Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
U.S. Dollar: When Almost Everyone Is Bearish... - 1st Jul 20
Politicians Prepare New Money Drops as US Dollar Weakens - 1st Jul 20
Gold Stocks Still Undervalued - 1st Jul 20
High Premiums in Physical Gold Market: Scam or Supply Crisis? - 1st Jul 20
US Stock Markets Enter Parabolic Price Move - 1st Jul 20
In The Year 2025 If Fiat Currency Can Survive - 30th Jun 20
Gold Likes the IMF Predicting a Deeper Recession - 30th Jun 20
Silver Is Still Cheap For Now - 30th Jun 20
More Stock Market Selling Ahead - 30th Jun 20
Trending Ecommerce Sites in 2020 - 30th Jun 20
Stock Market S&P 500 Approaching the Precipice - 29th Jun 20
APPLE Tech Stock for Investing to Profit from the Machine Learning Mega trend - 29th Jun 20
Student / Gamer Custom System Build June 2020 Proving Impossible - Overclockers UK - 29th Jun 20
US Dollar with Ney and Gann Angles - 29th Jun 20
Europe's Banking Sector: When (and Why) the Rout Really Began - 29th Jun 20
Will People Accept Rampant Inflation? Hell, No! - 29th Jun 20
Gold & Silver Begin The Move To New All-Time Highs - 29th Jun 20
US Stock Market Enters Parabolic Price Move – Be Prepared - 29th Jun 20
Meet BlackRock, the New Great Vampire Squid - 28th Jun 20
Stock Market S&P 500 Approaching a Defining Moment - 28th Jun 20
U.S. Long Bond: Let's Review the "Upward Point of Exhaustion" - 27th Jun 20
Gold, Copper and Silver are Must-own Metals - 27th Jun 20
Why People Have Always Held Gold - 27th Jun 20
Crude Oil Price Meets Key Resistance - 27th Jun 20
INTEL x86 Chip Giant Stock Targets Artificial Intelligence and Quantum Computing for 2020's Growth - 25th Jun 20
Gold’s Long-term Turning Point is Here - 25th Jun 20
Hainan’s ASEAN Future and Dark Clouds Over Hong Kong - 25th Jun 20
Silver Price Trend Analysis - 24th Jun 20
A Stealth Stocks Double Dip or Bear Market Has Started - 24th Jun 20
Trillion-dollar US infrastructure plan will draw in plenty of metal - 24th Jun 20
WARNING: The U.S. Banking System ISN’T as Strong as Advertised - 24th Jun 20
All That Glitters When the World Jitters is Probably Gold - 24th Jun 20
Making Sense of Crude Oil Price Narrow Trading Range - 23rd Jun 20
Elon Musk Mocks Nikola Motors as “Dumb.” Is He Right? - 23rd Jun 20
MICROSOFT Transforming from PC Software to Cloud Services AI, Deep Learning Giant - 23rd Jun 20
Stock Market Decline Resumes - 22nd Jun 20
Excellent Silver Seasonal Buying Opportunity Lies Directly Ahead - 22nd Jun 20
Where is the US Dollar trend headed ? - 22nd Jun 20
Most Shoppers have Stopped Following Supermarket Arrows, is Coughing the New Racism? - 22nd Jun 20

Market Oracle FREE Newsletter

AI Stocks 2020-2035 15 Year Trend Forecast

Weekly Financial Markets Review - More weakness expected this week

Stock-Markets / Financial Markets Mar 18, 2007 - 07:26 PM GMT

By: Nadeem_Walayat

Stock-Markets

The corrective stock market rally continued into Monday with targets of 50% of the decline from the highs. The Dow hitting 12,350 on Monday and the FTSE enjoying a morning rally on Tuesday to just shy of 6280. Tuesday evenings article - The Corrective Rally is over as the Stock Markets tumble on more Subprime bad news Summarised targets for the current down leg as follows -

FTSE 100
The FTSE 100 is targeting 6000, there is a strong probability of the FTSE holding 6000 (5990 low). Further downside appears limited in the immediate down swing.


Dow Jones
Dow Jones is targeting a down swing to between 11,650 and 11,750.

The FTSE performed right on cue, falling and hitting 6000 and then bouncing exactly as expected. The Dow Jones did decline below the previous lows, but then rebounded above 12,000 to end the week at 12,110.

The expectation still remains for the down leg to continue with further weakness expected especially in the Dow Jones towards its target of 11,750. For the FTSE I will be looking to see if it is able to stablise above 6000, even if new lows for the move are seen in the Dow Jones. However should 6000 fail, the FTSE is heavily supported in the region 6000 to 5900 so downside appears very limited at the moment.

Looking further out, the action to date, increasingly does not signify an imminent crash, so once the bottoms have been confirmed the stock markets could stage a strong rally into April.

Back to the week that was -

Gold and Silver continued to be weak, but the gold bulls remain positive on its longer term outlook on the basis of fundamentals of a weak US dollar and excess liquidity and the bursting of the US housing bubble .Stock Market Bounce looks like a Bear Trap, Gold Thoughts . , Subprime mortgage companies continuing collapse to benefit Gold stocks , Gold Forecast - Viewing Pullback in Gold as a Buying Opportunity - Global Watch

The sell off in the financial markets was blamed on Unwinding of the Yen Carry Trade, Unravels Global Stock Markets with any tighten in Japan expected to lead to more stock market falls, Forex Forecast - US Retail Sales Weakness means more Unwinding in the Yen Carry Trade . , World Liquidity Crisis Emerging as the Yen Carry Trade Unravels

For uranium bulls, news of ' New Uranium Mine Flood Tightens Uranium Supply - Prices to go Higher ' With $100 just around the corner.

The US housing market's subprime problems remain, and expected to worsen in the coming months, where with each passing week the probability of a US recession increases. This outlook was analysed in several articles during the week two articles of particular note are - US Housing recession increasing risks of US Economic recession as growth continues to slow , Mortgage Foreclosures and Housing Bust to result in US Interest Rate Cuts

Make sure to visit the site regularly for the latest analysis on the direction of the stock market this coming week, especially as more action to the downside is expected.

Profitable investing & trading for the coming week.

By Nadeem Walayat
Editor, The Market Oracle

(c) MarketOracle.co.uk 2007 - All Rights Reserved.


© 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

6 Critical Money Making Rules