Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Saturday, May 10, 2014
Watch for Stock Market Sell Signals / Stock-Markets / Stock Markets 2014
SPX reversed back down beneath Short-term resistance at 1876.23. The balance of all the supports are just beneath this morning’s low at 1867.02. The Ending Diagonal Trendline is at 1865.00. Either the supports or the trendline may be used as the “sell signal.” Take your pick.
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Friday, May 09, 2014
Major Stock Market Selloff Looms / Stock-Markets / Stock Markets 2014
A major selloff is brewing in the lofty US stock markets, which have been grinding sideways for a couple months now. Momentum has faded despite selective positive earnings-season news and Janet Yellen’s jawboning. Stocks remain very overvalued, way too expensive for prudent investors to buy. And it’s been far too long since their last necessary and healthy correction to rebalance sentiment, so one is seriously overdue.
Last year’s extraordinary stock-market levitation has run out of steam. In the 15.7 months leading into early March 2014, the flagship S&P 500 stock index blasted 38.8% higher! Capital indiscriminately flooded into stocks regardless of fundamentals or valuations because the Federal Reserve was doing its darnedest to convince traders that it was effectively backstopping the stock markets. This bred extreme complacency.
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Friday, May 09, 2014
The Worst Risk/Reward Trade on Wall Street / Stock-Markets / Market Manipulation
The Rigging
So a bunch of folks in Hedge Fund Land have this idea that they can force a bit of a squeeze in the bond markets, and all the sudden the boring old bond market has been on the media roadshow by firms trying to talk their book, and get others to follow suit, and go long the bond market.
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Friday, May 09, 2014
Two Worlds Collide: Financial and Political Manipulation Accepted / Stock-Markets / Stock Markets 2014
"Federal Reserve policy is at a crossroads facing unpleasant paths in all directions. Monetary policy around the world has reached the point where the contradictions embedded in years of market manipulation have left no choices that do not involve either contraction or catastrophic risk. Further monetary easing may precipitate a loss of confidence in money; policy tightening will restate the collapse in asset values that began in 2007. Only structural change in the U.S. economy, something outside the Fed's purview, can break this stalemate." [1] [The Death of Money: The Coming Collapse of the International Monetary System (2014) James Rickards]
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Thursday, May 08, 2014
Stock Market Critical Thinking / Stock-Markets / Stock Markets 2014
Dr. Steve Sjuggerud writes: Yesterday, I shared the "secret" to my success...
As I explained, this secret is not hard to understand or to put into action. And it works in both the markets and in life.
In short, the idea is to boil things down to the "One Critical Thing" – and invest accordingly.
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Thursday, May 08, 2014
Stock Market Indices Overbought, Ready to Decline / Stock-Markets / Stock Markets 2014
It seems like déjà vu all over again in the SPX. Today is a Trading Cycle Pivot day, so we should see a reversal very soon. The numerical pivot is 210.7 and today is day 211, so I don’t expect to see the retracement last.
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Thursday, May 08, 2014
Stock Market At Important Resistance - Will Uptrend Continue? / Stock-Markets / Stock Markets 2014
Briefly: In our opinion speculative long positions are still favored (with stop-loss at 1,850, S&P 500 index).
Our intraday outlook is bullish, and our short-term outlook remains neutral:
Intraday (next 24 hours) outlook: bullish
Short-term (next 1-2 weeks) outlook: neutral
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish
Thursday, May 08, 2014
Stock Market Wednesday Bounce / Stock-Markets / Stock Markets 2014
Courtesy of Doug Short: The US market faced a mix of news today: 1) The Nikkei plunged 2.93%, marking its first YoY decline since late October 2012, 2) Yellen testified before the Joint Economic Committee, and 3) Putin signals readiness to ease on Ukraine. The S&P 500, prompted by positive futures, opened higher but quickly sold off to its -0.42% intraday low. Thereafter Yellen’s testimony and some toning down of “Putinism” led the index higher in a couple of waves. It ended the day with a 0.56% gain, just fractionally off its 0.59% intraday high in the closing minutes.
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Thursday, May 08, 2014
Stock Market Bifurcation....Boredom....Froth Slaughtered....Sentiment Worsening Again... / Stock-Markets / Stock Markets 2014
When will the bifurcation end is the big question. The bigger question beyond that is when will the bifurcation cause a massive down move because bifurcation shows an unhealthy environment that usually leads to an entire market breakdown. That said, you see it and adapt. Maybe the bear market, which is occurring currently in froth stocks, will be all there is in terms of the correction. I'm waiting for the S&P 500 to lose its 50-day exponential moving average, but it hasn't yet and until it does the forecast remains dreary for froth and the Nasdaq, but partly sunny still for the S&P 500 and Dow.
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Wednesday, May 07, 2014
Banksters Market Rigging Manipulation Is 'Pedal To The Metal' / Stock-Markets / Market Manipulation
Financial Companies Will Do Almost Anything
Preet Bharara, the US Attorney for the financial Southern District of New York City recently said: “Companies, especially financial institutions, will do almost anything to avoid tough enforcement action and....have a natural and powerful incentive to make prosecutors believe that death or dire consequences await”.
The US FERC-Federal Energy Regulatory Commission formally charged JPMorgan with massive criminal manipulation of US energy markets, especially in California and the Midwest, specifically to obtain tens of millions of dollars in over-payments from power grid operators in the period between September 2010 and June 2011.
Wednesday, May 07, 2014
Stocks, Housing and Bond Market Castles in the Air / Stock-Markets / Liquidity Bubble
The word "bubble" is suffering from overuse. Still, with money for nothing inflating markets around the world, we are seeing how prices inflate to enormous proportions where the prospect of pushing those prices even higher draws a crowd. When such artificial stimulants to bond, mortgage and tea-cup enthusiasm reaches a peak, the switch from green to red is often quick.
A reminder comes by way of "Run, Run, Run, Was the Financial Crisis Panic over Institution Runs Justified?" by Vern McKinley. Published on April 10, 2014, by the Cato Institute, McKinley writes: "Countrywide's [a premier sub-prime lender when the going was good - FJS] second-quarter 2007 financial results indicated no significant weaknesses and the major rating agencies assigned it strong ratings with a stable outlook. [Although, a MarketWatch headline on July 24, 2007: "U.S. Stocks Close Sharply Off on Credit Woes, Dow Slides 226 points; Countrywide Says Risks Extend Beyond Subprime." This is a reminder that "the market" quickly forgets what it does not want to know, as we see on May 1, 2014. - FJS]
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Wednesday, May 07, 2014
Stock Market Experiences A Bit of May Selling / Stock-Markets / Stock Markets 2014
Courtesy of Doug Short: Tuesday was a light day for economic news. The trade balance for March was down slightly more than expected, but not enough to contribute significantly to the Second Estimate of Q1 GDP. The S&P 500 opened fractionally lower and sold off to about the 1876 level, which provided support until after the lunch hour. It then sold off to a lower level and accelerated its losses in the final 20 minutes. The index closed at it -0.90% intraday low.
The popular press (e.g., Bloomberg and CNBC), always eager to explain the market, attributed today’s bad mood to AIG’s weak earnings, its stock losing 4.14%, and Twitter, its stock plunging 17.81% after a lockup expiration.
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Wednesday, May 07, 2014
Stock Market Supports Broken / Stock-Markets / Stock Markets 2014
After several attempts, SPX broke through its Short-term support at 1876.07 and is headed for its combined Intermediate-term and 50-day Moving Average at 1864.91. It has passed through that area so many times it is a wonder whether it may even stop.
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Tuesday, May 06, 2014
Massively Long Tech Stocks Smaller Bubble, Bernanke's Frightening Answers / Stock-Markets / Financial Markets 2014
David Einhorn, president of Greenlight Capital, spoke with Bloomberg Television's Stephanie Ruhle and Erik Schatzker today about technology stocks, investment strategy, Federal Reserve policy, and activist investing and high-frequency trading.
On a March 26 dinner conversation with Bernanke, Einhorn said: "I got to ask him all these questions that had been on my mind for a very long period of time, right? And then on the other side, it was like sort of frightening because the answers weren’t any better than I thought that they might be. I asked several things. He started out by explaining that he was 100 percent sure that there’s not going to be hyper inflation. And not that I think that there’s going to be hyper inflation, but it’s like how do you get to 100 percent certainty of anything?"
Tuesday, May 06, 2014
How to Collect 4.4% Dividends in the Safest Country on Earth / Stock-Markets / Austrailia
Australia could be near-debt-free by the end the decade.
It's nearly impossible to believe in our debt-fueled world. But it's true.
Last week, Bloomberg reported that Australia's national debt could "decline to just over 5% of GDP."
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Tuesday, May 06, 2014
Elliott Wave Analysis of the Dow Transports / Stock-Markets / Stock Markets 2014
The advance from the 2009 lows appears to be showing a 3 wave move, although that potentially could morph into a 5 wave move later on. The price action from the Oct 2011 lows is what I personally watching.
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Tuesday, May 06, 2014
Gazprom, Puerto Rico and Ackman / Stock-Markets / Financial Markets 2014
Jim Grant, Editor/Founder of Grant's Interest Rate Observer, spoke with Bloomberg Television anchor Stephanie Ruhle from the Sohn Investment Conference in New York today.
Grant talked about why he's long Gazprom when many are shying away, saying, "the beginning, middle and end of the bull case on Gazprom is that good things happen to cheap stocks. Gazprom is by acclimation the world's worst company managed by the worst kleptocrats ever assembled on one continent. So - and - and Jay Carney, the president's own press secretary, advised us all as a nation, regardless of individual suitability, to go short this stuff, Russia. So how can one not at least investigate the contrary side of that proclamation."
Tuesday, May 06, 2014
Stock Market Reverses Off Decent Gap Down.... / Stock-Markets / Stock Markets 2014
A big gap down occurred today across the board. It looked like the bears finally had their gap down. All they had to do was hold this gap down and run lower all day. That would create a huge technical headache for the bulls and market nirvana for the bears. Within the first couple of hours those gaps were filled. The opportunity was lost. This doesn't mean things are hopeless for the bears, but it was a great opportunity wasted to be sure. When you get something you desperately need, and let it go so easily, it has to be somewhat deflating. The gap down was nearly a ten handle on the S&P 500 and that's not small.
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Monday, May 05, 2014
Stock Market Elliott Wave Analysis - German DAX and S&P500 / Stock-Markets / Stock Markets 2014
German DAX is still moving sideways within wave 4) which we think it represents a triangle. We see prices at the upper side of a range so ideally a downward retracement will follow in wave E to complete the pattern around 9200-9300.
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Monday, May 05, 2014
Stock Market Sentiment Worsens But No Confirmation of Trend Reversal Yet / Stock-Markets / Stock Markets 2014
Briefly: In our opinion speculative long positions are still favored (with stop-loss at 1,850, S&P 500 index).
Our intraday outlook is bullish, and our short-term outlook remains neutral:
Intraday (next 24 hours) outlook: bullish
Short-term (next 1-2 weeks) outlook: neutral
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish