Charting Stocks

When we wrote “Inflating a Bull Market,” we mentioned the inverse relationship between the US dollar and stock prices. In March, the US dollar peaked from overbought levels and began to decline. At the same time stocks bottomed from oversold levels and began to move up. The reason is simple – Stocks are priced [...]

Much has been made over the recent stock market rally. The advance from the bottom has, indeed, been historic and has caught many of us by surprise. Though the market was extremely oversold and due for an upward correction, we continue to be  amazed at its strength and longevity.  A closer examination, however, reveals that [...]

The Russian stock market collapsed today, causing the RTS and the Micex stock exchanges to suspend trading for one hour at 4:05 p.m. Moscow time.  The RTS stock index, which is denominated in US dollar,  plunged 9.4%, while the ruble-denominated Micex stock index fell 9.6%. The decline in Russia followed a tumble in oil prices, [...]

The US Coast Guard is reporting that 6,000 gallons of “Oil Sludge” spilled into the Des Plaines River from a container at Caterpiller’s hydraulics plant in Illinois. It is estimated that the Caterpillar container spilled 65,000 gallons of the sludge while 6,000 made its way into the river. Feds  closed down a three miles section [...]

The 2008 US dollar rally is losing steam and may be coming to an end. I know that the run up in the currency left many in the financial world scratching their heads. How can the currency of a collapsing economy strengthen? Why, when trillions of new dollars are being created out of thin air, [...]

Charting Stocks
September 16, 2007
In recent of posts, I’ve mentioned that 13,450 was an important level of resistance for the Dow Jones Industrial Average. On August 19th I noted that 13,458 was a key Fibonacci resistance level and thought that this would be a reasonable spot for the market to stall. I used last weeks post [...]

January 1, 2007
Charting Stocks 2007 Outlook:
The case for a Stock Market decline in 2007
-Contraction of the manufacturing sector: Usually precedes a recession
-Auto production declining by more than 10%: Usually precedes a recession.
-The collapsing real estate market: Public Home Builders report record cancellations. KB Homes 53% of orders were cancelled in 2006. Pulte Homes 36%, [...]