Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Sunday, November 15, 2009
Stock Market Trend Too Uncertain to Call / Stock-Markets / Stock Index Trading
Two weeks ago I called a market top, and the market proceeded to move up. In response, I covered my net short positions and remain in cash. I continue to ponder whether I was too early in my call or flat-out wrong.
To ponder this with you, some first principles here: (1) Speculate, never gamble; (2) the stock market is a leading indicator of the economy; (3) Use both technical and fundamental analysis to identify the trend of the market, a sector, or a stock.
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Sunday, November 15, 2009
Stock Market Smart Money Turning Bearish / Stock-Markets / Stock Market Sentiment
After 15 weeks of being neutral, the "smart money" indicator has turned towards a more bearish reading. The "dumb money" indicator remains in the extreme bullish zone. While not there yet, the indicators are heading in the direction that one would expect to see at a market top.
For now, I will continue to state what I have been stating for 5 weeks as it has served us well in defining the price action seen in the major market indices:
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Sunday, November 15, 2009
Stocks Bull Market Swing Juncture? / Stock-Markets / Stock Index Trading
In Britain the big story of the week was concerning Gordon Browns spelling mistakes riddled condolence letter to the mother of a soldier killed in Afghanistan which was publicised vocally by the Sun newspaper and Sky News. However the real story behind this is the brewing war between the mainstream media represented by the likes of Rupert Murdoch's News International and the internet represented by Google which allows access to a near infinite alternative sources of information.
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Saturday, November 14, 2009
Financial System Designed Almost Exclusively to Benefit the Rich / Stock-Markets / Financial Markets 2009
The American journey that began on 8/15/71 is going to end over the next several years. The problems that have manifested themselves over the past few years signal the final stages of a destructive process that has stifled production and innovation and encouraged fraud in Wall Street and banking. The injection of money and credit into the financial system via the Fed and the Treasury has almost exclusively benefited the wealthy financial sector and has spread only crumbs to American citizens.
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Saturday, November 14, 2009
Stock Market S&P500 Knocking at the 1100-1007 Door / Stock-Markets / Stock Index Trading
We expected a bounce, and we got a bounce, but, looking at a larger frame, what I see is that despite all the drama and the angst, S&P has done absolutely nothing for weeks
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Saturday, November 14, 2009
Stock Market Rally is Worth Shorting Here / Stock-Markets / Stock Index Trading
The S&P has been taking no hostages from the onslaught of Bears who have tried shorting it as it has climbed the wall of worry and advanced some 65% since the March lows. So is it worth shorting here at 1095? I am going to present here my evidence as to why I think that it is worth shorting here.
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Saturday, November 14, 2009
Stock Market Six Week Lateral Base In Place...... / Stock-Markets / Stock Index Trading
We get towards the top of our 6-week lateral bases and it looks like we'll finally break out. It's the exact same story as when we get towards the bottom of our existing bases. Breakdown looks inevitable. It gets very emotional at both ends because the consequences of a breakout or breakdown are large. The market is likely to have quite a large move once we get a decisive break and thus the emotions get intense. The only problem is, neither side is getting what they want, and there's a good reason for that. There is a lot of good news from both the economic and earnings front. That's the bullish case.
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Saturday, November 14, 2009
Manic-depressive Stock Market Inviting a Black Swan Event? / Stock-Markets / Financial Markets 2009
Guess Where Our Economic Stimulus Money is Going
The trade deficit in the U.S. widened in September by the most in a decade, reflecting rising demand for imported oil and automobiles as the economy rebounded from the worst recession since the 1930s.
Friday, November 13, 2009
Financial Asset Bubble Spotting Isn’t Hard: But Whose Job Is It? / Stock-Markets / Stock Market Valuations
There is no dispute about what happened in USA over the past few years:
1: There was a Tech Bubble – It popped (that caused economic damage).
2: There was a Housing Bubble – It popped (that caused economic damage)
Friday, November 13, 2009
Protect and Profit Before the Coming Financial and Economic Storm / Stock-Markets / Financial Crash
The “full force of the economic crisis will hit us next year… The problem will get bigger before things can get better…”
Angela Merkel, German Chancellor, November 11, 2009
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Friday, November 13, 2009
If Stocks Tank, Shouldn't Gold Soar? / Stock-Markets / Gold & Silver 2009
The following article is provided courtesy of Elliott Wave International (EWI). For more insights that challenge conventional financial wisdom, download EWI’s free 118-page Independent Investor eBook.
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Friday, November 13, 2009
SPX Stock Market Pullback to Drag Commodity Stocks Lower / Stock-Markets / Gold & Silver Stocks
With the US stock markets very overextended technically, my recent research has focused on this development’s implications. Several weeks ago I outlined the extremely overbought conditions in the flagship S&P 500 stock index (SPX). Last week I explored how the overdue SPX pullback is even likely to spill over into the precious-metals stocks, dragging them down.
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Friday, November 13, 2009
Have the Dow and S&P500 Reached a Major Turning Point? / Stock-Markets / Stock Index Trading
On Wednesday, 11/11/09, the Dow Jones Industrial Index rallied to a 50% retracement level based on MarketClub's Fibonacci measuring tool. The action today indicates that this level is very important and that it could be an important top for this market.
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Friday, November 13, 2009
Latest on U.S. Interest Rates, the Fed and Asset Price Inflation / Stock-Markets / Liquidity Bubble
When it comes to Lay’s potato chips, the saying goes, you can’t eat just one.
And when it comes to the interest rate and financial markets, I just can’t focus on one thing this week. There’s just too much going on.
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Friday, November 13, 2009
Three Bearish Stock Market Breadth Charts You Won't See Anywhere Else / Stock-Markets / Stocks Bear Market
Figure 1 is a daily chart of the S&P500 (symbol: $INX). The indicator in the bottom panel comes from mathematician James Meikka. Meikka developed a formula to measure advancing and declining issues that prevents drift and forces it to maintain a consistent relationship with the zero line. It is like a McClellan Summation Index. Instead of applying the indicator to advancing and declining issues, I am utilizing NYSE up volume versus down volume in figure 1 (the data is hidden). So my indicator in the lower panel is a measure of advancing volume versus declining volume.
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Friday, November 13, 2009
Stock Markets Look Range Bound For Now / Stock-Markets / Stock Index Trading
The market got to the top of the wedge and decided it was time again for another pull back in the pattern. We did have a doji yesterday and that can cause some near term down side off the up trend in place. Action which allows the market to unwind from overbought on those 60-minute time frame charts. We started the selling off that doji today that took nearly 1% off the averages. Obviously, nothing from nothing, but it was a fairly good down day with the majority of stocks leading lower. That's good as it allows the leaders a breather.
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Friday, November 13, 2009
SELL Signal Alerts For Stocks, Bonds, Gold and Crude Oil / Stock-Markets / Stocks Bear Market
U.S. equity benchmark indexes fell from 13-month highs as energy shares slumped following bigger- than-estimated growth in oil stockpiles, erasing an earlier advance spurred by Hewlett-Packard Co.’s takeover of 3Com Corp. The dollar rose the most versus the euro since August.
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Friday, November 13, 2009
Stock Market Reversal Session / Stock-Markets / Stock Index Trading
The indices finally backed off as profit taking finally set in, but they started with a bang to the upside early on and hit nominal new 2009 highs before they began to back off in the morning.
At that point they began to stair-step lower in a nice orderly down-channel all day. I'm not sure if that means we're getting the start of a significant down move just yet, but we'll see if they can at least get downside follow-through in the next day or two.
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Thursday, November 12, 2009
The Stock Market is Going Lower, Buy Stocks…Now? / Stock-Markets / Investing 2009
It sounds crazy, I know.
All signs point to the market heading lower. The major indices are fundamentally overvalued, the real economy has barely improved, and expectations are approaching lofty highs.
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Thursday, November 12, 2009
Stock Market Forming a Major Top? / Stock-Markets / Technical Analysis
Every time a major stock index approaches a new high, invariably we can find calls that "a major top has already been made". We have seen several such articles in recent weeks. While these incessant calls for a major top may be 100% accurate at the present time, a review of historical major tops gives little support for such a claim. A short-term top within a major bull market can occur at anytime, but major tops do not occur very often.
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