Charting Stocks

The Dow Jones Industrial Average rose almost 240 points (3.5%) today. As mentioned in a previous post, large daily percentage gains are more consistent with bear markets than bulls. Todays rally was led by banks and REIT’s,  two of the most beaten up and oversold sectors – also consistent with a bear market correction.
Below is [...]

The credit worthiness of the United States is deteriorating rapidly and may lead to a credit rating downgrade.
In our 2009 forecast, we mentioned that the United States may be downgraded this year.  The trillions of dollars being pumped into a dying financial system will have its consequences. The treasury is expected to issue $2 trillion [...]

Ecuadorean President Rafael Correa officially announced that he will not be making the interest payments on his foreign bonds. The country has officially defaulted on its debt obligations. This is the second Ecuadorian default in ten years.
“I have given the order that interest payments not be made,” Correa said. “The country is in default.”
Correa went [...]

The WSJ reports that Federal Reserve is now said to be thinking of issuing it’s own debt. The concept could include selling bills or some other form of notes. This would be the first time in history for such an action  be taken.
The mainstream media has already begun to sell the idea to the public [...]

Today’s treasury auction outlined the panic that still dominates the financial markets. $36 Billion in T-Bills were auctioned off today which gave a 0% yield. Why would anyone be willing to make an investment in which they are guaranteed to make nothing? The one word answer is “Fear.”

Because treasury bills are direct obligations of the [...]

The yield on the 10 year treasury sunk to a 50 year low this week. It’s important to pay attention to moves in the treasury yield. If investors are panicked, they are more concerned with safety and less concerned with returns. Because price and yield are inversely related, when demand increases and the price for [...]