Sunday, November 2, 2008

Daily Markets (37 сообщений)

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  • Stock Investing: Stick To Long-Term Strategies

    Given the ongoing volatility in the Dow (^DJI) and the S&P 500 (^GSPC), I realize some of you are considering changing your investment strategies. Therefore, I want to share with you a conversation I had with one with a friend at Zacks Investment Management about the current market environment.

    The financial advisor commented that he is continuing to sign up new clients. When asked why, his response was that many people were angry at their current advisors and wanted someone else to … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • Volume Fades As Stocks Close Out October

    Price action was something stock market participants can be excited about.  We rose off the most recent lows and confirmed the rally with a move in the S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) by more than 1.7% gains on higher volume than the previous day.  However, that Tuesday rally was the only day stocks showed accumulation.  The rest of the week saw stock gains on lower and lower volume suggesting the move higher was not being bought by the big institutional … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • What Comes Next For US Economy - Deflation Or Hyperinflation?

    That’s the recurring debate among those who understand that the current crisis is not just a passing storm — after which everything will somehow return to ”normal” – but the prelude to a dramatic sea change in economic conditions.
    That is, the “new normal.”
    In my mind, there is little doubt which ‘flation is on the cards, at least in the short run. With the bursting of history’s biggest credit bubble — one that spans the far reaches of the globe — has come a deflationary … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • Commodity Prices Sinking To 52-Year Low

    Commodity prices are bracing for their worst month in 52 years as global demand continues to slide.

    The Reuters/Jefferies CRB Index - a measure of 19 global commodities from light crude to lean hogs - fell 24% in October, Bloomberg reports.

    “October is at last ending - the worst month in commodity history,” Eugen Weinberg, an analyst at Commerzbank AG in Frankfurt, told Bloomberg. “Investors are expecting lower growth for the longer term and that is putting prices under … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • New Dividend Indexes May Raise Interest in ETF

    Perhaps an exchange traded fund (ETF) will emerge soon to track the newest entries into Standard & Poor’s stable of dividend-seeking indexes.

    The indexes cover areas such as Asia, Australia, Europe, Japan and other emerging markets.

    Index Universe reports that outside of Europe, S&P has never had a dividend-specific index for the other regions and countries covered in the new index launches.

    During times of unrest and risk-aversion, dividends offer a greater cushion against … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • Governments Supporting Stock Markets: What Are The Implications?

    We’ve definitely entered a new realm in the global economy.  Governments now are freely making purchases in the equity markets to support their stock markets.  I saw today that Russia is rumored to be purchasing equities:

    Russian Stocks Rise, Led by Gazprom, VTB on Government Support

    By William Mauldin

    Nov. 1 (Bloomberg) — Russian stocks climbed, led by OAO Gazprom and VTB Group on speculation the government is supporting the country’s stock market……………..”This … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • VeraSun Energy Declares Bankruptcy

    Verasun Energy - Investors - Press Releases.

    As I hypothesized on Thursday, VeraSun Energy (VSE) has filed for Chapter 11 bankruptcy. The cause can be condensed to two sentences from the press release:
    The Company suffered significant losses in the third quarter of 2008 from a dramatic spike in its corn costs, reflecting in part costs attributable to its corn procurement and hedging arrangements, and historically unfavorable margins. Beginning in the third quarter, worsening capital … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • Toronto Dominion Bank - The Best Positioned Canadian Bank To Weather The Storm?

    On Thursday of this week I added to my existing Toronto Dominion Bank (TD) position, which I started back in April, at $55.23/share. This brought my average cost on TD Bank down to about $62/share. I continue to pick away at adding to my existing stock holdings when I see value. TD was 26% off of its 52 week high and yielding 4.4% when I made the purchase. This purchase makes TD our largest holding in our non-registered dividend stock portfolio. This portfolio is designed for the long … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • Coming To Grips With New Realities

    Earlier today, economists and others who believe the seemingly drug-induced pseudo-reality spewed out each month by various government agencies finally learned what visitors to Financial Armageddon and a select group of other individuals have known for many months: the economy is heading south, most likely in a big way.

    According to a Reuters report, ”Economy Contracts as Consumers Retreat,” the U.S. economy “suffered its sharpest contraction in seven years in the third … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • India Acts Again - Cuts SLR, CRR, Repo Rate

    As expected, RBI increased liquidity with the following measures:

    SLR down 1% to 24%,
    CRR down 1% to 5.5%,
    Repo rate down 0.5% to 7.5%.

    The very next day we had the following headline in Business Standard:
    Warning that MFs and NBFCs with an exposure of Rs 630,000 crore could crumble under high interest costs, CII President K V Kamath today asked the government to save the crucial financial sector to save the economy. (Mr Kamath is not ususally given to … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • Time To Buy?

    Individual investors will be getting their statements from October.  The news is not good.

    Most people react in the wrong way, looking backward rather than forward.  This is the main reason that the individual investor, attempting to time the market, gets about half of the average rate of stock market gains.

    Three Factoids

    Sometimes the picture can be captured in a snapshot.  Here are three facts to consider:

    Investors are bailing out of mutual funds.  The latest report is … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • Fundamentals Of Crude Oil Pricing: Part IV

    If you have not read parts one, two, and three of this article, please visit the following pages:

    Part One
    Part Two
    Part Three

    Refiners and the Crack Spread

    The general misconception that demand of crude oil is that it comes directly from “whoever pulls it out of the ground to their cars.” Unfortunately this is flawed thinking as they neglect many steps in between the first and last steps. The refiners are the ones who actually control the demand of crude oil, not the … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • Consumers, ETFs Hurt While Oil, Gas Companies Win

    While the markets have seemed relatively calm in recent days, consumer confidence has taken a wallop.

    In October, it suffered its sharpest monthly drop on record, reports Chris Reese for Reuters. The reading plunged from 70.3 in September to 57.6 this month. It’s slightly below the 57.8 economists had expected.

    Oil prices are continuing their gyrations, dropping below $65 a barrel. It’s on pace to have its sharpest monthly decline since oil futures began trading on the New York Mercantile … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • U.S. Oil Companies: Profits Vs Taxes In 2006

    According to the EIA, the major energy producing companies (listed here) like BP, Exxon, Shell, Chevron, etc. earned $131.5 billion in profits in 2006 (most recent year available, data here), see chart above.
    Those same companies paid or collected: a) $90.445 billion in income taxes in 2006 to various governments in Europe and the Middle East, the U.S., Canada, Russia, etc., b) $8.25 billion in non-income taxes to the U.S. government (production taxes, sales taxes, property taxes, … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • Housing Affordability Close To 4-Year High In September

    According to the NAR’s most recent report, the housing affordability index (HAI) reached 135.2 in September, which is close to a four-year high (see chart above) and just slightly below the 135.4 leve in Febraury (when 30-year mortgage rates dipped below 6%).

    An HAI of 135.2 means that a family earning the median family income in September ($60,730) had 135.2%% of the income necessary to qualify for a conventional loan (at 6.22%) covering 80% of a median-priced existing … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • Veteran Energy Economist: Oil Headed For $20-25

    Veteran energy economist Philip Verleger insists oil never should have gone much above $70 a barrel; that it did so only because of “a perfect storm” of U.S. policy mistakes, European economic developments and currency shifts; and that it could well end up back in the low $20s before the global economy gets back on its feet.

    “I think it will go a good deal lower, particularly next spring [when oil markets are traditionally weakest],” Mr. Verleger said. “If this thing follows a natural … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • Forex Trading: A Look At Last Week And The Week Ahead

    I think there was a bit more of a trend in the market this week with some of the major pairs. After last weeks ridiculous swings that saw the EUR/USD drop 824 pips, an in incredible decline in the GBP/USD by 1423 pips, a more solidified market has arrived. Here are the total pip movement for the majors this week:
    Majors
    EUR/USD | +111 pips
    USD/JPY | +490 pips
    GBP/USD | +216 pips
    USD/CHF | -45 pips
    AUD/USD | +494 pips
    USD/CAD | -606 pips

    The one pair that stands out in my … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • SP500 Resistance At 1020.82 Then 1070

    Looking at the SP500 chart……..I believe that we are still in Wave 5 of a 5 Wave Elliot Wave setup.  Wave 4, by definition cannot exceed the bottom of Wave 1 = 1254  ;   1070 is a 50% retracement from the high of 1313 to the low of 839;   The first resistance would be at 1020.82;

    The Point and Figure Charts are showing resistance at the 985 and 1040 level.  It will be important to see how the market reacts as we approach these levels.  It will hopefully provide signs of where … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • Is Current Healthcare System Sustainable?

    When it comes to dealing with serious structural concerns, even when its clear that something must be done, conflicts of interest, fear of the unknown, short-term financial constraints, and a variety of other factors often get in the way.

    History suggests, in fact, that it often takes a full-blown crisis to bring about dramatic change — hopefully positive, but not always – in the status quo.

    In a sense, it is akin to the situation of an alcoholic who knows he has a problem, … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • My Portfolio Update

    31 months ago, we started a non-registered portfolio by transferring $5,000 from a mutual fund account into an online brokerage with the intention to buy stocks. Over the last 2.5 years we’ve saved new funds and managed the portfolio for the future by purchasing dividend growing stocks at reasonable value and using the following philosophy:

    Investing Philosophy
    I’m foremost a buyer, seldom a seller, with a long-term view.
    I’ll only buy stocks that I would average down on.
    I will be … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • Trade Ideas For The Week Ahead - CBST, AFAM, GOOG, RIMM

    The FED has slashed a key interest rate by half a percentage point again this week to near historic lows, as it seeks to revive an economy hit by a long list of maladies stemming from the worst financial crisis in 70 years. The cut marked the second half-point reduction in the funds rate in October, after on Oct. 8 in a coordinated move with foreign central banks the Fed slashed the rate to 1.5 percentage point. In a brief statement, the Fed said that the “intensification of financial … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • ETF Update: No Sectors To Buy

    Investors and traders alike can improve their understanding of the market by looking at specific sectors.  It is a great way of maintaining perspective, avoiding over-emphasis on the Dow or on individual stocks.

    It can be a mistake to miss the forest while watching trees - or vice versa!  A sector focus is a good solution.

    Looking at charts of the various sector ETF’s is one approach.  While this is not a substitute for fundamental analysis, it provides powerful visual evidence … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • Volatility Index VIX Update

    The VIX (^VIX) has broken the 20-day MA, a very key short-term support area. Watch the 63-65 level closely for resistance and south of 57 for a break in support.

    VIX 3-day

    VIX 10-day

    VIX … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • Repeat The Past (And Then Some)?

    In a post I wrote last Tuesday, “Worse this Time,” I highlighted reasons set forth by Jim Rawles over at SurvivalBlog.com as to why the current downturn could more than rival the one that took place nearly 80 years ago.

    As it happens, it isn’t only bloggers who are discussing this possibility. Even some mainstream commentators are questioning the assumption that we are not doomed to repeat the past (and then some).

    In an Op-Ed piece for the Financial Times’ Economists’ Forum, “It … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • Central Banks Pushing On A String

    Policy makers are trying everything to stabilize the global financial system and thaw credit markets. But the US economy and other world economies are in bad shape. The central bank efforts are not translating into credit availability for the broad economy. They are pushing on a string. The reasons for not lending are:

    Rising credit card defaults
    Rising unemployment
    Rising foreclosures
    Rising bankruptcies
    Massive overcapacity

    Here are some charts to illustrate the current … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • Panasonic May Buy A Controlling Stake In Sanyo

    Japan-based electronics maker Panasonic (PC) has plans to seek control of its smaller rival Sanyo Electric Co., from its three biggest shareholders - Daiwa Securities SMBC, Sumitomo Mitsui Banking and Goldman Sachs (GS) which combined hold roughly 430 million Sanyo preferred shares (70% of the co. if share were converted to common stock). The preferred shares would be worth more than $6.2 billion if converted to common stock at Friday’s closing price of 145 yen ($1.47).

    The parties … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • The Financial System And Its Identifying Solutions

    The strength and stability of a financial system is strictly measured by its ability to function in a state of equilibrium under normal and distressed conditions. If this main criteria is met, then the system’s proficiency to combine its structural, institutional and well-designed policies that follow free market principles - as one component, will not only provide a system in synchronism, but will also allow for a coordinated functioning of it as a coherent entity that will consistently … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • Dollar, Yen ETFs On Pace For A Banner Month

    The dollar and yen exchange traded funds (ETFs) are gearing up to cap off a banner month, with their strongest one-month gain against the euro ever. Global recession fears are prompting investors to sell off their higher-yielding currencies, benefiting the dollar and yen. … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • JPMorgan Chase - Major Mortgage Loan Default Spike

    As part of my day job at Field Check Group, Real Estate & Finance we analyze the entire housing & mortgage universe including extremely granular mortgage default and foreclosure data by lender, not available to most.

    While JPMorgan Chase’s (JPM) mortgage modification announcement today makes a whole lot of sense from the stand point of ridding themselves of WaMu’s toxic Pay Option and Subprime loans at a better price than bulking them to the highest bidder, Chase has some … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • Changing With The Market

    When the market changes, we must change our tactics, strategies, and analysis techniques to accommodate the new market conditions. This is not a new idea, but it is one that is not very widely recognized, particularly when applied to the long-term. In recent writings I have emphasized that we are in a bear market, and that we must play by bear market rules. Overbought conditions will usually signal a price tops, and oversold conditions can often see prices slip lower to even more oversold … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • Upside-Down Mortgages Drive Foreclosures In The US

    With all of the talk in the news lately about the government modifying loans to make them more affordable, the 800 lb gorilla in the room goes largely ignored.

    But huge, hairy and mean, there he sits. And he’s getting hungrier by the minute.

    That’s because the much bigger problem here-for borrowers of all stripes-is actually the continuing decline in values that could reach as high as 30% from peak to trough. By comparison, higher payments are smaller problem.

    So sure, while the … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • Petro Dollar Shopping Spree Starts Now

    As we twist in the wind, watching the markets rise on vapors and plummet on gossip, the financial pundits are trying to figure out whether the current mini-rally is here to stay.

    History indicates that there will be plenty of rallies as we bounce across the bottom. After all, the stock market is a self correcting system. When prices get low enough, people will start buying. And when they start buying, prices will move up.

    However, there’s a new wrinkle this time around.

    To buy stocks, … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • Week Ahead In U.S. Financial Markets

    The first week of November will see another heavy week of data releases on the calendar that will feature the first significant look at the data from the real economy in October, when the credit markets seized up. The primary market-moving event will be the Friday publication of the October estimate of non-farm payrolls that we expect to contract by -225K. The week will kick off with the release of the October ISM survey of manufacturing conditions nationwide, total vehicle sales and the … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • ETFs Give Investors Choices In Any Climate

    Exchange traded fund (ETF) investors can play defense with their fund choices by focusing on areas of the market that hold up better in a downturn than other sectors.

    Many market analysts believe we are in a recession, defined as two consecutive quarters of a decline in gross domestic product,  so why not look to sectors that will withstand this?

    Sectors such as health care and consumer staples always retain some stability as well as funds that track food or tobacco. Eleanore Laise … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • Maintaining Stability Through Balance: United Technologies

    So the overall market perception of the Industrial sector is that it is an extensively risky place to invest right now. In these volatile times many investors are flocking to the safe-havens offered by Healthcare and Consumer Staples. However, diversification is key to all sound portfolios and thus I am offering you a company that offers stability via balance in the Industrials sector: United Technologies Corporation (UTX).

    United Technologies is an Industrial conglomerate that … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • Gold Hits Resistance - Target Below

    Gold prices completed their counter-trend rally on Thursday and found confluence resistance at the 38.2% Fibonacci retracement along with the 20 day EMA.  Let’s see this event and see if we can make out a weekly Elliott Wave count structure as well.

    Gold Daily Prices:

    If there ever was an 'anatomy of a sell signal,’ Gold provided it this week.  Price formed a new momentum low last week and then began a sharp retracement back to the upside.  What was the target for the … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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  • Google And Renewable Energy

    What’s the one industry that’s changed as much in the past few decades as energy?

    Infotech.

    And as their energy demands grow, and electricity becomes more expensive, high-tech companies like Google (GOOG) are increasingly going green.

    Consider a few points:

    The Lawrence Berkeley National Laboratory, a U.S. Department of Energy research center at the University of California, says data center energy costs can be 100-times higher than those for typical buildings.

    In her … [visit site to read more]

    Article Published On DailyMarkets.com - visit Daily Markets - Financial News & Opinions for more great content.


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Об этом говорят...



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