Skip to content


Selected Articles from Spear Publications

  • Why the Euro Matters
    Friday, May 14, 2010    Full Article

    Currencies trade relative to one another and the crisis in the euro strengthens the dollar. A stronger dollar means that the prices of assets denominated in dollars will tend to decline to keep a valuation balance. Such assets include commodities, real estate and equities.

  • The Great Sovereign Bailout
    Friday, May 14, 2010    Full Article

    We think Phase II of the global debt crisis is underway, but the epicenter is in Europe, not lower Manhattan. Individual investors trying to track the vectors that move the market will therefore have to brush up on currency effects and global economics. In our view, currency effects push the market around day to day, whereas debt will remain a long-term structural issue until sovereign defaults start to happen.

    Gold denominated in euros has been making new highs for more than a month, but it is now making new highs in dollar terms. We think this is a sign of flagging investor confidence in paper money. We are short-handed on Consensus gold plays at this time, but recommend that subscribers look into Iamgold (IAG), a former Consensus name that has high relative strength. 

  • Breakout possible
    Tuesday, December 15, 2009    Full Article

    The Dow was up another 29 points on Friday and closed above 10,500, which is bullish behavior. The Dow Transports and Utilities, along with the Russell 2000 and the Nasdaq 100 all made yearly highs. The S&P is trailing due to weakness in the financial sector.
     

  • Megaphone
    Monday, December 14, 2009    Full Article

    The Dow was up another 64 points on Friday, which takes it within 45 points of a new yearly high. This is impressive, considering that the Dollar Index also advanced 0.6% that day. The decoupling of the Dow from the Dollar is a significant development. They have been trading in a closely correlated inverse relationship for months.

  • Thanksgiving Rally Continues
    Tuesday, November 24, 2009    Full Article

    It does not pay to get bearish on this market. Not yet, anyway.

    The Dow was down just 14 points on Friday, which set the stage for the surprise rally on Monday morning. The dollar weakened about half a percent over the weekend. Since U.S. equities are priced in dollars, the declining greenback creates buying pressure, since shares look cheaper to overseas buyers. We think this trend is likely to continue until the Dollar Index falls to its 2008 low, about 5% lower than Monday's close.

  • Looking for more Downside
    Friday, November 20, 2009    Full Article

    Yesterday we predicted that “One of these days we will get a 200- 300 point down day in the Dow followed in a few days by another. Headlines everywhere will talk about the Crash of 2009.” Thursday was not it.
     
    Thursday started out as though it wanted to make that prediction come true, but by the end of the day, some strength came back in. That said, the market is overbought enough for more than a 1-day correction. We think another leg down to the 1072-1078 area in the S&P 500 is likely, but if it happens, we expect that zone (a gap zone) to hold, for now. We will show a chart of this support area over the weekend.

Subscribe to The Spear Report Professional Edition Now!

Enter Email to Select Your Free Newsletter

Empowering Individual Investors


Expert Analysis and Commentary to Your Inbox.
Free Newsletters with Picks and Performance.
Completely Free.

ADVERTISEMENT

.