The new year rally in global markets showed few signs of abating Monday ahead of a speech on monetary policy from Federal Reserve chairman Ben Bernanke. A number of stock indexes around the world have hit multi-year highs as a key measure of volatility, the so-called VIX index, has fallen to a five-year low.
Monday is the only day the stock market is more likely to fall than to rise. The Dow Jones industrial average has been down 10 of the past 11 Mondays. And the two worst days in market history are both known as Black Monday.
With all the volatility in the stock market today, some individual investors are wondering if they should be more active with a portion of their portfolio, or back away from equities entirely. But if you bail out of stocks, where can you find decent returns? DailyFinance's Laura Rowley talks with Stuart Ritter, financial planner with T. Rowe Price.
Fear is in the air on Wall Street. Unemployment is high, housing sales are sluggish and the dollar is weak. Now, to add insult to injury, Standard & Poor's has lowered its U.S. debt outlook to negative, putting the nation's AAA credit rating at risk. Fortunately, smart traders can benefit from these worries.
The Dow suffered a steep triple-digit loss Tuesday as turmoil in Libya ignited a global sell-off in stocks. Oil prices rose sharply, as did safe-haven assets such as Treasurys and the dollar. Disappointing news from Walmart didn't help matters.
The CBOE's Volatility Index, known as the VIX, has been trending lower, which many analysts consider a sign that stocks are due for a fall. But another argument says it's all relative, and in today's environment a lower VIX may suggest a continuing rally.
After a good start last January, equities tanked and didn't turn positive for the year until its last few months. If 2011 really is shaping up to be a reprise of 2010, the market is poised for a fall, according to Jeffrey Saut, chief market strategist at Raymond James.
With analysts expecting the stock market to rally, investors are feeling bullish. But are they too bullish? High investor confidence has often signaled a market turn for the worse in the past. Other indicators also show cause for caution.
Financial markets are becoming increasingly schizophrenic, ruled by erratic ups and downs. It's at times like these when technical analysis can help investors manage the emotional roller coaster, which is why for chart watchers, the catchphrase of the next few months could be "mind the gaps."
The U.S. stock market has been on a tear since Sept. 1, but technical caution flags are now appearing in the charts. A close look at action in the VIX, S&P 500, Nasdaq 100 and financials reveal that the tide may be about to start going out.
Having hit 1,150 on Friday, the S&P 500 is now at a crossroad: Will it fall back, or continue marching up to the next technical target around 1,200? No one chart can say for sure, but here are some points to be aware of -- and to watch in coming days.
Index futures, index options, equity options and security futures are all set to expire Friday in a phenomenon known as the "quadruple witching" hour. It usually signals a time of higher trading volumes and surprises on Wall Street, but this time, investor uncertainty is likely to keep trades low.
The frustrating truth about technical analysis is that it requires interpretation. Ideally, a stock chart would only be able to be viewed one way, shouting "buy" or "sell." But as the saying goes, "If it were that easy, we'd all be millionaires."
After spiking in May on dismay over Eurozone debt anxiety, the VIX has been trending generally downward, with any jumps being only short-lived. Another spike just occurred. The thing to watch now is if the VIX follows this recent pattern -- or not.
With all the grim economic news out of Europe and China and the disappointing U.S. jobs report, a stock market rally may seem counterintuitive. But several technical signals suggest that the market is ready for a modest rally in the next few weeks.