Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Monday, May 19, 2008
Dow Transports Hitting New All-time Highs / Stock-Markets / Elliott Wave Theory
Before we begin our look at the roaring Transportation average, we would like to return your attention to our previous week's article entitled “ Spring-Break ”. Last week's piece did a fine job of calling a precise short–term tradable low in the Dow.
Below we re-present the chart from last week's article. Within that article, previous guidance suggested, “For select traders, proprietary criteria also provided another exit or potentially early reversal signal near the close at 12734.” The follow-up chart illustrates how the reversal signal turned out to be a rather precise one, and by no means early.
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Monday, May 19, 2008
Stock Market Tentative Rally to Undergo Short-term Correction / Stock-Markets / US Stock Markets
Current Position of the Market.
SPX: Long-term trend - Election years that fall in the 8th year of the Decennial pattern call for consolidation in the early part of the year followed by a strong finish. This is the pattern that the market has made so far this year. But the 6-yr cycle which is scheduled to bottom in late Summer/early Fall could play a restraining role, followed by an eventual bull market top in 2009-2010.
SPX: Intermediate trend - The intermediate correction came to an end on 3/17. The index is now in a cautious uptrend which is about to undergo a short-term consolidation.
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Monday, May 19, 2008
US Toxic Economy and the Questionable Stock Market Advance / Stock-Markets / US Stock Markets
The equity markets continue to advance out of the January/March lows, commodity prices surge, oil continues to hit record highs and the consumer is now pulling back in a big way. History tells us that manipulation ultimately fails and that it typically only serves to make matters worse in the end. Well, when looking at what is physically happening around me, if the technical picture that I now see developing continues to unfold, then the backlash from the attempts to “stimulate the economy” may have now created a witches brew with a not so happy ending.Read full article... Read full article...
Monday, May 19, 2008
The Effect of Fed Liquidity Facilities on the Markets / Stock-Markets / Credit Crisis 2008
Welcome to the weekly report. This week we look at inflation and deflation, the Dow, gold and FTSE but start with a look at a recent speech by William C. Dudley who is the executive vice president of the Markets Group at the Federal Reserve Bank of New York. He is also the manager of the System Open Market Account for the Federal Open Market Committee. The Markets Group oversees domestic open market and foreign exchange trading operations and the provisions of account services to foreign central banks.Read full article... Read full article...
Monday, May 19, 2008
Stock Market Response to US Economic Collapse in September? / Stock-Markets / US Stock Markets
A rumor is swirling around the Internet that an inglorious end to the U.S. economy is imminent. Unlike previous rumors to this effect, this one carries the weight of recent events in the financial realm and has many believing the rumor will come to pass.
Let's examine some of the claims being made: On March 18, 2008, a “closed door” session of Congress was held for only the fourth time in history. According to House Rule XVII, clause 9, it is forbidden for members of the U.S. House of Representatives to reveal the discussions held behind those doors. The penalty for leaking such information includes loss of seniority, fines, reprimand, censure or expulsion. According to news sources, one purpose of the meetings was to discuss new surveillance techniques to be used by U.S. Homeland Security. Rumors continue to swirl as to what the other topics of discussion took place in that meeting.
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Sunday, May 18, 2008
Stock Market Technically Overbought Coupled Negative Seasonal Factors / Stock-Markets / US Stock Markets
The good news is Most of the major indices hit multi month highs last week.
Short Term The market is over bought.
As of last Friday, the S&P mid cap index was up for the 7 consecutive days for the first time in over a year. Longer term this is a good sign, but, for the next week or so continued upward progress is likely to be limited.
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Sunday, May 18, 2008
Profit From the Worlds Most Powerful Trading Alliance Between China and Japan / Stock-Markets / Asian Economies
Chinese President Hu Jintao and Japanese Prime Minister Yauo Fukuda met recently and signed some modest cooperation agreements. That doesn't sound much to get excited about, until you consider how well the Chinese and Japanese economies fit together.
Think of it this way: With China's boundless supply of low-cost labor and Japan's superb education system - and an ability to work together that's clearly founded on considerable commonality of thinking - these two countries, as a pair, will be world-beaters.
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Sunday, May 18, 2008
The Rise of Stagflation Means the End of Fiat Asset Wealth / Stock-Markets / Stagflation
Stagflation, it's a fiat wealth killer: headline inflation is rising while jobs, manufacturing production, real estate, and economic indicators are falling: stocks and bond wealth of all types will be turning down in value.Stagflation in the US
I choose to believe as HousingPanic does, that it's hilarious to believe the Government's inflation report which showed nearly 0% inflation .
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Sunday, May 18, 2008
Global Economy Heading for Economic Slump for 2008-09? / Stock-Markets / Financial Markets
(Bloomberg ) – “The Federal Reserve's direct loans of cash to commercial banks climbed to the highest level on record in the past week as money-losing lenders increasingly turn to the central bank for funds.” Is this a good thing, as the article implies? Banks are eager to borrow “cheap money” from the Federal Reserve because there isn't any to be had elsewhere. Many financial institutions that are painfully aware of their own bad paper and losses are unwilling to trade paper in the commercial markets due to general distrust among themselves. (“Maybe their paper is more toxic than our paper.”) Instead of money (IOUs) flowing freely between institutions, these IOUs have become the sludge that gums up the works because there is no market for it. The only source of funds is now the Federal Reserve Board, who is growing more concerned about their inability to keep the banks afloat.Read full article... Read full article...
Friday, May 16, 2008
Stock Markets 2008- Sell in May and Go Away? / Stock-Markets / US Stock Markets
Investors who want to beat the market need to be aware of the key trends that will affect their portfolios. To some this year looks like a classic “Sell in May and Go Away.” The theory is the market goes into hibernation for six months from May to November, and during the other six months it gets back into gear and makes its move up. The chart below, from Chart of the Day , shows the history of this phenomenon. Moreover, according to Standard & Poor's the November to April period outperformed the May to October period 69% of the time.Read full article... Read full article...
Friday, May 16, 2008
S&P Developing Bullish Pattern, While Crude Oil Still Refuses to Rest / Stock-Markets / Exchange Traded Funds
Thursday morning I posted a weekly S&P 500 chart for subscribers noting: "Although we still have two trading days remaining this week, a very interesting and potentially extremely bullish pattern has developed since the end of April. Let's notice that the cash SPX is poised to thrust out of a 3-week bullish consolidation pattern if the price structure climbs and sustains above 1422.72." Read full article... Read full article...
Wednesday, May 14, 2008
Credit Crisis Investment Round Table- There's Still Life After Sub-prime / Stock-Markets / Credit Crisis 2008
IS the earthquake that shook the world's leading financial markets last autumn over, or are there still damaging aftershocks to come - in the markets themselves and in the macro economy? This is the question that The Business Times put to a group of international investment experts and the responses in general were encouraging for investors. There is money to be made even in the immediate aftermath of the crisis, not least in commodities. But investment strategies need to be thought out even more carefully than usual at a time such as this. Our four experts set out their thinking - and their model portfolios - for the benefit of BT readers.Read full article... Read full article...
Wednesday, May 14, 2008
Nasdaq Hits Upside Trendline Channel / Stock-Markets / US Stock Markets
The Q's (NASDAQ: QQQQ) continue to stair-step higher towards the top of the March-May channel at 50.00/20, which should provide the next serious challenge to the powerful 8-week advance. My overall technical work is warning me to be prepared for another attempt by the bears to reverse the direction of the Q's, which if successful should press prices back towards the 48.30/00 support zone. This should not be construed as a call to short the Q's -- at least not yet anyway.Read full article... Read full article...
Tuesday, May 13, 2008
Institutional Selling Warns of Stock Market Weakness / Stock-Markets / US Stock Markets
Which index will be right ... the Dow Jones Industrials or the Institutional index with their "core holdings"?
Chart 1 is a 2003-2008 graph of the Dow Jones Industrial Average. Note how it has had a 5 year up channel. The channel broke to the downside ... but then the DOW moved back into the channel.
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Monday, May 12, 2008
Triage In Financial Markets / Stock-Markets / Credit Crunch
Global financial markets are in extreme triage following the credit contraction of August 2007. It is believed central bankers are trying to restore markets to help the economy. In truth, they are like life insurance companies fighting to keep a wealthy patient alive so the high premiums will continue to be paid and the large death payout will be postponed.Read full article... Read full article...
Sunday, May 11, 2008
Stock Market Seasonal Trend Analysis / Stock-Markets / US Stock Markets
The good news is: The secondaries held up better than the blue chips in last weeks decline.
Short Term - The secondaries lead both up and down. Although all of the major indices declined last week the S&P 500 (SPX) was down 1.81% while the Russell 2000 (R2K) was down only 0.78%.
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Sunday, May 11, 2008
A Stealthy Stock Market You Shouldn't Ignore / Stock-Markets / Japanese Stock Market
Ahead of the vote for Russian prime minister, Vladimir Putin set forth plans for a robust macroeconomic financial policy, reigniting the stock market to 2,280--a 3 percent gain--crossing the 2,200 mark for the first time since January as investor confidence swelled. Putin's primary goal: Reduce the tax burden on the oil sector to stimulate production and crude oil refining and lower inflation to single digits within the next few years.Read full article... Read full article...
Saturday, May 10, 2008
Financial Markets Spring Break-Down / Stock-Markets / US Stock Markets
Financial Sphere & Fed Gone Wild / cost, well over $500 Trillion in notional derivativesWith no apparent end in sight to their omnipotent magical power, as you watched our fascist-like fed usurp ever-more control over the financial sphere, were you impressed enough to trade-long shortly following their lead in contriving the spasmodically incessant rally from the March lows?
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Friday, May 09, 2008
The Hard Facts of Manipulated Economic Statistics / Stock-Markets / Financial Markets
The debasement of the economic indicators by our federal government is finally getting some attention from the public media . All of the indicators, including the money supply, the unemployment statistics and inflation are being “doctored” to make thing appear better than they are.Read full article... Read full article...
Friday, May 09, 2008
Investment View From China: The Secret Path to Profits / Stock-Markets / China Economy
BEIJING, CHINA - Whether you're trying to invest profitably in the region here, or are just trying to understand what's going on, there's a single secret that will virtually guarantee your long-term success.
And I'm going to tell you what that secret is.
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