Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Sunday, June 10, 2012
Stock Market Bearish Monthly RSI Divergence 100% Accuracy Rate; Occurred at 91.6% of Market Tops / Stock-Markets / Stocks Bear Market
Relative Strength Index is one of the most widely recognized and followed technical indicators. The most common use of RSI is the identification of divergences:
Developed J. Welles Wilder, the Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements...According to Wilder, divergences signal a potential reversal point because directional momentum does not confirm price. A bullish divergence occurs when the underlying security makes a lower low and RSI forms a higher low. RSI does not confirm the lower low and this shows strengthening momentum. A bearish divergence forms when the security records a higher high and RSI forms a lower high. RSI does not confirm the new high and this shows weakening momentum. StockCharts.com
Sunday, June 10, 2012
U.S. Stock Market Uptrend Appears Underway / Stock-Markets / Stock Markets 2012
Quite an interesting week. The week started off by making new downtrend lows on monday at SPX 1267. Then the market bounced, from an extremely oversold short term condition and a positive divergence on the daily charts. The bounce then turned into a rally. And, the rally then turned into the best one since the beginning of the last uptrend. After all was said and done the US market ended with impressive gains for the week: SPX/DOW +3.65%, and the NDX/NAZ +4.05%. Asian markets gained 0.1%, European market rose 3.8%, and the DJ World index gained 2.8%. On the economic front it was a quiet week with positive reports outpacing negative ones 6 to 4. On the uptick: ISM services, wholesale inventories, the monetary base and WLEI, plus the trade deficit and weekly jobless claims improved. On the downtick: factory orders, productivity, consumer credit and the M1-multiplier. Overall it was the best performance for the US stock market since December 2011.
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Sunday, June 10, 2012
Stock Market Forecast for Coming Week / Stock-Markets / Stock Markets 2012
Greece will again be the focus area in coming week due to their election so it is expected that all those concerns related to Spain will disappear if not in early days but sure in middle to later part of the coming week. At this point no one wishes to see again a deadlock related to Spain. Spanish outcomes will not get much time to affect the market because market will be worried about Greece.
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Saturday, June 09, 2012
Debt Deflation, Corporate Efficiency and Stock Prices / Stock-Markets / Deflation
It all started out great in 1949. The global economy had finished deleveraging from the great depression. The austerity of the long wave cycle winter season had burned off the results of earlier decades of debt buildup, overproduction, and economic excess. Bad debt had failed and been written off. The global long wave cycle of boom and bust had ended. On a 20-year compounded annual rate of return inflation adjusted stock prices bottomed in 1949. A broad global economic spring season had begun in earnest.
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Saturday, June 09, 2012
Key Fundamentals for Investor Profits & Protection / Stock-Markets / Financial Markets 2012
“As always, the Federal Reserve remains prepared to take action as needed to protect the U.S. financial system and economy in the event that financial stresses escalate…”
“Bernanke: Fed Could Act If Economy Weakens,” 6/7/2012
Martin Crutsinger, AP Economics Writer, Associated Pres
Fed Vice-Chairman Janet Yellen’s “hint” of possible further QE on Wednesday, June 6, 2012 was followed by Ben Bernanke’s much weaker mere openness to the possibility, expressed on Thursday.
It is thus no surprise that the Equities Markets Massively Rallied Wednesday. And also no surprise that the “Rally” petered out late Thursday.
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Saturday, June 09, 2012
US Economy Sitting On The Threshold Of A New Golden Age: Part One / Stock-Markets / Technology
Introduction: Don’t Sell the US Economy (or the World’s) Short
In the past, I’ve written numerous articles positing a long-term optimistic outlook for both our economy and the attractive future growth prospects of our great American businesses. Even though I hate to forecast the market in general, I have even presented evidence indicating that the general market as represented by the S&P 500 is currently reasonably priced and even slightly undervalued. My most recent contribution can be found here.
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Friday, June 08, 2012
Read This Before Stocks Could Drop Another 10% / Stock-Markets / Stock Markets 2012
Greetings,
Literally hundreds of investment reports come out every day.
Only occasionally does one capture the current state of the markets so accurately, so articulately, so impressively that it deserves reading immediately -- before you even think about touching your portfolio.
Friday, June 08, 2012
The Wonder Rally is Over, Stock Market Back at Flash Crash Trigger / Stock-Markets / Financial Crash
-- I have reset the wave count on the VIX to correspond more closely with the Cycle Model. The Trading Cycle high on May 18 occurred on day 63 of the new Master Cycle. Normally, Trading Cycles are 60 days long, so that high meets the parameters. It turned out that today was a pivot day, which signals that VIX is ready to move considerably higher after its pullback. I had expected a Primary Cycle to top out tomorrow but inverted to a low today, instead. Today is day 83 in a normal 86 day Primary Cycle, so it has met its minimum date range. The alternate view is that the Primary Cycle may extend to June 13-14, primarily because of the influence of the Euro. This would definitely have a high probability of a crash scenario. Whether it happens by June 13 or not, the same crash scenario extends to mid-July.
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Friday, June 08, 2012
EUvs.USA markets – Inflation vs. Deflation: #1 / Stock-Markets / Financial Markets 2012
Author Note: This is the first of three articles that examine the threats and opportunities facing the world economy. It looks at the European crisis – and its potential impact on the world economy – through the eyes of the financial authorities and the banking community. The next article will look at the opportunities flowing from a now serious commitment by the oil companies to embrace natural gas as an alternative to oil. The third will articulate and examine the risks that the financial/political authorities may be underestimating, or may even have missed because the issues lie outside their areas of expertise or focus.
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Tuesday, June 05, 2012
Stock Market Very Sick...And Oversold.... / Stock-Markets / Stock Markets 2012
Both are true, to be sure. It's rare that the market stays this oversold on both the daily charts and its index charts. It's not much to get excited about, if you're short when you're this oversold. But it's nothing to get excited about, if you're a bull considering how much trouble the market is having with regards to bouncing hard at such oversold conditions. The fundamental news continues to be mostly sour for just about the entire world as everyone seems to be slowing into a recession and for some, worse than that. There's the occasional good spot here and there, but overall, the majority of leading countries are struggling with massive debt and a slowing economy. The slowing, rapidly-moving-along into what is clearly a recession just about everywhere, which means the price of stocks have to come down in order to make them become more fairly valued. Not a pretty picture.
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Tuesday, June 05, 2012
Stock Market Pulling in the Bottom Feeders / Stock-Markets / Stock Markets 2012
SPY closed above its 200-day moving average at 127.90, opening the door for a brief surge to the new Head & Shoulders neckline at 129.50. Should the Head & Shoulders downside target be met, there is yet another formation which I will disclose later that give a potential target near 875…a 30% decline from today’s close. The Broadening Top has been the early warning pattern for what is to come. All of this is possible by June 13.
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Tuesday, June 05, 2012
U.S. Quantitative Easing, Circling Sharks, and Gold Backed Eurobonds? / Stock-Markets / Financial Markets 2012
Why Read: More to focus on possible further U.S. (and other Central Bank) quantitative easing, than on the possibility of gold backed Eurobonds - but to be aware of at least some 'talk' with respect to the latter.
Featured Article: For reference to possibility of gold backed Eurobonds, see King World interview with Don Coxe of Chicago based Coxe Advisors.
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Monday, June 04, 2012
Stock Market Low Forming / Stock-Markets / Stock Markets 2012
Current Position of the Market
SPX: Very Long-term trend - The very-long-term cycles are down and, if they make their lows when expected (after this bull market is over) there will be another steep and prolonged decline into late 2014. It is probable, however, that the steep correction of 2007-2009 will have curtailed the full downward pressure potential of the 120-yr cycle.
SPX: Intermediate trend - Correction nears end.
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Monday, June 04, 2012
Stock Market Panic, What's Next? / Stock-Markets / Stock Markets 2012
The questions nervously being asked during this market turmoil and onslaught of worrisome news is:
1. Are we experiencing an Intermediate-Term pullback or the beginning of a major Long Term move down?
2. How do you determine when and where a pullback might stop?
3. What should I be looking at to give me the correct perspective and what tools will help give me an investment edge?
Monday, June 04, 2012
Stocks Bear Market Focus Point: Diary of a Market Top / Stock-Markets / Stocks Bear Market
US share indices have been until recently sitting at highs not seen since 2007/2008, while the world was and still is experiencing an economic meltdown with no end in sight. Where did the bulls think the market would go to from these levels? What were they thinking – that we live in a world where the law of gravity can be defied and bull markets will keep on rising forever? What sort of world do they think this is? It is just this type of thinking that makes Bull traps what they are – traps for those that feed off fantasies.Read full article... Read full article...
Sunday, June 03, 2012
Stock Markets Heading for a Blood Bath Next Week / Stock-Markets / Stock Markets 2012
Well since our last analysis last week, both fundamental and technical aspects of the markets have since deteriorated much. On the technical perspective markets seems too weak to produce any meaningful rebound although all of them are in oversold conditions. The barrage of bad news coming out from Europe only helped to worsen the situation. Yesterday’s stock markets performances have been awful to say the least. The DJIA and S&P 500 had their worse 1 day drop this year.
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Sunday, June 03, 2012
Stock Market Downtrends Continue / Stock-Markets / Stock Markets 2012
After a one week gain, and the possibility of a downtrend low, the markets rallied early but broke down late in the week. Fear of an economic slowdown in the US, in conjunction with economic slowdowns in Asia and Europe, fueled the decline. For the week the SPX/DOW were -2.85%, and the NDX/NAZ were -2.95%. Asia managed only a 0.6% decline, but Europe lost 3.7% and the World index was down 2.7%. On the economic front it was a predominently negative week: 4 positives and 13 negatives. On the uptick: the ADP index, construction spending, the monetary base and auto sales. On the downtick: Case-Shiller, consumer confidence, pending homes sales, Q1 GDP, the Chicago PMI, monthly payrolls, personal income, PCE prices, ISM manufacturing, investor sentiment, the WLEI, and both the unemployment rate plus weekly jobless claims increased. Next week we will get reports on ISM services, consumer credit and the FED’s beige book. Best to your week!
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Sunday, June 03, 2012
Stock Market 'Crash Alert' Flag is Flying / Stock-Markets / Financial Crash
Yesterday, we promised to tell you more about our L-shaped non-recovery. It’s already lasted 5 years since subprime cracked up… It could last another 5…10…20…or even 100 years.
Okay, 100 is probably an exaggeration, but who knows?
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Saturday, June 02, 2012
Stock Market Forecast for Coming Week / Stock-Markets / Stock Markets 2012
It is surprising to see that market is focusing more on Spanish banking problem than Greece election, look like they are preparing the list that will be next after Greece! I don’t know whether Spain needs the bail-out money but it will be better for market if authorities deal with the bad loans than other things.
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Saturday, June 02, 2012
The Time Has Come Mr. Bernanke for More Stimulus! / Stock-Markets / Economic Stimulus
For several months Fed Chairman Ben Bernanke has been assuring Congress and by extension, investors, that the Fed stands ready with ammunition to re-stimulate the economy “if it becomes necessary.”
It has become necessary.