Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Tuesday, April 07, 2009
How to Profit from Inefficient Financial Markets / Stock-Markets / Financial Markets 2009
Keith Fitz-Gerald writes: One of the single biggest fallacies foisted upon the investing public is the notion of an “efficient market.” Academics love it, which is why the “ efficient-market hypothesis ,” or EMH, as it's known, is taught at all the leading B-schools. The broadest version of this theory holds that securities prices already reflect all known information; EMH proponents believe it's impossible to outperform the markets over time - except by luck.Read full article... Read full article...
Tuesday, April 07, 2009
Stock Market Snaps Winning Streak / Stock-Markets / Financial Markets 2009
Former Deutsche bank star banking analyst Simon Mayo (now with French house Calyon) put a dampener on financials yesterday by voicing his concerns that Geithner's new plan may not offer as much hooray as the markets think. The extension of the deadline for participation in the securities side of the Geithner Plan has spooked some investors. There are also fears that private sector interest in the plan is proving less than the market originally expected, and that the extra two weeks and looser selection criteria are a desperate effort to throw the net wider. But that said, equities still managed to jog to the finish well off their worst levels.Read full article... Read full article...
Tuesday, April 07, 2009
Stock Market Indices Close Lower, though Pare Declines / Stock-Markets / Stock Index Trading
The indices had a down session, but came back off the late morning session lows to pare the declines by quite a bit. The day started out with a gap down. They stair-stepped lower, then bounced around mid-morning, stabilized, and then started to rally. It was a 9-wave advance from 11:30 to the close that took the indices back up to neew highs for the session in the late 5 mintues.Read full article... Read full article...
Monday, April 06, 2009
Financial and Economic Crisis In Order Of Magnitude / Stock-Markets / Financial Crash
In order of magnitude, it's important for those who pay attention to these things to note what is occurring in the economy and financial markets right now is of the highest degree in terms of importance (and movements), because the world's reserve currency, the US Dollar ($), is in jeopardy of losing this role , which will change everything. Why is this happening right now? Answer: In a nutshell, it's because the global trade loop the US has with China (and the rest of the world to a lesser degree) is increasingly coming unraveled as stressed US consumers purchase less manufactured products from Asia, which in turn reduces currency multiples the Chinese have been using to buy US Treasuries.Read full article... Read full article...
Monday, April 06, 2009
How FAS 157 Mark-to-Market Helped Slow the Economy / Stock-Markets / Credit Crisis 2009
There's been a lot of discussion of how the FAS 157 mark-to-market accounting rule may have contributed to the current deep recession. The charts below from Citi Research (using Federal Reserve data) make a pretty compelling case for the unforeseen damage caused by the strict application of FAS 157. We are among those who applaud the Financial Accounting Standards Board for taking action this week to add flexibility in how the mark-to-market rule is used going forward.Read full article... Read full article...
Monday, April 06, 2009
Stock Market Rebound? Or... Just Bouncing? / Stock-Markets / Stocks Bear Market
This week has been a head scratcher. The government is dictating who should be running General Motors and gave Chrysler an ultimatum – merge or die. Home prices continue to fall, and do so at a faster rate over the past three months than over the past year (not getting “less worse”!). Unemployment (a lagging indicator) continues to deteriorate, as do the weekly jobless claims.Read full article... Read full article...
Monday, April 06, 2009
Stock Market Chooses to Ignore More Dire U.S. Jobs Data / Stock-Markets / Financial Markets 2009
Stocks shrugged their shoulders and laughed in the face of another atrocious jobs report Friday and forged ahead Stateside. Overnight, Asia continued the firm tone despite those pesky North Koreans in the hermit kingdom firing a missile over the Sea of Japan.Read full article... Read full article...
Monday, April 06, 2009
Investor Sentiment: Converting Stock Market Bears To Bulls / Stock-Markets / Stock Market Sentiment
As the equity markets continued their surge this past week, more bears have been converted to bulls. The number of bulls is by no means extreme, but as key resistance levels are approached, it appears that there will be fewer investors on the sidelines (i.e., new buyers) that could possibly power the market higher.Read full article... Read full article...
Monday, April 06, 2009
Stock Market Counter Trend Rally Could Extend for Several Months / Stock-Markets / Stock Index Trading
Current Position of the MarketSPX: 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 2012-2014. This would imply that much lower prices lie ahead.
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Sunday, April 05, 2009
Stocks Stealth Bull Market Closes above Dow 8,000, Up 24% in less than 4 weeks / Stock-Markets / Stocks Bull Market
This article seeks to answer in part the approaching 150 emails in response to the recent stealth bull market trading analysis series. The stocks stealth bull market on Friday closed above 8,000 on BAD U.S. unemployment data, having rallied near 24% from the low of 6470, as expected the rally is STILL predominantly perceived as a Bear Market rally that contrary to some statements is still being AVOIDED by ALL but the Smart Money!Read full article... Read full article...
Sunday, April 05, 2009
Stock Market Betting on a Global Economic Rebound / Stock-Markets / Financial Markets 2009
Unemployment rate officially at 8.5% - The U.S. unemployment rate jumped in March to the highest level since 1983 as the economy lost 663,000 jobs, threatening to keep spending subdued for months and delay any recovery. The Department of Labor reports, “Nonfarm payroll employment continued to decline sharply in March (-663,000), and the unemployment rate rose from 8.1 to 8.5 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Since the recession began in December 2007, 5.1 million jobs have been lost, with almost two-thirds (3.3 million) of the decrease occurring in the last 5 months. In March, job losses were large and widespread across the major industry sectors.”Read full article... Read full article...
Sunday, April 05, 2009
Stock Market Investors Buoyed By Positive G20 Global Economy Developments / Stock-Markets / Financial Markets 2009
Investors' mood benefited last week from the potentially positive implications for the global economy emanating from the London G20 meeting, and the Financial Accounting Standards Board's decision to relax mark-to-market accounting rules. And the previous week's announcement of the Geithner plan to remove toxic assets from the balance sheets of banks was also still seen as a tailwind for stock markets.Read full article... Read full article...
Saturday, April 04, 2009
Stocks Bear Market and Dow Theory Update / Stock-Markets / Stocks Bear Market
The primary bearish trend change that occurred on November 21, 2007 still remains intact in accordance with classical Dow theory. However, in accordance with my cycles work the March low was indeed expected and my model immediately triggered a short-term buy signal that quickly evolved to the point at which an intermediate-term buy signal was also triggered. Thus, we have a cyclical advance within the context of an ongoing primary bear market.Read full article... Read full article...
Saturday, April 04, 2009
Stock Market Rally Some Room to Extend Further / Stock-Markets / Financial Markets 2009
All day long on Friday indexes labored as if in a topping process. That would have been no surprise, since my model had been saying all along that the top of this rally would be 840-850 in the SPX and 1300-1315 in the NDX. I had given up earlier this week on the indexes achieving their target, although a close call. Today it achieved its target.Read full article... Read full article...
Saturday, April 04, 2009
Dow Jones the Manipulated Stock Market Index / Stock-Markets / Market Manipulation
What About the Original Dow 30 Stocks?
Adding and Subtracting Value
The Original Dow 30 Components
A Few Thoughts from Richard Russell
How to Succeed at Writing
Conversations on Banks
Tonight (Saturday) some 450 people will come together in San Diego to honor Richard Russell, who has been writing the Dow Theory Letter for over 50 years. In that spirit, in today's letter we are going to look deep inside the Dow, back to its very roots. The Dow is a price-weighted index as opposed to a cap-weighted index. Does that make a difference in performance? Specifically, does it affect how the Dow has performed since it was expanded to 30 names in 1928? There are some real surprises we have found, and I think you will find this letter very interesting.
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Saturday, April 04, 2009
Stock Market Trends for April 2009- The Bear Market Rally / Stock-Markets / Stocks Bear Market
Analyzing monthly stock market trends uses the S&P 500 charts to indicate important trend lines. Trend following is a proven strategy to beat the market and grow your stock portfolio. Technical analysis provides the tools to analyze and identify trends in the stock market. Since the S&P 500 trend line chart is the one used by professional traders for their analysis, it is important to understand how it is performing.Read full article... Read full article...
Friday, April 03, 2009
Why Retail Stock Market Investors are Starving Themselves to Death / Stock-Markets / Stocks Bull Market
Since the market bottomed and the new cyclical recovery bull market began, retail investors have gone on a collective buyer’s strike. Call it a “hunger strike” if you will. The retail crowd is effectively starving itself by missing out on some remarkable recoveries in recent weeks and will most likely continue to miss out on these opportunity until they simply can’t take it anymore. In other words, a classic repetition of the idealized market cycle is setting up perfectly.
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Friday, April 03, 2009
Stimulus Commitments and Stock Market Confusion / Stock-Markets / Stocks Bear Market
Talk about mixed signals. Confusion reigns supreme. On Thursday the economy was recovering because factory orders went up for February, breaking a multi-month downtrend. However, today, there is no end in sight as the employment report was released and another 663,000 Americans have lost their jobs. There is another storyline there, but we'll save that for a different time. It would seem that commentators, economists, and policymakers alike are in a race to call the bottom. Fundamentals and economic analysis have all but disappeared under what is a seemingly never-ending wave of distortion caused by monetary creation.Read full article... Read full article...
Friday, April 03, 2009
Financial Stocks Rally on FASB Vote / Stock-Markets / Banking Stocks
Shares of financial companies gained a sense of relief Thursday following a much-anticipated decision by the Financial Accounting Standards Board designed to ease mark-to-market accounting guidelines. The Financial Select Sector SPDR ETF (NYSE: XLF) and the SPDR KBW Bank ETF (NYSE: KBE) rose 2.8% and 1.4%.Read full article... Read full article...
Friday, April 03, 2009
G20 U.S. Dollar Fiat Currency Smoke and Mirrors Manipulation / Stock-Markets / Articles
Humpty-Dumpty Fiat Sat on the Wall….You Know the Rest! - We've heard much over the past number of days, weeks and months as to what lays at the root of our economic and financial woes. We've been made painfully aware of sensationalized storylines; like a Made-off-ian styled Ponzi -fraud, a real head-scratcher when you consider that 64 billion in proceeds is alleged to have vanished into the ether without a trace; Bear and Lehman styled collapses where, in the confusion, 50 odd billions were created out of thin air – only to be quickly buried like bones in ‘rover's clover'; and perhaps the most egregious of all, visibly, to date – the 180 billion and growing “black hole” of Darth Vader Ponzi-finance – AIG.Read full article... Read full article...