March 08, 2011
Crude Oil Spike Hits Stock Market.... / Stock-Markets / Stock Markets 2011
It was only a matter of time before oil hit this market with the price of oil over $100 for this long. It has been trading well above $100 dollars per barrel for several days now with a spike near $107 per barrel pre-market today. The market finally gave it up to some degree on this spike, although not as much as one might think based on the breakout technically in place.
Read full article... Read full article...
Tuesday, March 08, 2011
Tiger Blood and Adonis DNA of the Bulls, Financial Markets Update, Crude Reality / Stock-Markets / Financial Markets 2011
Like Charlie Sheen, the contingent of herding bulls who drove up the market more than 100% from its 2009 lows are just now beginning to deal with the crude reality of their infamous brand of hypomania.
High on themselves, the band of financial sphere rock-stars-from-Mars led by the Fed, its primary dealers, Washington, transnational corporations and their embedded lobby groups are reeling with pink-cloud-syndrome much like Mr. Sheen has been, which is no laughing matter.
Read full article... Read full article...
Monday, March 07, 2011
Fed's Wealth Effect Money Creation Machine Driving Stocks Bull Market, Keep Bears at Bay / Stock-Markets / Stock Markets 2011
Jon D. Markman writes: Stocks ripped higher at the start of the past week, then collapsed, revived and collapsed again.
Yeah, it was an exciting few days. By the time it was all over bull and bears discovered they had fought to a tie that just barely favored buyers as the Dow Jones Industrial Average closed up .3% for the week, while the Standard & Poor's 500 Index was +0.1%, the Nasdaq Composite was +0.13% and the Russell 2000 small-caps were +0.3%.
Read full article... Read full article...
Monday, March 07, 2011
Dow Theory with Hurst Cycles / Stock-Markets / Stock Markets 2011
The Dow Theory has two components the Dow Jones Industrials index and the Dow Jones Transports index. The basis of this theory is based on pure technical analysis of the two indexes. The Dow Transports is the more volatile of the two, and what the reader may not know contains a technical statistic that is at the very least 85% accurate.
Read full article... Read full article...
Monday, March 07, 2011
SPX, Dollar, Gold and Oil Analysis / Stock-Markets / Financial Markets 2011
In order to get a complete perspective on the market, it is best to start by analyzing the longer term trend. The weekly chart of the SPX which appears below should leave little to the imagination about the past present and future market positions. The combined labeling of major cycles, drawing of trend and channel lines, and studying of indicator configurations give us a very clear picture of what has taken place and why, and of what to expect in the future.
Read full article... Read full article...