Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Monday, May 09, 2011
Key Levels to Watch in Stocks, Dollar, and Commodities / Stock-Markets / Financial Markets 2011
If you follow the markets closely, it is easy to produce a back-of-the-envelope bull/bear analysis given the mixed bag of fundamentals and technicals. On the bullish side of the equation:
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Monday, May 09, 2011
Commodities Crash Pain Eased by Dividends From Large-Cap Stocks / Stock-Markets / Financial Markets 2011
Jon D. Markman writes: After several weeks of quiet in the markets, economy and geopolitics, last week exploded with excitement and volatility, seeing commodities tumble and large-cap stocks end strong.
It started with news that Seal Team Six had taken out Osama bin Laden in Pakistan and ended with silver crashing 26%, crude oil plunging 15%, and corn down 6.5%. Determining how these events are connected will provide historians with rich material to ponder in years to come.
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Monday, May 09, 2011
2011 Has Not Been Kind to BRIC Nation Stock Markets / Stock-Markets / Emerging Markets
While the U.S. market (with the help of the orphaned dollar) has already hit most Wall Street strategists' year end price targets (1350-1375), the story has not been so good for the much loved BRIC nations. India started the year in horrible fashion, has rebounded somewhat, but is straining under a series of interest rate hikes to contain rampant inflation.
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Monday, May 09, 2011
Stock Market Odds Favour a Rise to SPX 1420 Before the Next Correction / Stock-Markets / Stock Markets 2011
Very Long-term trend - The continuing strength in the indices is causing me to question whether we are in a secular bear market or two consecutive cyclical bull/bear cycles. In any case, the very-long-term cycles are down and, if they make their lows when expected, there will be another steep and prolonged decline into 2014-16.
Long-term trend - In March 2009, the SPX began a move which evolved in a bull market. Cycles point to a continuation of this trend for several more months.
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Monday, May 09, 2011
Financial Crisis Next Wave, The Consequences of QE2 / Stock-Markets / Credit Crisis 2011
Martin A. Armstrong writes: We are approaching the end of this current 8.6 year wave come June 13th, 2011. What awaits us on the other side is a change in the overall trend. When we approached the same turning point in 1985.65, PEI took full page advertisements and ran them on the back of the English magazine, the Economist for 3 of the 4 weeks that month. Therein we warned that there would be a change back to inflation and that the steep economic decline that followed the insane peak in interest rates during 1981 was over. Now as we approach this same period after a tumultuous 4.3 years down that saw the collapse of real estate, the demise of legendary firms such as Lehman Brothers and a score of bankruptcies that followed, if anything, these past 4.3 years have certainly not been but boring.
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Sunday, May 08, 2011
Stock and Commodity Markets Wild Week, Elliott Wave Analysis / Stock-Markets / Stock Markets 2011
The ongoing weakness in the Asian markets, and the Commodity equity group caught up to the western markets this week, as they experienced their first decline in three weeks and largest weekly decline since mid-March. Commodities were the biggest losers as Silver lost 25.6%, Crude dropped 16.6%, and the GSCI index dropped 11.2%. For the S&P GSCI Commodity index this was the largest weekly drop since, oddly enough, the first week in May 2010. The equity markets held fairly well considering these declines. The SPX/DOW were -1.5%, and the NDX/NAZ were -1.3%. Asian markets lost 1.8%, European markets lost 1.3%, the Commodity equity group dropped 3.3%, and the DJ World index lost 2.3%.
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Saturday, May 07, 2011
What's Next for the Stock Market, Gold, Silver and Crude Oil / Stock-Markets / Financial Markets 2011
The price action in precious metals and oil this past week has been breathtaking. The last time we have seen this much volatility in commodity prices was amidst the financial crisis in 2008 and the early part of 2009. Does this mean we are at the brink and risk assets are going to decline precipitously? Obviously that question cannot be answered with any certainty, but the underlying price action in the S&P 500 has been relatively strong compared to gold, silver, and oil.
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Saturday, May 07, 2011
Bin Laden...Jobs....Sentiment....Weekly's...Daily's......Down Week...Commodities Crushed.... / Stock-Markets / Financial Markets 2011
So much took place this week it's hard to keep up with it all. The week began with an eye sore. The weekly charts on the small caps, mid caps, Nasdaq, Dow, and S&P 500 all flashed nasty negative divergences. The daily charts were also showing negative divergences on the small and mid caps. The S&P 500, Dow, and Nasdaq had no negative divergences on their daily charts, which was a savior for this market. You don't want all the major indexes flashing negative divergences on both the daily and weekly charts.
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Friday, May 06, 2011
Investor Opportunity-Lifeboats for Investors on Today’s Economic Titanic / Stock-Markets / Financial Markets 2011
“We are supposed to be two years into an economic recovery. Tell that to those with stagnant wages who have to fight against 10% inflation, which our government ingeniously tells us, is 1.9%. Some $900 billion or more will have been created out of thin air by the Fed and spent buying Treasury and Agency bonds, notes and bills and the $862 billion consigned to the economy in December will all have been spent…
The downgrade from AAA for US government debt is 100% surety over the next couple of years. It looks like it has been decided that European debt is to collapse first.
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Friday, May 06, 2011
Commodities Plunge Calls for Stock Market Contingency Plans / Stock-Markets / Financial Markets 2011
While we still believe the S&P 500 can hit 1,400 to 1,440 sometime in 2011, the next few trading sessions are very important for intermediate-term outlook for stocks and commodities. If you own stocks you should be concerned about the May 5 plunge in the commodity markets. Why? Commodities, especially silver and copper, have been the leaders of the current bull market in risk assets. When the leaders of a bull market become weak, it is prudent to become concerned about the entire market.
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Friday, May 06, 2011
Greece Stocks New Bull Market? / Stock-Markets / European Stock Markets
When I saw the CDS prices for Greece debt, I was wondering “How High will they go?”
I thus started to dig deeper, and had a look at some long term charts of the Greek Stock market.
Thursday, May 05, 2011
From Bin Laden To Ben Bernanke, From War On Terror To War On Debt / Stock-Markets / Financial Markets 2011
The notion that "war on terror" events have a large negative impact on the economy, when the terrorists are winning, and a large positive effect when they are losing is well anchored in market mythology. Gold and silver prices, and of course oil prices have been falling since May 1.Read full article... Read full article...
Thursday, May 05, 2011
Rising Stock Markets = Signs of Inflation / Stock-Markets / Inflation
In 2007 or 2008, "While markets across the world have been crashing, the Zimbabwe Stock Exchange has being seeing record gains as citizens turn to equities to protect their money from the country's hyperinflation.
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Thursday, May 05, 2011
Nasdaq Rebounds At Support.... / Stock-Markets / Stock Markets 2011
This does not mean that things look good here and that we should start loading up. Not at all. It means we should have a small rally, but that's about it. We should ultimately test lower again, and if that move down brings about strong positive divergences from low oscillator levels, then we can feel better about taking on a new play or two. With the market moving lower early on and then extending down as the morning went along, it looked like things might get out of hand. But these pullbacks often look worse than they really are in terms of how it set up technically. Selling off 70 RSI's on both the daily and weekly charts can seem scary, but you know it has to happen, and thus far, it's not even close to being out of the ordinary.
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Thursday, May 05, 2011
Defensive Stocks Sector Strength Points to S&P 500 Weakness / Stock-Markets / Sector Analysis
The recent sector strength of the Consumer staples ETF (XLP) over the Consumer discretionary ETF (XLY) indicates that money is now flowing out of a growth industry group and into a defensive sector. This action normally occurs during a period of weakness in the S&P 500.
Over the past few years, this shift in buying pressure between these two consumer sectors has provided guidance to the short term movements of the broad-based S&P 500. As models are indicating that a low in the index is expected in June, the returning performance of the defensive staples sector over discretionaries adds some additional evidence to the anticipated pullback.
Wednesday, May 04, 2011
Stock Market and Euro Elliott Wave Counts / Stock-Markets / Elliott Wave Theory
The markets are now coming into a target zone that will likely define the trend going forward over the coming weeks/months. As bears continue to try and top tick this rally from the lows made in Aug 2010. They are being forced to cover as the strength is overwhelming; anyone that tries to short this market is getting run over.
The trend is clearly still up and the easiest way to make a successful trade is to follow the trend, top tickers generally get wiped out, as being right once out of 20-30 times, does not constituent to a healthy account balance.
Tuesday, May 03, 2011
Stock Market Rallies on News of Bin Laden's Death? It's Not So Simple / Stock-Markets / Stock Markets 2011
On the morning of May 2, the financial headlines were abuzz with the news of Osama Bin Laden's death and its positive impact on the stock market: "Stock Market Celebrates Killing of Bin Laden" (The Wall Street Journal)
But despite a positive open, stocks closed lower on May 2. Undoubtedly, in the days ahead we'll hear analysts explaining how Bin Laden's death is not that "bullish" of an event, after all.
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Tuesday, May 03, 2011
What Bin Laden's Death Means for the Stock Market and Your Financial Security / Stock-Markets / Financial Markets 2011
Martin Hutchinson writes: The finding and killing of Osama bin Laden after 10 years of searching is clearly being heralded as an enormous U.S. victory.
But once you look past the news itself, the death of bin Laden brings to light some highly worrisome revelations about Pakistan. And those revelations have some potentially serious long-term implications for the Dow Jones Industrial Average - and for your money and future financial security.
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Tuesday, May 03, 2011
The Forgotten Stock Market “Flash Crash” One Year Later / Stock-Markets / Financial Crash
One year ago, few traders were expecting a pullback of any significant degree, with the Dow Jones Industrials perched above the 11,000-level. Traders had become complacent after a year long advance, in which the Dow Industrials had risen +70% above its bear market low, while retreating only twice for minor pullbacks. Traders stopped thinking about potential dangers, and started believing the risk of another bear market had vanished. Yet simmering beneath the surface was the specter of a sovereign debt default, rivaling the size of Lehman Brothers’, and threatening the world economy with a “double-dip” recession.
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Tuesday, May 03, 2011
Major Market Turning Points, The Gallery of Crowd Behavior Returns / Stock-Markets / Financial Markets 2011
" [From an intensive two-year study], I found that market price movements are like people - they have statistically significant life expectancy profiles that can be used to measure risk exposure...Consider life insurance, which deals with the life expectancy of people instead of price moves. If you're writing life insurance policies, it's going to make a great deal of difference whether the applicant is twenty years old or eighty years old.... Similarly, in a market that is in a stage of old age; it is particularly important to be attuned to symptoms of a potential end to the current trend. To use the life insurance analogy, most people who become involved in the stock market don't know the difference between a twenty-year old and an eighty-year-old."
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