Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Wednesday, March 10, 2010
Stocks Tread Water Awaiting A Fresh Trend Catalyst / Stock-Markets / Stock Markets 2010
US stocks closed a rather modest 0.15% higher Tuesday in a real sea-saw day. Stocks opened lower, but rallied almost 1% in the morning and afternoon before selling off dramatically into the close. Stocks held onto their gains, but a low volume morning advance on no news was turned around on the highest volume of the day which came to the downside. This is a microcosm of what we have seen in recent months – low volume ascent and high volume descent.
Read full article... Read full article...
Wednesday, March 10, 2010
The End of the Stock Market Recovery? / Stock-Markets / Stock Markets 2010
I received an interesting e-mail the other day that sheds some light on the current state of investor psychology. He writes, “I hear from a hedge fund and analyst friend that most major cycle work tops out from this coming week thru April and [he says] it’s THE top. One he sites is the Bradley model which shows a devastating drop beginning after next week into October of this year to roughly Dow 6,500. Looking back all the way to 1900 chart of market I've never seen a major top without breadth deteriorating for many months or even a year or more before a major bear.”
Read full article... Read full article...
Wednesday, March 10, 2010
Where’s The Volume to Confirm The Stock Market Rally? / Stock-Markets / Stock Markets 2010
The volume of share trading for key index funds is going down while the price is going up. Should we say the smart money is quietly accumulating shares, or should we say that the smart money is on the sidelines while the dumb money pushes prices higher?
Read full article... Read full article...
Wednesday, March 10, 2010
Stock Market Last Day Selling..... / Stock-Markets / Stock Markets 2010
We finally saw the market pull back some late today as those high RSI readings kicked in. It wasn't the type of selling that says the market is doomed from here because that's not likely the case at all. When markets get overbought they need to unwind so you have to look at the selling that takes place more as an opportunity rather than a it's all over for the market type of situation. Selling is never fun if you have a long bias and it doesn't take very much selling to kick fear in pretty hard. Again, greed is easy. Fear is a tough son of a gun. With the late day selling we saw some of the 60-minute charts do quite a bit of unwinding although by no means should that selling be totally over. We can try to grind higher again but upside will be very tough indeed for the very short-term.
Read full article... Read full article...
Tuesday, March 09, 2010
Entropy, Why the World as We Know It Is Dying / Stock-Markets / Financial Markets 2010
By David Galland, Managing Editor, The Casey Report
The concept of entropy is one of the most useful terms for understanding just about everything. While it has its origins in natural law – thermodynamics, specifically – the concept holds true pretty much across all closed systems.
Read full article... Read full article...
Tuesday, March 09, 2010
Stocks Unhappy Anniversary / Stock-Markets / Stock Markets 2010
Today marks the one-year anniversary of what proved to be the low-point for risk assets in the post Lehman Brothers meltdown. However, as is typical in the wake of a US non-farm payrolls report, markets were pretty subdued overnight. Whilst Asian bourses rallied strongly yesterday in catch-up to Friday’s US price action, most key bourses in Europe have closed virtually unchanged Monday as did those in North America (indeed the S&P 500 traded within just a 4 index point range).
Read full article... Read full article...
Tuesday, March 09, 2010
A Stock Bull Market Requires a Healthy Consumer Underneath / Stock-Markets / Stock Markets 2010
A year ago this week the stock market hit its nefarious 666 level on the S&P 500. Since that historic day, we have enjoyed a 68% appreciation in equities from their depressionary low. Not only has the bounce caused a chorus of perma-bulls to claim the worst of the recession is behind us, but also to declare that the bull market is here to stay.
Read full article... Read full article...
Tuesday, March 09, 2010
S&P VIX Ratio Signals Looming Decline for the Stock Market / Stock-Markets / Stock Markets 2010
Exactly fifty two weeks after the S&P500 hit its 12-year lows at 666, the index rose 68%, driving down the VIX near January's 19-month lows. Much analysis has been done on equity indices and the VIX on the S&P index options. But the relationship between the two merits closer attention. Neither the S&P500, nor the Dow have yet retested their January highs.
Read full article... Read full article...
Monday, March 08, 2010
Stock Market Grinding Action at Overbought..... / Stock-Markets / Stock Markets 2010
Which is exactly what we're doing right here. With S&P 500 resistance at 1151 and with many index charts at 70 RSI's, it's not easy here for major upside until we get some unwinding of those daily charts to where the RSI's are at least in the lower 60's, if not somewhere in the 50's. It's not just that we're overbought, but again, when you add in major resistance 1% away, it makes the journey that much more difficult for sustained upside in the short-term.
Read full article... Read full article...
Monday, March 08, 2010
Stock Commodity and Financial Markets Chart Analysis / Stock-Markets / Financial Markets 2010
The Chinese market, as represented by the Shanghai Composite has a very vulnerable aspect to it and needs to do some serious work on the upside to take off and extend its bull move.
Read full article... Read full article...
Monday, March 08, 2010
Battle of the Titans, Stocks Bulls vs Bears, Inflation vs Deflation / Stock-Markets / Financial Markets 2010
It’s a battle between the bull and the bear – fear and greed – inflation and deflation – in the stock market. Of course when it comes to this sentiment the same can be said about all markets, which is what makes them markets in the end, however stocks are close to people’s hearts because of widespread participation these days. Today however, because so much of the money in the market is being handled by ‘other people’, being brokers or hedge funds, the concepts of fear and greed are not what they were, with the public now largely oblivious or numbed to the awareness they should have when it comes to their financial futures. What’s more, because of this an unscrupulous financial services industry has become completely corrupted beyond repair, which will be their (and our) undoing in the end.
Read full article... Read full article...
Monday, March 08, 2010
A Cyclical Peak into the Future for Stocks, Dollar and Gold / Stock-Markets / Financial Markets 2010
Readers love my cycles approach to the markets because it lets them peek into the future paths of market action in various assets.
So in this issue, I’ll give you an updated glimpse into the future of some key markets using cycle analysis — the historical study of the internal rhythms and hidden forces that truly drive the markets. It’s the best forecasting method I know of.
Read full article... Read full article...
Monday, March 08, 2010
Gravest Financial Dangers and Greatest Investor Profits / Stock-Markets / Financial Markets 2010
We now face the gravest financial dangers — and the greatest profit opportunities — in two generations.
But before I tell you about what the future could bring, let me tell you how my family and I have come to this place and time.
Read full article... Read full article...
Monday, March 08, 2010
Stocks Look To Consolidate Gains From Friday / Stock-Markets / Financial Markets 2010
On Friday a combination of better-than-expected data and easing sovereign concerns combined to deliver some very constructive price action in equity markets, with key bourses across Europe and the US making seven-week highs. Commodity prices strengthened and the Baltic Dry Freight Index posted a strong increase for a third consecutive session (and the seventh consecutive increase in total) to make a six-week high.
Read full article... Read full article...
Sunday, March 07, 2010
Riding the Stocks Stealth Bull Market Without Falling Off / Stock-Markets / Financial Markets 2010
Whilst the mainstream press and financial blogosphere obsesses over doom and gloom as a consequence of the sovereign debt default scenario, the stock market continues to show underlying strength with a strong late week rally that pushed the Dow to a close of 10,562, far above the preceding swing high of 10,438. Clearly where the stock market is concerned the sovereign debt crisis talk is just background noise that continues to keep the scared money away from investing, just as has been the case for the past 12 months where every correction breeds panic Sell commentary.
Read full article... Read full article...
Sunday, March 07, 2010
If You Can't Beat 'Em, Join 'Em, Right? / Stock-Markets / Stock Markets 2010
Well before we go and buy stocks BLINDLY based on emotions we need to take a look at the indexes first. Why? Because most stocks trade in tandem with the indexes and success in the market is all about knowing what's happening and likely to happen in the indexes and executing your plan based on that action.Read full article... Read full article...
Sunday, March 07, 2010
On the Brink of an Asset Explosion / Stock-Markets / Stock Markets 2010
I can virtually guarantee that what I’m about to suggest isn’t on anybody’s radar screen. But before I share my prediction, a little background analysis is in order.
There have been seven previous bull markets that were born in the depths of vicious bear markets similar to what we just went through. Each one of those bulls racked up impressive gains during the initial thrust out of the final low. Throwing out the `32 to `37 bull as an anomaly not likely to be repeated, the average gain for the first two legs of bulls with similar DNA as our own has been between 41% and 73%. After the second leg each one of these bulls underwent a mild corrective pullback of 8% to 14%.
Read full article... Read full article...
Sunday, March 07, 2010
The Stock Market Energizer Bunny Rally, Bearish Head and Shoulders Pattern? / Stock-Markets / Financial Markets 2010
FDIC Friday is a quiet one.The FDIC Failed Bank List announced four new bank closures for the week. 26 banks havefailed in 2010. Are things picking up?
Read full article... Read full article...
Sunday, March 07, 2010
Stock Market Investor Sentiment, Don't Stray Too Far From The Data / Stock-Markets / Stock Market Sentiment
I always have the option of how I present the data. I can be negative or positive in my outlook and tone. But one thing I rarely do is stray too far from the data. I am flexible, but I remain data centric in my approach, and this forms the basis for my trading decisions. In the current market environment we find the sentiment picture to be pretty much what it has been for the last 6 months: the "smart money" is bearish and the "dumb money" remains bullish. Under these conditions, I know that the ascent of prices is likely to slow as either range bound trading will develop or an intermediate term top is imminent.
Read full article... Read full article...
Saturday, March 06, 2010
Stock Market S&P 500 Trend, What a Pump! / Stock-Markets / Stock Markets 2010
I have not been posting as frequently as last year. That’s partly because of time constraints. It also is because I have been trying to shift my own approach to longer moves. So, I try to lay out a plan for the week, and try to monitor the progress of the plan. If nothing’s going against the plan, there is no need change it. If adjustments are needed or something develops that may put the plan in jeopardy, then I revisit and would definitely post. Don’t get me wrong, I like to post everyday or even more frequently. But, sometimes, other pressing issues steal the time :-)
Read full article... Read full article...