Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.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.
Friday, June 01, 2012
Stock Market Breakdown is in the Making / Stock-Markets / Stock Markets 2012
The testing and retesting of the purple Orthodox Broadening Top appears to be finally over. This completes a reversal pattern (going down) after an 8.6 day correction from the May 18 low.
The next item on the agenda will be the breaking of the 129.55 low. This may happen in the overnight session, by all appearances. Keep your bear costume on, the party is about to begin.
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Thursday, May 31, 2012
Financial Market Forecasts Last Chance / Stock-Markets / Financial Markets 2012
With Europe in turmoil, U.S. stocks retreating and the mainstream financial press totally on the wrong side of the trend (as usual), EWI's big-picture forecast -- though dire -- is actually quite refreshing to read. In trademark fashion, EWI tackles the issues that everyone else ignores, and they explain the future using straight-talking language I appreciate.
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Thursday, May 31, 2012
Europe Rules Stock Market Trend......20's Sold On Back-Test....... / Stock-Markets / Stock Markets 2012
The United States stock market no longer trades on its own. Those days are behind us. Whatever takes place overnight in Europe is what we see when we wake-up, regarding our stock market futures. If Europe is down big, then we're down big. If Europe is down a drop, then we're down a drop. The same holds true on the upside of this equation. Europe is facing some terrible news on an almost daily basis, and this is causing their markets to spend a lot of time heading south. A few days to the northern side of the ledger, but mostly it goes south.
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Wednesday, May 30, 2012
Stock Market Free fall Crash is Imminent / Stock-Markets / Financial Crash
FXE (123.67) is slipping lower. It appears that the retest of the Head & Shoulders neckline is over and FXE is losing what little support there is left. Free-fall lurks below 123.64 and appears to be imminent.
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Wednesday, May 30, 2012
United States is Going Down Slow, Debt Problem is Global / Stock-Markets / Financial Markets 2012
The greatest discovery of my generation is that a human being can alter his life by altering his attitudes of mind.- William James (1842 - 1910)
If you believe everything you read in the newspaper it appears that the U.S. housing market is finally rising from a long slumber. Yet real estate Web site Zillow reports that homeowners are still under water. Nearly 16 million homeowners owed more on their mortgages than their home was worth in the first quarter, or nearly one-third of U.S. homeowners with mortgages. That’s a $1.2 trillion hole in the collective home equity of American households. Despite the temptation to just walk away and mail back the keys, nine of 10 underwater borrowers are making their mortgage and home loan payments on time. Only 10 percent are more than 90 days delinquent. Still, “negative equity” will continue to weigh on the housing market – and the broader economy – because it sidelines so many potential homebuyers.
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Wednesday, May 30, 2012
Investing in Japan: Is There Light at the End of the Tunnel? / Stock-Markets / Japanese Stock Market
Martin Hutchinson writes: Most people have given up on investing in Japan.
With an aging population and far too much government debt, the conventional wisdom is that Japan will never again see the vigorous economic growth it once enjoyed.
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Wednesday, May 30, 2012
Are Capital Controls Coming to America? / Stock-Markets / Credit Crisis 2012
Are capital controls coming to the United States? They may be for Switzerland, The Swiss National Bank has announced that it is considering the imposition of controls. But these will be controls on euro accounts being shifted into Swiss francs.
Why would a central bank impose controls on money flowing in? Because this will raise the market price of francs in relation to euros. The central bank is dominated by mercantilist thinking. A rising currency is seen as a liability. Why? Because exporters are hit by the falling value of the foreign currency. Foreigners must pay more to buy francs to buy Swiss goods.
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Wednesday, May 30, 2012
Euro-Zone Crisis Delay and Pray, Stock Market Not Bearish Enough to Support a Rally / Stock-Markets / Financial Markets 2012
-- The VIX remains beneath Mid-Cycle resistance at 24.21 but above its Head & Shoulders neckline today. It overshot the neckline on the first pullback and the second one is not as deep, but we would not like to see it go beneath the neckline. Tomorrow is the next pivot day, so it is possible that we may have seen the last of the correction today. This action seems to be saying that the rally in equities may be short-lived.
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Tuesday, May 29, 2012
Stock Market a Better Bubble? / Stock-Markets / Stock Markets 2012
Like an elaborate musical score that repeats key notes from an earlier motif, the final stage of the long topping process is hitting many of the same chords played near the end of the Grand Super cycle bull market in January 2000. Last month, we mentioned the capitulation of long-term bears and the establishment of a stock market in Cambodia. This month, a major financial weekly called for many stodgy Dow stocks to be replaced by high flying technology stocks. This call takes us directly back to December 1999, when Fortune magazine lobbied to replace the Dow with an index composed entirely of Internet companies, and the business editor of the Washington Post railed at the under-performing Dow for making him too bearish: "If you find that you're too anxious, just take a look at what the Dow really is. It's 30 stocks of huge old-timely companies'"
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Tuesday, May 29, 2012
More Stock Market Interim Rally Ahead? / 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
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Monday, May 28, 2012
US Stock Market Wears the Heavy Crown - SP 500 Update / Stock-Markets / Stock Markets 2012
The US market is one of very few trying to maintain a long term uptrend Bull cycle around the world. Most major world indices are in decline, only Germany and London are also trying to hang in of the major indices.
Will the rest of European problems continue to spillover and weigh down our markets in finally cause a flush? Or… will the US stay strong and lead higher amidst the turmoil?
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Sunday, May 27, 2012
Are we to Bame Nixon for Fed Money Printing Market Trends? / Stock-Markets / Stock Markets 2012
The Fundamental forces driving this market higher for the short term is partly due to the expectation of QE3. Ben Bernanke will ultimately prime the printing pump again, but only after we see the selling pressure intensify.
There is still plenty more downside left of this market, which is why I'm telling you not to believe this current rally. It is simply a contra-trend within a larger decline, but only for the intermediate term.
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Saturday, May 26, 2012
Stock Market Downtrend May Have Bottomed / Stock-Markets / Stock Markets 2012
Markets rebounded this week after last week’s nasty selloff. Last week’s decline of SPX/DOW 3.9% was the largest weekly decline in six months. The previous one was the week of November 21, 2011: a 4.75% decline that marked the end of Major wave 2. Thus far, it looks like the recent selloff may have marked the end of Major wave 4. For the week the SPX/DOW were +1.20%, and the NDX/NAZ were +2.05%. Asian markets were flat, European markets were +0.6%, and the DJ World index gained 0.7%. On the economic front it was a mixed week. All five the publicly watched indicators were higher: existing/new home sales, FHFA housing prices, durable goods orders and consumer sentiment. Yet, four of the not so publicly watched indicators we track were all lower: the M1- multiplier, new home sale prices, the monetary base and the WLEI. The last week of May starts off with a US holiday, then is followed by a slew of economic reports. Q1 GDP, the Payrolls report and PCE prices highlight the week. Best to your week!
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Saturday, May 26, 2012
Stock Market Crash Alert, Market is Falling Like a Stone / Stock-Markets / Financial Crash
As you might have noticed, the stock market is falling like a stone. German 2-year debt (bund) has dipped below 0% this morning at auction, signalling an acceleration in the bank run taking place in southern Europe. Depositors in Spain, Greece, Italy, Portugal, etc would rather take a loss on their investment, then risk not their money back at all. The European Central Bank (ECB) does not guarantee deposits, so people are withdrawing their money en masse and getting out of Dodge pronto. What we're seeing is a real-time panic.
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