Stock Market Update -Jun 21st

This week we're seeing red in the market as a pullback is now underway (in my opinion), after having topped out at the January high (see chart). We could see a bigger pullback in the coming weeks.

New Unemployment claims for the week came in over 600,000 again, and three more banks were shut down by regulators (list).

Commodities: Commodity prices are falling. Oil closed around $69 per barrel. We could finally see a pullback in oil prices at this level. Gold closed around $934, and the US Dollar was more or less flat for the week. Bond prices fell somewhat. We could see Bond prices slide some more as we see a record auction in Treasury Bonds next week ($104 billion).


Next week will include a Fed meeting, and a couple of economic reports.

Market analysis: This week's pullback could be indicative of a larger pullback to come. We may get a bounce following last week's drop, only to be followed by a larger drop, so be cautious. If RIMM and POT are any indication, look out below (see charts).


Stocks log first weekly loss since early May
Pros Say: S&P to Decline Toward 850
Bonds up ahead of big week
S&P Downgrades 18 Banks
Credit card defaults keep climbing
Art Cashin: 'Long Tough, Slog Ahead'

Here come higher interest rates
Calif. jobless rate climbs to record 11.5 percent
California's Economy: Too Big to Fail?
Second Lowest PPI Reading on Record
Where Housing Will Be in 2012
Has the 401(k) failed?

Stock Market Update -Jun 14th

The market was basically flat this week (S&P 500), still holding above the January high (see chart below). The DOW is not quite there yet, though it did close above the 2008 'year end' value. New Unemployment claims for the week came in over 600,000 again (601,000), though the trend finally seems to be reversing a bit.

Commodities: Oil prices closed higher again, around $72 per barrel. Gold prices fell to around $940, while the US Dollar was down for the week. The 30 year Bond prices recovered a bit.

Next week we get a number of economic reports, including the PPI and CPI, and housing starts. Friday is expiration day for options and futures, and also near the end of the quarter, which could add to the volatility. RIMM also reports earnings on Thursday -will it reverse or push higher? Also reporting are FedEx and Best Buy.

On a side note, this week Blackrock purchased Barclay's investment business for $13.5 billion. This now makes Blackrock the biggest asset management firm with $2.7 trillion under management ($2,700,000,000,000)! What ever happened to 'too big to fail'? Isn't that what got us in trouble with firms like Bear Stearns, Lehman, AIG, Citigroup, etc...

Market analysis: Still no clear short-term direction at this point -options expiration on Friday could move the markets in either direction; many traders are still looking for a reversal at this level.

Where Do We Go From Here?
Americans' wealth drops $1.3 trillion
Americans Get Poorer More Slowly
Public debt -The biggest bill in history
The next great crisis: America's debt
$1,000,000,000,000 In 8 Months
Geithner Brings the Laughs In China
Get Ready for Inflation and Higher Interest Rates

BlackRock to Buy Barclays Fund Unit for $13.5 Billion
Citigroup finalizes deal to make U.S. largest holder
How traders killed investing
Behind Oil's Surprising Surge
E-mail shows Fed strong-armed BofA
Fall of Chrysler, GM saved the day
Mortgage Rates in U.S. Rise to Highest Since November
U.S. Foreclosure Filings Top 300,000 as Bank Seizures Loom
Theme park firm Six Flags files for bankruptcy

Stock Market Update -Jun 7th

The market was up nicely this week, finally surpassing the previous peak seen in early January (see chart below). The payroll report on Friday was much better than expected as far as job losses, though the unemployment rate is now up to 9.4%, the highest in 25 years.

GM filed for bankruptcy on Monday, with the government now owning 60% of the company as part of a restructuring plan.

New Unemployment claims for the week came in over 600,000 again, and another bank was shut down by regulators (list).

Commodities: Oil prices continued to rise, closing around $68 per barrel. Gold prices fell to $960, as the US Dollar turned up this week. Bond prices continued its steep drop in prices (higher long term interest rates!).


GM and Citigroup were removed from the DOW index, and replaced by Cisco and Travelers.

Market analysis: Still no clear short-term direction at this point -we could see a continuation of last week's up-trend, though many 'traders' are looking for a reversal at this point.

G.M. Files for Bankruptcy
40,000 Jobs Lost as GM Becomes Biggest Ever U.S. Company Failure
The Quagmire Ahead
Will Government Motors do better than General Motors?
Who Is Going To Lend Us The Money To Fund Our Exploding Debt?
Our Exploding Deficit Will Kill The Economy

Why Cisco got the Dow-index slot over other tech ideas
Microsoft's Great Week
Countrywide's Mozilo accused of fraud
Rising interest rates could threaten recovery
Doubts about three-month rally dog Wall Street

Stock Market Update -May 31st

The market was up this week; maybe we will see it hit that 943 level on the S&P after all (the early January high). Commodities were up too, as the US Dollar continued to drop. Job losses continue, and not helping matters is a high probability of a GM bankruptcy just around the corner. New Unemployment claims for the week came in over 600,000 again.

Commodities: This month commodities had the biggest gain in 34 years! Oil prices rose, closing just above $66 per barrel! Gold prices also rose ($979), as the US Dollar continued to drop in value. We are not far from $1000 gold prices again. Bonds also continued to fall, but recovered a bit toward the end of the week (bond prices drop = higher long term interest rates).



Next week : The GM bankruptcy is still pending; we also get the monthly payroll report on Friday, which is expected to show that the unemployment rate is now over 9%.

Market analysis: The market did hold at the support level mentioned last week, so now we will see if it can rally some more and break out of the trading range we have been stuck in for the month of May, or if it will break down again at the resistance level we are approaching. There is no clear direction at this point.

Why the Bulls Just Won't Die
Crude Oil Caps Biggest Monthly Gain Since 1999 on Dollar Drop
Surprise! There are no more surprises
US Economy at Risk for Double-Dip Recession
Banks have declared war -- on you
Zombie banks walk among us
Hedge funds worried Obama moves could backfire
FDIC's Deposit Insurance Fund Reserve Ratio Plunges To 0.27% Of Deposits
What should Obama do with shares in auto companies?
Leap in U.S. debt hits taxpayers with 12% more red ink
U.S. Hopes To Recoup GM Outlay In 5 Years

The $4 trillion housing headache
U.S. mortgage rate rise threatens housing recovery
Home mortgage delinquencies hit highest rate since 1972
Home prices still falling at record pace in first quarter
Housing Market Being Pounded By New Wave of Foreclosures
Is a commercial real estate bust inevitable?
The next crisis has already begun

Stock Market Update -May 24th

The market was up on Monday, then backed down to close at about the same level where it started the week. There were concerns about the US debt levels and potential downgrades.

New Unemployment claims for the week came in over 600,000 again, and two more banks were shut down by regulators on Friday (list). Mid week, the FDIC also shut down a large Florida bank.

Commodities: Oil prices continued to rise, closing around $61 per barrel, along with Gold prices, as the US Dollar continues to fall. Bond prices also continued to fall.


Next week we have a short week because of the Memorial day holiday on Monday. Earnings season is pretty much over now, so the market will be mostly news driven. We could get news of a GM bankruptcy later in the week.

Market analysis: If the market doesn't hold at this support level (see chart above), we could see further downside, maybe to the low 800s in the S&P 500.

The S&P 500 P/E Needs to Correct
Recession Turns Malls Into Ghost Towns
US Economic Recovery May Be a Long, Slow Slog
GM to file for bankruptcy as early as next week, report says
Obama signs credit card crackdown
Why S&P Lowered Its U.K. Debt Outlook

Dollar Is Dirt, Treasuries Are Toast, AAA Is Gone
Dollar Chart Tells a Much Different Story than Pundits Do
Is the U.S. Dollar Headed for a Mighty Crash?
Gold on verge of historic breakout?
Japan Economy Shrinks Record 15.2% as Exports, Spending Plunge
The Great Ethanol Scam

Stock Market Update -May 17th

The market finally broke its 2 month up-trend this week, as May options expired on Friday. We'll see how much it continues to pull back in the coming weeks. (I'm still waiting for GM to be booted from the DOW!) Oil prices may have reached a short term top at $60 as well.

New Unemployment claims for the week came in over 600,000 once more! Retail sales were down for April, and we continue to see more foreclosures being reported.

Commodities: Oil prices fell to around $56 per barrel after briefly touching $60. Gold prices rose to around $930, while the US Dollar recovered a bit from the previous downtrend. Bond prices also recovered a bit, as the stock market dropped (typical inverse relationship).

Next week we get earnings reports from Hewlett Packard, Lowe's, and Home Depot among others. Not much else going on.

Market analysis: The recent rally cooled off this week, and we could see more of the same in coming weeks, so it's a good time to take profits or hedge your positions. The 'inverse ETFs' provide a good way to hedge or profit from the downside in the markets (my inverse ETF listings).

What's Hot & Not this past week

Mutual Funds Are On A Tear
Don't Count on Your 401(k)
Nothing Suggests We're Anywhere Near the Bottom
Stock Pullbacks Then and Now: Is History About to Repeat Itself?
Home Prices in U.S. Drop Most on Record in Quarter
Is the State of California Broke?
Is America about to go broke?
The Risk of Debt
America’s triple A rating is at risk

The financial meltdown's unhappy anniversary
The banking industry -Three trillion dollars later...
Fannie Mae taps Treasury again after $23 billion loss
Fannie and Freddie Will Continue to Be Rescued by Taxpayers
Freddie Mac loses $9.9B
GM Follows in Chrysler's Footsteps
GM pulling plug on 1,100 'underperforming' dealers
EU slams Intel with record $1.45 billion fine

Stock Market Update -May 10th

The market was up again this week, though the NASDAQ and the Semis (SMH) showed some signs of weakness on Thursday (Cisco sold off as well after reporting earnings). The Financials also sold off on Thursday as we got the results of the stress tests (the banks need more money!) The monthly unemployment figure came in at 8.9% on Friday.

New Unemployment claims for the week came in over 600,000 again, and another bank was shut down by regulators (list).

Commodities: Oil prices continued to rise, closing around $58 per barrel. Gold prices also rose to $914, as the US Dollar continues to fall. Bond prices also continued to fall.



Next week earnings reports begin winding down. The market looks like it's starting to lose its strength here and could start to pull back, starting with the NASDAQ.

Jobless rate jumps to 8.9% even as job losses throttle back
Stress test shows bank credit losses could be $600 billion
Bank of America Needs $33.9 Billion, U.S. Says
G.M. Posts a Quarterly Loss of $6 Billion
General Motors: Officially Wiping Out Common Shareholders
Kass: Party's Over for Financials
Yet more evidence we're in a bear-market rally
If China loses faith the dollar will collapse

Stock Market Update -May 3rd

The market continues to move higher in spite of bad news: 1st Quarter GDP worse than expected at -6.1%, continued high unemployment figures, Chrysler filing for bankruptcy, and oil prices remaining over $50 per barrel.

New Unemployment claims for the week came in over 600,000 again, though this number may be starting to shrink, and three more banks were shut down by regulators (list).

Commodities: Oil prices rose, closing just above $53 per barrel. Gold prices fell to $885, even though the US Dollar continued to fall. Bonds also continued to fall this week.


Next Thursday we get the results of the government's stress tests on 19 banks, followed on Friday by the monthly Jobs report, which is expected to be another bad number. Also Cisco and AIG are among the companies reporting earnings next week. The Treasury department is also expected to issue another $70 billion in notes -it's only money!

Market outlook: If the market is to rollover from this huge rally, this is probably the week it will do it, so be cautious. I believe the Financial sector could see a big move this week too; it has not been able to break out of a trading range for the past three weeks.

Jobless rate set for record
Economy shrinks at worse-than-expected pace
Why This Rally Is Unsustainable
Buffett dispenses gloom at Berkshire fest
Chrysler files for bankruptcy
Chrysler aftershocks to hit industry hard
Auto sales plunge to near 30-year lows

Reviewing Obama: How he's done so far
Citi Said to Need Up to $10 Billion
Only 1 way out of big economic hole
Treasury Prices Hit by Stronger Economic Data, Supply
Long Term Treasury Yields Likely to Rise, Pressuring Dollar Lower
China's gold buy raises eyebrows for all the right reasons