Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Sunday, July 13, 2008
Big Trend Changes are Coming to the Stock Markets / Stock-Markets / US Stock Markets
We expect several significant changes to occur in markets over the next week or two. We cover those changes in detail in our expanded 56 page newsletter to subscribers at www.technicalindicatorindex.com , and discuss if those changes will be long-term or simply short-term.
We base our studies of markets on the premise that markets have a language, that they are telling us where they are headed next, so if we can know that language, and listen properly, we can have a huge investing advantage.
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Sunday, July 13, 2008
Stocks Technical Outlook Suggests Tradeale Rally Forming / Stock-Markets / US Stock Markets
The good news is: The conditions are ripe for a washout which would be a setup for a tradable rally.
Short Term - I use momentum indicators of price and breadth to find a short term rhythm in the market. These have all failed recently as the market has gone to rarely seen oversold levels.
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Saturday, July 12, 2008
Stocks Bear Market Classical Dow Theory Proven Correct Once Again / Stock-Markets / Dow Theory
According to the founding fathers of Dow theory, which include Charles H. Dow, William Peter Hamilton and Robert Rhea, the single most important aspect of Dow theory is the price movement above and below previous secondary high and low points. The question is, what constitutes secondary high and low points? In all honesty, this is where the art of Dow theory comes into play. But, for those who have truly studied the original writings by Dow, Hamilton and Rhea this becomes fairly obvious with study. I can assure you that no book on technical analysis covers the Dow theory in enough detail to provide the reader a complete working knowledge of Dow theory.Read full article... Read full article...
Saturday, July 12, 2008
Nature of the Fannie Mae Bailout / Stock-Markets / Credit Crisis 2008
I strongly believe that GSEs are part of the problem and no part of the solution. Government has no business promoting housing over renting and I would abolish HUD, the FHA, and end government sponsorship of the GSEs as quickly as practical. Ron Paul has advocated the same.Has anyone even bothered to look up the Mission Statement of Fannie Mae ?
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Saturday, July 12, 2008
US Housing Mortgage Market Meltdown- Say good-bye to Fannie and Freddie? / Stock-Markets / Credit Crisis 2008
Federal Reserve Chairman Ben Bernanke and Secretary of the Treasury Henry Paulsen told Congress Thursday that new regulatory powers are needed to insulate the national economy from damage if a big Wall Street firm collapses. Now that is an interesting proposition. We have already bailed out Bear Stearns and several other brokerage institutions in March. So is someone else in trouble already? Who could it be?Read full article... Read full article...
Saturday, July 12, 2008
Rise in Treasury Yields Could Benefit Stocks, though Flight to Commodities Continues / Stock-Markets / Financial Markets
Interesting that the TLT's (Lehman 20 year T-bond ETF) fell 1.4% on Friday, which reflects a climb in 10-year T-note yields to 3.94% from 3.83% earlier on Friday. Yet the stock indices continued to undergo waves of intense long liquidation.
My guess: that the reversal in the TLTs -- normally an instrument that
attracts buyers during times of financial panic and flight to safety -- is
hinting that the current phase of the plunge in stocks is nearing
completion. The problem is that it could last into Monday or Tuesday, so no
sense in standing in front of this falling sword.
Friday, July 11, 2008
Decade of No Investment Returns, Part II / Stock-Markets / Stock Market Valuations
"... Giving money to stockholders now looks like so 20th century, it's downright Victorian...!"
EVEN AFTER their dividend checks, US stock investors earned less than zero thanks to inflation in the 10 years to July 2008.
That marked the first Decade of No Returns in a quarter-century according to Richard Bernstein at Merrill Lynch. And seeing what's happened to US stocks so far in the second-half of 2008 – and given the US authorities' likely response – it won't be the last.
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Friday, July 11, 2008
Stock Market Plunges on Paulson's Weak Fannie Policy Statement / Stock-Markets / Credit Crisis 2008
Treasury Secretary Paulson has carried his miraculously successful strong dollar policy statements to Fannnie Mae and Freddie Mac with a Statement on Fannie, Freddie .Secretary Henry M. Paulson Jr. made the following comment today on news stories about "contingency planning" at Treasury:
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Friday, July 11, 2008
Trading the Stocks Cyclical Bear Market / Stock-Markets / Stocks Bear Market
Earlier this week, the flagship S&P 500 stock index (SPX) officially entered bear-market territory. As it edged past a 20% loss since its all-time high of October 2007, all debate about whether or not a bear really exists was instantly rendered irrelevant. Beyond any doubt we now sojourn in a full-on bear market!
The fearsome reputations of stock bears are well-deserved. During the legendary bear running between January 1973 and October 1974, the SPX lost a sickening 48.2% of its value. In a much more recent specimen, between March 2000 and October 2002 the SPX shed 49.1%. Cyclical bear markets often tend to cut stock prices in half by the time they fully run their courses!
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Friday, July 11, 2008
Fannie, Freddie 'Insolvent' and Lehman Brothers May be Next Bear Stearns / Stock-Markets / Credit Crisis 2008
Gold finished trading in New York yesterday at $9 40.20 , up $ 13.90 and s ilver was up to $1 8. 24 , up 17 cents . Gold rose again in the New York Globex electronic market before trading sideways in trading in Asia and it has risen sharply again in early European trading to above $950 per ounce .Read full article... Read full article...
Friday, July 11, 2008
Fannie and Freddie Credit Implosions Are Too Big to Bail Out / Stock-Markets / Credit Crisis 2008
It's been a wild ride for Fannie and Freddie recently. Yesterday, James Lockhart, director of the Office of Federal Housing Enterprise, said the GSEs are "well capitalized".William Poole, former Fed governor disagrees. Poole Says "Fannie, Freddie Insolvent" . Read full article... Read full article...
Friday, July 11, 2008
The Real Reasons the US Banking System Lost its Way / Stock-Markets / Credit Crisis 2008
Shah Gilani writes: Unlike Dorothy in " The Wizard of Oz ," the brutalized U.S. banking system will never again return to that comfortable, cozy, and cushy capital place it once happily referred to as "home." But its "Wicked Witch" was its own greed. The curtain has finally been pulled back on the machinery, and the hot air used to pump up the U.S. banking system's version of the Emerald City in the Land of Oz .
For decades, American banks operated on a simple - and nicely profitable - business model: They took in deposits and lent out money.
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Friday, July 11, 2008
Investors Should Stay Clear of Traditional Asset Classes / Stock-Markets / Credit Crisis 2008
Originally published on May 5, 2008 on SeekingAlphaWashington continues to manipulate economic data, as it has for several years. The past few Establishment Survey reports confirm the deception of data, as many more jobs were lost than official numbers indicate. A better gauge of economic weakness, in my opinion, is consumer and mortgage late-payment and default rates, since this data is more difficult to manipulate. This is especially true for late credit card payments.
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Friday, July 11, 2008
All Broad Equity Indices Are Down / Stock-Markets / Global Stock Markets
There is plenty of bad business news out there, including with icons such as GE, AIG, banks of all sorts, municipal bond insurance companies and more.
Consumers are squeezed by energy, food prices, falling home prices and limitations on credit — and municipalities aren't apparently limiting their budget growth (and taxes) in line with their tax payers growth in income.
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Thursday, July 10, 2008
Stock Market Liquidity Contraction Points to Increasing Fear and Capitulation ... / Stock-Markets / US Stock Markets
The reason why Liquidity inflows and outflows is a critical element relative to the market rallying or correcting:
Liquidity inflows and outflows are easily understood by any corporation. When their cash inflows are positive and increasing, they have money to expand and hire. When their cash is outflowing and negative, their businesses contract and they layoff workers.
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Thursday, July 10, 2008
Paulson: Financial Institutions Must Be Allowed To Fail / Stock-Markets / Credit Crisis 2008
The Crypt is reporting Paulson and Bernanke: Economic Melt-Down "Ongoing"Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke told Congress that their agencies need greater regulatory powers to deal with the current economic meltdown in the financial and housing markets.
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Thursday, July 10, 2008
Are Dark Pools Destined to be the Next Financial Black Hole? / Stock-Markets / Market Manipulation
We can almost hear that ominous " Jaws " theme music in the background and can see that huge dorsal fin as it slices threateningly through the water - knowing full well that the real terror is hidden beneath the water's surface.
But this time around, it's not a "Great White" that's sparking our fears; it's a well-capitalized and broadly based series of secret stock exchanges known as " Dark Pools of Liquidity ," "Dark Liquidity," or just "Dark Pools."
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Thursday, July 10, 2008
Stocks Bear Market Generates Inane Mainstream Commentary / Stock-Markets / Stocks Bear Market
I am amazed at the absolutely inane commentary from the media about how great it is that we're having a bear market, as if they saw it coming ahead of time. Now they're talking gibberish about all the buying opportunities out there and how after we've reached the 20% decline level it's time to back up the truck and load up on stocks.Read full article... Read full article...
Wednesday, July 09, 2008
USAGOLD's Annual Survey of Investment Performance- 12Months to June 2008 / Stock-Markets / Investing
Gold up 43% - Outshines Wall Street, Main St. Gold continues to shine as one of the best performing asset classes through the first half of 2008, according to the USAGOLD Annual Survey of Investments. Only the CRB index, which of course includes a gold component, outperformed gold itself over the past year. Arguably it was the latest surge in oil prices that allowed the broad measure of commodities to supplant gold from the number one position over the last month of the second quarter.
Wednesday, July 09, 2008
The Decade of Zero Investment Returns, Part I / Stock-Markets / Stock Market Valuations
"...Ten years here, a decade there, and pretty soon you're losing real wealth hand over fist..."
WHAT A DIFFERENCE a decade can make! Over the last 10 years of the 20th century, anyone buying and holding US stocks made a total return approaching 18% per year.
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