Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Monday, February 28, 2011
Investing in Sweden – A Cold Country with a Hot Economy / Stock-Markets / European Stock Markets
Jason Simpkins writes: What comes to mind when you think of Sweden: Blonde hair, pale skin, and a pair of sullen blue eyes piercing through a whiteout - or an economy that grew 5.5% last year?
Too often, it's the former when it should be the latter.
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Monday, February 28, 2011
Gold, Dollar, Stocks & Sentiment at Major Market Pivot Point / Stock-Markets / Financial Markets 2011
So far 2011 has been an interesting to say the least. Stocks and commodities have been jumping around with high volatility generating mixed trading signals. This choppy price action typically indicates trends are in their late stages. The late stages of a trend is very difficult to trade because volatility rises meaning larger day to day price swings, and at any time the price could either drop like a rock or go parabolic surging higher in value. Generally the largest moves take place during the final 10% of trend, but with a sharp rise in price keep in mind the day to day gyrations are much larger than normal, hence the false buy and sell signals back to back on some investment vehicles.
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Monday, February 28, 2011
Booming Global Auto Market Good For Many / Stock-Markets / US Auto's
Perhaps no industry has experienced a stronger recovery from the depths of the recession than the global automobile industry. Around the world, cars are rolling off the lot at a pace not seen in years. Global car ownership is expected to rise 17 percent over the next five years, according to data from J.D. Power.
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Sunday, February 27, 2011
Stock Market SPX Correction May Be Over / 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 cyclical bull/bear cycles side by side. 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 2014-15.
Long-term trend -In March 2009, the SPX began an upward move in the form of a mini bull market. Cycles point to a continuation of this trend for several more months.
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Sunday, February 27, 2011
Six Reasons Why the Stocks Bull Market Could Keep Charging / Stock-Markets / Stock Markets 2011
Louis Basenese writes: After the stock market sold off this past Tuesday, it’s time to address a question that I keep getting asked:
Is the market overdue for a correction?
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Saturday, February 26, 2011
Stocks Test Support, Gold Broadening Top, China Stalls as USD Tests Lows Again / Stock-Markets / Financial Markets 2011
The FDIC Average Weekly Closures May be Rising.
The FDIC Failed Bank List announced only one new bank closure this week. U.S. regulators said they seized a failed Illinois bank Friday, the second from that state this year. The Federal Deposit Insurance Corp. said it received Valley Community Bank of St. Charles, Ill., and entered a purchase-and-assumption agreement with First State Bank of Mendota, Ill., to take over the failed bank.
Saturday, February 26, 2011
Stock Market Investor Sentiment and a Quick Dow Theory Update / Stock-Markets / Stock Market Sentiment
Sentiment alone is not a timing tool for the market. But, it is useful in telling us when too many people get on the same side of the boat, which in turn tells us that conditions have ripened for a turn. I have said many times of late that the recent sentiment environment reminded me of the 2006 and 2007 period. In the chart below I have included the S&P 500 and a sentiment indicator that is comprised of the Investor Intelligence Bulls divided by Bulls plus Bears. In other words, this shows us the percentage of Bulls to total Bulls and Bears. Now, note on the chart below that during the 2007 period when this reading rose above 72%, an intermediate-term top soon followed.
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Saturday, February 26, 2011
U.S. Treasury Bonds, Yen, Euro and Dollar Chart Analysis / Stock-Markets / Financial Markets 2011
Treasury: Close to entering a long term bear market on US treasury on 10 year duration. We believe the COT captures the true picture of the developing situation in the US as FED moves in with QE3 which will be close to $400-500 billion of asset purchase. COT for week ended Feb 26 indicates that shorts have increased their position with nearly 148k contracts shorted, an increase of 32k new shorts for the week.
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Saturday, February 26, 2011
Crude Driving Stock Market, Elliott Wave Analysis for Week Starting 28th Feb / Stock-Markets / Stock Markets 2011
This week markets, worldwide, took their biggest hit since the second week in November on civil unrest in Libya and a spike in Crude oil prices. WTIC started the week at $88.80/bbl and spiked, in three days, up to $103.40 on supply concerns. The US equity market responded with its largest pullback since November: -3.7%, on economic concerns of surging energy costs. Crude pulled back in the last day and a half to end the week at $97.90, upper mid-range for the week. Equity markets rebounded on that pullback. For the week the SPX/DOW were -1.9%, and the NDX/NAZ were -1.9%.
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Saturday, February 26, 2011
Fibonacci and the Pricing Mechanism of Financial Markets, S&P500 and US Bonds / Stock-Markets / Financial Markets 2011
Evidence is mounting that the pricing mechanism of global markets creates spontaneous order out of the chaos of billions of people pursuing their self-interested purpose. Arriving at a price for products, services and financial assets is the heart of this process. There are successes and failures in every round of pricing, which are priced into the next cycle of human action in global markets.
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Saturday, February 26, 2011
Stock Market Topping, Treasuries Recovering and Gold is on a Tear / Stock-Markets / Financial Markets 2011
Initial Claims Drop 22K To 391K, On Expectations Of 405K, Durable Goods Collapse - (ZeroHedge) Initial Claims, which were obviously revised higher from 410K to 413K, dropped well below expectations, printing at 391K, on expectations of 405K. With claims continuing to hug the 400K line, this means that unfortunately the economy is not creating nearly enough jobs: as a reminder per the CBO, the US needs to create over 100K jobs a month just to stay in line with population growth. Continuing claims dropped from an (upward) revised 3935K to 3790K, as more and more people hit the 6 month continuing benefits cliff. They also are hitting the end of their 99 week extension period: those on extended benefits dropped by -111,087.Read full article... Read full article...
Saturday, February 26, 2011
Stock Market Finds A Way...Expect Some Chop Next Week... / Stock-Markets / Stock Markets 2011
It found a way to get back through the 20-day exponential moving average. The Nasdaq tested down two times yesterday below the key 50-day exponential moving average, but closed above while showing a positive divergence on the 60-minute short-term charts at that double bottom. The close above with the positive divergence told us a move up off oversold was on the way, but I didn't expect the 20-day exponential moving averages to be captured back in one day. This is why you never short a bull market. You should rarely play counter trend. If you want cash that's fine, but counter trend playing makes little sense. 2769 was the level the Nasdaq needed to take back and it did just that. Nothing explosive above, but above, nonetheless. Impressive. The price of oil had led this market lower. It printed near 103.00 per barrel yesterday, and that was the reason for the brief loss of those 50's on the Nasdaq. The S&P 500 and Dow never fell below.
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Friday, February 25, 2011
Stocks SPX Index, Crude Oil, Silver Technical and Geopolitical Risks Analysis / Stock-Markets / Financial Markets 2011
“You can’t lose what you don’t put in the middle.” Mike McDermott, Rounders
While this week was shortened due to the President’s Day holiday, it has been quite a ride for traders and investors. The 24 hour news cycle certainly intensifies current market conditions as any news focusing on oil or the Middle East protests moves markets. Thursday the International Energy Agency came out and indicated that the expected drawdown in crude oil supplies coming from Libya was being exaggerated. Immediately upon the release of this information light sweet crude oil got hammered and stocks rallied from day lows.
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Friday, February 25, 2011
Gain from Chaos Investing / Stock-Markets / Financial Markets 2011
“Yes, you.
And Trichet, and the rest of the Central Bank fools.
But especially you, Bernanke.
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Friday, February 25, 2011
A Warning Shot For Investors? / Stock-Markets / Stock Markets 2011
Many important global stock markets, including China, Brazil, India and Hong Kong, have been in fairly significant corrections since November, down between 12% and 17%. Their major concerns have been rising inflation and the resulting monetary tightening by their central banks to combat the inflationary pressures.
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Friday, February 25, 2011
Stock Market Fear Levels and the VIX... / Stock-Markets / Stock Markets 2011
The VIX (Volatility Index) spiked up when the Libyan revolt started to unfold.
Today, there is talk of a possible Libyan massacre today which would be a real negative should that occur because it could end up meaning U.S. intervention.
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Friday, February 25, 2011
China Risks and Investor Opportunities / Stock-Markets / China Economy
Opinion is currently divided on the world’s second largest economy.
On one hand of the spectrum, the bears believe that China is a train-wreck and that its economic growth is unsustainable. These sceptics love to highlight the property bubble in China and they never miss the opportunity to mention the fact that fixed asset investment accounts for a disproportionately large chunk of the Chinese economy. According to the bearish camp, China’s economy is not real; rather, its breakneck economic growth is centrally planned by Beijing. Furthermore, the bears argue that China’s vast foreign exchange reserves are meaningless and that they will be used up in dealing with the aftermath of the Chinese real estate bust.
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Thursday, February 24, 2011
Crude Oil and Middle East Crisis Requires Defensive Bias / Stock-Markets / Stock Markets 2011
We head into Thursday’s trading session with an extended market that now has two negative fundamental factors to focus on; the Middle East and rapidly rising oil prices. Regardless of how long oil prices remain elevated, the market sees it as a reason to sell. According to today’s Wall Street Journal:
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Thursday, February 24, 2011
Stocks Bear Market Beginnings, There Goes the First Sector / Stock-Markets / Stocks Bear Market
Bear markets begin when something fundamental breaks. Usually the sector initially affected will roll over before the general market and tends to be a warning sign of what lies ahead.
The last bear market was triggered when the credit bubble created by Greenspan's foolish monetary policy burst. It was exacerbated by Bernanke's foolish attempt to debase the currency and reflate the bubble. All he succeeded in doing was to inflate oil to $147, which put the finishing touches on an already crumbling economy.
Thursday, February 24, 2011
What the Looming Inflation Tsunami Means for the U.S. Housing Market and Commodities / Stock-Markets / Inflation
Kerri Shannon writes: A few weeks ago, Money Morning Contributing Editor Martin Hutchinson warned readers about the looming inflation tsunami threatening the United States.
Easy money policies like those of the U.S. Federal Reserve and other central banks have helped raise prices in emerging markets, as well as the United States, and sent the commodities sector surging.
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