Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Monday, August 30, 2010
Stock Market Investment Opportunities in the Bad News? / Stock-Markets / Investing 2010
There’s been plenty of bleak news coming out of the equity markets and the U.S. economy as a whole. Are there opportunities hidden within that bad news? Are we now in one of those “blood in the streets” scenarios that Rothschild (and many investors after him) found so appealing?Read full article... Read full article...
Monday, August 30, 2010
Stock Market Positive Reversal Sets Up Buying Opportunities / Stock-Markets / Stock Markets 2010
MARKET STAGES POSITIVE REVERSAL FRIDAY
Friday’s action can be summed up in one picture:
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Monday, August 30, 2010
M&A Flurry Can’t Deflect Attention From Dire Market Dataflow / Stock-Markets / Stock Markets 2010
Late on Friday, equity markets set up for a relief rally despite bellwether tech giant Intel guiding down its earnings forecast (a development which I for one, thought was mightily disturbing). The trigger for the rally came from the speech of Ben Bernanke in Jackson Hole. He remarked that the Fed stood ready to boost economic growth and had the tools to do so, including increasing the purchase of long-term assets. So although Bernanke tilled no new ground at Jackson Hole in Wyoming, re-launching QE remains an option this Autumn as deflation risks intensify. Additionally over the weekend, the Bank of Japan expanded credit support for banks. These are indications that central banks are willing to support the fragile economic development.
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Monday, August 30, 2010
Russell-2000 Leads Stock Market Relief Rally... / Stock-Markets / Stock Markets 2010
The major indexes followed the Russell-2000 as it rallied strongly after a retest lower...
Recommendation: Take no action.
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Monday, August 30, 2010
Fear is Driving the Markets, But Don't Let it Drive You / Stock-Markets / Stock Markets 2010
Jon D. Markman writes: Pessimism increased again among investors last week, as a slew of economic data stoked fears of a double-dip recession.
Indeed, housing and unemployment continue to weigh on the U.S. economy. But don't panic. Remember that the prospects for a full economic recovery are much better outside the United States, and that it's often good to be greedy when others are fearful.
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Monday, August 30, 2010
Pakistan Cricket Shame, Floods Disaster Maximum Point of Market Pessimism Is Coming For Investor Opportunity / Stock-Markets / Pakistan
Bilal Khan writes: Pakistan was again in the news over the weekend but not for the recent floods. Its cricketers were in the headlines and for all the wrong reasons. Commenting now on an ongoing investigation would be premature and would only be fair after the authorities have conducted a comprehensive investigation. However one comment that can be made is that it will further erode what ever credibility the country had left after decades of blatant corruption by its leaders and will make donors already reluctant to give to Pakistan shy away further.
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Sunday, August 29, 2010
Stock Market May be Ready to Break Out of its Short-term Downtrend / Stock-Markets / Stock Markets 2010
Current Position of the Market
Very Long-term trend - Down! The very-long-term cycles are down and if they make their lows when expected, the bear market which started in October 2007 should continue until about 2014-2015.
SPX: Intermediate trend.The index made an intermediate top at 1220 and is now in an intermediate downtrend which should come to an end in October 2010.
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Sunday, August 29, 2010
UK Economy Booms Whilst U.S. Stutters, Stocks Fail to Follow Crash Script / Stock-Markets / Financial Markets 2010
Did the stock market crash Monday ? Nope, Tuesday ? Nope. How about Wednesday, Thursday or Friday ? The Dow closed down 63 points on the week at 10,150 (10,213) which given the much publicised Hindenburg Crash Omen, is not exactly following the script though off course the Hindenburg Omen has plenty of get out of jail cards in the small print which ensures that all eventualities are covered ( The Hindenburg Stock Market Omen Doomed to Crash and Burn? ).
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Sunday, August 29, 2010
High Volume Resistance Plagues Gold, Silver, Crude Oil & SP500 Index / Stock-Markets / Financial Markets 2010
Last week was a relatively strong week for stocks and commodities. Although the SP500 closed slightly lower on the week the price action Friday was strong. The recent pop in commodities has everyone feeling good and bullish again and we all know how the market works… When everyone is feeling good the market has a way of shaking things up.
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Sunday, August 29, 2010
Stock Market Dumb Money Turns Bearish Which is Bullish / Stock-Markets / Stock Market Sentiment
As expected, the "dumb money" has turned bearish on the markets, and this is a bullish signal.
The "Dumb Money" indicator (see figure 1) looks for extremes in the data from 4 different groups of investors who historically have been wrong on the market: 1)Investors Intelligence; 2) Market Vane; 3) American Association of Individual Investors; and 4) the put call ratio. The "Dumb Money" indicator has turned bearish and this is a bullish signal.
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Sunday, August 29, 2010
Investors Don’t Get Trapped by Market Micro-Bubbles, the Silent Wealth Killers / Stock-Markets / Financial Markets 2010
Today's article is about market bubbles. Right now, you're probably wondering why I am talking about market bubbles when the S&P 500 is trading down 6.5% since the first trading day of January this year, and down 33% from the 2007 highs. On top of that, home prices have fallen 30% (on average) to 2002-2003 levels, and unemployment is nearly 10%. Frankly, most of the globe is struggling to pay its bills. So doesn't all of this mean any kind of market bubble has burst? Well, the answer is, not all of them.
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Sunday, August 29, 2010
Stock Market Flash Crash Prompts Investors to Flee Equities / Stock-Markets / Market Manipulation
Robert Herz was forced to resign from his job as as chairman of the Financial Accounting Standards Board (FASB) because he insisted that the banks assign a fair value to their assets. That's not what you'll read in the papers, but it's true just the same. Herz was a major proponent of mark-to-market accounting, a simple means of determining the value of a bond or security by comparing the price of similar assets sold at market. In other words, Herz is a defender of universally-accepted accounting principles, which is why he was terminated, er, I mean, resigned. According to the Wall Street Journal:
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Sunday, August 29, 2010
Stock Market S&P 950, Not so Fast / Stock-Markets / Stock Markets 2010
The better than expected GDP numbers threw a slight monkey wrench in the trading plan (for you traders out there). I was expecting a gap down open that would break through the 1040 pivot. The plan was to buy into that gap with a stop under the morning intraday low. The market did break slightly below 1040 (1039.70) so in theory if one was quick they could have jumped in right there. I doubt anyone was that quick though so I suspect almost no one caught the exact low. Perfect timing isn’t critical though if this is a daily cycle bottom, as we should have at least 2 to 3 weeks of upside ahead of us. I’m assuming the market doesn’t drop back down to test the lows on next Friday’s jobs report.
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Saturday, August 28, 2010
Stocks Secular Bull and Bear Markets and the Dark Side of Budget Deficits / Stock-Markets / Stock Markets 2010
Secular Bull and Bear Markets
It's Not the (Stupid) Economy
The Consequences of a Credit Crisis
The Dark Side of Deficits
In the pre-crisis days, I used to write about things like P/E ratios, secular bull and bear markets, valuations, and all of the things we used to think about in the Old Normal. But what about those topics as we begin our trip through the New Normal? It's time to reconvene class and think through what might change and what will remain the same. I think this will be a fun read - and let me tip my hand. I come out on the side of a new secular bull that gets us back to trend - but not just yet. The New Normal has to have its turn first. (Note: this will print out longer than usual, as there are a lot of charts.)
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Saturday, August 28, 2010
Two Ways to Prepare for Shock Events in the Financial Markets / Stock-Markets / Financial Markets 2010
With bond yields and stock markets in the world’s major developed economies petering away, more people are asking: Where can we find investment returns?
Wall Street’s answer: Emerging markets.
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Saturday, August 28, 2010
Private Investors Boycott Stocks, Bernanke Promises Fed Action to Ensure Economic Recovery / Stock-Markets / Financial Markets 2010
U.S. Economy Grew a Revised 1.6% in Second Quarter - (Bloomberg) The U.S. economy grew at a 1.6 percent annual rate in the second quarter, less than previously calculated, as companies reined in inventories and the trade deficit widened.
The revised gain in gross domestic product was bigger than the median forecast of economists surveyed by Bloomberg News and compares with a 2.4 percent estimate issued last month, figures from the Commerce Department showed today in Washington. Corporate profits grew last quarter at the slowest rate in a year and employee wages in the prior three months were revised lower.
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Saturday, August 28, 2010
Stock Market Indices Close Out Week with Strong Snapback Rally / Stock-Markets / Stock Markets 2010
The stock market indices had a very strong snapback session to close out the week on apparent short-covering and bargain hunting.
In the morning they opened firm, but then rolled over hard on negative economic news, taking the Nasdaq 100 under 1750 and the S&P 500 under 1045, down near the key 1040 area that was reached last Wednesday. When the NDX made new lows and the SPX failed to confirm and held the earlier support low, that created a positive divergence.
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Saturday, August 28, 2010
Stock Market Reverses After Intel Warns....Classic.... / Stock-Markets / Stock Markets 2010
Intel Corporation (INTC) has been the source of many big reversals in the stock market over its career on Wall Street. Sometimes it has set the top of the market and at other times it has set the bottom, at least for the short-term. Today we saw it put in the short-term bottom.
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Friday, August 27, 2010
Stock Market Ostrich Investors With Trillions of Dollars of Capital Sat on the Sidelines / Stock-Markets / Stocks Bull Market
Ostrich investors are a major driving force in today’s financial markets. As the name implies, they are hiding their heads in the sand like the popular literary perception of the king of birds. Burned in 2008’s epic stock-market panic, they have shunned active investing ever since. Trillions of dollars of their capital languishes idle on the sidelines, earning zero in money markets or near-record-low yields in Treasuries.
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Friday, August 27, 2010
Why the Stock Market Weekly Charts Work / Stock-Markets / Stock Markets 2010
Many traders get so involved with the market on a daily or even an intraday basis, that they somehow lose out on the bigger picture. Weekly charts are enormously helpful in giving clues to the future direction of the market.
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