Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.
Friday, August 10, 2007
Central Banks Bailout of Financial Markets Backfires / Stock-Markets / Financial Crash
By: Brady_Willett
The central bank support that Cramer was crying for last week arrived, and it didn't work
A funny thing happened during today's central bank bailout attempt: the markets plunged. Is it just me, or when central bankers unite and throw money at a problem isn't that problem supposed to go away?
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Thursday, August 09, 2007
A Credit Crunch, Investors Selling, and the Fed Pumping in Liquidity to Keep the Market Up / Stock-Markets / Credit Crunch
By: Marty_Chenard
The trickle down of sub-prime problems are now accelerating across the world. France's biggest bank (BNP) stopped withdrawals from investment funds because it can't determine a fair value on their holdings. As this happened, credit default traders are now saying that the risk of holding corporate bonds increased as well this morning.
The Fed and European Central Banks are now planning to increase liquidity in an effort to stem what appears to be a deepening financial crisis.
Where does that leave Bernanke?
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Thursday, August 09, 2007
Mortgage Backed Securities Monetization and the US Dollar / Stock-Markets / Credit Crunch
By: Jim_Willie_CB
Fannie Mae is being groomed to be the central clearing house for mortgages and their bonds, sponsored by the USGovt and the US Federal Reserve. Fannie Mae (FNM) just requested permission to take on much greater volume of mortgages, in order to alleviate the secondary market flow of capital funds. Since the accounting scandal which peaked in September 2004, a limit was imposed on FNM on its holdings at $727 billion. In today's climate, marred by credit seizure to some degree, FNM is deeply missed in its former prominent centrifuge role.
A key question arises on the general inflation impact, if and when FNM expands its role and is the nexus (surely a hidden basement) of grandiose illicit monetization of mortgage bonds. If the banking maestros undertake to put a secretive floor on mortgage backed securities (MBS), a solid bid to prevent further breakdown, then vast amounts of new printing press money will enter the system. The mortgage finance sector desperately needs a bid on subprime MBS bonds so as to clear them upon liquidations. The bank wizards could start monetizing them, and work their way up the quality ladder toward Alt-A loans which are also in trouble.
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Thursday, August 09, 2007
MPTrader - Near-Term Work Remains Positive on Nasdaq (Q's) As Long as 48 Holds / Stock-Markets / US Stock Markets
By: Mike_Paulenoff
The Q's (Nasdaq: QQQQ) rocketed nearly $0.90 (1.9%) off of this morning's pre-open low at 48.08, but stalled and reversed right just below a key near-term resistance plateau between 49 and 49.15, which if (when) hurdled should trigger a powerful upside acceleration off of the development of a 3-week base-like pattern in the aftermath of the Jul-Aug decline.
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Thursday, August 09, 2007
The “Plunge Protection Team” Working Overtime to Save US Stock Market / Stock-Markets / Market Manipulation
By: Gary_Dorsch
“Imagination is more important than knowledge”, the brilliant Albert Einstein used to say. Imagine for just a moment, that the Dow Jones Industrials has become a key instrument of national economic policy, and that by “actively managing” its direction, the government could impact the wealth of tens of millions of US households, and by extension, influence consumer confidence and spending.
Since the appointment of Henry Paulson to the helm at the US Treasury, the US stock market has always found a way to defy the law of gravity. During Paulson's short reign, the Dow Jones Industrials (DJI-30) broke an 80-year old record for the longest streak of gains with only three declining days in between. During the first seven months of his tenure, the S&P 500 did not decline by 2%, the second longest-period without a 2% correction since 1964.
The market savvy Treasury chief, who built a $730 million fortune at Goldman Sachs, is also the chairman of the Working Group on Financial Markets, commonly known as the Plunge Protection Team (PPT), created by Ronald Reagan to prevent a repeat of the Wall Street meltdown in October 1987. The PPT is empowered to intervene in stock index futures and the foreign currency markets in the event of a crash.
Thursday, August 09, 2007
Financial Markets Critical Signals Updated / Stock-Markets / Financial Markets
By: Money_and_Markets
Larry Edelson writes: In times like these, when markets are swinging wildly, I pay particularly close attention to my systems and the signals they generate.
Not only have those signals proven themselves over the last 30 years, they also help eliminate emotions from the investing process. That's a key ingredient to successfully navigating the markets.
Indeed, the last time I published my signals they should have served you very well. Here's a reminder of what I said back in May, along with what happened afterward:
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Wednesday, August 08, 2007
MPTrader - Semiconductor Stocks Heading Higher / Stock-Markets / Tech Stocks
By: Mike_Paulenoff
The Semiconductor HLDRs (AMEX: SMH) briefly popped above key near-term resistance at 38.00/05, but did not sustain that level -- at least not yet. However, my near-term pattern and momentum work argue strongly that higher price will emerge in the upcoming hours that will propel the SMH towards 39.00/25. Intel (Nasdaq: INTC), Applied Materials (Nasdaq: AMAT), and Analog Devices (NYSE: ADI) will be the big drivers of the next upleg in the semiconductors.Read full article... Read full article...
Tuesday, August 07, 2007
Stock Market Troubles - Three Ways to Protect Yourself / Stock-Markets / Risk Analysis
By: Money_and_Markets
Tony Sagami writes: Although they posted a heck of a rally yesterday, U.S. stocks have had a couple of rough weeks. The S&P 500 lost 7.7% of its value from its peak in the middle of July through last Friday. That was its steepest three-week slide since 2003.
Friday was an especially ominous day because the S&P 500 fell below its 200-day moving average. Many market watchers consider that a key technical level. Picture Wile E. Coyote running on thin air and you'll get an idea of just what this break signifies!
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Monday, August 06, 2007
Japanese Deflation... A Global Liquidity Wild Card / Stock-Markets / Liquidity Bubble
By: John_Mauldin
This week in Outside the Box we turn our eyes on Japan and as promised offer a report by macro-maven and good friend Greg Weldon. Japan is the world's second largest economy and a major source of liquidity. While China has captured the headlines in Asia, Japan is still the big economic dog and supplier of capital on the block.
Greg argues that there is the potential for another asset bubble popping in Japan at the same time as we see our housing market and subprime mortgages implode. That could have considerable implications for world wide liquidity and the yen carry trade.
While this prints out longer than usual, it is mostly charts, as Greg likes to illustrate his thinking with lots of graphs. Follow his logic and reasoning. He is pointing out a potential problem that no one else I know is paying attention to. At the end is an offer for a trial subscription to his work, which I find quite valuable... John Mauldin, Editor
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Monday, August 06, 2007
MPTrader - Dow Jones Relative Strength Versus Russell 2000 Nearing Short-Term Top / Stock-Markets / US Stock Markets
By: Mike_Paulenoff
I have been long the Dow Diamonds (AMEX: DIA) vs. short the Russell 2000 Small Caps (AMEX: IWM) in our ETF Trading Diary model portfolio since last September, when the base pattern started to mature. Looking at the weekly relative strength chart of the two indices, the powerful two-year base pattern in the DIA/IWM spread has accelerated from its breakou level of 1.6400 to a high today of 1.7775 (so far), which is nearing my secondary target price of 1.8200.
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Monday, August 06, 2007
Subprime Housing Market Financial Sector Crash and Jim Cramer's Sage Rage / Stock-Markets / Financial Crash
By: Brady_Willett
In what is quickly becoming one of his most popular television tirades to date (which is saying a lot), Jim Cramer completely lost it last Friday during a discussion on CNBC. Coined a "passionate plea to Federal Reserve Chairman Ben Bernanke to consider cutting interest rates" , the incensed Cramer said: "It is no time to be an academic... open the darn Fed window. He [Bernanke] has no idea how bad it is out there. He has no idea! He has no idea! I have talked to the heads of almost everyone single one of these firms in the last 72-hours and he has no idea what its like out there. None!!!...
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Monday, August 06, 2007
Revenge of Frankenstein Finance / Stock-Markets / Financial Crash
By: Michael_J_Panzner
A chimerical force has been rampaging through global markets in recent months, wreaking widespread havoc. Cobbled together from myriad agreements, assumptions, and transactions by academics, financiers, and marketers, this labyrinthine creation was once seen as an unmitigated success of new age financial alchemy.
But now, with changing economic and financial conditions exposing the derivatives-securitization monster to the harsh light of day, the nightmare of Frankenstein finance is coming home to roost.
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Monday, August 06, 2007
United States Day of Reckoning! / Stock-Markets / Financial Crash
By: Money_and_Markets
Last week, I sent you a crash alert on Monday and then sent it to you again on Saturday. If you've seen it and you've taken the five protective steps I recommended, you should be in good shape. If not, before you start on this morning's message, I think you should go back and read my crash alert now .
— Martin Weiss
I was born in New York but raised in Brazil.
Elisabeth was born in Brazil but has spent most of her adult life in the U.S.
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Sunday, August 05, 2007
Dow Jones Stock Market Meltdown - It's a Bloodbath! / Stock-Markets / Credit Crunch
By: Mike_Whitney
On Friday the Dow Jones took a 280 point nosedive on fears that that losses in the subprime market will spill over into the broader economy and cut into GDP. Ever since the two Bears Sterns hedge funds folded a couple weeks ago the stock market has been writhing like a drug-addict in a detox-cell. Yesterday's sell-off added to last week's plunge that wiped out $2.1 trillion in value from global equity markets. New York investment guru, Jim Rogers said that the real market is “one of the biggest bubbles we've ever had in credit” and that the subprime rout “has a long way to go.”
Sunday, August 05, 2007
Stock Market Update: So Much for a Vacation! / Stock-Markets / US Stock Markets
By: Dominick
Well, Dom's going for a second take at his first vacation since starting TTC, so this is Joe filling in again. Dom's attempt at getting some time off ended when he returned early to prepare members and guide them through what turned out to be an important and profitable week. While he should have been on the beach, one of hardest working man in the business was instead at his desk pounding the table and getting members to buy the bottoms and sell the tops… again and again.
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Saturday, August 04, 2007
Foot and Mouth Outbreak to Hit FTSE 100 Index / Stock-Markets / UK Stock Market
By: Nadeem_Walayat
Latest reports suggest that the Foot and Mouth virus strain to hit the UK on Thursday is one that is NOT normally found in animals and is linked to vaccines. The strain is thought to originate from the Institute for Animal Health just three miles from the outbreak farm.
The last out break of Foot and Mouth disease in the UK in 2001 cost the Economy an estimated £10 billion ($20 billion) with the agricultural and tourism sectors of the economy hit hard. The government at the time was accused of gross incompetence in the handling of the crisis which saw the destruction of more than 6 million animals and closure of much of the British countryside as well as export bans.
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Saturday, August 04, 2007
Stock Market Crash Alert: What to Do to Protect Yourselves / Stock-Markets / Financial Crash
By: Money_and_Markets
Martin Weiss writes: With the Dow down over 280 points yesterday and the dollar sinking fast, I just wanted to make absolutely sure you didn't miss my alert of this past Monday. So here it is again. All our signals are equally valid; all our instructions, equally urgent.
With last week delivering the worst stock market rout in nearly five years, millions of investors are in a state of paralysis.
They're finally beginning to wake up to the enormity of the meltdown in the housing market.
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Saturday, August 04, 2007
Volatility Delivers Wake-Up Call to Financial Sphere / Stock-Markets / Financial Markets
By: Joseph_Russo
Likely resulting from decades of imprudent financial engineering, the uncertainty-surrounding discovery as to the potential extent of collateral damage from such shenanigans remains immeasurable and unknown.
Similar to those engineers about to embark upon months of intense investigation in attempt to determine cause of the sudden bridge collapse in Minnesota - the omnipotent financial sphere is just beginning to access whether or not the minor structural fractures, (which market volatility has so blatantly revealed) could possibly morph into a sudden and total collapse of similar dimension.
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Friday, August 03, 2007
A Few Thoughts on the Recent Credit Crisis - Half of All Hedge Funds Gone? / Stock-Markets / Financial Crash
By: John_Mauldin
In this issue:
Inflation is Baked into the CPI Numbers
The Mortgage Pig in the Python
Housing Starts Look to Stop
A Few Thoughts on the Recent Credit Crisis
Half of All Hedge Funds Gone?
Golf, Weddings, and Europe
With the economy increasingly looking like it will slow down materially in the last half of the year, there is a drum beat for the Federal Reserve to cut rates. But how likely is a rate cut this year? We take a very different look at inflation to see if there is any room for the Fed to give a boost to the economy. We look over our shoulder at Japan and the yen carry trade and ask a heretical question: does the Fed cutting rates make any difference?
Friday, August 03, 2007
It's the Fundamentals Stupid / Stock-Markets / Financial Markets
By: Peter_Schiff
Amid the recent stock market weakness, the pundits are virtually unanimous in their claims that good underlying economic fundamentals are being trumped by irrational fear. However, if investors understood just how bad the fundamentals for the U.S. economy really are, they would dump stocks even faster. So, contrary to the rhetoric, it is not that investors are being too fearful, but that they are being too complacent.Read full article... Read full article...