Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Saturday, October 11, 2008
The Once in a Lifetime Stocks Bear Market / Stock-Markets / Stocks Bear Market
Why wasn't that a perfect reversal Jack? Because the advance decline line wasn't right. Slightly more losers than gainers on the Nas but 2/1 negative on the Nyse. You want 2/1 or 3/1 advancers to decliners. I know today seemed exciting with such a massive reversal but many stocks lagged badly and some were absolutely crushed. You won't see that when we make just the right reversal. The rally occurred for two reasons. Incredibly oversold and massive short covering ahead of the G7 meeting this weekend which will be a meeting to try and find more solutions for the current credit crisis. The shorts are afraid of them coming up with a solution that the market will like.Read full article... Read full article...
Saturday, October 11, 2008
Stock Market Capitulation Low? / Stock-Markets / Financial Crash
The most salient aspect of the weekly chart of the S&P 500 is that despite the fact that the index closed 60 points off of Friday's low, the index at 899.22 also closed 198 points from the week's high, which means that the net result of this week is downside continuation. Although I would not be surprised to see the SPX climb to 960-1000 sooner than later, I also think that another loop down to 839 must take place thereafter.Read full article... Read full article...
Saturday, October 11, 2008
Credit Crisis Collapse What Happens Next? / Stock-Markets / Credit Crisis 2008
- Construction Lending: The Next Shoe to Drop
- Lehman at the Center
- Iceland Guarantees What?
- Letters of Credit: Going, Going Gone?
- What to Do and Where Do We Go from Here?
I have been writing for almost a year that the next shoe to drop on US banks would be commercial construction lending. Today we look at some hard numbers. We look across the pond to sort out the problems in Europe. We look at the consequences of the losses stemming from Lehman. Then we look at one of the more serious consequences of the banking crisis, one that will bring the crisis home to you. Finally, we look at what the various governments of the world must do in response. It may not be fun, but it should be interesting. And it is important. Feel free to forward this letter to anyone who asks why we not only need the bailout but will need even more coordinated government action.
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Saturday, October 11, 2008
Stock Market Crash Chart Price Pattern / Stock-Markets / Financial Crash
“I set a watchman over you, saying, ‘Give heed to the sound of the trumpet!' But they said, ‘We will not give heed!' Therefore hear, O nations, and know, O congregation, what will happen to them. Hear O earth; behold, I am bringing evil upon this people, the fruit of their devices , because they have not given heed to my words; and as for my law, they have rejected it.”Jeremiah 6:17Read full article... Read full article...
Saturday, October 11, 2008
Financial Crash and TV Media Machines Perpetual Buy Recommendations / Stock-Markets / Financial Crash
Maybe there's a good reason why CNBC has a show called Fast Money. If you follow the advice of these guys, your money is likely to evaporate very fast. Likewise, I'm beginning to see why Cramer's show is called Mad Money. You're likely to get mad if you follow his advice. Or maybe you have to be a mad man to watch it.Read full article... Read full article...
Saturday, October 11, 2008
Anatomy of Financial and Economic Disaster -Part2 / Stock-Markets / Financial Crash
Last week we looked at some historical milestones as we compared the events leading up to the Great Depression to what we're seeing now. While apples to apples comparisons are problematic due to vast differences in the way economic statistics are measured and reported, it is a much more simple matter to see the big picture. This week, we take a look at things from a monetary perspective.Read full article... Read full article...
Saturday, October 11, 2008
Dow Jones Reverses 860 Points Higher in 40 Minutes, but Still Closes Lower / Stock-Markets / Financial Crash
Another historical day and probably one of the most volatile days I've ever seen, including a late historical rally as well.Read full article... Read full article...
Friday, October 10, 2008
Stock Market Bottom, Are We There Yet? / Stock-Markets / Financial Crash
These are unprecedented times. The markets are showing their true animal nature because they are trading on emotions, rather than on technicals or fundamentals.Read full article... Read full article...
Friday, October 10, 2008
1929 Style Financial Markets Panic: The De-leveraging Margin Debt / Stock-Markets / Financial Crash
Panic levels are reaching levels not seen since 1929. We are now in the 3rd. Phase of a de-leveraging process.
Some of you may remember the NYSE Margin chart I posted in late 2007. Basically, it showed that 2007 margin levels were starting to drop from an "extreme" level. Historically, every time we have reached extreme margin levels, they always got unwound . That is where we are now, in an accelerating Phase 3.
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Friday, October 10, 2008
Trading Stock Bear Markets / Stock-Markets / Stocks Bear Market
Last week was one of the wildest witnessed in the stock markets in modern history. On Monday September 29th stocks started plunging immediately after the US House of Representatives voted down the Wall Street bailout. This steep decline ignited a massive fear spike unlike anything seen in years. It was awe-inspiring to behold.Read full article... Read full article...
Friday, October 10, 2008
Nasdaq Q's Capitulation Lows? / Stock-Markets / Tech Stocks
So, the $64,000 question is whether or not we saw THE capitulation low during the first 20 minutes of trading this morning, or one of a series of capitulation lows that will be forthcoming in the upcoming hours/days? Let's be aware that all of the major indices remain in negative territory on the session, which eliminatesRead full article... Read full article...
Friday, October 10, 2008
Stock Market Crash 2008 Performance Round-up / Stock-Markets / Global Stock Markets
I normally publish a performance review of global stock markets at the end of each month, but the meltdown around the world of the past few days necessitated an update.
“If a man does not know what port he is steering for, no wind is favorable to him,” said philosopher Seneca in 4 BC 65 AD. Why am I constantly reminded of this quote when looking at some of the rather haphazard actions taken by governments to alleviate the financial turmoil?
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Friday, October 10, 2008
China Stocks Attractive After Stock Market Crash / Stock-Markets / Chinese Stock Market
Larry Edelson writes: Other than cash, gold, and a few select natural resource stocks, the only other investments I'd make in these wild and crazy times are in Chinese companies, buying them hand over fist for the long haul.
Yes, that's right. Even bearing in mind the recent milk/melamine scandal, which is outrageous.
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Friday, October 10, 2008
Central Banks Panic as Bailouts Fail to Halt Stock Market Crash / Stock-Markets / Financial Crash
The global economic dam has now cracked wide open. Water is pouring everywhere. The bursting of the dam is a fitting tribute to Paulson's and Bush's $700 billion boondoggle to add liquidity to banks.The public was overwhelmingly against the plan (and rightly so) as were close to 200 economists. Paulson, Bush, Trichet, and Brown all goaded Congress to waste $700 billion of taxpayer money on grounds there would be a global meltdown if the plan was not passed. Congress had it right the first time. The $700 billion bailout helped bust the dam.
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Friday, October 10, 2008
Investment Grade Value Stocks Hit Ten Year Lows / Stock-Markets / Stock Market Valuations
There has never been a correction that has not proven to be an investment opportunity. While everything is down in price, there is actually less to worry about than when prices are historically high. More money has been lost by people who bought into last year's markets than by those who will buy into this one, at this stage of the correction. When the going gets tough, the tough go shopping.Read full article... Read full article...
Thursday, October 09, 2008
Dow Jones PANIC Selling Crash of 7.3% Worst Since 1987 / Stock-Markets / Financial Crash
The Dow Jones led Global stock markets into a continuing to crash as there is no end in sight to the panic selling which today was sparked by the failure of the LIBOR interbank rate to respond to Wednesday unprecedented co-ordinated interest rate cuts by the U.S. Fed, Bank of England and the European Central Bank (ECB), in conjunction with extra liquidity and in Britain's case a bank bailout package that could total as much as £500 billion or 41% of GDP which is on par with the amounts as a percentage of GDP the United States required to recover from the 1930's Great Depression.Read full article... Read full article...
Thursday, October 09, 2008
Stock Markets Crash as LIBOR Fails to Respond to Rate Cuts / Stock-Markets / Financial Crash
Jennifer Yousfi writes: Global markets had deep sell-offs as short-term credit markets remained tight, with the three-month lending rate for banks hitting a yearly high.
The London Interbank Offered Rate (LIBOR) for three-month dollar-denominated loans hit 4.75%, its highest rate so far this year. The LIBOR rate for overnight lending dropped, to 5.09%, but still remains well above the Federal Funds target rate of 1.5%.
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Thursday, October 09, 2008
Stock Market, Gold, and the U.S. Dollar / Stock-Markets / Financial Markets
In a July 24, 2008 article, Commodity Breakdowns Warrant Defensive Action , I wrote the following based on the ugly look of the chart of financial stocks (XLF): "While financial stocks have hit a violent intermediate bottom and could rally for a while longer the odds favor lower lows in the months ahead as housing prices continue to decline. The chart below illustrates the structural nature of the problems facing the housing and financial industry.Read full article... Read full article...
Thursday, October 09, 2008
NYSE Extreme New Lows Amidst Panic Stock Market Selling / Stock-Markets / Financial Crash
Which index is now 101.3% higher than the highest reading during the last Bear Market?
The answer is the New Lows on the New York Stock Exchange. The highest level of new Lows was 912 in 2002. Yesterday, the New Lows reached an unprecedented level of 1836. This is a clear sign of panic selling with NO buyers interested in perceived bargains.
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Thursday, October 09, 2008
Stock Market Trouble and Strife, Catch a falling knife? Not on your life / Stock-Markets / Stocks Bear Market
Hundreds, if not thousands –perhaps even millions– of traders, investors and technicians are waiting eagerly on the sidelines like the boomer sooners of the Oklahoma land rush hoping to catch the bottom of the panic. This is known in the trade as catching the falling knife. It is not a recommended strategy (what is the difference between a tactic and a strategy? as John McCain would say).Read full article... Read full article...