Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Tuesday, October 13, 2009
Stock Market Bubble Now the Most Expensive US Market Of All Time / Stock-Markets / Financial Crash
140…
That’s the current P/E for the S&P 500 based on reported earnings (earnings that include write-downs). According to David Rosenberg of Gluskin Shef (and former Chief Economist of Merrill Lynch), no US market has ever been this expensive in history. The Tech Bubble, which by all accounts was an extraordinarily overpriced market traded around a P/E of 40 during its peak.
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Tuesday, October 13, 2009
Stock Market Bull Trap Heading for a 50% Crash to 5,000 / Stock-Markets / Financial Crash
At the risk of getting ahead of myself prior to being able to confirm the turn, I am suggesting stock market action over the past week bears the distinct odor of a bull trap, with even informed technicians still waiting for a push to 50% retracements on the indexes. In this respect then, you should realize the context of such a bull trap would be profound in that we are talking about the March lows being tested and violated, meaning for example the S&P 500 (SPX) could be on its way down to test its namesake at 500 before this next sequence is all over. You will remember from previous discussions, and in framing context correctly here, it’s possible we could be looking at a Supercycle Degree Affair lower in global stock markets directly ahead, implying 500 on the SPX would be an optimistic target for a low.
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Tuesday, October 13, 2009
Stock Market Rally Does Not Guarantee End to Bear Market / Stock-Markets / Stocks Bear Market
The S&P 500 Large Cap Index (SPX) has now risen 62% and the Dow 30 Industrials (INDU) has risen 53% from their respective March 2009 lows. Bear market rallies this large are probably a constant feature of major bear markets and do not in any way indicate on their own, that a rally of this type is in the early stages of a new bull market.
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Tuesday, October 13, 2009
Debt Crisis of 2008 Transformed Into Dollar Crisis of 2009-2010! / Stock-Markets / Credit Crisis 2009
Martin here with an urgent update on the next phase of this crisis …
Fed Chairman Bernanke and Treasury Secretary Geithner are in for a rude awakening.
Even as they declare “victory” in their battle against the debt disaster on Wall Street, they face defeat in the war against four dangerous, unintended consequences on Main Street:
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Tuesday, October 13, 2009
Stock Market Strike Two...But Holding Very Well For Now... / Stock-Markets / Stock Index Trading
We hit 1080 weeks ago and then pulled back strongly only to blast back up and hit 1080 yet again today. We pulled off that again quite sharply intra day but saw the S&P 500 hold very well overall in to the close with a finish at 1076.
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Tuesday, October 13, 2009
Stock Market Sharp Afternoon Slide Stems Morning Rally / Stock-Markets / Stock Index Trading
We had an up-day, but the indices gave back all or most of the gains in an afternoon slide. But they again recovered in the last hour to close up on the session.
Net on the day the Dow was up 20.86 at 9885.80, the S&P 500 up 4.70 at 1076.19, and the Nasdaq 100 up only 1.87 to 1729.63, about 13 points off its high for the day.
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Monday, October 12, 2009
Is the Stock Market a Leading Economic Indicator? / Stock-Markets / Economic Theory
Inquiring minds are pondering the question "Is the Stock Market a Leading Indicator?"
Please consider the following two charts.
Monday, October 12, 2009
What If This Stocks Bear Market Is Not Over? / Stock-Markets / Stocks Bear Market
Once again it seems like the gurus have a general consensus that the March lows are the final lows for this bear market. Since I am not in the prediction business, I will not say, but I will pose a question. What if they are wrong? It’s not like they haven’t been in the past. If they are wrong how bad could it get?
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Monday, October 12, 2009
Stock Market Ignoring Deflation, One Hand Clapping Theory Analysed / Stock-Markets / Deflation
Numerous people have asked me to comment on Chris Martenson's article The Sound of One Hand Clapping - What Deflationists May Be Missing.
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Monday, October 12, 2009
Stock Market Overly Bullish Stance Typical at New Market Starts / Stock-Markets / Stock Index Trading
The four markets; currencies, bonds, commodities and stocks, are continuing to respond in an arena of mixed emotions. Bond prices have firm support from traders fearing deflationary pressures are coming and also a longer-term stock market correction. Gold bugs are on the other side. They are convinced that rapid inflationary concerns are developing due to the steady deterioration of the US Dollar.
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Sunday, October 11, 2009
Stock Market Short-term Reversal Assured / Stock-Markets / Stock Index Trading
Current Position of the Market
SPX: Long-term trend - Down! The very-long-term cycles have taken over and if they make their lows when expected, the bear market which started in October 2007 should continue until 2014. This would imply that much lower prices lie ahead. This will not be a straight-down decline, but a series of intermediate-term rallies and declines until we have reached the low point.
Sunday, October 11, 2009
Stock Market Seeking to Break Through Key Resistance Levels / Stock-Markets / Stock Index Trading
Last week, my market pessimism got run over by an Australian rate hike as the U.S. stock market shook off a two week slide and powered up another notch. Once again, the key resistance level of 10,000 on the Dow is in sight with the Dow’s 4% gain last week.
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Sunday, October 11, 2009
Stock Market Trend, I Am Changing My Tune / Stock-Markets / Stock Index Trading
Since the first weeks of August, 2009, I have stated the following in every weekly summary on equity market sentiment: "Investor sentiment remains extremely bullish. There is an upward bias until the extremes in bullish sentiment are unwound." I also mentioned early on that "there will be a bid under the market, and it will be tough to short or bet against this market for the foreseeable future." I would say that about characterizes the US equity markets over the past 2 months. Now, however, I am changing my tune.
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Sunday, October 11, 2009
Stocks Rally Towards Double Top?, Whilst U.S. Dollar Holds onto Critical Support / Stock-Markets / Financial Markets 2009
This week was the turn of UK Conservative party to announce how they will deal with Britain's budget deficit. Their answer was for cuts of £7 billion, a drop in the debt ocean. My Analysis clearly showed that it would require an additional £50 billion a year of spending cuts and tax rises to bring the deficit to under 6% of GDP, £7 billion is not going to do anything but set in motion another Black Wednesday when we wake up to the Financial Markets dumping sterling, and UK bonds, stocks and assets Iceland style.
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Saturday, October 10, 2009
Stock Market Bullish Consolidation Under The Gap Top At 1080 SP500 / Stock-Markets / Stock Index Trading
These are more than interesting times. You have stocks continuing to move higher off the March 666 Sp lows. Every critical level of resistance struggles initially but eventually gets taken out to the up side over time. Each time it fails initially, the bears come out and say the top is in but that just hasn't been the case. The bulls fight and ultimately wear down the will of the bears and move the markets higher. The bears get frustrated because they feel the move higher is unjustified and really, based on the economy, who can blame them!
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Saturday, October 10, 2009
Fractional Reserve Banking System Basis of Bankster Fraud / Stock-Markets / Credit Crisis 2009
The heart of the modern monetary system is fractional reserve banking. This system is based on fraud. At the very heart of the modern economy is fraud – fraud on a gigantic scale.
What is the nature of this fraud? Counterfeiting. Banks are government-licensed institutions that issue bogus IOUs. Because these IOUs function as money, they are counterfeit money. This is the heart, mind, and soul of all modern banking.
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Saturday, October 10, 2009
The Most Hated Stock Market Rally in Wall Street History / Stock-Markets / Financial Markets 2009
The rebound in U.S. consumer spending, driven by government stimulus, will wane as the unemployment rate surpasses 10 percent, a survey of economists showed.
“You just can’t see a lot of strength on the consumer side given how battered income is from job losses and weak hourly wage growth,” said David Greenlaw, chief fixed-income economist at Morgan Stanley & Co. in New York. “We’ve got a gradual recovery in the overall economy, but it’s not vigorous enough to knock down the unemployment rate by much.”
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Saturday, October 10, 2009
Stock Market Crash Alert for Indian Nifty / Stock-Markets / India
There has been some talk about Markets crashing worldwide from here on. But you also have lots of folks touting the upcoming festive and earnings season to help the market go even higher from here. Markets are at a very crucial juncture of 5K (Nifty) and it has been just hovering around this mark for a little while now. Neither bears nor bulls are able to make up their minds as to which way to go. However, bears seem to have the upper hand. At least volumes suggest the same with more Put options being traded than call options on the nifty in the last few days.
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Saturday, October 10, 2009
Why Stock Market Has Been Going Up / Stock-Markets / Global Stock Markets
We have gotten so many emails from visitors and members on this blog in response to our earlier article Market Crash Alert for Nifty - StocksBuddy.com Exclusive asking us as to what is the main reason though for this market rally. Most visitors stated that the fundamentals and valuations do not match up and the hope that folks and FII's are showing may not be really real. Some even stated that this is forming of another bubble while we are still winding up from the previous bubble.
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Friday, October 09, 2009
Gold, Recessions, Bonds, and 1987 Stock Market Crash / Stock-Markets / Financial Markets 2009
As investors try to make sense out the of relentless bullish moves in asset prices, we’ll touch on a few timely topics:
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