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    Why The Price Action In This Sector Signals The Market Is Likely Nearing A Short-Term Bottom

    Mon, 05/07/2012 - 08:47 EDT - Seeking Alpha
    • BIDU
    • BP
    • MA
    • OIH
    • RDS.A
    • RIG
    • SPY
    • The Independent Investor

    By The Independent Investor:Wow, the market has become volatile. With the S&P 500 and its tracking exchange traded ETF (SPY) selling off nearly 2.5% after the disappointing jobs report at the end of the week, the market sold-off hard from the high made on Tuesday.Market leaders such as Mastercard (MA), Apple (AAPL) and Baidu (BIDU) were hit hard as well.Market bears have now been emboldened by a rising dollar, increasingly poor jobs data, and continued issues with the PIIGS sovereign debt in the eurozone.Indeed, with the recent jobs report confirming what the Challenger and ADP reports have shown, economic growth in the U.S. seems to have slowed.The worst performing sector during the sell-off has been energy, with energy stocks selling off nearly 10% in the recent market decline despite consistently underperforming the market prior to the recent sell-off.Oil prices topped out in late February around $110 a barrel,Complete Story »

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      By The Independent Investor:It is always interesting to see what happens when momentum stocks slow down. While market leaders such as Apple (AAPL) and Baidu (BIDU) have risen on strong fundamentals, these companies are also momentum names.

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      By The Independent Investor:Wow, what a run. As one looks at the market today, you can't help but see any number of stocks at or near their fifty-two week highs. While many traders and investors have missed this rally, and some are still looking to short, most market participants would agree that it is getting increasingly harder to find value in the market. With many stocks up 30% or more in the last five months alone, it's hard to find stocks that likely have significant near-term upside.

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    • 3 Signs The Rally Will Likely End This Week

      By The Independent Investor:Wow, the market did not go down this week. While the S&P 500, and its tracking exchange traded fund, SPY, has fallen nearly 10% in the last month, stocks have managed to rally nearly 3% this week, starting with the market stabilizing on Monday.

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      Gary Townsend submits:This morning: After fair value adjustment, equity futures are lower this morning, after a disappointing November employment report. Notwithstanding the past two day’s advances, markets remain in correction.

    • Revised Baseline Scenario: February 9, 2010

      Caution: this is a long post (about 3,000 words).  The main points are in the first few hundred words and the remainder is supportive detail.  This material was the basis of testimony to the Senate Budget Committee today by Simon Johnson. A.    Main Points

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