Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Sunday, September 21, 2008
Stock Markets Setting Themselves Up for a October Crash / Stock-Markets / Financial Crash
After what appeared to be a crash in September, and a BIG SAVE by the Govt, everyone will be "happy and long" into the end of this month, when many of the recent technically overbought conditions will be reloaded into the technical set-up... and which will place the stock averages in a VERY precarious position... IN OCTOBER!!Read full article... Read full article...
Sunday, September 21, 2008
Paulson's Market Manipulation Bailout Will Fail Because.. / Stock-Markets / Government Intervention
As a trader, I stopped getting disgusted at government manipulation of markets several years ago, didn't pretend it wasn't happening, just tried to find when it was coming. I decided to develop an indicator that would tell me when the probability was extremely high that the Master Planners would intervene. That approach has served us well, and that indicator is known as the Plunge Protection Team (PPT) Indicator. It flashed a new “buy” signal Monday, September 15 th at the close, rising above positive + 20.00, warning that the decline from August 11th was terminal. The Industrials have risen 565 points since that buy signal. When this measure rises above positive + 20.00, it is usually early, but very right, an early warning indicator telling us to enjoy the decline for a few more trading days but get ready for a spike rally.Read full article... Read full article...
Sunday, September 21, 2008
Stock Market Update: It's A Trader's World / Stock-Markets / Futures Trading
It's incredible to be living and trading in these historic times which people will be reading and talking about for decades to come. But making some money while we're at it is even better, especially since so many are in the red for this year. Now that we've gotten this huge move of over 120 points off of Thursday's low, we have to respect the rally and expect some follow-through in the short term, even while the choppy, volatile action continues. Looking at some of the internals on this move, shown below, you have to figure there's a good chance that a feel good rally into the election has just begun, an idea we'll be exploring in greater depth this weekend for members only. The charts below show us the extremes that we saw this week in up volume, total volume, and the Vix.Read full article... Read full article...
Sunday, September 21, 2008
President Paulson's $700 Billion Bailout Plan / Stock-Markets / Credit Crisis 2008
The New York Times has the Text of Draft Proposal for Bailout Plan . Given this is legislation, under fair use terms, here is the complete draft. My thoughts follow.
LEGISLATIVE PROPOSAL FOR TREASURY AUTHORITY
TO PURCHASE MORTGAGE-RELATED ASSETS
Saturday, September 20, 2008
The Markets and Government Manipulation / Stock-Markets / Market Manipulation
Walter J. Burien writes: Let's Talk
Many people over the years have commented to me per the markets: "This is going to definitely happen" and then: " This is unbelievable that this has happened" as they watched their account balances flush down the toilet.
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Saturday, September 20, 2008
Stock Markets Extreme Volatility / Stock-Markets / US Stock Markets
Short Term Over the past week the Dow Jones Industrial Average (DJIA) moved and average of 2.4% a day, the highest level of volatility since the low of October 2002.
The chart below covers the past 6 months showing the DJIA in red and an indicator showing the average daily percentage change of the DJIA over the previous 5 trading days in black. The indicator is calculated by adding the absolute value of the percentage change of the DJIA over the previous 5 trading days and dividing by 5. Dashed vertical lines have been drawn on the 1st trading day of each month.
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Saturday, September 20, 2008
Trading Tactics to Capture Wild Market Swings / Stock-Markets / Futures Trading
For Short-Term Traders; HUGE SWINGS = HUGE PROFITSAmid colossal intervention efforts and unbridled attempts to manipulate markets, socialize losses, and control price levels, disciplined impartial trade executions conveyed through our blended strategic trade advisory continue to produce stellar short-term profits fully consistent with the large market swings inherent with such endeavor.
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Saturday, September 20, 2008
United States Becomes Toxic Debt Waste Dump to Stop Financial Armageddon / Stock-Markets / Financial Markets
The camel's nose got in the tent when Bear Stearns was bailed out. The question is, when will it end? The U.S. government moved to cleanse banks of troubled assets and halt an exodus of investors from money markets in the biggest expansion of federal power over the financial system since the Great Depression.
A toxic waste dump.
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Saturday, September 20, 2008
Financial Markets Day of Rest / Stock-Markets / Credit Crisis 2008
“By the seventh day God completed His work which He had done, and He rested on the seventh day from all His work which He had done.” Genesis 2:2
As we head into the third weekend of the month, it looks as though our illustrious financial leaders will once again find no rest this weekend. After working through the weekend of September 5 th , to structure the US government takeover of the two largest holders of mortgages in the world (Fannie & Freddie), they continued over the weekend of September 12 th , deciding that the 158 year old company that is the largest underwriter in municipal bonds (Lehman Brothers) would be allowed to go bankrupt and that one of the world's leading wealth management firms (Merrill Lynch) would be bought out by one of the largest banks in the world (Bank of America), one would have thought that they could have taken some time off. Yet, no rest was found for the weary.
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Saturday, September 20, 2008
US Government Declares WAR on Debt Crisis / Stock-Markets / Credit Crisis 2008
Martin D. Weiss writes: In the last few hours of Friday, in a desperate attempt to ward off a catastrophic Wall Street meltdown, the government has announced three unprecedented actions:
First, President Bush, Fed Chairman Bernanke and Treasury Secretary Paulson have called on leaders of both parties in Congress to work through the weekend to develop a plan to let the government buy up bad debts from banks.
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Friday, September 19, 2008
Paulson Commits Trillions of Tax Payer Dollars to the Mother of All Bailouts / Stock-Markets / Government Intervention
Just three days ago, after looking at the prospect of bailing a string of distressed financial institution in the country, the government seemingly drew a line in the sand, and refused to bail out Lehman Brothers. The authorities clearly saw Lehman’s demise as a trial balloon to see how the markets would react if the government stayed on the sidelines. That trial balloon quickly turned into the Hindenburg. Immediately reversing course, the Government has decided to go “all in” and bail out every institution with financial exposure to U.S. mortgages.Read full article... Read full article...
Friday, September 19, 2008
Credit Default Swaps $57 Trillion Risk to Financial's / Stock-Markets / Credit Crisis 2008
Mike Larson write: It's been quite the eventful week on the bailout front, eh?
The Treasury and Federal Reserve drew the line at Lehman Brothers, allowing the fourth-largest broker in the U.S. to file for bankruptcy.
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Friday, September 19, 2008
Financial Armageddon Postponed- Fed Intervenes In Money Markets / Stock-Markets / Government Intervention
The Fed has announced new liquidity measures this morning governing non-recourse funding of asset backed commercial paper and plans to purchase short-term debt obligations issued by Fannie Mae, Freddie Mac, and the Federal Home Loan Banks.Here is the Fed Press Release On Liquidity Measures .
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Friday, September 19, 2008
US Government’s Financial Disaster Fix-it Plan Sends Stock Markets Soaring / Stock-Markets / Credit Crisis 2008
Jennifer Yousfi, William Patalon III write: U.S. stocks rallied the most in six years yesterday (Thursday) - with traders actually cheering the ticker action from the floor of the New York Stock Exchange - on the news that the federal government is taking steps to shore up the unraveling U.S. financial system and end the global credit crisis.Read full article... Read full article...
Friday, September 19, 2008
The Basle Banking Model Created the Banking Crisis / Stock-Markets / Credit Crisis 2008
“Originate to Distribute” - In an attempt to comprehend the current "credit crisis" I decided to try to investigate its underlying causes. To my dismay I discovered that the situation did not come about by accident but was actually conceived and planned by the International Banking Fraternity in Basel, Switzerland, in 1998.
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Friday, September 19, 2008
Financial Insanity: SEC Plans to Temporarily Ban Short-Selling / Stock-Markets / Government Intervention
Every time I think the height of insanity has been reached I have been proven wrong. My new official statement is: "There is no upward limit on insane actions by Congress, the SEC, the president, or for that matter anyone else."Already I need to amend a post I wrote moments ago: Stock Market Cheers Fiscal Insanity .
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Friday, September 19, 2008
Stock Market Cheers Fiscal Insanity / Stock-Markets / US Stock Markets
The biggest stock market rallies occur in bear markets. Today we witnessed one of the biggest bear market rallies in history on Plans To Shore Up Banks .U.S. stocks rallied the most in six years on prospects the government will formulate a "permanent" plan to shore up financial markets, while regulators and pension funds took steps to curb bets against banks and brokerages.
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Friday, September 19, 2008
Conditions Ripe For Huge Stock Market Rally / Stock-Markets / Global Stock Markets
"The great secret of success in life is for a man to be ready when his opportunity comes." Benjamin Disraeli
In a difficult time for investors, it is refreshing to report a ray of hope in the charts below. In addition to the positive technical developments, two fundamental developments may help the market find an intermediate bottom:
Thursday, September 18, 2008
Paulson Seeks Resolution Trust Corporation "Solution" / Stock-Markets / Government Intervention
When you have done as much damage to taxpayers and the economy as Paulson has, one just might expect for him to go into hiding until the next administration fires him.Read full article... Read full article...
Thursday, September 18, 2008
Systemic Failure of the United States- Game Over / Stock-Markets / Credit Crisis 2008
We are in historically unprecedented times. The foundation is being laid for a default of USTreasurys in the wake of the greatest regulatory failure in modern history, and the collapse of the US financial system. Anyone who cannot see that suffers from poor vision, chronic nostalgia, low mental wattage, a paycheck from Wall Street, a post in financial press media, or owning an Economics advanced degree. So many changes come with each passing day, not week, that it boggles the mind. Many of us predicted $100 updays for gold, and we almost saw one. The wheels came off the US financial wagon long ago, but only now that fact is being recognized. The monetization largesse finally has gone beyond the corrupt bailouts of fraud kings on Wall Street.Read full article... Read full article...