Proof you can`t trust Wall Street analysts

Posted by Eric LeRiche | May 28, 2010 .

(Taken from taipan publishing) Traditional Wall Street analysts are insane. Not all of them, but the vast majority it seems. Either that, or maybe they are just fools. I don’t care about tailored suits or impressive credentials or number-crunching prowess. A guy (or gal) can sport an expensive suit and a fancy pedigree and still [...]

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What does the BETA of a stock represent?

Posted by Eric LeRiche | May 25, 2010 .

By definition, the market itself has an underlying beta of 1.0, and individual stocks are ranked according to how much they deviate from the macro market (for simplicity purposes, the S&P 500 is usually used as a proxy for the market as a whole). A stock that swings more than the market (i.e. more volatile) [...]

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Upcoming trading week forecast

Posted by Eric LeRiche | May 17, 2010 .

The overall technical condition of the major indexes continues to deteriorate. We are a little oversold on an intraday basis but not on a daily basis. Charts suggest downside to near the 200 day moving averages of the major indexes. (NYSE composite broke below it friday.) For the S&P 500, that stands at 1100 today. [...]

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More Banks are being Investigated…

Posted by Eric LeRiche | May 13, 2010 .

U.S. authorities are expanding their probes of past mortgage securities deals, with New York’s attorney general opening an investigation into whether eight banks misled rating agencies, a source familiar with the matter said. New York Attorney General Andrew Cuomo’s office on Wednesday served subpoenas on four U.S. banks and four European lenders, the source said. [...]

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The Only Hope… A (Much) Cheaper Euro

Posted by Eric LeRiche | May 12, 2010 .

Look. You can’t borrow your way out of debt. More loans won’t do it – you have to save and grow your way out. Saving and growing require an upswing in productivity. Thus the struggling PIGS – Portugal, Italy, Spain, etc. – do not just have a debt problem, they have an economic growth problem. [...]

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Bulls vs Bears

Posted by Eric LeRiche | May 11, 2010 .

The U.S. stock market jumped 3.9% on Monday, following a deal by the European Union (EU), the International Monetary Fund (IMF) and the European Central Bank (ECB) to bail out not only Greece but other European countries, as well. The $955-billion program resulted in broad gains in Europe’s major indices and set the stage for [...]

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Markets snap back but for how long?

Posted by Eric LeRiche | May 10, 2010 .

Last week I noted, “…high-flying stock markets are looking more and more vulnerable.” I wrote, “…resistance appears significant. Volatility (fear) is returning in a potentially big way. It’s not here yet; and that increases the likelihood of lower prices to come. Global markets are reflecting a reprise of contagion distress. I continue to suspect equities [...]

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Possible Scenario for Thursday`s Market Crash

Posted by Eric LeRiche | May 8, 2010 .

Down 1,000 points at its worst, the Dow recovered to a 350-point loss on the day. And all because “M” is just a hair too close to “B” on a standard American keyboard, we’re told. The story goes that a trader at a major firm perhaps mistyped a trade as “billions” rather than “millions.” Word [...]

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Markets crash, a technical glitch?

Posted by Eric LeRiche | May 6, 2010 .

Around 2:45 this afternoon, the market went over a cliff! At one point, the Dow Jones Industrials were down 1,000 points on the day. And then it recovered about 500 of those points as quickly as it lost them. Moments before the close, the Dow was down 347.80 at 10,520.32. The market action must have [...]

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The Chaos might Just Beginning

Posted by Eric LeRiche | May 5, 2010 .

There is a four letter word to describe yesterday’s action: U-G-L-Y! All of a sudden the world is waking up to the idea that maybe the Greece problem is bigger than Greece … All of a sudden people are thinking that maybe Europe’s debt crisis just might affect economic growth rates … All of a [...]

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