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Market Recovers from Sell Off: Earnings in Play

Stock Market Today Now that the market has sold off, earnings are going to be under more scrutiny. Emerging market health and poor manufacturing data in the US and China will still be in the back of investor's minds. Stock Market Superstitions Since 1971, the S&P has declined 72% of the time when January returns were negative. If you believe in stock market superstitions, this is not a good indicator for the rest of you year. Only Positive Economic Data The one good sign for the US economy is that the Thomson Reuters Small Business Lending Index jumped in December, [...]

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Markets Get Slaughtered: Emerging Markets Sell Off

Wow. You're probably counting pennies after today's massive and nearly 2.5% sell off. So what's going on? Why is the market selling off? What gives? Stock Market Today: Get Out Now Or Get Killed Emerging Markets - Policy tightening in emerging markets is prompting a global sell off. Turkey, South Africa, and India all raised rates last week. Brazil and Indonesia already raised rates, and other countries like Chile, Peru, and Hungary want to loosen policy but won't. US Fed Reserve Tapering - The US is pulling back on its asset purchases which has boosted markets since 2009. Despite the [...]

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Markets Retreat Over Fed Taper and Emerging Market Concerns

The S&P 500 deteriorated today losing over 1.0% after the Fed announced it would taper its asset purchases by another $10 billion to a $65 billion monthly pace. FOMC Meeting Announcement Although the Fed continued with its taper of quantitative easing, policy rates were left unchanged with the fed funds target rate at a range of 0.00-0.25%. The Fed noted that it continues to see improvement in the economy. The Fed also sounded dovish when noting that inflation has been persistently below its 2 percent objective, which could pose risks to economic performance. The fed funds target rate will likely [...]

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Bernanke Takes One Last Sip from the Punch Bowl

The FOMC announced today that they would further reduce QE3 by $10 billion, reducing the Fed's monthly purchases to $65 billion, continuing to end the era of easy money. The stock market responded with an abrupt crash, ending the day down over 1%. Market sinks following FOMC announcement of further $10 billion cuts to QE3 Despite the reduced buying, the Fed still sits on an over $4 trillion balance sheet. Although the Fed plans on reducing monthly purchases to zero by December, they still have a long way to go to finish unwinding their balance sheet. Four trillion [...]

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Markets Wobble Ahead of Earnings and FOMC Announcement

The S&P 500 whipsawed today, but ultimately ended down 0.50%. Economic Indicators New home sales nose dived in December, coming in at a 414K annual rate, below the 450K consensus. Home prices and weather may have been some of the main culprits, as interest rates remained low. Tomorrow morning Durable Goods Orders are expected to increase slightly along with home prices and consumer confidence. Fed Tapering (look out for Wednesday): Will the Fed continue to wind down asset purchases? The Fed is expected to keep policy rates unchanged. All eyes will be on whether or not the Fed will continue [...]

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Weekly Roundup – Market Correction in Full-Swing

Financial Market Updates This week, the stock market began its inevitable sell-off that analysts (and us) have been calling for over the last several months. Jon (and futures) predicts that the stock market has further to slide. After all, a technical analysis view of the overall S&P ETF SPY shows that we are in a downward spiral. RSI is showing a sell-off, MACD keeps diverging (crossing means a change of direction), and it has hit the lower Bollinger Band without showing an upward trend. Just look at the graph below and see for yourself: Jon has also been speculating on earnings calls (wait, [...]

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Assess the Risk Involved in Binary Trading

Binary options trading has been steadily gaining popularity in both US and foreign markets as investors flock to the self-declared easy to use trading platform in hopes of making a substantial profit in a relatively short amount of time. The all or nothing aspect draws people like bees to honey, providing a false sense of security. Like any market, it isn’t completely predictable and although binary trading is more simplistic compared to other trading options, it still requires both patience and an understanding of complex financial markets. What is binary option trading? Binary trading requires traders to speculate on asset [...]

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The Market Correction Is Happening

Stock Market Today: More Correction to Come The stock market took a huge dive on Friday of over 2% and markets around the world followed suit. The sell-off is very discouraging to the massive bull run last year, and will act as an indicator for the rest of the year. This could be the start to a market breakdown. S&P 500 futures already point to another sell-off next Monday. According to some technical indicators, the market is likely to sell-off at least another 2%. Next week the Federal Reserve is expected to announce it will continue withdrawing its economic stimulus. In [...]

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Fast Cash Fridays: Get a Payday Loan – Fuel Your Inner Consumerist

Disclaimer: If you made it this far, you're probably wondering why I would give this advice, and you're absolutely right! We here at MMFAS strongly advise against payday loans, but you can get them at your own demise...anyways...on with the pitch. What is a Payday Loan? Payday loans are very short-term loans where the borrower is expected to pay off the loan with their next paycheck, hence the name "Payday Loan." These loans are infamous for the their high interest rates (often well over 100% APR, sometimes closer to 400% APR) and outrageous financing charges (often $15-$30 per $100 loan). Why Would You [...]

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Stock Market Today: Market Sell Off, Investor Sentiment

The stock market today sold off dramatically in the morning following weak earnings by a few major companies. The market also sold off over concerns about a slowdown in China. Economic indicators Jobless claims remained steady at 326K -- again coming in below consensus. The PMI Manufacturing Index also came in mixed - down 1.3 points from December. Existing home sales were below consensus at 4.87. Overall, the market doesn't seem to be getting what it needs from company earnings to continue its upward trend. At the same time, there is a lot of money on the sidelines looking for [...]

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“Price is what you pay. Value is what you get.”

Warren Buffet