Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Sunday, August 10, 2008
US Dollar and Stocks Olympics Rally Despite Recession / Stock-Markets / Financial Markets
The Olympic Games kicked off at 8:08:08 pm on Friday night, the eighth day of the eighth month of 2008. Coincidence? Not at all. The number eight is considered lucky by the Chinese, because in Cantonese (the language of South China) the word for prosperity is “fa”, which sounds like “ba” (eight).
Let the gains begin. Fortune also smiled upon stock markets, with the S&P 500 Index scoring its first back-to-back weekly gain since April as the US dollar rallied strongly and oil and commodities plummeted. The S&P 500's gain since the low of July 15 has been 6.7%, with the Financial SPDR up by 27.8%.
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Sunday, August 10, 2008
An Interview With the Kress Stock Market Cycle Master / Stock-Markets / Cycles Analysis
I have long been an admirer of the stock market cycle analysis of one Samuel J. “Bud” Kress, proprietor of SJK Capital and publisher of the cycle-based SineScope advisory. Kress has been in the equity market business all his adult life, either on Wall Street or in more recent years as an independent analyst/trader. If the Kress name seems familiar to you it's probably because you remember the chain of S.H. Kress & Co. “five and dime” stores that once dotted the country. The store's founder, Samuel H. Kress, was Bud's grandfather.Read full article... Read full article...
Saturday, August 09, 2008
Stocks and Commodities Bubbles, Parabolic Moves, and Resulting Collapses / Stock-Markets / Liquidity Bubble
In the chart below I have included a weekly chart of the Nasdaq 100. Beginning at the 4-year cycle low that occurred in October 1998, we can see that price rose sharply in February 1999. In fact, in that 4-month period this index moved from a low of 1,063.74 up to 2,150.83. This was a 102% advance in only 4 months. As we moved into October of 1999 this advance was much more orderly, but still managed to advance another 400 points during this time period and in doing so the Nasdaq 100 had advanced 143% in a mere 12 months. As this move received more and more attention more and more people jumped on the bandwagon with the hottest tech stock. As a result, a bubble began to form.Read full article... Read full article...
Saturday, August 09, 2008
Stocks Soar as Crude Oil Slides / Stock-Markets / Financial Markets
Equities are on a roll. Looking at the Nasdaq through the daily chart of the Nasdaq 100 Trust Shares (QQQQ), we see that the Q's closed at 47.31, just above the declining 200 DMA at 47.25. This is a very positive sign that today's upmove SHOULD continue Š towards my next optimal target zone of 48.20/50.Read full article... Read full article...
Saturday, August 09, 2008
Stock Markets Heading for Price Earnings Reversion Below the Mean / Stock-Markets / Stock Market Valuations
- The Rise of A New Asset Class, Part 2
- Unrealistic Expectations
- The Boomers Break the Deal
- A Nation of Wal-Mart Greeters
Last week's letter was the first part of a speech I have been giving on what I think will be the rise of a new asset class. This week will be the second and final part. Let me set up this section with a few paragraphs from last week's letter and then a quick summary. If you want to read the entire letter from last week, you can go to the website archives .
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Saturday, August 09, 2008
Using Macroeconomics to Obtain Long-term Market Forecasts / Stock-Markets / Financial Markets
As I mentioned in the previous 3-part series on market forecasting, we must look at several variables in order to get a good sense of where the market might be headed. In that series of articles, I discussed sentiment, charting and methods of market valuation. I have integrated some of this previous material with new material here. You can find the other material elsewhere online. Here, I discuss the charting section and extend the discussion to long-term market forecasts.Read full article... Read full article...
Friday, August 08, 2008
S&P 500 Stocks Index Probes Critical Resistance / Stock-Markets / US Stock Markets
Another mini "melt-up" that follows a mini "melt down." After yesterday's late-session plunge, this morning out of the blue (but in coincidence with very weak oil and gold prices) the SPDR Trust (AMEX: SPY) has rocketed across its recent range to once again probe critical resistance between 128.50 and 129.30. If this climb manages to hurdle -- and sustain -- above 129.30, the near-term price structure should "combust" to the upside in a thrust to 132.50 next. Failure to do so, however, will argue for yet another loop to the downside that tests support at 126.50/30.Read full article... Read full article...
Thursday, August 07, 2008
Systemic Risk Spreads as Gold Loses Safe-haven Status / Stock-Markets / Credit Crisis 2008
Less than meets the eye…is a good description for the Wal-Mart July sales report . The sales results, along with cautious outlooks for August, left little hope for any lasting boost from tax rebate checks to prop up consumers headed into the back half of the year and an all-important December holiday season.
"The stimulus (checks) really had a marginal effect at best and it has run its course and there's no carry-through," said Retail Metrics President Ken Perkins. "It's difficult to see where some sort of boost in spending is going to come from."
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Thursday, August 07, 2008
Money Printing to Save Imploding Banking System Will Send Gold Soaring / Stock-Markets / Credit Crisis 2008
The path to the printing press is a long one. It is used at first to spread credit indiscriminately in sustaining commerce and funding financial systems. For the United States , that means horribly inefficient usage of credit in commerce, where 5 units of credit produce one unit of business activity. In the twisted bizarre arena that is Wall Street, the financial maze they created has imploded as yet another chapter is written in the standard textbook of boom & bust. They managed to cause the most powerful deflation storm in eighty years, all born from the monetary inflation wellspring, no easy feat.Read full article... Read full article...
Thursday, August 07, 2008
Responding to Stocks Bear Market Conditions / Stock-Markets / Stocks Bear Market
We talked about the continuing global bear market in equities on Monday, but there was an important corollary to this discussion that was not addressed (we will address it here now). The question is this: how do you, as a trader or investor, respond to bear market conditions?Read full article... Read full article...
Wednesday, August 06, 2008
Asset Price Deflation Heralds Big Problems for Baby Boomers / Stock-Markets / Pensions & Retirement
Most of my readers and subscribers know that I have lived in Ajijic , Mexico for nine years. This is a 'village' of which several thousand foreigners call home. We are here are many reasons, hopefully #1 is the love of Mexico and the Mexican people, the climate (almost perfect year round) and what is, at least for now, a safe and welcome place for us foreigners. We have a great lifestyle and can live in a $100,000 home or a million dollar place, most of which is paid for with cash. Hang in there as I am getting to the point of this piece.Read full article... Read full article...
Wednesday, August 06, 2008
S&P 500 Stocks Index Consolidating at Top of Upleg / Stock-Markets / US Stock Markets
For the most part, the SPDR Trust (AMEX: SPY) have held yesterday's gains extremely well, and appear to be consolidating right at the top of the upleg from 124.77 to 128.62, presumably ahead of another thrust that will confront critical July-Aug resistance at 129.10/15. If hurdled and sustained, the SPY should accelerate to confront its key resistance plateau at 130.20, which represents the coordinate of the declining 50 DMA.Read full article... Read full article...
Wednesday, August 06, 2008
Financial Markets Monthly Analysis and Stock Pick / Stock-Markets / Financial Markets
Following the second quarter earnings season the market lacks conviction and is still trying a bullish “bounce up” in an overall bear trend. I would ride any upward move until the “technicals” signal otherwise which I suspect will be the middle of September as we approach the release of third quarter earnings. Read full article... Read full article...
Tuesday, August 05, 2008
The Birth Pains of a New Stocks Bull Market / Stock-Markets / US Stock Markets
After what has seemed to many investors to be the “longest year”, stocks have been going through a volatile period which some interpret to be bearish. There are still many analysts who are quick to label the current market phase a temporary pause on the way to a bigger stock market cascade. Contrary to these expectations, the market tape is sending a different message as we'll establish in this commentary.
It has been all too easy to dismiss the recent state of affairs in the financial markets as the start of a major bear market and economic depression. The pain that has been inflicted has left deep and abiding wounds that won't soon be forgotten by most investors. Making matters worse, every time a negative news event crosses the wires it adds to the widespread belief that the U.S., and indeed the emerging foreign powers, teeters on the brink of a major financial catastrophe.
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Tuesday, August 05, 2008
Stock Market Mega-Trends August 2008 / Stock-Markets / Stocks Bear Market
If you want to learn to invest, one of the best ways is to follow the trend. Following the trend is a proven way to beat the market and grow your stock portfolio. Basic technical analysis provides the tools to identify and follow the trends of the market as determined by the S&P 500.It is best to begin with the big picture in mind and then work our way down to weekly and then daily views of the charts. You will notice that the chart and the value of the indicators change as we move from a monthly to a weekly and then a daily chart.
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Tuesday, August 05, 2008
Stock Market Liquidity Which Way Will it Break? / Stock-Markets / US Stock Markets
Today's charts show the inflows and outflows of liquidity into the stock market. When inflows are trending up and positive (in expansion), the competition for stocks becomes high and prices are bid up causing an upside rally.
The opposite happens when we see liquidity outflows and a trending down pattern. When this is happening with outflows in contraction territory , the balance shifts to a selling competition where investors try to get the best price before expectations of lower movement. This causes a condition that ends up in a market correction.
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Tuesday, August 05, 2008
Profit from the BRICs Investing: India and China / Stock-Markets / Emerging Markets
Martin Hutchinson writes: Global investors need to “hit the BRICs” – literally. Back in 2003, the Goldman Sachs Group Inc. ( GS ), eager to push its clients towards global investing – especially in the emerging markets – invented the acronym “ BRIC ” (Brazil, Russia, India and China) to represent the four emerging markets it believed were destined to become dominant economies in the years to come.Read full article... Read full article...
Tuesday, August 05, 2008
Where Next for Gold, Stocks and Bonds? / Stock-Markets / Financial Markets
Hmmm? Seems like the gold price itself doesn't agree with the experts views on where it's headed. That's the problem with sticking your neck out. When you get it right you're a genius. The problem arises when you get it wrong.
Unfortunately, at the end of the day, there are no certainties. It's all about a balance of probabilities.
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Tuesday, August 05, 2008
The Light at the End of the Tunnel of the Financial Crisis? / Stock-Markets / Credit Crisis 2008
Covered bonds to stimulate the housing sector, GDP of 1.9%, Jobless claims of 448,000 and unemployment that reached a new level of 5.7% - those were just a few of the things that painted the screens red last week, as the major indices erased Monday and Tuesday's bullish sentiment, showing optimists that it is still to early to jump for joy. In addition to the data released in the U.S, showing a dire situation, global economies continue to lag behind the US , affected by high inflation and slow economic growth. Taking a glance at the chart below, one can see that five of the main economies are still showing real negative growth, due to high inflation, accompanied by high unemployment.Read full article... Read full article...
Monday, August 04, 2008
The Four Tires of the Economic Apocalypse Herald the End of Capitalism / Stock-Markets / Fiat Currency
The engine used to run on premium, e.g. gold and silver; now it's being run on credit which over time will destroy the engine and everything else.
The euro, the yuan, the yen, and the dollar are The Four Tires Of The Apocalypse , an event that recently appears to have come out of nowhere. It didn't. Its apparently sudden appearance is new only to those who wished to see otherwise.
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