Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.
Tuesday, July 22, 2008
The Mother of All Short Squeezes in Financial Stocks.. / Stock-Markets / Banking Stocks
By: John_Mauldin
How do you spell short-selling rally, gentle reader? In this week's Outside the Box we look at several short items (pardon the pun) from various sources, which paint a not pretty picture. The first hit my inbox this morning from Art Cashin (of CNBC fame and also Head Floor Trader for UBS).
" Deconstructing The Rally – The sharp rally that sprang from the new short sale restrictions has been spiky and, in several ways, very powerful. The impact of the short rule change was evident. As Barron's notes, the 150 stocks with the heaviest short interest rallied a stunning 15%. The stocks with the smallest short positions rose only 2%. That may be a function of existing shorts scrambling to cover to pass the new, belated, scrutiny. That thesis got added weight from a couple of areas. The Merrill Lynch results got mostly panned by several analysts and TV pundits. Nonetheless, the stock closed 24% above its lows for the week. Also, the financial sector ETF rose nearly 25% from the lows.
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Tuesday, July 22, 2008
United States Unfolding Financial and Economic Nightmare / Stock-Markets / Recession 2008 - 2010
By: Money_and_Markets
Martin D. Weiss writes: The rally you saw last week was little more than a normal, bear-market bounce — predicated on the myth of government omnipotence ... spurred by the blind faith in fiat money ... and triggered by the official attacks on short-sellers.
For investors who jump into financial and other vulnerable stocks now, it's a trap door. But for those who feel like they're still stuck in all the stocks we've been telling you to get rid of, it's an escape hatch. Use it as your selling opportunity. And don't look back.
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Tuesday, July 22, 2008
Stock Markets Endure Another Volatile Week / Stock-Markets / Global Stock Markets
By: Regent_Markets
Markets endured another volatile week, with US markets had a better time of it than their European counterparts. There were some clear psychological levels in play last week, as markets fell to fresh multi year lows, before recovering in the second half of the week. The Dow hit 11,000 for the first time since July 2006, and the S&P 500 hit 1,200 for the first time since October 2005. The CAC came close to hitting 4,000 for the first time since May 2005, the Dax hit 6000 for the first time since October 2006, and the FTSE reached its lowest point for over three years.Read full article... Read full article...
Monday, July 21, 2008
S&P Fails to Break Inverted Head & Shoulders Neckline Resistance / Stock-Markets / US Stock Markets
By: Mike_Paulenoff
In a bull market environment, the picture of the S&P 500 & its SPY ETF, as viewed by the e-Mini S&P 500 chart, would be very different. Let's notice that today's new recovery high at 1269 looks like it could have been an upside breakout from a base-like pattern that resembles an "inverted head-and-shoulders," doesn't it?Read full article... Read full article...
Monday, July 21, 2008
The Most Important Chart In the Investment Universe! / Stock-Markets / Financial Markets
By: Captain_Hook
Many people are now being rudely awakened from slumber with respect to the effects on prices resulting from inflation , even if they only see the effects (rising prices) and not the cause. More specifically, as the cost of energy shoots higher, the lights are finally coming on for many consumers previously in the dark about what lies ahead. They are beginning to realize that even if prices come down from these lofty levels, they will still be high, never mind about going even higher. So, this realization is beginning to change a lot of attitudes, attitudes that were previously reluctant to accept the reality of the situation. Given, it's taking a lot of doing (i.e. oil at $140, etc.), but one would need be ‘brain dead' not to see (feel) the effects of escalating energy and food prices on personal budgets. Denial has worked for many up to this point, but many in this group will also be the ones panicking later on when they finally accept reality. Read full article... Read full article...
Monday, July 21, 2008
Global Stock Markets Dancing to the Same Bearish Tune / Stock-Markets / Global Stock Markets
By: Prieur_du_Plessis
Factoring in last week's stock market rebound, I have put together a table of global stock markets' performances over various measurement periods and in both local currency and US dollar terms. The numbers speak for themselves and can best be summarized in a single sentence: Despite the variation in the economic impact of the credit crunch, stock markets have by and large been dancing to the same tune. Read full article... Read full article...
Monday, July 21, 2008
Stock Market Dead Cat Bounce! Beware of Bear Market Trap / Stock-Markets / Stocks Bear Market
By: Money_and_Markets
Martin D. Weiss writes: Bernanke and Paulson's smoke, mirrors and hot air are temporarily buoying markets, luring gullible investors back into stocks! Meanwhile,
Merrill Lynch just disclosed it was creamed by $40 billion in investment write-downs in the second quarter — $69 billion so far this year.
Monday, July 21, 2008
Stock Market and Crude Oil at Critical Trading Levels / Stock-Markets / Financial Markets
By: Adam_Perl
Over the last couple of months we have been witnessing the outcome of constant aggressive monetary policy. The Fed has used all its weapons to try to keep the U.S economy out of recession, but at the same time they have spurred inflation. With a current fund rate of merely 2%, the Fed has found itself between a rock and a hard place, combating deteriorating economic growth accompanied by accelerating inflation. Read full article... Read full article...
Sunday, July 20, 2008
Stocks Bear Market Decline Over? / Stock-Markets / Global Stock Markets
By: Prieur_du_Plessis
Richard Russell (Dow Theory Letters): Is the decline over?
“So is the decline over? Anything is possible, but we still have not seen the kind of action that has ended almost every bear market of the last 75 years, according to the Lowry's studies. These previous declines have been characterized by a series of 90% down-days, with the last 90% down-day quickly followed by a 90% up-day.
“Since the May peak, we have seen only two 90% down days – June 6 and June 26. As I said, the ‘normal' situation at the final bottom of a true bear market is a 90% down-day quickly followed by a 90% up-day. So far, this has not occurred.
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Sunday, July 20, 2008
Fannie and Freddie Rescue Could Result in a Run on the US Dollar / Stock-Markets / Credit Crisis 2008
By: Prieur_du_Plessis
“The end is neigh” was what many despondent investors were starting to believe as the past week kicked off with volatile trading amid concerns that US regional bank IndyMac's demise was a harbinger of many more bank failures.
Furthermore, Treasury Secretary Henry Paulson's plan to rescue the Government Sponsored Enterprises (GSEs), Fannie Mae (FNM) and Freddie Mac (FRE), left investors unconvinced.
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Sunday, July 20, 2008
Global Financial Crisis Worst Since 1930's Depression / Stock-Markets / Credit Crisis 2008
By: William_R_Thomson
Q: Are we looking at a financial system "avalanche" rather than a technical bear market, in equities and bonds?
A: In no way can this be seen as a normal bear market. This is undoubtedly the worst financial crisis in the developed world since the 1930s. The only period remotely similar was the bear market of 1973-75, which was itself a part of the extended 1966-82 bear market in US shares. That bear market was driven in part by a 13 fold increase in oil prices from 1972 to 1980. This time we have had a 14 fold increase in oil prices from the $10 low of 1999. Last time we had massive inflation of 20 percent per annum. That has not yet arrived but may well be in the pipeline.
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Saturday, July 19, 2008
Stock Market Bounce Follow Through / Stock-Markets / US Stock Markets
By: Dominick
I took the opportunity last week to offer a big picture review since it was clear we were at an important area in the major stock indices and, even though it avoided the specificity available to paying members, hopefully it kept readers from seeing a trap door early this week and shorting a bottom. This one is offerred as a follow-up on last week's call for a bottom in banks, a top in oil with a rally in stocks. And, of course, the question everyone wants answered now is whether there will be follow-through to this newfound upleg or did Friday's close end a bounce that will begin a march to new lows starting Monday.Read full article... Read full article...
Saturday, July 19, 2008
The Financial Dogs Bitching About SEC Short Selling Ruling / Stock-Markets / Government Intervention
By: Mike_Shedlock
Many banks are bitching about the new SEC rules on shorting. On the off chance you are new to the story, it's time for a full recap from the beginning.Complete Chronological Recap
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Saturday, July 19, 2008
Stocks New Bull Market Rally or Bear Market Trap? / Stock-Markets / Stocks Bear Market
By: Money_Morning
Keith Fitz-Gerald writes: Editor's Note: After stock prices surged strongly on Wednesday and Thursday, we decided to look to see if we could determine whether this was a bear-market trap, or the start of a new bull market rally. Our findings may surprise you.
"Put this bell on your pack.”
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Friday, July 18, 2008
Stocks Bounce as Fannie and Freddie Looking for Fresh Capital / Stock-Markets / Financial Markets
By: Anthony_Cherniawski
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
By: Mike_Paulenoff
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
By: Money_and_Markets
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
By: Zeal_LLC
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
By: Peter_Schiff
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
By: Money_and_Markets
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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