Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Saturday, May 25, 2013
Investor Opportunities from Central Bank Interventions / Stock-Markets / Financial Markets 2013
“The Fed wants to kill all signs of inflation to hide the damage they're doing to the middle class. First the Fed leaves food and energy out of the CPI, and then they get the Labor Department to lie about the figures. Their last trick -- smash the price of gold and silver. What are they going to do when the bond market (fearful of inflation) collapses? You can't fool all of the people all of the time.”
“Richard’s Remarks,” Richard Russell
DowTheoryLetters.com, 05/20/2013
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Friday, May 24, 2013
Japan Stock Market 7% Plunge Was Just a Warning! / Stock-Markets / Japanese Stock Market
David Zeiler writes: Wall Street woke up to grim news on Thursday morning (today) - overnight the Japanese stock market, as measured by the Nikkei index, lost a stunning 7.3%.
The sudden drop caught many investors by surprise, as the Japanese stock market had risen 50% - 5,277 points - so far in 2013. The Nikkei plummeted 1,143 points Thursday to close at 14,483.98.
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Friday, May 24, 2013
Why Bernanke's Market Manipulation's Are So Brilliant / Stock-Markets / Market Manipulation
Shah Gilani writes: Nothing lasts forever, apparently not even quantitative easing.
On Wednesday, Fed Chairman Ben Bernanke threatened to take away the massive punch bowl that's been spiked with easy money juice.
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Friday, May 24, 2013
Rising Stock Market Investor Fear / Stock-Markets / Stock Markets 2013
Typically, volatility rises when emotions run high. Low volatility is associated with investor complacency.
On May 23rd (yesterday in the US), a signal was given on the Point & Figure charts that points to a possible rise in volatility (fear). (Courtesy stockcharts.com)
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Friday, May 24, 2013
Stock Market Set Up for a Crash / Stock-Markets / Financial Crash
About 77% of all Broadening Wedges do not retest thw lower trendline. The rest will either test the trendline or move back inside the body of the formation briefly. That is why I suggested a retracement to 1645.00. A quick scan of the Fibonacci levels now suggest that a 38.2% retracement may not be out of the question.
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Thursday, May 23, 2013
Fed Talk Triggers Stock Market Reversal..... / Stock-Markets / Stock Markets 2013
So today we had Mr. Bernnake speaking in front of Congress and they were asking the usual ridiculous questions about quantitative easing and how long he intended to keep it going, etc. Would he stop soon? What were the parameters he was using to decide when to stop, and so on. He gave perfect answers. He said if things stay bad he'll continue to flood with cash. If things get really good he'll slow down. Send in the marching bands. Wow! Really? The market eventually sold off. Folks on television saying it was due to the Fed "confusing" people with his remarks. Really???? You think that's why the market sold off? Well folks, the reason the market sold off was because it was brutally overbought with sentiment readings getting well into the red-flag area. The market was simply looking for any excuse to sell as there were basically no buyers left.
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Thursday, May 23, 2013
Stock Market Back in Dangerous Bubble Territory / Stock-Markets / Stock Markets 2013
As the global equity and bond markets grind ever higher, abundant signs exist that we are once again living through an asset bubble – or rather a whole series of bubbles in a variety of markets. This makes this period quite interesting, but also quite dangerous.
With equity and bond markets at or near all-time record highs, with all financial assets consistently shrugging off bad – or worse – news as the riskiest of assets continue to find consistent upward bids, we find ourselves in familiar and bubbly territory.
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Wednesday, May 22, 2013
Stock Market Nosebleed Rally / Stock-Markets / Stock Markets 2013
I just wanted to comment on the extremes to which this market has gone. The normal standard deviation used to mark the top of a cycle is 2.0 above the six-month moving average price. Normal market tops will either touch the upper Cycle Top line and almost immediately will be repelled. Thus, I call it Cycle Top resistance. In a very few rare instances the price of the SPX will briefly move above it, but drop back beneath the resistance area quickly.
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Wednesday, May 22, 2013
Dow, FTSE, Stock Market Panic, Euphoria, Irrational Rally Continues, What I am Doing / Stock-Markets / Stock Markets 2013
The stock market continues to soar with the Dow closing at 15,387, and the FTSE at 6803, my conclusion as of late March is that the current stage of the stocks rally underway was as a direct consequence of the Cyprus debacle that literally poured gasoline onto the stock market rally fire as for the first time Bank Depositors LOST money (stolen) and not just by a few percentage points, but in real life examples of as much as 85% of their bank balance being stolen. The rally was then further boosted to by the Japanese pouring rocket fuel onto the fire through the policy of Hyper QE Inflation.
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Tuesday, May 21, 2013
Lookout For A Stock Market Spike High Top / Stock-Markets / Stock Markets 2013
HighRev writes: When attempting to put shorter term price action into a longer term perspective, I couldn't help but notice the tendency over recent years for markets to put in spike high tops on the intermediate term time frame. I also couldn't help but remember what Alexander Elder said when briefly recounting the origins and historical background of TA in his book Trading For A Living; specifically, on page 70, when commenting on changes in overall market behavior occurring on the generational time frame he said:
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Tuesday, May 21, 2013
Crash Proof Your Stocks Portfolio - Parallels to 1987 / Stock-Markets / Financial Crash
With the stock market seemingly reaching new highs every day, should we worry about a crash that puts an end to the party? If so, how should investors prepare? Let us explain.
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Tuesday, May 21, 2013
Stock Market A Drop Of Selling... / Stock-Markets / Stock Markets 2013
For now that's all it is, but the question is will it become more or will it be just another drop of selling that gets bought up by the bulls. The answer to that will be answered to some degree early tomorrow. We will watch those futures overnight and they should give us some insight as to whether we're getting follow-through or not. The bears need to get rocking with some momentum now. The longer they wait to hit the market the faster the bulls react to buying any weakness.
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Tuesday, May 21, 2013
Inflation Is The Lifeblood Of A Healthy Economy / Stock-Markets / Inflation
Inflation Is To An Economy What Blood Pressure Is To The Human Body
It is a well-known medical fact that more people die from LOW BLOOD PRESSURE then from high blood pressure.
Therefore, if one accepts the premise that Inflation is to an Economy what Blood Pressure is to the Human Body, it then logically follows that low inflation rate over a protracted period will eventually and inevitably destroy a heretofore healthy economy.
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Monday, May 20, 2013
Stock Market Structure + Cycles + Divergence = Corrrection? / 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 continues to progress according to its structure. If the count is correct, an intermediate reversal could still be a little ways off.
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Saturday, May 18, 2013
The Fading 2008 Stock Market Doomsday Scenarios / Stock-Markets / Stock Markets 2013
The gloom and doom theorists swarmed out of the woodwork during the 2008 financial meltdown in reaction to government actions taken to prevent the ‘great recession’ from morphing into the next great depression.The blame fell on both political parties. The Bush administration began the bailout efforts in March, 2008 and by the time its term ended it had provided $29 billion in loan guarantees to allow JP Morgan Chase to take over collapsing Bear Stearns, the $178 billion ‘Average American Bailout’ stimulus plan, the $300 billion Homeowners Bailout, the $200 billion bailout of Fannie Mae and Freddie Mac, the $25 billion Automakers Bailout, the $150 billion bailout of AIG, and the $700 billion Banks Bailout (TARP).
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Saturday, May 18, 2013
Poor Economic Data... But Nothing Stopping The Stock Market Bull / Stock-Markets / Stock Markets 2013
Poor data, again, late in the week couldn't get the market to stumble very much. Some, yes, but in a big way, no. We saw the number from the Philadelphia Fed come in below the zero level again after going green the prior month. Minus five, and change, showing their economy is in recession for the very short-term at least. On top of that, we then saw a huge increase in the jobless claims number. Thirty thousand bump up and well above expectations. The type of one-two punch that should knock the market down, but once again it did not, while the majority scratch their heads wondering why we all know the reasons by now. There's nowhere else to go. Interest rates are too low and the liquidity machine on every day all day long. A lethal one-two punch the bears are not able to overcome at this point in time.
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Saturday, May 18, 2013
Stock Market Warning - 79% of S&P 500 Companies Issue Negative 2Q Earnings Guidance / Stock-Markets / Corporate Earnings
Michael Lombardi writes:
The disconnect between the stock market and the U.S.economy continues to grow, as the key stock indices run way ahead of reality.
The fundamental reasons behind the rise in today’s key stock indices are missing. For a real rally to happen, there has to be rising demand in the U.S. economy, consumers must be confident to spend, and businesses should see their sales rising. None of this is taking place.
Friday, May 17, 2013
Stock Market Extreme Euphoria Tops / Stock-Markets / Stock Markets 2013
The levitating stock markets continue to seductively entrance traders, powering to new nominal record highs day after day after day. No one believes a meaningful selloff is even possible anymore, thanks to the vast deluge of central-bank monetary inflation. Sheer euphoria has set in as all perception of risk has vanished. This makes these stock markets extraordinarily dangerous, they are truly at topping extremes.
As of Wednesday, the flagship S&P 500 stock index (SPX) had rallied to new nominal record highs in 11 of the past 13 trading days. It blasted 4.8% higher over this short span. If sustained for an entire year, this blistering rate of ascent would nearly double the stock markets! This latest euphoric surge extended the cyclical stock bull that was born way back in March 2009 to a massive 145.2% gain over 50.2 months.
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Friday, May 17, 2013
Why the Stock Market Boom Will Continue Until 2015 / Stock-Markets / Stocks Bull Market
Dr. Steve Sjuggerud writes: The stock market boom so far has been incredible... And it isn't ending anytime soon...
The Dow Jones stock index is up 22% since November. It's hitting new all-time highs. And most people are worried that a bust is just around the corner. But those people don't get why the market is going up...
Thursday, May 16, 2013
Why Knowing the Currency Risk Can Pay Off In Investing / Stock-Markets / Investing 2013
Moe Zulfiqar writes: Portfolio management is the key to growing savings over time. The implication behind this is that if an investor manages their portfolio regularly, adjusting asset classes based on market and economic conditions, they can reduce their risk and earn a decent rate of return, as well as peace of mind.
That said, investors need to look out for many different types of risks. To name a few, investors need to protect their portfolio from market fluctuations, reduce industry-specific risks, and keep in mind the rate of inflation.