Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Friday, December 19, 2008
Stock, Commodities and Currency Futures Markets Analysis 19th December / Stock-Markets / Financial Markets
The March NASDAQ 100 was lower overnight as it extends Thursday's decline. Stochastics and the RSI are overbought and are turning neutral signaling that sideways trading is possible near- term. If March renews the rally off November's low, the reaction high crossing at 1321.75 is the next upside target. Closes below the 20-day moving average crossing at 1181.77 would confirm that a short-term top has been posted.Read full article... Read full article...
Friday, December 19, 2008
Despite the Crash, Stock Markets are Not Too Cheap to Buy / Stock-Markets / Stock Market Valuations
Keith Fitz-Gerald writes: For many investors, a low Price/Earnings (P/E) ratio is a sign of value. But don't you bet on it – at least, not yet.
According to Michael T. Darda , chief economist for MKM Partners LLC , analysts have overestimated earnings by an average of 30% to 35% in the last three recessions. For millions of investors who use low P/E ratios as a litmus test for selecting their investments, that's going to be a rather unpleasant shock.
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Friday, December 19, 2008
Stock Markets See Red Despite Collapse in Crude Oil Prices / Stock-Markets / Financial Markets
US equities finished down yesterday as various pieces of bad news emerged. GE's giant financial arm GECC has been downgraded to negative by S&P . Also there's a delay in the decision by the US administration whether to bail out US automakers although there is speculation that an announcement could come as early as today. On top of all of this was a further drop in oil prices below $36 per barrel (the low since June 2004) which weighed on energy stocks, despite the 2.46M barrel output cut by OPEC. So consumer joy in Dublin, Washington and London = panic in Moscow, Tehran and Caracas. The only good news for investors was the decline in equity volatility with the VIX index dropping to its lowest level since October 3rd.Read full article... Read full article...
Thursday, December 18, 2008
Credit Collapse Financial Market Impacts and Implications / Stock-Markets / Credit Crisis 2008
The Big, the Bull, and the Bankers - Over the last few years, in my search to understand how we arrived at this historic juncture, I have been confronted with how ignorant the general public is regarding the history of money. But, after five years of researching and writing about this period, I still find it difficult to understand the day-to-day machinations of things like Collateral Debt Obligations, Credit Default Swaps, and Currency Swaps. So, the public's confusion is understandable. Bundling hundreds of debt products and layering them one on top of other, as collateral, is just too complex. But, I am not alone in this.Read full article... Read full article...
Thursday, December 18, 2008
Stock Market Consolidation Day Ends Lower in Late Sell-Off / Stock-Markets / US Stock Markets
The markets had a consolidation day, but ended on the downside. They were lower in the morning, rallied mid-day, and then backed and filled into the close, but in the last 10 minutes took a quick hit to close near the afternoon lows.Read full article... Read full article...
Thursday, December 18, 2008
The Free Market has Failed, and Officialdom is Perpetuating that Failure / Stock-Markets / Credit Crisis 2008
Ever since the two Bear Stearns hedge funds defaulted 17 months ago triggering a global financial crisis, the Federal Reserve has been busy putting out one fire after another. Fed chief Ben Bernanke has slashed interest rates to .25 percent, handed out billions in emergency funding to teetering insurance companies and mortgage lenders, and provided $8.3 trillion in loan guarantees to keep the financial system from collapsing.Read full article... Read full article...
Thursday, December 18, 2008
U.S. Dollar Vs Treasury Yield, Gold, Crude Oil and Stocks / Stock-Markets / Financial Markets
Here are 3-year charts comparing weekly performance of the US Dollar index to:
- (A) to the yield on 3-month and 2-year US Treasuries,
- (B) to the price of crude oil and gold bullion,
- (C) to the price for the MSCI World ex US stocks index and the Russell 3000 US stocks index.
Thursday, December 18, 2008
Stock Markets Drift Lower In A Quiet Market / Stock-Markets / Financial Markets
It's gone all eerily quiet in a fatigued and illiquid market as we approach end year. The Dow Jones fell 1.12% last night in another low volume day . Stocks continue to fret in the wake of the Madoff debacle. Morgan Stanley missed their earnings expectations badly yesterday and GE has even given up giving earnings guidance.Read full article... Read full article...
Thursday, December 18, 2008
Where to Invest 2009- Gold, Stocks and China / Stock-Markets / Investing 2009
Larry Edelson writes: As you read this I'm at Bangkok's Suvarnabhumi Airport awaiting my flight back to the U.S. to get home for the holidays.
And since next Thursday is Christmas Day, and I'm off, I would like to wish you a very happy holiday.
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Thursday, December 18, 2008
Stock Market Santa Rally Lacks Technical Support / Stock-Markets / US Stock Markets
An Institutional Investor market perspective, and what our New Lows model is saying about a rally ...
Lot's of excitement yesterday. Investors were optimistic and buying on the Fed's announcement. However, those longer term, Institutional Investors were not quite as ecstatic as the average investor.
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Thursday, December 18, 2008
Ratings Agencies Greed and Fraud Magnified Credit Crisis / Stock-Markets / Credit Crisis 2008
Shah Gilani writes: Underlying the credit crisis gripping the U.S. and world economies is a crisis of confidence. Blame has been laid at the feet of the U.S. Federal Reserve, and an investment bankers' brew of toxic financial products. Ultimately, however, it was the supposedly trustworthy rating agencies that got everyone to drink the poisoned Kool-Aid.Read full article... Read full article...
Thursday, December 18, 2008
Stock Market Consolidation Day Ends Lower in Late Sell-Off / Stock-Markets / US Stock Markets
The markets had a consolidation day, but ended on the downside. They were lower in the morning, rallied mid-day, and then backed and filled into the close, but in the last 10 minutes took a quick hit to close near the afternoon lows.
Net on the day the Dow was down just under 100, down 99.80 at 8824 and change. The S&P 500 down 8 3/4 at 904.42, and the Nasdaq 100 was down 17.63 1225.86. The Philadelphia Semiconductor Index (SOXX) gave back just a fraction, 0.35 to 221.16.
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Thursday, December 18, 2008
Deflation Crash 2009- How to Protect Your Investments / Stock-Markets / Deflation
Editor's Note: The following article is adapted from Robert Prechter's best-selling book, Conquer the Crash – You Can Survive and Prosper in a Deflationary Depression . In addition to this article, visit Elliott Wave International to download the free 15-page report about how to protect yourself, you wealth and your family in this environment. It contains details about what you should do with your pension plan, valuable tips for business owners, insights on handling loans and debt and important warnings against trusting the government to protect you.Read full article... Read full article...
Wednesday, December 17, 2008
China Economic Warnings Signals to Invest? / Stock-Markets / China Stocks
Tony Sagami writes: Because of its rapid economic growth over the last 30 years, it's easy to forget that China is a communist country. The Chinese, like everybody else, love money. But the Communist party is clearly in control.
One of the areas controlled with an iron communist fist is China's media. The main TV station, China Central Television or CCTV, is owned, operated, and controlled by the government.
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Wednesday, December 17, 2008
Stock Markets Soar as Fed ZIRP Makes Money Free / Stock-Markets / Financial Markets
So ZIRP(idée doo dah) as the Fed heads into uncharted waters by cutting rates by ¾% to only 0.25%. They will now buy Treasuries (i.e. quantitative easing) to help. So rates at zero for as long as it takes with the promise that they will buy MBS, ABS, GSE paper and any old iron if it helps counter this historic deflationary depression. Sanity clause has prevailed and we may not need to start learning Japanese. But more seriously and crucially, confidence has been (temporarily) instilled as ZIRP eases debt burdens, makes financing and refinancing cheaper and hopefully reflates assets prices.Read full article... Read full article...
Wednesday, December 17, 2008
Tuesday's Spectacular Bullish FOMC Session for Stocks / Stock-Markets / US Stock Markets
The markets had a spectacular session, starting with a gap up. They ran early, consolidated, and then ran again mid-morning. At that point they went into a narrow trading range ahead of the FOMC announcement. The FOMC elected to drop rates by 3/4 of a percent to a 1/4, and Wall Street liked it. The indices popped sharply, with the NDX in 15 minutes running from about 1210 to 1230. The S&P 500 jumped from about 884 to 899. They then backed and filled for another 25-30 minutes, and then exploded again, taking out the highs and running up sharply. They did get a late pullback, but in the last 10 minutes bounced sharply and closed at the highs for the day on the Dow and S&P 500, with the NDX trailing just a bit.Read full article... Read full article...
Tuesday, December 16, 2008
The Birth of a New Stocks Bull Market? / Stock-Markets / US Stock Markets
Blood in the streets all over the place - As the bear market ends and a new cyclical bull market begins with the bottoming of the 6-year cycle, we continue see the lagging effects of this year’s seismic volatility on almost a daily basis. For although the stock market price low has almost certainly been made and the 6-year cycle is starting to assert itself on the upside, more and more investors have capitulated to the emotional exhaustion the previous months have subjected them to.Read full article... Read full article...
Tuesday, December 16, 2008
Government Bailouts the Ultimate Ponzi Scheme Heading for Financial Collapse / Stock-Markets / Credit Crisis Bailouts
Notwithstanding the success of a 2nd American Revolution - Politicians, Bankers, Power Brokers, Lobbyists, Wall Street, and Huge Trans-National Corporate Conglomerates have collectively succeeded in delivering their subtle-monopoly deathblows to American Free Market Capitalism. In doing so, they have destroyed the constitutional fortress which once protected and kept shining the beacon of American ideals and free enterprise.Read full article... Read full article...
Tuesday, December 16, 2008
Investment Momentum for Infrastructure is Building / Stock-Markets / Infrastructure
We've been talking infrastructure for a long time, and more people are now listening after President-elect Obama revealed that his best idea for stimulating the U.S. economy is through a massive infrastructure spending program.
While details are still being worked out, it appears that Mr. Obama will quickly propose a two-year fiscal stimulus package worth up to $800 billion and that much of this amount would be directed toward infrastructure programs. To put this number in perspective, $800 billion is equivalent to about 5.5 percent of the nation's GDP.
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Tuesday, December 16, 2008
The Next Big Bailout- Madoff!! / Stock-Markets / Credit Crisis Bailouts
With the financial markets already in a state of panic and the global recession expected to worsen in 2009, we can ill afford to allow the financial institutions, charities, and rich idiots that entrusted Bernard Madoff with their money to go bust. As for the widespread contention that since Mr. Madoff committed fraud he deserves to go to jail, do not think of Madoff as operating a ponzi scheme so much as a Strong Armed Perception Fund (SAP Fund), and don't think of him as breaking the law so much breaking new ground in the arena of fictitious returns.Read full article... Read full article...