{"id":37678,"date":"2013-04-19T02:08:29","date_gmt":"2013-04-19T06:08:29","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=37678"},"modified":"2013-04-19T02:08:29","modified_gmt":"2013-04-19T06:08:29","slug":"friday-charts-should-we-be-on-high-alert-for-another-banking-collapse","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/04\/19\/friday-charts-should-we-be-on-high-alert-for-another-banking-collapse\/","title":{"rendered":"Friday Charts: Should We Be on High Alert for Another Banking Collapse?"},"content":{"rendered":"

By WallStreetDaily.com<\/u><\/a> <\/p>\n

You know the drill by now…<\/p>\n

Every Friday, I put on a muzzle and do my best to let a handful of carefully selected charts do the talking for me.<\/p>\n

Longtime readers say this is their favorite column of the week. But I think that’s because they don’t have to listen to me drone on.<\/p>\n

Whatever the case may be, I’m happy to keep serving up the pretty pictures.<\/p>\n

If Warner Wolf were a stock analyst, it’d be time for him to say, “Let’s go to the charts!”<\/p>\n

Banking Collapse? Not According to This Indicator<\/strong><\/p>\n

Call it simple paranoia, or battle scars from the Great Recession…<\/p>\n

But whenever the stock market hits the skids for a day or two, like it did in the past week, everyone starts freaking out, assuming that we’re on the cusp of another major financial collapse.<\/p>\n

Chicken Littles!<\/p>\n

As I’ve shared before<\/a>, there’s a simple and quick way to determine if such fears are justified: Consult the latest prices for credit default swaps (CDS) for banks and brokers.<\/p>\n

You’ll recall, CDS prices reflect the cost to insure against a default. So if there’s a genuine fear that banks are on the brink, CDS prices should be rising as stock prices are falling.<\/p>\n

\"\"<\/p>\n

As Bespoke Investment Group reveals, though, that’s not happening at all. “Now that the financial sector stocks are experiencing a pullback, our CDS Index has actually declined a little, indicating that the credit markets are not getting more fearful at all.”<\/p>\n

You shouldn’t be, either.<\/p>\n

Keep This Yahoo At Arm’s Length<\/strong><\/p>\n

After running through five CEOs in five years, it appears that Yahoo! <\/strong>(YHOO<\/a>) has finally found a good leader in Marissa Mayer. At least in terms of stock price performance.<\/p>\n

\"\"<\/p>\n

Since she took the helm in July 2012, the stock is up over 50%. That means the former internet darling must have regained its mojo, right?<\/p>\n

Not exactly.<\/p>\n

In the words of Paul Simon, Yahoo!’s revenue has been “slip slidin’” lower ever since 2009.<\/p>\n

\"\"<\/p>\n

Sorry. But lower and lower sales don’t lead to higher and higher share prices. Not over the long run. So without a revenue reversal, Yahoo!’s stock is ultimately doomed.<\/p>\n

Broken Record Alert!<\/strong><\/p>\n

I’m getting tired of telling you this, so I know you’re tired of hearing it: The real estate market is recovering. But this week we got even more<\/em> proof, so I feel obligated to share it.<\/p>\n

\"\"<\/p>\n

Housing starts rose 7% in March to an annual rate of 1.04 million. That’s the highest rate since 2008.<\/p>\n

What’s the significance? I’ll defer to Gennadiy Goldberg, U.S. Strategist at TD Securities. Maybe hearing it from someone besides me will finally convince you to believe it.<\/p>\n

Goldberg says, “Underlying trends remain largely consistent with a gradual housing market recovery… The ongoing recovery in the housing market will translate into better U.S. growth – not only via a rebound in construction jobs, but also due to the wealth effect due to rising housing values.”<\/p>\n

Maybe it’s just me. But I think I hear an echo<\/a>, echo<\/a>.<\/p>\n

That’s it for today. I’m sure I’ve angered or offended someone. So let me have it by sending your comments, biting criticisms and calls for my beheading to feedback@wallstreetdaily.com<\/a>. You can also leave a comment on our website<\/a>.<\/p>\n

Ahead of the tape,<\/p>\n

Louis Basenese<\/p>\n

Article By WallStreetDaily.com<\/u><\/a><\/p>\n

Original Article: Friday Charts: Should We Be on High Alert for Another Banking Collapse?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com You know the drill by now… Every Friday, I put on a muzzle and do my best to let a handful of carefully selected charts do the talking for me. Longtime readers say this is their favorite column of the week. But I think that’s because they don’t have to listen to me … <\/p>\n

Continue reading “Friday Charts: Should We Be on High Alert for Another Banking Collapse?”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-37678","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/37678","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=37678"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/37678\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=37678"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=37678"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=37678"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}