Most Popular
1. Dow Max Drawdown Bear Stock Market 2022 - Accumulating Deviations from the Highs - 21st Feb 22
2.Putin Starts WW3 in Ukraine, Will Use Tactical Nuclear Weapons, China Prepares Taiwan Blitzkrieg - 28th Feb 22
3.World War 3 Phase 1 - Putin WINS Ukraine War! - 25th Feb 22
4.INVESTORS SEDUCED by CNBC and the STOCK CHARTS COMPLETELY MISS the BIG PICTURE! - 10th Feb 22
5.Will There Be A 2024 US Presidential Election? - 3rd Mar 22
6.Gold and SIlver, Precious Metals Sector Is at a Terrific Buy Spot - 6th Feb 22
7.Why Putin Wants the WHOLE of Ukraine - World War 3 Untended Consequences - 6th Feb 22
8.Dow Stock Market Expected Max Drawdown 2022 - 19th Feb 22
9.Stock Market Calm In the Eye of the Inflation Storm - 4th Mar 22
10.M = F - Everything is Waving! Stock Market Forward Guidance - 7th Mar 22
Last 7 days
How Low Could the Amazon (AMZN) Stock Price Fall? - 19th May 22
Bitten by FANG? Clocked by Cryptos? -- 'Air Pockets' Everywhere - 19th May 22
Northern General Hospital Orthopedics Fractures and and Ankle Clinic Consultations Real Patient Experience - 19th May 22
Cathie Wood Goes All in on Teladoc, ARKK INSANE Noob Investing Strategy! - 17th May 22
This is Anything but Positive for US Housing Market - 17th May 22
What Should We Do If There Is No Fed Monetary Policy Pivot? - 17th May 22
All Possible Ways to Earn Free Litecoin - 17th May 22
How low Could the Amazon Stock Price Fall? - 16th May 22
Cathy Wood ARKK INSANITY There is NO Coming Back! - 16th May 22
NASDAQ 100 Stock Market LOWER LOWS & LOWER HIGH - 16th May 22
Sanctions, trade wars worsen US inflation - 16th May 22
AI Tech Stocks Earnings BloodBath Buying Opportunity - 14th May 22
Futures Contract – Trading Crude Oil With USO - 14th May 22
How to Get Kaspersky Internet Security for 80% Discount! Do not Pay Renewal Price! - 14th May 22
Sagittarius A* Super Massive Black Hole Monster at Centre of Our Galaxy REVEALED! - 14th May 22
UK Public Debt Smoking Inflation Gun - 13th May 22
What Happens When the Stock Market Dip Keeps Dipping? - 13th May 22
Biden Seeks Inflation Scapegoats; Gold Advocate Wins GOP Primary - 13th May 22
Apple and Microsoft Nuts Are About to CRACK and Send Stock Market Sharply Lower - 12th May 22
The War on Gold Ensures the Dollar’s Downfall - 12th May 22
Crypto Investors Stable Coins TERROR as Terra USD COLLAPSEs towards ZERO, Tether Next! - 11th May 22
INFLATION IS KILLING SILVER - 11th May 22
The Dominant Investing Theme of the Decade - 11th May 22
Is Bitcoin Headed to Zero? - 11th May 22
RECESSION RISKS 2023 - 10th May 22
The Future of the Dollar Seems So Bright It’s Blinding Gold - 10th May 22
Take Advantage When Markets Succumb to Fear - 10th May 22
How to Recognize a Less\ Than Obvious Opportunity (In focus: Corn) - 10th May 22
How to Ensure Financial Stability for Your Family - 10th May 22
The Stocks Stealth BEAR Market - 9th May 22
A Strengthening US Dollar Is A Double-Edged Sword - 9th May 22
Making Wise Investment Decisions - 9th May 22
Ways to legalize a Moving Company - 9th May 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

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

© 2005-2019 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