Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Saturday, June 02, 2007
Stock Market - June Swoon / Summer Rally / Stock-Markets / Elliott Wave Theory
"The Raging Bull" we spoke of a couple of weeks ago, appears to have taken up permanent residence across many sectors of the financial sphere. This bull has been relentless, cunning, and quite masterful in dealing with the plethora of participants who have been eagerly anticipating some type of correction – if not an outright crash!
After 11-weeks of nothing but blue sky, we suspect this bull may simply be growing bored of the dominance it imposes upon bears at will. Perhaps a couple of weeks respite in June ought to be a minimum at which this easily antagonized bull may once again become angered, electing to resume its deceptive charge with renewed fury.
Read full article... Read full article...
Thursday, May 31, 2007
Will China's "Stamping" Out of Stock Speculation Curb Overall Stock Market Speculation? / Stock-Markets / Chinese Stock Market
Effective yesterday, the Chinese Ministry of Finance increased its so-called stamp tax on stock market transactions from 0.1% to 0.3% in an effort to curb speculation in the Chinese stock market. This stamp tax is nothing but a transactions tax imposed on both buyers and sellers of stocks.In reaction to the increased tax rate, the Shanghai Composite stock index fell 6.5%.Read full article... Read full article...
Thursday, May 31, 2007
Metals and US Stock Indices Charts Analysis / Stock-Markets / Financial Markets
In this editorial we have incorporated long term charts for gold, silver and the Dow Jones Index with a twenty seven year support line.
In the below charts you will notice:
- Dividing two markets together to create a ratio helps us determine which market is outperforming the other market. For example, in the chart above, when the black line heads higher, the NYSE is outperforming Silver and when the black line heads lower Silver is outperforming the NYSE.
Wednesday, May 30, 2007
China Stock Market Crash Update: The Real Story ... / Stock-Markets / Chinese Stock Market
Chinese Government officials got real worried when the Shanghai continued its parabolic rise and blew through its 12 year Major resistance level.
This morning, their markets dropped over 6% after the government increased the stamp tax on Security transactions. The news media are making a "big deal" out of the tax increase by running headlines that say, "China China's CSI 300 Drops After Transaction Tax Tripled ".
Read full article... Read full article...
Wednesday, May 30, 2007
GOLD THOUGHTS : Surge in Investing in Paper Equities, Tail End of the Boom? / Stock-Markets / Liquidity Bubble
Investing in paper equities has apparently become far easier. Either a stock will be taken private by a speculative investment fund or it will be purchased with money from China's foreign currency reserves. Investment gains have rarely been so assured. Not since internet stock bubble or Florida condo mania have investors faced such odds of winning. Combine those odds with a Federal Reserve dwelling in the la la land of core inflation creates a near perfect story for placing wealth into paper equities.Read full article... Read full article...
Tuesday, May 29, 2007
Stock Market Developing Topping Pattern Over the Summer / Stock-Markets / US Stock Markets
The decline in the S&P 500 and other broad market indices likely was a shot across the bow for what lies ahead later in the year. Technically the S&P could have completed the move up, but technical evidence suggests that a topping formation will develop over the course of the summer before a sharp decline in September/October.Read full article... Read full article...
Tuesday, May 29, 2007
A Backdoor Investment Play into Macau / Stock-Markets / Chinese Stock Market
Tony Sagami writes: : I've never considered myself to be a yuppie. Even when I was younger, I never drove a BMW … bought a Rolex … or belonged to a country club. I'm just the simple son of a vegetable farmer. I drive a domestic pickup truck, wear a Timex, and shop at Wal-Mart and Costco.
Still, the yuppies were a powerful consumer force. They had a major impact on both the U.S. economy and the stock market. People who invested in companies catering to yuppies made small fortunes!
Read full article... Read full article...
Tuesday, May 29, 2007
Honest Money Financial Markets Wrap - Stocks, Commodities and Gold / Stock-Markets / Financial Markets
Introduction
This week's market wrap is going to focus primarily on the precious metals sector. There are a lot of charts, including a couple of the dollar and bonds.
The recent prolonged correction of gold and silver has produced a good deal of angst in the pm community, as the many emails and comments I've received on my website attest.
I will attempt to address the concerns that were expressed. So let's get to it.
First up is the monthly chart of gold going back to the start of the bull market in 2001.
Read full article... Read full article...
Monday, May 28, 2007
CHINA CRASH - Domino Effect on Stock Markets, and Collateral Effect on Resource Stocks... / Stock-Markets / Global Stock Markets
One of the great fears plaguing resource stock investors is what will happen if the broad market suddenly goes into the tank. This fear is quite justified as resource stocks, in particular gold and silver stocks, have generally performed poorly in comparison with the general stock market over the past year, and every time the broad market shows signs of weakness, they have dropped sharply, a good example being last Thursday.
In this article we are going to take a look at the great Chinese equity bubble, and how the bursting of this bubble will probably affect US stock markets and thus resource stocks.
Sunday, May 27, 2007
Weekly Stock Market Technical Analysis Report - 27th May 07 / Stock-Markets / US Stock Markets
The good news is: Many of the major indices hit multi year or all time highs last week.
Short Term
The small caps lead both up and down and for the past month that leadership has left something to be desired.
The chart below covers the past year showing the S&P 500 (SPX) in green and the Russell 2000 (R2K) in red. At the bottom of the chart is a FastTrack (http://fasttrack.net) relative strength indicator called Accutrack (AT). When AT is above the neutral line and/or rising the R2K is outperforming the SPX. For the past month until about a week ago AT has been below the neutral line and falling to its lowest level since this up leg began last summer. Last week AT turned up and, although it is still below the neutral level, the direction is what we like to see.
Read full article... Read full article...
Saturday, May 26, 2007
Thoughts from the Frontline - The US Mortgage Market - Overexposed and Overrated / Stock-Markets / Financial Markets
In this issue:
The Chinese Hedge Fund Dragon
Turning Nuclear Waste into Gold
Overexposed and Overrated
Housing Is Weaker than the Data Suggests
Planes, Trains, Automobiles, and We're #30
This week we look at the US mortgage market to see what fallout there is from the subprime mortgage woes. It is both less of a problem and/or more of a problem, depending on your perspective, as I predicted it would be last year. Score one for your analyst, which said score is needed as the stock market continues to rise in spite of my concerns in the face of a slowing economy.
Read full article... Read full article...
Saturday, May 26, 2007
Can A Major Stock Market Top Occur Here? / Stock-Markets / US Stock Markets
While the following charts are meaningless for predictive purposes, what they do tell us is we currently have a price pattern set-up eerily similar to the price pattern leading up to the January 2000 major top in the Dow Industrials .Read full article... Read full article...
Saturday, May 26, 2007
Into the Pool - ETF Skeptic / Stock-Markets / Exchange Traded Funds
Here's a confession from a 20 years-plus industry veteran: I use investment conferences for more than making my points and chatting with current and prospective readers. I also like to scope out what the rest of the industry—including the competition—is doing, chiefly the products they're selling and the public's reception to them.
One of the most popular items at last week's Las Vegas Money Show was exchange traded funds (ETFs). It's not hard to see that these have captured investors' imagination, and dollars, during the past year. The “Wall Street Journal” now publishes what seems to be an ever-expanding page of ETFs that are offered by a growing array of financial houses anxious to cash in on the trend.
Read full article... Read full article...
Friday, May 25, 2007
Is Global Stock Market Exuberance Rational / Stock-Markets / Global Stock Markets
As stocks markets around the world rise to record highs, even former Fed Chairman Alan Greenspan could not refrain from raising concerns about surging Chinese stocks. Lest we forget, Greenspan is on record for declaring the impossibility of spotting a bubble before it bursts. But in the few times that he has violated his own credo, his vision has proven invariably faulty.
Not only did he warn of irrational exuberance in the U.S. just before a five-fold increase in the NASDAQ, but he became one of the markets biggest boosters once the market peaked. Based on his track record, I interpret his statements as a screaming buy signal for Chinese stocks.
Read full article... Read full article...
Thursday, May 24, 2007
Utility Futility Suggests the Bear is Growling / Stock-Markets / US Utilities
With S&P 500 bank/financial stocks the worst performing sectors so far in 2007, it is becoming clear that the inverted yield curve has damaged investor confidence in the group. Conversely, with utility stocks the best performing sector this year, it is obvious that investors have continued their defensive hunt for yield. Suffice to say, given that financial stocks typically outperform early in the cycle and utilities tend to beat other sectors late (or in the down cycle), the action in 2007 would seem to suggest that the bear is growling.Read full article... Read full article...
Thursday, May 24, 2007
Financial Markets Timing Signals You Must Watch! / Stock-Markets / Financial Markets
Larry Edelson writes: A couple times a year I like to give you my roadmaps of the markets. They are based on actual signals from my computer models. I watch these signals very closely because they tell me when a fork … speed bump … or U-turn is coming in the markets.
They are critical signals, and they should not be ignored. They're not always right. But after 30 years of developing and fine-tuning my system, I can safely say that the economic models they are based on are right far more often than they are wrong.
Read full article... Read full article...
Wednesday, May 23, 2007
Going Ballistic: The Hard Facts about Parabolic Spikes Such as China's Stock Market / Stock-Markets / Chinese Stock Market
Living through a mania is supposed to be a once in a lifetime event. For example, the French, who lived through the implosion of the Mississippi Scheme, and the English, who lived the South Sea Bubble collapse in the 1720s, did not see the same parabolic rises again during their lifetimes. Or for a more recent example, consider the parabolic rise of the Nikkei to its all time high in 1989, the aftermath of which has since changed the disposition of the Japanese toward their stock market. As we mentioned in The Nikkei: Raiders of the Lost Ark , Japanese nationals have a different view of their stock market than foreign hedge fund managers.
“Although there is a problem in that its [ Japan 's] stock market is supported primarily by foreign investors, Japanese nationals make up 95% of its government bond market." 1
Read full article... Read full article...
Tuesday, May 22, 2007
Make That a Cheap Money Bubble to Go / Stock-Markets / Liquidity Bubble
"...From Shanghai to Soho, the flood of cheap money is causing fresh mischief each day. Investors beware! Creating value is fast losing out to just taking profits..."
"WHY NOT SELL UP? He's been grilling cheese sandwiches for the last 40 years. Now his café and the apartment upstairs are worth £2.5 million [just shy of $5 million]. He can retire rich overnight!
"So what if Costa Coffee or one of the other chains move in? Okay, London's famously cool Soho district loses character...and it loses a little institution, too. But who cares? This guy certainly doesn't. He cashes out and never has to make a frothy coffee again.
Read full article... Read full article...
Tuesday, May 22, 2007
The Ballistic Brazilian Bovespa Stock Market Index / Stock-Markets / Brazil
Higher prices for commodities from coffee to soybeans and iron ore to crude oil, have brought new found wealth to Brazil. Since the election of President Lula de Silva in 2003, Brazil has emerged as a major player in global trade, and its currency - the real, has climbed by 70% against the US dollar, with a trade deficit shifting into a massive surplus. The Bovespa index on the Sao Paulo Stock Exchange reached a record high of 52,750 this week, and is up 18.2% so far in 2007.Brazil economic output rose to $1.6 trillion last year, or half of South America's GDP, and making it the ninth largest economy in the world. Brazil occupies half the South American continent, contains half of its population with 200 million, and is the fifth most populous country in the world. However, there are vast disparities in the distribution of the country's land and wealth, and Brazil has the greatest number of people living in poverty in all of Latin America.
Read full article... Read full article...
Tuesday, May 22, 2007
New Investing Boom in Hong Kong / Stock-Markets / Chinese Stock Market
Tony Sagami writes: Greetings from Shenzhen, China!
I just got here this morning, after stops in Hong Kong, Macau, and Taiwan.
And as you might guess, traveling like this can get exhausting. But while I was in Hong Kong, I got a much needed shot of adrenaline.
That's because the China Securities Regulatory Commission (CSRC) announced a sweeping change that will permit Chinese institutional investors — banks, insurance companies, and mutual funds — to invest billions in the Hong Kong stock market.
In other words, the timing of my trip couldn't have been better! Everything tells me money is going to pour into Hong Kong equities, sending some of them to the moon. And investors who take advantage of this monumental opportunity stand to reap amazing profits. Let me explain …
Read full article... Read full article...