Financials hit bottom yet? RSS Indicator provides one clue

A contrary stock market indicator that has been humorously written about is the "magazine cover" indicator. For example, when a mainstream magazine writes about a big bull market in stocks, you can bet a correction is coming.

A few days ago I was catching up on reading some RSS feeds that I subscribe too and I was struck by the list of bad news in the Financial feed from MarketWatch. It just seemed like one after another item described some negative development for one financial firm or another. A rough tally indicated that fully three fourths of the news items were negative. It gave the definite impression that financial stocks are still in a tailspin.

It occurred to me that when the number of news items start skewing more toward the positive, maybe then we can say the bottom in financial stocks is behind us. With tongue in cheek, I call it the "RSS News Indicator" and it can give a quick sentiment indicator based on a snapshot of the recent news stream for the sector.

With some investors like Bill Miller, Citadel and Goldman Sachs starting to nibble at downtrodden financial assets, perhaps the bottom is not so far off.

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Brazil - in a bubble or on a roll?

A couple of years ago, no one recognized the real estate bubble even though it was under everyone's nose. Now, analysts and bloggers are seeing bubbles everywhere they look. One of them, they say is in Brazil whose Bovespa stock market index has doubled in the last 12 months. Does the bubble accusation hold water? I don't think so and here are 7 reasons why Brazil is by no means a bubble economy: Exports have held up over the past year thanks to demand from China for Brazil's soya exports and iron ore. This was helped by the the Brazilian government's drive to improve trade links with Asia and Africa. Export diversification, spurred by a more active trade policy and increased focus on "south-south" trade under current president Lula, helped mitigate the decline in demand from OECD (Organization for Economic Co-operation and Development) countries A "sensible" economic framework has been in place since the 1990's. This has included inflation

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Unlock Stock Market Profits - Key #1

This is the first in an ongoing series of articles where I discuss what I feel are keys to successful investing. It is based on a post that provides a summary of the ten keys that individual investors should use to identify profitable stock trades. ( Click here to read the original post ) There are two basic steps to investing. First, you need to find stocks that seem to have some potential. Then you have to determine whether these stocks are actually good investments. There are many stocks that at first glance look interesting, but further research reveals that there are too many negatives to warrant taking a position. This first post in the series starts at the beginning: getting good investment ideas. Key #1: If something special is happening to a stock, it will be reflected in some kind of unusual activity in the markets. As individual investors, we will never be the first to know; however, unusual activity can be an early sign that allows us to follow the Wall Street professional

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