Market Analysis 19 May, 2010

Todays Stock Market News 19 May,2010

LAST NIGHT’S MARKET

Stocks fall over 1% with investors moving into bonds and high yielding stocks as a safe have from deflation and anticipation of sustained global slowdown. With the risk of global deflation the winner will be the US dollar which will continue to rise. Some bearish analysts believe that the 1,000 point drop on 6 May was just a warning of things to come but others believe there are good buying opportunities coming up. The individual must make up his own mind. It’s always good to have cash on the side waiting for a big drop. You don’t ever want to be 100% invested in stocks and at times like these if you have a margin loan you won’t be sleeping well at night.

DOW Jones closed at 10,510.95 down 1.08%

The S & P 500 closed at 1,120.80 down 1.42%.

The NASDAQ closed at 2,317.26 down 1.57%.

VIX up 8.79% to 33.55.

Tech stocks got were mainly down.

Apple shares down 0.73% to 252.36.

Google down 1.89% to 498.37.

Microsoft was down 1.18% to $28.5975.

The big miners were up in London and down in NYSE:

Rio Tinto finishing down 1.97% in NYSE

BHP down 2.22% in NYSE.

Banking and finance were down:

American Express down 3.35%

Bank of America down 2.45%

Goldman Sachs down 3.7%.

JP Morgan down 2.06%.

EUROPE shares were up after Greece got some money to pay its immediate debts. This market is definitely myopic. It’s like people feel better on pay day and don’t worry about their long term loan repayments because today is ok. Lets see what they think tomorrow.

The FTSE 100 closed at 5,307.34  up 0.85%.

The DAX closed at 6,155.93 up 1.47%.

The CAC 40 finished at 3,617.32 up 2.08%.

IN ASIA:

The strength of the USD cut $48bn from the Chinese foreign exchange reserves in the first quarter. The country had a financial account surplus of $55bn in the first quarter.

The Hang Seng closed at 19,944.94 up 1.17%.

The Nikkei was at 10,242.64.

The Chinese market closed at 2,594.783 up 1.36%.

ASX 200 down 143.9 points to 4,467.2.

COMMODITIES:

Gold is up $10.80 and is currently at $1,225.40.

Silver is $18.995 up 0.61%

Platinum is at $1,674.60 down 0.94%.

Crude Oil is down $0.56 and is currently $68.85 a barrel.

CURRENCIES:

The AUD is currently at:

0.8611 USD

0.6036 GBP

79.38 JPY

0.7072 EUR

5.8854 Chinese RMB.

TODAY:

The SPI is down 52 points currently.

The losers will be mining and financials again.

Winners will be GOLD and not much else.

According to some analysts theories Telstra should be a buy because of the high yield. Close to 9.5% at the moment.

Tuesday’s Aussie Market Action:

QBE to $20.60.

BHP to $37.24.

BSL down to $2.37.

RIO 63.86.

LGL $4.12.

Telstra finished $3.01.

Market Analysis 16 May, 2010

Todays Stock Market News 16 May,2010

LAST NIGHT’S MARKET

Stocks fall sharply overnight but still up 2.3% for the week. Isn’t it great how you can turn a really bad day in the market into a good thing.

DOW Jones down 162.79 points. It closed at 10,620.16 1.51%

The S & P 500 closed at 1,135.68 down 1.88% or 21.76 points.

The NASDAQ closed at 2,346.85 down 1.98% or 47.51 points.

Tech stocks got were mainly down.

Apple shares down 1.76% to $253.82.

Amazon down 2.23% to $128.53.

Ebay was down 1.9% to $22.25.

Google down 0.66 to $507.23.

Microsoft was down 1.06% to $28.93.

Yahoo was up 1.55% to $16.39.

The big miners were way down in London and in NYSE:

Rio Tinto finishing down 3.91% in NYSE

BHP down 3.24% in NYSE.

Banking and finance were down:

American Express down 5.07%

Bank of America down 3.14%

Goldman Sachs down 0.98%.

JP Morgan down 2.25%.

EUROPE shares were much lower on fears that tough austerity measures would be a hindrance to growth. The Euro plunged to an 18 month low against the USD over growth worries.

The FTSE 100 closed at 5,262.85 down 3.14%.

The DAX closed at 6,056.71 down 3.12%.

The CAC 40 finished at 3,733.87 down 4.59%.

Spain collapsing under the weight down 6.64%.

And Italy following Spain down 5.26%.

IN ASIA:

The strength of the USD cut $48bn from the Chinese foreign exchange reserves in the first quarter. The country had a financial account surplus of $55bn in the first quarter.

The Hang Seng closed at 20,145.43 down 1.36%.

The Nikkei was at 10,462.51 down 1.49%.

The Chinese market closed at 2,696.629 down 0.51%.

ASX 200 down 41.67 points to 4,611.

COMMODITIES:

Gold is up $5 and is currently at $1,232.80.

Silver is $19.37 up 0.75%

Platinum is at $1,722.20 up 0.4%.

Crude Oil is up $0.44 and is currently $72.05 a barrel.

CURRENCIES:

The AUD is currently at:

0.8942 USD

0.6101 GBP

81.945 JPY

0.7041 EUR

6.1064 Chinese RMB.

TODAY:

The SPI is down 79 points currently.

And the losers will be… You guessed it! The suckers that bought on Friday and will sell on Monday!

It is a very very volatile market at the moment and staying on the side lines with a bunch of cash would seem like a sensible thing to do in these times. If you are going to invest use sound judgement. Consider what is happening in the world and definitely don’t listen to politicians or analysts. They got it way wrong in 2008.

I’ve been talking to people in the home loans business,builders and to real estate people and the consensus is that there is not much action out there. The builder said things are really slow, the home loans guy said there are not many people out here with money and banks are tough on lending and the real estate agent said prices and buyers have pulled back.

Friday’s Aussie Market Action:

QBE down $0.13 to $21.31.

BHP down $0.18 to $38.64.

BSL down to $2.53 by $0.04.

FMG down by $0.04 to $4.31.

RIO down $0.29 to $68.

LGL up $0.01 to $4.13.

NCM up $0.01 to $33.36.

Telstra finished down $0.02 to $2.98.

And the others:

FXL closed at $1.305 unchanged.

UXC down $0.015 closing at $0.48.

IMF was up $0.015 to finish at $1.62.

SGT was up $0.03 at $2.40.

GBT (GBST) closed at $0.90.

Market Analysis 15 May, 2010

Todays Stock Market News 15 May,2010

LAST NIGHT’S MARKET

Dow loses 100 points. This huge daily volatility is cause for concern and caution. Some analysts are predicting the Dow could go into freefall down to 5000 due to several concerns including $17 Trillion of debt, disappointing second quarter GDP, rising foreclosures, Chinese inflation and slowdown and real-estate crash.

DOW Jones down 113.96 points. It closed at 10,782.92 down 1.05%

The S & P 500 closed at 1,157.44 down 1.21% or 14.23 points.

The NASDAQ closed at 2,394.36 down 1.26% or 30.66 points.

Tech stocks got were mainly down.

Apple shares down 1.42% to $258.36.

Amazon down 1.79% to $131.47.

Ebay was up 0.76% to $22.68.

Google up 1.09% to $510.88.

Microsoft down 0.68% to $29.24.

Yahoo was down 2% to $16.14.

The big miners were down in NYSE:

Rio Tinto finishing down 0.22% in NYSE

BHP down 0.17% in NYSE.

Banking and finance were mainly down:

American Express down 2.93%

Bank of America down 1.17

Goldman Sachs down 1.73%.

JP Morgan down 2.11%.

EUROPE shares were slightly higher as strong results were reported from financials such as BT and Sainsbury.

Trading sessions are very volatile as sentiment sways daily on the Greek debt outcome and its contagion.

Spanish unions are threatening strike action over the government’s proposed austerity measures. Why don’t the unions come up with a better plan and present that instead of protesting.

The FTSE 100 closed at 5,433.73 up 0.93%.

The DAX closed at 6,251.97 up 1.11%.

The CAC 40 finished at 3,731.54 down 0.06%.

Spain down 1.11%.

IN ASIA:

In Japan bank lending had its biggest decline in four years. It seems that no amount of cheap funding will coax the Japanese to borrow money as consumers and companies are both very pessimistic on the economic outlook. Deflation could also last for another year and that would make the cost of borrowing higher than nominal interest rates. Interest rates at BOJ have been at 0.10% since 2008. Check that out K Rudd.

With a correction and slowdown due in China there are expectations that there will be a huge knock on effect for Australia. China is not the only country with a property bubble. The prices in Australia, especially Sydney, are the highest in the world and are due for a correction. Currently the property market has lost some speed in Sydney, a sign of worse things to come.

The Hang Seng closed at 20,422.46 up 1.04%.

The Nikkei was at 10,620.55 up 2.18%.

The Chinese market closed at 2,710.507 up 2.06%.

ASX 200 up 79.5 points to 4,652.5.

COMMODITIES:

Gold will surely hit new record highs by the end of this month and continue going up amidst European concerns, market volatility and central banks printing money and debasing their currencies.

Gold is down $10.40 and is currently at $1,232.70.

Silver is $19.46 down 1.03%

Platinum is at $1,738.50 down 0.5%.

Crude Oil is down $1.81 and is currently $73.84 a barrel.

CURRENCIES:

The AUD is currently at:

0.8974 USD

0.6035 GBP

83.36 JPY

0.7136 EUR

6.1064 Chinese RMB.

TODAY:

The SPI is down 51 points currently.

I hope you sold your financials yesterday because you can buy them back today.

Monday’s Aussie Market Action:

QBE up $0.42 to $21.44.

BHP up $0.67 to $38.82.

BSL up to $2.57 by $0.07.

FMG up by $0.15 to $4.35.

RIO up $1.27 to $68.29.

LGL up $0.07 to $4.14.

NCM up $0.73 to $33.35.

Telstra finished up $0.04 to $3.00.

And the others:

FXL closed at $1.305 up $0.035.

UXC up $0.01 closing at $0.495.

IMF was up $0.025 to finish at $1.605.

SGT was down $0.03 at $2.37.

GBT (GBST) closed at $0.90.