Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Monday, June 04, 2007
In the Heart of The Stock Market Mania / Stock-Markets / Liquidity Bubble
This article was posted for the benefit of subscribers on May 15, 2007
That's where we are at present – right in the heart of the mania. Are we referring to the stock market mania in isolation? Heck no. We are referring to the source of all the manically derived asset bubbles floating round these days, that being the mother of all bubbles then, the credit bubble . And as Doug Noland correctly points out this week in his column, Credit Bubble Bulletin , and as alluded to above, it should be realized these bubbles include more than just ‘investments', but all sorts of things (collectibles), such as fine art . Of course the banking community does not care what people are buying and selling just so long as they are doing exactly that, and at an increasing rate if possible so their job of tinkering with growth rates is eased.
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Monday, June 04, 2007
Nolte Notes - The Bull Market Continues! / Stock-Markets / US Stock Markets
It was Christmas in June for the financial markets, as they got everything they wanted from the economic reports last week. The consensus view after the reports was that the economic slowdown of the first quarter was merely a blip in the overall scheme, and the economic engine has once again sputtered to life and is running well. Judging by the income and spending report, it is very clear that the consumer is not yet done making purchases – however it is unclear how much of the spending is going toward the high and rising energy products. The employment report was a bit better than expected, however some are quibbling about the “birth/death” rates that are a part of the calculation. Without getting too technical, it doesn't refer to employees being born or dying, rather businesses going out or coming into existence.
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Monday, June 04, 2007
New Profits in the Old World - Europe / Stock-Markets / European Stock Markets
When I think of the Old World, among the images that first spring to mind are those of medieval castle towns like Heidelberg, where Rupert the Red founded the fourth university of the Holy Roman Empire in 1386 … or of the Acropolis, rebuilt by Pericles during the Golden Age of Athens between 460 and 430 BC.
It's only on second thought that I remember the modernity of today's Europe.
Similarly, when you think of the European economy, you typically associate it with outdated economic models — burdensome taxation, non-productive social support systems, and a tangled web of government regulations.
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Monday, June 04, 2007
Honest Money Financial Markets Wrap - Stocks, Commodities and Gold / Stock-Markets / Financial Markets
Economy
The Reuters/University of Michigan's final index of consumer sentiment increased to 88.3 in May, from 87.1 in April.
The Institute for Supply Management's factory index rose to 55 in May, from 54.7 in April.
The National Association of Realtors reported that pending home resales fell 3.2% to 101.4, the lowest since February 2003. The March report was revised down 4.5%. The index is down 10.2% from April 2006.
Rising mortgage defaults are increasing the supply of houses for sale. Banks and other lenders are raising their lending standards, resulting in home purchases being less affordable to fewer buyers.
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Sunday, June 03, 2007
Stock Market Cycle Turning Points Analysis 3rd June 2007 / Stock-Markets / US Stock Markets
Current Position of the Market.
SPX: Long-Term Trend - The 12-year cycle is still in its up-phase but, as we approach its mid-point some of its dominant components are topping and could lead to a severe correction over the next few months.
SPX: Intermediate Trend - With the price reaching the preferred target area in an appropriate time frame, the rally from 3/14 should be coming to an end.
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Saturday, June 02, 2007
Trading the Short-term Stock Market Trend Within the Long Term Trend / Stock-Markets / US Stock Markets
We track both the primary (long-term) trend, and the short-term trend. Knowing both is key to making money trading or investing in the stock market . Simply, increase exposure when playing a short-term trend that is in the same direction as the primary trend.Read full article... Read full article...
Saturday, June 02, 2007
Stock Market Perma Bears - Send In The Clowns By All Means! / Stock-Markets / US Stock Markets
The bull market in stocks continues, but to hear various exponents of the bearish persuasion talk, you'd think the party was ending right now. At least that's the impression I get reading some of their weekly rants on various Internet sites.Read full article... Read full article...
Saturday, June 02, 2007
Stock Market - June Swoon / Summer Rally / Stock-Markets / Elliott Wave Theory
"The Raging Bull" we spoke of a couple of weeks ago, appears to have taken up permanent residence across many sectors of the financial sphere. This bull has been relentless, cunning, and quite masterful in dealing with the plethora of participants who have been eagerly anticipating some type of correction – if not an outright crash!
After 11-weeks of nothing but blue sky, we suspect this bull may simply be growing bored of the dominance it imposes upon bears at will. Perhaps a couple of weeks respite in June ought to be a minimum at which this easily antagonized bull may once again become angered, electing to resume its deceptive charge with renewed fury.
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Thursday, May 31, 2007
Will China's "Stamping" Out of Stock Speculation Curb Overall Stock Market Speculation? / Stock-Markets / Chinese Stock Market
Effective yesterday, the Chinese Ministry of Finance increased its so-called stamp tax on stock market transactions from 0.1% to 0.3% in an effort to curb speculation in the Chinese stock market. This stamp tax is nothing but a transactions tax imposed on both buyers and sellers of stocks.In reaction to the increased tax rate, the Shanghai Composite stock index fell 6.5%.Read full article... Read full article...
Thursday, May 31, 2007
Metals and US Stock Indices Charts Analysis / Stock-Markets / Financial Markets
In this editorial we have incorporated long term charts for gold, silver and the Dow Jones Index with a twenty seven year support line.
In the below charts you will notice:
- Dividing two markets together to create a ratio helps us determine which market is outperforming the other market. For example, in the chart above, when the black line heads higher, the NYSE is outperforming Silver and when the black line heads lower Silver is outperforming the NYSE.
Wednesday, May 30, 2007
China Stock Market Crash Update: The Real Story ... / Stock-Markets / Chinese Stock Market
Chinese Government officials got real worried when the Shanghai continued its parabolic rise and blew through its 12 year Major resistance level.
This morning, their markets dropped over 6% after the government increased the stamp tax on Security transactions. The news media are making a "big deal" out of the tax increase by running headlines that say, "China China's CSI 300 Drops After Transaction Tax Tripled ".
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Wednesday, May 30, 2007
GOLD THOUGHTS : Surge in Investing in Paper Equities, Tail End of the Boom? / Stock-Markets / Liquidity Bubble
Investing in paper equities has apparently become far easier. Either a stock will be taken private by a speculative investment fund or it will be purchased with money from China's foreign currency reserves. Investment gains have rarely been so assured. Not since internet stock bubble or Florida condo mania have investors faced such odds of winning. Combine those odds with a Federal Reserve dwelling in the la la land of core inflation creates a near perfect story for placing wealth into paper equities.Read full article... Read full article...
Tuesday, May 29, 2007
Stock Market Developing Topping Pattern Over the Summer / Stock-Markets / US Stock Markets
The decline in the S&P 500 and other broad market indices likely was a shot across the bow for what lies ahead later in the year. Technically the S&P could have completed the move up, but technical evidence suggests that a topping formation will develop over the course of the summer before a sharp decline in September/October.Read full article... Read full article...
Tuesday, May 29, 2007
A Backdoor Investment Play into Macau / Stock-Markets / Chinese Stock Market
Tony Sagami writes: : I've never considered myself to be a yuppie. Even when I was younger, I never drove a BMW … bought a Rolex … or belonged to a country club. I'm just the simple son of a vegetable farmer. I drive a domestic pickup truck, wear a Timex, and shop at Wal-Mart and Costco.
Still, the yuppies were a powerful consumer force. They had a major impact on both the U.S. economy and the stock market. People who invested in companies catering to yuppies made small fortunes!
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Tuesday, May 29, 2007
Honest Money Financial Markets Wrap - Stocks, Commodities and Gold / Stock-Markets / Financial Markets
Introduction
This week's market wrap is going to focus primarily on the precious metals sector. There are a lot of charts, including a couple of the dollar and bonds.
The recent prolonged correction of gold and silver has produced a good deal of angst in the pm community, as the many emails and comments I've received on my website attest.
I will attempt to address the concerns that were expressed. So let's get to it.
First up is the monthly chart of gold going back to the start of the bull market in 2001.
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Monday, May 28, 2007
CHINA CRASH - Domino Effect on Stock Markets, and Collateral Effect on Resource Stocks... / Stock-Markets / Global Stock Markets
One of the great fears plaguing resource stock investors is what will happen if the broad market suddenly goes into the tank. This fear is quite justified as resource stocks, in particular gold and silver stocks, have generally performed poorly in comparison with the general stock market over the past year, and every time the broad market shows signs of weakness, they have dropped sharply, a good example being last Thursday.
In this article we are going to take a look at the great Chinese equity bubble, and how the bursting of this bubble will probably affect US stock markets and thus resource stocks.
Sunday, May 27, 2007
Weekly Stock Market Technical Analysis Report - 27th May 07 / Stock-Markets / US Stock Markets
The good news is: Many of the major indices hit multi year or all time highs last week.
Short Term
The small caps lead both up and down and for the past month that leadership has left something to be desired.
The chart below covers the past year showing the S&P 500 (SPX) in green and the Russell 2000 (R2K) in red. At the bottom of the chart is a FastTrack (http://fasttrack.net) relative strength indicator called Accutrack (AT). When AT is above the neutral line and/or rising the R2K is outperforming the SPX. For the past month until about a week ago AT has been below the neutral line and falling to its lowest level since this up leg began last summer. Last week AT turned up and, although it is still below the neutral level, the direction is what we like to see.
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Saturday, May 26, 2007
Thoughts from the Frontline - The US Mortgage Market - Overexposed and Overrated / Stock-Markets / Financial Markets
In this issue:
The Chinese Hedge Fund Dragon
Turning Nuclear Waste into Gold
Overexposed and Overrated
Housing Is Weaker than the Data Suggests
Planes, Trains, Automobiles, and We're #30
This week we look at the US mortgage market to see what fallout there is from the subprime mortgage woes. It is both less of a problem and/or more of a problem, depending on your perspective, as I predicted it would be last year. Score one for your analyst, which said score is needed as the stock market continues to rise in spite of my concerns in the face of a slowing economy.
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Saturday, May 26, 2007
Can A Major Stock Market Top Occur Here? / Stock-Markets / US Stock Markets
While the following charts are meaningless for predictive purposes, what they do tell us is we currently have a price pattern set-up eerily similar to the price pattern leading up to the January 2000 major top in the Dow Industrials .Read full article... Read full article...
Saturday, May 26, 2007
Into the Pool - ETF Skeptic / Stock-Markets / Exchange Traded Funds
Here's a confession from a 20 years-plus industry veteran: I use investment conferences for more than making my points and chatting with current and prospective readers. I also like to scope out what the rest of the industry—including the competition—is doing, chiefly the products they're selling and the public's reception to them.
One of the most popular items at last week's Las Vegas Money Show was exchange traded funds (ETFs). It's not hard to see that these have captured investors' imagination, and dollars, during the past year. The “Wall Street Journal” now publishes what seems to be an ever-expanding page of ETFs that are offered by a growing array of financial houses anxious to cash in on the trend.
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