Best of the Week
Most Popular
1.What Happened to the Stock Market Crash Experts Were Predicting - Sol_Palha
2.London Housing Market Property Bubble Vulnerable To Crash - GoldCore
3.The Plan to Control ALL Your Money is Now at Advanced Stage
4.Why Gold Is Set For An Epic Rally This Spring - James Burgess
5.MR ROBOT NHS Cyber Attack Hack - Why Israel, NSA, CIA and GCHQ are Culpable - Nadeem_Walayat
6.Emmanuel Macron and Banking Elite Win French Presidential Election 2017 - Nadeem_Walayat
7.Trend Lines Met, Technical's are Set - US Dollar is Ready to Rally (Elliott Wave Analysis) - Enda_Glynn
8.The Student Debt Servitude Sham - Gordon_T_Long
9.Czar Trump Fires Comey, Terminates Deep State FBI, CIA Director Next? - Nadeem_Walayat
10.UK Local Elections 2017 - Labour Blood Bath, UKIP Death, Tory June 8th Landslide - Nadeem_Walayat
Last 7 days
What an America First Trade Policy Could Mean for the US Dollar - 22nd May 17
Gold and Sillver Markets - Silver Price Sharp Selloff - 22nd May - 22nd May 17
Stock Market Volatile C-Wave - 22nd May 17
Stock Market Trend Forecast and Fear Trading - 22nd May 17
US Dollar Cycle : Deep Dive - 21st May 17
Bitcoin Breaks the $2,000 Mark as Cryptocurrencies Continue to Explode Higher - 21st May 17
Stocks, Commodities and Gold Multi-Market Status - 21st May 17
Stock Market Day Trading Strategies and Brief 20th May 2017 - 21st May 17
DOW Needs to Rally Big or Correction is Next - 20th May 17
EURUSD reaches DO or DIE moment! - 20th May 17
How to Get FREE Walkers Crisps Multi-packs! £5 to £28k Pay Packet Promo - 20th May 17
UK BrExit General Election 2017 - Will Opinion Pollsters Finally Get it Right? - 19th May 17
Gold Mining Junior Stocks GDXJ 2017 Fundamentals - 19th May 17
If China Can Fund Infrastructure With Its Own Credit, So Can We - 19th May 17
Evidence That Stocks are More Overvalued than Ever - 19th May 17
Obamacare May Become Zombiecare In 2018 - 19th May 17
The End of Reflation? Implications for Gold - 19th May 17
Gold and Silver Trading Alert: New Important Technical Development - 19th May 17
Subversion And Constructive Synthesis Of Capitalism And Socialism - 18th May 17
Silver: Train Leaving Station Soon! - 18th May 17
Credit and Volatility Signal That Financial Conditions Are Very Overheated - 18th May 17
Another Stock Market "Minsky Moment" or Will the Markets Calm Down? - 18th May 17
WannaCry Ransomware Virus Is a Globalist False Flag Attack On Bitcoin - 18th May 17
Euro, Stocks, Gold Momentum Extremes All Round! - 18th May 17
US Stock Market Slumps on Establishment / CIA Trump Impeachment Coup Plan - 18th May 17
Tory Landslide, Labour Bloodbath - Will Opinion Pollsters Finally Get a UK Election Right? - 17th May 17
The stock market sectors which are breaking out in 2017 - 17th May 17
A ‘Must-See’ Chart for Gold and Silver Aficionados  - 17th May 17
Will the SPX Stock Market Final Surge Fail to Appear? - 16th May 17
Claim your FREE copy of Jim Rickards’ explosive book - 16th May 17
GOP Establishment Elite Plots Trump Removal - 16th May 17
Walkers Crisps Pay Packet Cheats, Shoplifters and Staff Conning Customers - 16th May 17
Gold and Sillver Markets - Silver Price Sharp Selloff - 15th May 17
Gold Stocks Poised to Soar Sharply Higher! - 15th May 17
This One Undiscovered Pot Stock Could Help Investors Cash In On The “Green Gold Rush” - 15th May 17
WIll Trump Tax Cuts Debt Binge Save Stock Market From Double Top Bear Plunge? - 15th May 17
Trump Rally or Geopolitical Meltdown: Currency Management for Dollar Risk - 15th May 17
A Shallow Stock Market Correction? - 15th May 17

Market Oracle FREE Newsletter

Trading Commodity Markets

Stock Market Quarterly Brief

Stock-Markets / Stock Markets 2010 Dec 01, 2010 - 02:16 PM GMT

By: Christopher_Quigley

Stock-Markets

Best Financial Markets Analysis ArticleMy favourite indicator of market breath, the McClennan Summation Index, is finally beginning to get to a level where it is becoming interesting. A move into negative territory, though some ways to go, will herald the probability that stocks will soon begin providing price action that brings solid technical support. This is good news particularly for those who have been out of the market since the early September bull move. In my books patience is a major key to achieving above average investment returns. Those investors who relaxed and held off while the herd chased the trend should now begin to sharpen their attention. At the moment the Dow Transports (DJ-20) are showing more strength than the Dow Industrials (DJ-30).  However, Technology, Mid-Caps and Small Caps all remain strong despite pull-backs. This indicates that the March 2009 bull trend is still solidly in place for the moment.


American and European stock exchanges have plenty of information to digest. The Republican victory in the lower house in Washington more than likely means there will be no Quantitative Easing mark 3, not without a fight anyway. This has implications for FED interest rates going forward. Without easy money to soak up new loan paper the FED will have to compete for funds. This action will force rates up. Bond holders beware.

Europe has the potential to turn into a basket case. Brussels still has not brought in the permanent structural systems necessary to provide bond auction stability. The inexperienced comments by Angela Merkel regarding bondholders sharing future pain rocked the Euro to its foundations. Until the matter is resolved the experience of Greece and Ireland is more than likely going to be forced upon Portugal, Spain Belgium and Italy. Strange days indeed for the Euro project.  I have been saying for years that the Euro is not in totality a true currency but is in effect a sophisticated exchange rate mechanism of which the main beneficiaries are German exporters. Currently Berlin has the best of both worlds. It has access to European markets for its produce without having to worry about high exchange rates spoiling the party yet is does not really want to pay the full cost of creating a comprehensively sophisticated financial system. Much work remains to be done but how things play out will have major repercussions for the market. Currently in Germany Deutsche Bank is showing signs of major weakness and this is not good for the Euro area generally. Banco Santander, which until now was very strong, is beginning to break to the downside.

For those of us living in Ireland the events of the last two weeks have been humiliating. A team from the IMF (International Monetary Fund) and the ECB (European Central Bank) agreed to grant the Irish Financial System a 3 year bailout of 85 billion Euro. However, Ireland must first draw down its last independent lifeline of 19 billion Euro that remains in its Sovereign Wealth Fund. Once these funds go the country will be left utterly broke, totally reliant on the grace of foreign credit. The rate on interest charged is an eye watering 5.8%. This rate is onerous and is an indication that potential default is being priced in. Thus the crisis in the Emerald Isle is far from over. The Parliament votes on its austerity budget December 7th. The eyes of the World will again be upon Dublin. If the vote fails, the IMF/ECB package will be put in some doubt, and all hell will break loose across European markets.

Chart: McClennan Summation Index

Chart: Deutsche Bank

Chart: Banco Santander


Stock Pick

Emerging Markets Exchange Traded Fund:         Ticker:           EDC
My ideal Emerging Market exchange traded fund; “EDC” is suffering a slight pullback due to the Korean crisis and its potential effect on China. When it starts to consolidate,  MACD crossover and buying volume will begin to indicate the right time to jump back in. EDC is a wonderful momentum instrument to actively trade and for those who wish to micro focus their game plan I highly recommend they give this Direxion player some serious consideration. Indicators to use are Slow Stochastics, MACD, Volume and Market Breath along with our classic Bullish Candlestick Price Set-Up.

Chart EDC Direxion Daily Emerging Markets:

By Christopher M. Quigley
B.Sc., M.M.I.I. Grad., M.A.
http://www.wealthbuilder.ie

Mr. Quigley was born in 1958 in Dublin and holds a Batchelor Degree in Accounting and Management from Trinity College/College of Commerce, Dublin and is a graduate of the Marketing Institute of Ireland. He commenced investing in the Stock Market in 1989. in Belmont, California where he lived for 6 years. He developed the Wealthbuilder investment and trading course over the last decade as a result of research, study, experience and successful application. This course marries Fundamental Analysis with Technical Analysis and focuses on 3 specific approaches. Namely: Momentum, Value and Pension Strategies.

Mr. Quigley is now based in Dublin, Ireland and Tampa Bay, Florida.

© 2010 Copyright Christopher M. Quigley - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Christopher M. Quigley Archive

© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife