Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Friday, July 18, 2008
Stocks Bounce as Fannie and Freddie Looking for Fresh Capital / Stock-Markets / Financial Markets
July 18 ( Bloomberg ) -- Freddie Mac , the second-largest U.S. mortgage-finance provider, is close to removing an obstacle that limited its ability to sell common stock and to increase its holdings of mortgages and securities backed by home loans.
The company is likely to get clearance today to register with the U.S. Securities and Exchange Commission, according to people with knowledge of the plans, who declined to be identified because the decision is confidential.
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Friday, July 18, 2008
Nasdaq holding up After Negative Reaction to Google Earnings / Stock-Markets / Tech Stocks
Under the circumstances, with negative reaction to GOOG and MSFT, the Q's (Nasdaq: QQQQ) are not acting all that poorly. In fact, the GOOG massacre last yesterday pressed prices right to the 50% support plateau of the most recent rally from 43.30 to 45.82, but has since recovered into the 45.00/10 area.Read full article... Read full article...
Friday, July 18, 2008
Banking Stocks Rally is a Great Selling Opportunity! / Stock-Markets / Banking Stocks
Mike here with a quick update on the so-called "big rally" in bank stocks this week.
Yes, their shares have soared for the last two days.
And yes, Wall Street is cheering.
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Friday, July 18, 2008
Dow Jones Stocks Index Hits Price to Earnings Fair Value / Stock-Markets / Stock Market Valuations
In recent weeks a major secular milestone was achieved in the US stock markets. But because of all the distracting market turbulence, very few investors are even aware it happened. And truth be told, even if the markets weren't plunging I still suspect only the most diligent students of the markets would have any inkling.
The venerable Dow Jones Industrial Average, or Dow 30, finally returned to fair value as measured by its price-to-earnings ratio. This is major secular milestone because it marks the halfway point in the 17-year secular bear in which the Dow 30, and the broader US stock markets, have been mired since early 2000. Understanding the implications of this milestone is exceedingly important for all stock investors.
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Friday, July 18, 2008
Fannie and Freddie Bailout Trigger New Chapter in American History / Stock-Markets / Government Intervention
This week, with the nation's financial infrastructure crumbling before our very eyes, the nation's top two economic policy makers made their way to the Congress for an extraordinary episode of political theater. Fannie Mae and Freddie Mac, the quasi-government entities that form the backbone of America's gargantuan mortgage market, appeared to be cracking. To the somewhat bewildered members of Congress, Ben Bernanke and Henry Paulson offered radical remedies to save the lenders. Despite the fact that the proposed policies would thoroughly redefine America's supposedly capitalistic pedigree, the moves were presented as wholly inevitable, and in the end, benevolent and costless.Read full article... Read full article...
Friday, July 18, 2008
Asian Stocks and Gold as Protection Against US Bond Market Collapse / Stock-Markets / Financial Crash
Larry Edelson writes: With all heck breaking loose in our economy — banks and mortgage companies failing, real estate prices still falling, GM, Ford, Chrysler and virtually the entire airline industry all but officially bankrupt — can you now see why I've been a staunch advocate of gold?
I'm sure you can, and if you've been following my recommendations, you should be very happy indeed.
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Thursday, July 17, 2008
Nationalization Fiasco Forced Upon US Economy, US Dollar and Gold / Stock-Markets / Government Intervention
A grotesque grandiose nationalization initiative is gradually being forced upon the US Economy, US financial system, US political system, and the hapless US citizenry. Its crucible for construction comes from the desperate situation unfolding for the banks, the mortgage holders, and homeowners. Rising costs, falling incomes, failing banks, declining home values, eroding mortgage bonds, interfered financial markets, corruption in Congress, endless war, destructive economic counsel, an unconstitutional US Dollar without gold backing, these factors all contribute toward a crisis without remedy.Read full article... Read full article...
Thursday, July 17, 2008
Stock Market Monthly Analysis and a look at RIM / Stock-Markets / US Stock Markets
The bear market in US stocks which was initially flagged by the Transport Index in July 07, and was confirmed by the Industrials in October 07, is gaining pace as can be clearly seen in the chart below: the industrial index has crashed through the red 200 day moving average (dma) line.
High oil prices, a crashing real estate market, growing banking troubles and falling consumer confidence all indicate that this bear still has more legs. As with all pullbacks, at some stage it is reasonable to expect an oversold bounce, but given the current market sentiment I would not participate in any long strategy until the earnings season is over. Thus I advise waiting until the forth week in July before considering investing on the bull side.
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Thursday, July 17, 2008
Fear on Wall Street– The Real Deal / Stock-Markets / Credit Crisis 2008
You may recall our previous article in August 2007, “ Fear in the Streets – A Dress Rehearsal ”.
Well it looks like now the fat lady has not only warmed up but is singing and hitting that high C. This time the fear is real with IndyMac Bank in California disappearing, and Freddie Mac and Fannie Mae under a great deal of stress. Yes, more government bailouts which will cost billions and even more reason for a U.S. Dollar collapse. So, the credit and liquidity crisis continues, the economy slows, oil remains high and inflation is rising in the world setting the stage for much higher prices for gold and silver in the coming months and years.
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Thursday, July 17, 2008
Stock Market VIX Indicator Pointing to Final Capitulation Lows / Stock-Markets / Volatility
Staggered capitulation indications are now coming in from market indicators ...
Everyone is looking at the VIX (Volatility Index) and wondering where and when it will show the capitulation that the Pit Traders have been looking for.
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Wednesday, July 16, 2008
Understanding the Gravity of Current Stock Market Crisis Condition.. / Stock-Markets / Global Stock Markets
Many investors don't look at the long term picture of what is happening. I am talking about looking at
10 to 20 year periods of time. If you looked that far out on a number of key stocks and indexes, you would understand the gravity of the current condition we are in.
This morning, we will look at 6 long term charts that will give you a clearer picture of the incredible damage that has occurred to our financial structure and economy. As you will see in the last paragraphs, there is also an important message behind today's analysis.
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Wednesday, July 16, 2008
How to Profit From the Growing US Pension Fund Crisis / Stock-Markets / Pensions & Retirement
Martin Hutchinson writes: Welcome to the latest offshoot of the subprime-mortgage debacle: A burgeoning U.S. pension-fund crisis. Since the global financial crisis struck last fall, the largest 1,500 U.S. public companies have lost a combined $280 billion from their pension funds. Assuming the stock market doesn't move much from here, a typical U.S. company can expect its pension expense – a direct charge against profits – to increase between 20% and 30% in 2009.Read full article... Read full article...
Wednesday, July 16, 2008
Parasitic Bankers Achieve the End of Capitalism and the Sacking of America / Stock-Markets / Credit Crisis 2008
Communism was a public relations gift to the bankers. By diverting the dialogue to “controlled versus free markets” it obscured the bankers' real intent—to insert debt into every aspect of free markets. The bankers' overwhelming success however would destroy both the bankers and the free markets on which they preyed.
Parasitoidism is the relationship between a host and parasite where the host is ultimately killed by the parasite. This is what is happening to the US . Once the most powerful and productive economy in the world, the US , indebted by bankers and government spending beyond its ability to repay, is headed towards sovereign bankruptcy.
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Tuesday, July 15, 2008
Stock Market Fear Building as Investors Rush for the Exit / Stock-Markets / Financial Crash
The chart below shows a serious breakdown, but the horizontal count target has already been met. The chart should pull back up before finally making up its mindRead full article... Read full article...
Tuesday, July 15, 2008
The Next Financial Tsunami is Breaking Fannie Mae, Freddie Mac and US Mortgage Debt / Stock-Markets / Credit Crisis 2008
The announcement by US Treasury Secretary Henry Paulson together with Federal Reserve chief Bernanke, that the US Government will bailout the two largest guarantors of housing mortgage debt—the Fannie Mae and Freddie Mac—far from calming financial markets, has confirmed what we have said repeatedly in this space: The Financial Tsunami which began in August 2007 in the relatively small “sub-prime” high risk US mortgage securitization market, far from being over, is only gathering momentum.Read full article... Read full article...
Tuesday, July 15, 2008
Consumer Discretionary Spending Sector Leads Stock Market Tops and Bottoms / Stock-Markets / Sector Analysis
The spending habits of the largest single element of the economy can provide important information as to the major peaks and troughs of the stock market. The consumer, which equals about 2/3rds of the economy, plays a vital role in the business cycle. The normal contraction and expansion of the economy often requires the consumer to shift their spending to reflect the current state of the economy. This shifting of spending habits between discretionary and staples provides valuable clues to the major peaks and lows of the stock market.Read full article... Read full article...
Tuesday, July 15, 2008
Fannie Mae and Freddie Mac Crisis Means Faster Decline of Foreign Currency Inflows / Stock-Markets / Credit Crisis 2008
Almost 4 months to the day after the Fed backed the JP Morgan rescue of Bear Stearns, the Fed and the US Treasury intervene to provide a 3-part rescue plan for US Government Sponsored Enterprises Fannie Mae and Freddie Mac. The US Treasury will increase its existing $2.25 bln lines of credit to the two entities, and will assume temporary authority to purchase shares in their equity if the need arose. The Federal Reserve will extend emergency borrowing via the "discount window" to the two entities in return for collateral.Read full article... Read full article...
Tuesday, July 15, 2008
Paulson and Bernanke Bailout Friends on Wall Street, a Disaster for US Tax Payers / Stock-Markets / Market Manipulation
Jason Simpkins writes: Standing on the steps of the U.S. Treasury building across the street from the White House, Treasury Secretary Henry Paulson asked Congress for the power to prop up Fannie Mae ( FNM ) and Freddie Mac ( FRE ), the two failing mortgage giants involved with nearly half of the $12 trillion U.S. mortgage market.
"The president has asked me to work with Congress to act on this plan immediately," Paulson said Sunday. "Fannie Mae and Freddie Mac play a central role in our housing finance system and must continue to do so in their current form as shareholder-owned companies. Their support for the housing market is particularly important as we work through the current housing correction."
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Monday, July 14, 2008
US Banking Crisis Goes from Bad to Worse / Stock-Markets / Credit Crisis 2008
The last four days have seen the already distressed US banking sector lurch towards the precipice of a full blown financial system meltdown. Banks that have already seen stock price falls of as much as 90% were again hit today with many falling a further 5% to 10% on fears that a series of cascading bank failures were about to be triggered following the collapse of Indymac bank on Friday, as a run on the bank had panicking depositors withdrew funds at the rate of a billion a day.Read full article... Read full article...
Monday, July 14, 2008
Price Inflation and Asset Deflation, the Reversal of 25 Years of Booming Markets / Stock-Markets / Deflation
AFTER TWENTY-FIVE YEARS of booming asset markets, it's getting hard to keep hold of your money, let alone grow it.
Inflation is destroying fixed-income bonds. Stocks have tipped into a bear market, down more than one-fifth worldwide. Real estate suffers both over-supply and an historic shortage (too many units vs. no mortgage finance). And this is clearly no time to launch a business relying on discretionary spending, consumer debt or prompt payment.
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