Financial Market Report for December 3, 2011
Bank of America Rallied The Financial And Value Sectors and in so doing, many stocks and ETFs manifested an evening star candlestick.
Bank of America, BAC, 6.3%
Pure Cap Small Value, RZV, 2.3
Insurance, KIE, 2.3
Chinese Financials, CHIX, 2.3
Banks, KBE, 2.2 The strong rise on an ascending wedge from 22 on November 30, 2010 to today’s 26.5, suggests that the gains cannot be sustained much longer.
Financial, XLF, 2.2
Small Cap Revenue, RWJ, 1.9
Nasdaq Banks, QABA, 1.7
European Financials, EUFN, 1.4
Emerging Market Small Cap Dividend, DGS, 1.0; chart shows an evening star candlestick
Leveraged Buyouts PSP, 1.2
Emerging Market Financial EMFN, 1.7
Investment Bankers KCE, 1.3
General Sectors Rallied By Bank Of America
Housing, ITB, 1.9%
Health Care IHF, 1.8
Russell 2000, IWM, 1.7
Small Cap Discretionary, XLYS, 1.7
Small Cap Industrial XLIS, 1.5
Networking, PXQ, 1.5
Telecom IYZ, 1.4
Basic Material Sectors Rallied
Global Industrial Metals, CRBI, 2.5
Coal, KOL, 2.2
Metal Manufacturing, XME, 2.0
Copper, COPX, 1.9
Steel, SLX, 1.7
Energy, XLES, 1.5
Basic Materials, IYM, 1.0
Energy Services, OIH, -0.5
Basic Material Shares Rallied
Alcoa Aluminum, AA, 2.6%
China Materials, CHIM, 1.2
Alpha Natural Resources, ANR, 2.4
Arch Coal, ACI, 1.5
Southern Peru Copper, SCCO, 1.7
Exxon Mobil, XOM, 2.0
Insteel Industries, IIIN, 3.9%
Schnitzer Steel, SCHN, 1.8%
Emerging Markets EEM, 1.0 rose to a double top and manifested an evening star
Mexico EWW, 0.8%
Brazil Small Caps, BRF 1.7 rose to a double top
Russia, RSX 1.9
Sweden, EWD 1.8
India Small Caps SCIF 3.0
Latin America, LATM 1.3 manifested an evening star
Korea, EWY 1.0
China, Hong Kong, Shanghai and China Small Caps FXI, EWH, CAF and HAO 1.5, 2.3, 2.3 1.9
Indonesia, IDX 1.2
Israel, EIS 1.3
All World Excluding US Small Caps VSS 0.8%
S&P SPY 1.0
Russell 2000 IWM 1.8
Small Cap Pure Value RZV 2.8 (The evening star at the top of a rounded top suggests that a market high has likely been achieved)
Nasdaq 100 QTEC, 1.3 manifested a hammer in an evening star pattern
Financial Stocks Rallied
Citigroup, C, 3.6%
Goldman Sachs, GS, 2.9
Dollar Financial, DLLR, 6.8
SVB Financial, SIVB, 3.5
World Acceptance WRLD, 3.2
Istar Financial, SFI, 2.8
Capital Source, CSE, 1.0
Cathay Bancorp, CATY, 1.8
Restaurant Stocks Rallied … CMG, DIN, MIDD, PNRA, RUTH, KKD
The restaurant shares rose strongly: CMG, 5.2%, DIN, 2.5, MIDD, 3.0, PNRA, 1.2, RUTH, 1,9, KKD, 1.4. I recently suggested that these be sold short; their rise suggests that they have now been reset for excellent shorting.
Bank of America Rallied The Morgan Stanley Cyclicals Index
The Morgan Stanley Cyclicals Index, $CYC, rose 1.8% higher on mostly the following stocks:
Alcoa Aluminum, AA, 2.6%
Citigroup, C, 3.7%
Eaton Corp, ETN, 2.1%
International Paper, IP, 2.8%
Masco Corp, MAS, 3.0; The home building industry, ITB, has already started to turn down.
Temple Inland, TIN, 6.5; Like Masco Corp, Temple Inland and the other paper producers have started to turn to turn lower; see the chart of Buckeye Technologies, BKI, as its chart pattern shows it has turned lower.
US Steel, X, 3.1%
In Today’s News
Laura Noonan of The Irish Independent notes that Ireland ’s banks saw more than €70bn in deposits withdrawn in 2010.
Stocks and Currencies Are At A Historic An Inflection Point
The rally in Bank of America gave a false rise to the Morgan Stanley Cyclicals Index. The rally cannot be sustained as it lacks currency support; the only currencies rising today were the Mexico Peso, FXM, the Brazilian Real, BZF, and the Canadian Dollar,FXC. The US Dollar, $USD rose slightly to $79.12. Stocks and currencies as a whole have topped out. The world and its economies and investments has reached an inflection point.
Are world stocks, VT, about to enter to enter an Elliott Wave 3 Down?
Did world stocks monthly, VT Monthly, top out on December 31, 2010 at 47.80?
Did world stocks weekly, VT Weekly, put a high in on December 31, 2010 at 47.80?
Did world stocks weekly, ACWI Weekly, put a top in December 31, 2010 at 46.81; and is this an Elliott Wave 2 high and entrance into an Elliott Wave 3 Down?
Did the S&P Weekly, SPY Weekly, put a market high in on January 3, 2011 at 127.05; and did the S&P establish an Elliott Wave 2 high and entrance into an Elliott Wave 3 Down?