Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.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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Saturday, May 26, 2012
Stock Market Forecast for Coming Week / Stock-Markets / Stock Markets 2012
Market is now eyeing on Euro bonds, experts are expecting that it may create a good atmosphere in the financial market. But I am not sure whether that has the capabilities to make a reversal! Market is not going to make a new run from here; we may see a short-term change and that in-turn may create more opportunities for shorts. Gulf related problems may find a solution in coming month so crude oil may not disturb market.
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Saturday, May 26, 2012
Copper and Global Stock Markets Rollover / Stock-Markets / Stock Markets 2012
Following the May 9th Market Minute titled "Downward trend starts", global markets are continuing to rollover. Copper, often referred to as a bellwether indicator on the broader economy, is also declining. The peak in copper prices was in early 2011 and it has dropped steadily over the past year.
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Saturday, May 26, 2012
Stock Market Bear Flag Continues.... / Stock-Markets / Stock Markets 2012
There is no question about the pattern in place across all the major daily index charts. Whether looking at the S&P 500, Dow, Nasdaq 100, small-cap stocks or large-cap stocks, you see the same pattern everywhere. There was an intense move lower in the market across the board, and after a while, the market got very oversold on all those daily charts. It was time for a pause in the down trend, with the natural course of things to back test the lost 20-day exponential moving averages. Using the S&P 500, that means a back test of 1343. It's been five days in the bear flag, and thus far, the S&P 500 has shown no inclination to even make that type of normal back test. It's just incredibly poor action, to say the least. It's still a possibility that it will happen, but ever so slowly and surely, we are unwinding those oversold oscillators without, basically, any price appreciation. That's never a good sign.
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Friday, May 25, 2012
Merkel’s thoughts on ticker tape, Euro is no longer a friend to Germany / Stock-Markets / Eurozone Debt Crisis
As the Eurozone crisis rumbles on investors’ attention is split across a range of European issues; an apparently imminent ‘Grexit’ (possibly the ugliest wordmash we’ve ever heard), strains in the Italian bond market, Spanish property loans defaulting and busting the Spanish banking system, Portugal’s continued woes, France’s tired state driven economy and more. These are all issues that matter and are part of the macroeconomic picture. They are all here to stay, ‘givens’ if you like, or ‘known knowns’ to use Donald Rumsfeld’s contribution to the lexicon.
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Friday, May 25, 2012
Euro Panic, ECB Out of funds, and Germany Out of Patience / Stock-Markets / Financial Markets 2012
Good Morning!
FXE (124.43) is leaking lower beneath its massive Head & Shoulders neckline at 124.75. The wave pattern may allow it to wiggle around at this point, but the trend is totally down. It is certain that the algos will try to milk any news about another European bailout, even though the ECB is out of funds and Germany is out of patience. Meanwhile the Greek police are trying to keep their constituents from stuffing their mattresses full of Euros. This simply cannot get any worse, or can it?
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Friday, May 25, 2012
Where Can an Investor Go in this Period of Turmoil? / Stock-Markets / Financial Markets 2012
We start with this quote from David Cameron, the British Prime Minister made at the conclusion of the latest in European Summit Meetings.
Well, it was a good meeting in that there was complete agreement that dealing with deficits and getting growth are not alternatives, they go together, you need to do one in order to get the other.
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