The break in the S&P 500 to below the 740 mark – testing Jan/97 lows (just one month away now from Greenspanian “irrational exuberant” levels) – which is very important as it sets the stage for further losses. Volume swelled 7% on the NYSE as the market slipped 2.4% on Friday and twice as many stocks declined than advanced. All the major averages fell 4% or more last week (was the 14th decline in the past 17 weeks for the Dow; and the sixth month in a row of carnage). And, they have all now undercut their November lows.
Not only [...]
Entries Tagged as 'stock market'
Stocks - Bear market getting worse
March 2nd, 2009 · No Comments
Tags: stock market
Owning Business Stocks
March 1st, 2009 · No Comments
Many companies are owned by people like you. To go public, a company divide its ownership into equal shares and sells them to the public. If you own its stock, you share in the success if it does well, and in the failure if it doesn’t. in short, most people buy stock to let their fortunes ride with the fortunes of the company.
A company goes public. The owners of a small private company need to raise money to stay competitive. They could continue to borrow, but the best way to raise enough money to meet their goals is to ask [...]
Tags: stock market
FX Technicals - Equities, Reason for Concern
February 28th, 2009 · No Comments
The Dow Jones Transportation, the Dow Jones Industrials, and the S&P 500 Indexes have fallen short of important monthly and weekly closes.
The Dow Jones Transportation Index
Until today, the 200 month moving average has not been breached for 33 years (the last time it was breached was in 1976). Overall this is a concerning chart as it gives a leading indication of where the Dow Industrials are going (according to the Dow Theory).
The next major support level on the Dow Transportation index is at 1,918, approximately 23% below the current level.
SPX 500 Index
The weekly close today is beneath both the 2002 [...]
Tags: stock market
Stock Basics - Types of Stocks
February 26th, 2009 · No Comments
There are many types of stocks. Unlike bonds, these types aren’t created to meet an investing need. Instead, they reflect the types of companies in the world and their various stages of development.
Some investors buy stocks of well-known companies for the dividends first, and for the price appreciation potential second.
Common Stock
The fundamental form of ownership in a public company is the common stock. Owners of common stock bear the primary burden of business risk but also receive the lion’s share of any success.
There are many different ways to group stocks, depending on who is doing the grouping. Generally, a stock [...]
Tags: stock market

