Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Monday, September 23, 2013
Shake-Up For The Dow Jones 30 Stocks Index / Stock-Markets / Stock Markets 2013
The Dow Jones Industrial Average is getting another makeover this week. On Sept. 20, the Dow 30 stock industrial index will replace three of its older components - Alcoa, Bank of America, and Hewlett Packard - and will replace them with Goldman Sachs, Visa, and Nike. This makes the 52nd time since its inception in 1885 that the index has changed components.
Read full article... Read full article...
Monday, September 23, 2013
Fed Decision Speeds Up Stock Market Topping Action / 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 - SPX has made a new high after ending its correction at 1627. It still has a little way to go to reach its current intermediate top.
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.
Read full article... Read full article...
Sunday, September 22, 2013
Stocks Bull Market Continues / Stock-Markets / Stock Markets 2013
An expected volatile FOMC/Options expiration week did not disappoint. The market started the week with a gap up opening, held those highs on Tuesday, then spiked when FED chairman Bernanke did not taper QE 3 as was expected. Then the unwinding of that spike unfolded during Thursday and Friday’s expiration. For the week the SPX/DOW were +0.95%, the NDX/NAZ were +1.45%, and the DJ World index was +2.0%. Economic reports for the week ended positive. On the uptick: industrial production, the CPI, existing home sales, the Philly FED, leading indicators, the monetary base and the WLEI. On the downtick: the NY FED, the NAHB, housing starts, building permits, and weekly jobless claims rose. Next week: Q2 GDP (est. +2.5%), PCE prices and more housing reports.
Read full article... Read full article...
Sunday, September 22, 2013
World Stock Markets September Bounce Continues / Stock-Markets / Global Stock Markets
Courtesy of Doug Short. All seven of the eight indexes on my world watch list posted strong advances for the week. The exception was China’s Shanghai Composite, where the stock exchange was closed Thursday and Friday for Mid-Autumn Festival, and thus missed the “No-Fed-Taper Festival” celebrated by the other seven indexes.
Interestingly, the index most closely associated with Fed policy, the S&P 500, finished the week in sixth place with its 1.30% gain. Of the seven indexes open all week, only the UK’s FTSE fared worse with its fractional 0.19% advance. The big weekly winners were the three Asia-Pacific indexes (ex-Shanghai), with the 2.69% gain for India’s SENSEX besting Hong Kong’s Hang Seng by 0.13% and Japan’s Nikkei by 0.35%.
Read full article... Read full article...
Saturday, September 21, 2013
Coming Soon – The Bubble Economy Tapers Down And Out / Stock-Markets / Liquidity Bubble
IT CERTAINLY HAPPENED BEFORE
By the end of October 1929, the total value of stocks listed on the New York stock exchange had fallen by nearly 40% against early 1929 levels, but this was only the beginning. When the bottom was finally reached in March 1933, stocks had declined by more than 80%. Commodity prices fell by around 50%. World manufacturing output declined by 33% to 60% depending on country. World trade declined by about 67% or two thirds. In less than one year unemployment doubled in several countries, such as the UK, and quadrupled in most countries within 4 years. The International Labor Office in 1933 said that unemployment in the developed world had increased by 33 million since 1928. Corrected for today's population against the world's 2.2 billion in 1933, this would mean about 110 million people losing their jobs, today. The total US labor force as of 2013 is about 150 million.
Saturday, September 21, 2013
Stock Market Investors Have No Place to Hide / Stock-Markets / Stock Markets 2013
It now appears that SPX has broken its 3-week Ending Diagonal formation. The minimum retrace is 100%. There are only 3 waves evident here, so the move is as yet incomplete. The most likely immediate target is either the Broadening Wedge trendline at 1692.00 or short-term support at 1688.12.
Read full article... Read full article...
Saturday, September 21, 2013
Has Warren Buffett Nailed Another Stock Market Top? / Stock-Markets / Stock Markets 2013
I know. I know. Warren Buffett is not a market-timer, has no idea what the market will be doing this year, or next, or at any specific time in the future. Or so he says, and the media seems to accept it as fact.
So we probably shouldn’t pay attention to what he is doing and saying now.
However, in spite of what he says, Buffett has a remarkable track record of accurately calling the serious market tops and bottoms.
Read full article... Read full article...
Friday, September 20, 2013
Federal Reserve Antics - I Don’t Know Whether to Laugh or Cry / Stock-Markets / Market Manipulation
Michael Lombardi writes:
After yesterday’s Federal Reserve antics, we were taken by the reaction of one well-known writer, who said, “I didn’t know whether to laugh or cry.” That is truly the most apt phrase for the current situation.
To sum up the bigger picture:
Almost 100 years ago to the day, the U.S. “subcontracted” money and the banking system to third parties. These third parties called themselves the “Federal Reserve” but, of the few unchallenged facts one can determine about the actual ownership of the Fed, it becomes clear they are neither “federal” nor a “reserve.”
Friday, September 20, 2013
Federal Reserve - The Con, The Fraud, and The Lie / Stock-Markets / US Federal Reserve Bank
What do we think of when we hear the words, ‘con’, ‘fraud’ and ‘lies’?
Correct! The Federal Reserve Bank.
The Con
The Chairman, Mr. Bernanke, paddled across the river Styx to address the nation over which he rules on Thursday, September 19, 2013. Since he and his associates had so clearly intimated over the last several months a reduction in the $85 billion per month bond purchase program known as ‘quantitative easing forever’, nearly everyone anticipated, and expected, an announcement of some reduction in the amount of those purchases. But alas, there was no such reduction. The Fed elected to keep the current rate of purchases in place until they were more comfortable with real signs of economic recovery.
Read full article... Read full article...
Friday, September 20, 2013
Terrorism and the Stock Market, Investor Participation in Decline / Stock-Markets / Stock Markets 2013
Contrarians take note: The latest issue of Time magazine featured another one of those infamous bull market covers. The bull was displayed rather prominently on the cover under the headline, "How Wall Street Won."
Read full article... Read full article...
Thursday, September 19, 2013
Financial Armageddon Looting Machine: Looming Mass Destruction from Derivatives / Stock-Markets / Derivatives
Five years after the financial collapse precipitated by the Lehman Brothers bankruptcy on September 15, 2008, the risk of another full-blown financial panic is still looming large, despite the Dodd Frank legislation designed to contain it. As noted in a recent Reuters article, the risk has just moved into the shadows:
Read full article... Read full article...[B]anks are pulling back their balance sheets from the fringes of the credit markets, with more and more risk being driven to unregulated lenders that comprise the $60 trillion “shadow-banking” sector.
Thursday, September 19, 2013
Derivatives, The Gift That Keeps On Taking / Stock-Markets / Derivatives
If there's one lesson to be drawn from the Federal Reserve's non-taper decision yesterday, September 18, it's that the Fed will continue to ignore the interests of the real economy, even if that's what's supposed to be its task and mandate. The Federal Reserve is part of the financial system, and as such it represents the interests of that system, not the people in the street. It will do whatever benefits the former, and whichever choices it makes will always drain ever more resources away from the latter.
Read full article... Read full article...
Thursday, September 19, 2013
The Smell of Financial Collapse is in the Air / Stock-Markets / Financial Crash
The U.S. stock market is near all-time highs, while politicians and economists are blathering about recovery, low inflation, and good times, but instability and danger are clearly visible in our debt based monetary system. To the extent we rely upon the fantasies of ever-increasing debt, money printing, and credit bubbles, we are vulnerable to financial collapses. Perhaps a collapse is not imminent, but it would be foolish to ignore the possibility. Consider what these insightful writers have to say:
Read full article... Read full article...
Thursday, September 19, 2013
Stocks Go Parabolic Without Taper to Hold them Down / Stock-Markets / Stock Markets 2013
Holy cow, look at that Dow line: We have gone from 14,700 to 15,700 (6.8%) in 3 weeks. At this pace, we'll be at 19,000 by December 31st and over 20,000 in January and 32,000 at the end of next year! Wow, that is so normal, right?
Of course, the Fed DID put $1Tn into the market yesterday. Actually it was more like $2Tn because they are continuing to put $85Bn PER MONTH ($1Tn per year) into the markets through QE but they also withdrew $1,000,000,000,000 – not just from your savings account – but from every single asset you have, when they devalued the Dollar by 1% yesterday.
Read full article... Read full article...
Thursday, September 19, 2013
Federal Reserve Surprises Markets with ‘No Taper’ Announcement / Stock-Markets / Financial Markets 2013
The Federal Open Market Committee met on Tuesday and Wednesday and decided not to taper Quantitative Easing (QE) not even by a small amount, so the $85 billion monthly bond-buying program remains in place until further notice.Tapering would have represented a major turning point for the Fed in that it would have signalled the beginning of the end of QE and a reversal of monetary policy which provides by financial stimulus, however, tapering appears to be off the table, at least for the near term. Although the Fed Chairman did say the following:
Read full article... Read full article...
Thursday, September 19, 2013
Financial Crisis Meltdown Five Years After / Stock-Markets / Credit Crisis 2013
So appropriate that the architect of banking deregulation, Larry Summers pleads that he is not the right person to head up the Federal Reserve. No S$%#. Well, the Fed is certainly the hot seat under normal circumstances. What will it be like when the next crisis directly puts into play the reserve currency status of the dollar? Do not worry, anniversaries are supposed to look at the brighter side. Never mind, our benevolent government is hard at work presenting the public with the kind of assurance that would make anyone start singing happy birthday.
Read full article... Read full article...
Thursday, September 19, 2013
Dow Jones Upside Break May be a Head Fake / Stock-Markets / Stock Markets 2013
To begin with, attention is drawn to the positions of the RSI and MACD on the chart below (stockcharts.com). The RSI is overbought and the MACD has failed to rise to a new high. Technically speaking, this is a meaningful non-confirmation
Read full article... Read full article...
Thursday, September 19, 2013
Dow New High, Another Stocks Bear Market Goes Up in Smoke, Forget QE Tapering Expect Expansion! / Stock-Markets / Quantitative Easing
The Dow Jones stocks index closed at another all time high of 15,676, catching many if not most so called market analysts off guard as for the duration of the stock markets latest correction could be found to be singing the new secular or cyclical bear market has begun mantra, despite the fact that many of whom have been singing the same tune for the duration of the 5 year plus of the stocks bull market.
Read full article... Read full article...
Wednesday, September 18, 2013
Dark Pools of Capital Should Be Closed / Stock-Markets / Market Manipulation
John Thain--chairman and CEO of CIT Group, former CEO of Merrill Lynch and former CEO of NYSE--sat down for a wide-ranging interview with Bloomberg Television's Erik Schatzker and Stephanie Ruhle on "Market Makers" yesterday. Thain said that there is too much fragmentation and insufficient transparency in the stock market and that dark pools should be eliminated.
Thain went on to speak about bank compensation, saying that pay and talent can emphasize risk management and that "the problem is bonus is a bad word these days."
Read full article... Read full article...
Wednesday, September 18, 2013
Steps to Take When the Stock Market is Ready to Crash / Stock-Markets / Financial Crash
Marc Lichtenfeld writes: It is Wall Street legend that in 1979, BusinessWeek informed readers of “The Death of Equities” right before the biggest run-up in stock prices in history.
Since then, many other magazine covers have served as a contrarian signal for where the markets are headed. That’s led to a theory among some investors that the market is about to do the opposite of whatever mainstream magazine covers suggest.