Daily Reading – January 10, 2011
FT BeyondBRICs: Guest post: bubble trouble in Bangladesh
Regulators closed the Bangladesh stock market after only one hour of trading on Monday due to a second day of record share price declines, with the DGEN index falling more than 9 per cent.
FT BeyondBRICs: China car sales up 33 per cent, official
Auto makers in China finished 2010 with a flourish, posting a 33 per cent increase in passenger car sales. With the ending of government stimulus measures to boost the market after the economic crisis, sales growth is expected to slow this year – but still reach 10-15 per cent.
FT Alphaville: There will be no UK house price fall in 2011
So why might that be?
Here’s Halifax’s housing perma bull Martin Ellis to explain.
FT Alphaville: Timeline Portugal
As goes Greece…
And Ireland…
So goes Portugal?
The Big Picture: QOTD: A Bull on Your Business Card
There was a huge price to be paid for being bearish when there is a bull on your business card, trust me on that one.
The Big Picture: Greenspan: ‘Prove I Was Wrong’
No, Mr Greenspan, it is not the responsibility of the world to disprove you . . .
The Slope Of Hope: Looking For Tops is as Easy as 1-2-3
Whether or not the overall market is currently making a top is debatable and something I will discuss in this weekend’s newsletter (make sure you sign up on the blog’s homepage). Nonetheless, I thought tonight’s blog could discuss what investors should be looking for when analyzing charts as this could help investors in the days ahead.
The Slope Of Hope: Are We There Yet?
The five week ES rising channel saw a serious pinocchio through it on Friday, and broke definitely overnight. The question now is whether equities have made the interim top already.
The Slope Of Hope: What Do the Last 4 Tops in the S&P Have in Common?
So what does the last four tops in the S&P 500 have in common? If you look closely at the chart below, you will notice that the RSI(14) indicator for the % of stocks above the 50-day moving average was on the cusp of breaking below the 50% mark.
Visualizing Economics: Effect of Inflation on S&P Price Return (1871-2010)
Annualized growth rate of since 1871:
Nominal stock price return= 4.0%
Real stock price return = 1.9%