Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Tuesday, November 26, 2013
Stock Market Bears Can't Get Going..... / Stock-Markets / Stock Markets 2013
Although every day the risk does increase. We are at a time of year when markets try to hold up but you have to wonder how many negative divergences, and how many 70 RSI tags there can be before this thing rolls over for even a tiny correction. 2-3-4%, or so, wouldn't be too much, but for now the bears can't do a thing with this market regarding sustainable down side action. The markets at least, the bears can argue, closed below their opens today. You have to hang your hat on something when nothing is going your way and that is a legitimate argument. That said, the argument is weak since they never follow through on anything.
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Tuesday, November 26, 2013
Stock Market Dementia / Stock-Markets / Stock Markets 2013
The patterns below are counter intuitive. Falling volume, falling momentum and rising prices.
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Monday, November 25, 2013
QE is Hazardous to Your Retirement / Stock-Markets / Quantitative Easing
A mid 60s woman was chatting with two friends at a Starbucks. I overheard the conversation. It went something like this...
Read full article... Read full article..."When my husband and I retired, our financial advisor said we had enough money to last until we were both 95 years old. Now he is concerned that our savings might not last until we are 80."
Monday, November 25, 2013
Why Sitting and Waiting Makes More Investment Sense Today Than Chasing Stock Market Gains / Stock-Markets / Stock Markets 2013
George Leong writes: The more I view this stock market, the more nervous I get. While Wall Street gets set for some terrific year-end bonuses and investors take some amazing gains off the table, I’m sensing some euphoric buying in numerous areas of the stock market.
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Monday, November 25, 2013
Stock Market Intermediate Top Minimum Projection Reached! / Stock-Markets / Stock Markets 2013
Current Position of the Market
SPX: Very Long-term trend - The very-long-term cycles are in their down phases, and if they make their lows when expected (after this bull market is over), there will be another steep decline into late 2014. However, the severe correction of 2007-2009 may have curtailed the full downward pressure potential of the 40-yr and 120-yr cycles.
Intermediate trend - Important top formation is in the making.
Analysis of the short-term trend is done on a daily basis with the help of hourly charts. It is an important adjunct to the analysis of daily and weekly charts which discusses the course of longer market trends.
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Sunday, November 24, 2013
Dramatic Slowdown in Germany: Saxo Bank Analysis / Stock-Markets / Germany
Saxo Bank chief economist Steen Jakobsen had some interesting comments on Germany and German exports given a slowdown in China and a rising Euro.
To help put things in perspective, here is a chart on the Euro.
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Sunday, November 24, 2013
Blowing Asset Price Bubbles With Paul Krugman / Stock-Markets / Liquidity Bubble
America’s “highest profile economist” thinks we need more asset bubbles to battle negative real interest rates and persistent secular stagnation.
In a controversial post on his blogsite, New York Times columnist Paul Krugman argues that bubbles may be necessary to make up for insufficient demand, high unemployment, and sluggish growth. Here’s the clip from his blog “The Conscience of a Liberal”:
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Sunday, November 24, 2013
Why the Stock Market is Not a Bubble / Stock-Markets / Stock Markets 2013
Alexander Green writes: In the past week, there have been major stories in both The Washington Post and The Wall Street Journal – as well as a cover story in Barron’s – asking the same pointed question: Is this stock market a bubble?
And my column in Investment U last week raised a warning flag, too, about a bull market that’s starting to show its age. So it’s understandable that people are getting nervous.
Sunday, November 24, 2013
The QE Experiment is Failing… Will Stock Market Crash? / Stock-Markets / Financial Crash
We’ve long maintained that Japan is ground zero for the “QE works vs QE doesn’t work” debate.
The Fed’s economic models, and 99% of the economic models employed by Central Banks in general, believe that monetary easing can bring about an economic recovery. The primary argument for this crowd if QE has thus far failed to produce a recovery is that the QE efforts have not been big enough.
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Saturday, November 23, 2013
Two Great Market Bubble Threats, One Great Investor Opportunity / Stock-Markets / Financial Markets 2013
“I am very cautious on equities today, This market could easily have a big drop. Very simplistically put, a lot of the earnings are a mirage. They are not coming because the companies are well run but because of low interest rates.” 11/18/13 - Carl Icahn
Very smart Investor Carl Icahn is right to call “a lot of” corporate earnings a “mirage” because by reducing borrowing costs via ongoing QE, The Fed has artificially elevated earnings.
Thus Corporate Earnings are yet another Dangerous Fed-created Asset Bubble.
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Saturday, November 23, 2013
Fed Backed into a Corner on How to Exit its QE Program / Stock-Markets / Stock Markets 2013
The minutes of the Fed’s last FOMC meeting, released this week, confirm that the Fed believes it must begin to taper back its stimulus soon. At this point, the longer QE continues the greater the risk of asset bubbles forming, the bursting of which would destabilize the economy and make it even more difficult to exit.
Economists and analysts have been concerned from the beginning about how the Fed would be able to reverse the massive QE stimulus, which has been the major driving force of the anemic economic recovery and the powerful bull market in stocks, without also reversing the momentum of both.
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Saturday, November 23, 2013
Europe Seethes With Populism / Stock-Markets / European Union
AGIT PROP AND THE EUROCRATS
Europe's top down, elitist, and very unpopular Federal Europe quest twists and turns – possibly in its death throes. The federalists in Brussels say they are facing down the dangerous threat of rising populism in Europe. For them, this is a direct menace to European democracy.
Friday, November 22, 2013
Fantasy Stocks for a Fantasy Market / Stock-Markets / Gambling
By Doug French
They don't ring bells at the top, but when a company called Fantex Holdings plans to sell shares in professional athletes and possibly actors and musicians, a chill should race up the spine of investors.
You know this isn't your grandfather's market when a company pushing chicken wings (Buffalo Wild Wings) sells at over 40 times earnings. And when a company that dominates retail but doesn't make any money (Amazon) trades for $350 a share. And when a company that pumps old movies, TV shows, and a sliver of new content to subscribers trades at 280 times earnings (Netflix).
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Friday, November 22, 2013
Stock Market On the Edge of a Trend Change / Stock-Markets / Stock Markets 2013
The final pattern continues to change in such a way as to allow this alternate wave pattern, if the November 18 high is exceeded. Allowing for that event, Minute Wave [v] may go to 1804.50 or slightly higher.
As it stands, it could be counted either as a possible wave 2 or [v] of C.
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Friday, November 22, 2013
Stock Market Final High, Then the Drop? / Stock-Markets / Stocks Bear Market
There appears to be one more probe higher to complete Minor Wave C of Intermediate Wave (2). I estimate that it may go as far as 1800.00, but may not be able to touch the hourly Cycle Top at 1800.70.
This does not invalidate the comments regarding the reversal made in yesterday’s Closing Commentary. If anything, it may push the ultimate low forward another day or two.
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Friday, November 22, 2013
Why 2013 Stock Market Santa Rally Will Be the Best in Years / Stock-Markets / Stock Markets 2013
Kyle Anderson writes: The Dow Jones Industrial Average and S&P 500 typically see their largest gains of the year in December, thanks to a surge coined the "Santa Claus rally."
Since 1929, the S&P 500 has averaged a 1.5% return in December, with markets posting positive returns more than 70% of the time. The only other month with a 1.5% average return is July, with the remaining months' average gains ranging from -1.1% to 1.2%.
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Friday, November 22, 2013
ECB Calling U.S. Out on Its QE Mistakes / Stock-Markets / Quantitative Easing
George Leong writes: Recently, European Central Bank (ECB) policymaker Jens Weidmann said the strategy of printing money was not the solution to the eurozone crisis. (Source: Carrel, P., “Printing money not the way out of crisis: ECB’s Weidmann,” Yahoo! Finance, November 20, 2013.) Ya, no joke!
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Thursday, November 21, 2013
Is a Stocks Bear Market Right Around the Corner? / Stock-Markets / Stocks Bear Market
Courtesy of Doug Short.
What the 2007 Top Can Tell Us about the Present
The most famous law of economics that everyone learns in Econ 101 is the law of supply and demand. Essentially, if there are more buyers than sellers then prices will go up until equilibrium is reached. Conversely, if there are more sellers than buyers prices will decline. The stock market is no different.
If there are more buyers of stocks than sellers, the stock market will rise and will continue to do so until either the ranks of willing buyers thins out and/or the ranks of sellers grows. When equilibrium is reached between buyers and sellers a market begins to stall. When you have a continued stream of sellers dumping their holdings, a bear market ensues.
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Thursday, November 21, 2013
Uncle Sam Is the World's Smartest Trader / Stock-Markets / Investing 2013
Robert Hsu writes: It's interesting that an investor in the "communist" Peoples' Republic of China can make millions tax-free... while investors in the United States - the supposed bastion of free enterprise and capitalism - have to pay, in some cases, a near-50% tax on investment gains.
If trading and investing is all about weighing risk and reward, then the tax code itself makes Uncle Sam the ultimate trader. He gets a nice chunk of your reward, even as he avoids your risk.
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Thursday, November 21, 2013
Fed Minutes Triggered Stock Market Wash and Rinse / Stock-Markets / Stock Markets 2013
The market was clicking along, buoyed by weak economic news, until the Fed minutes from a month ago came out, and traders hit the markets on QE taper thoughts, despite what Chairman Ben said yesterday.
I think the corruption of some members of the Fed is unfortunate but inevitable, and sometimes barely hidden by the fig leaf of plausible deniability and the 'scientific objectivity' of economics.