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  • Finance 0

    The Next Leg Higher?

    Good Monday morning and welcome back to what appears to be a celebration of tax reform on Wall Street. But before we get ahead of ourselves in terms of how far the bulls are going to run today, let’s start the week with a look at my key market models/indicators and see where we stand. To review, the primary goal of this exercise is to try and remove any subjective notions about what “should” be happening in the market in an attempt to stay in line with what “is” happening in the markets. So, let’s get started. EXECUTIVE SUMMARY: MY TAKE… The most recent burst to the upside, which began on November 21, has definitely been impress...
    On December 4, 2017 / By
  • Finance 0

    GBP/USD: Bullish, Biased To The Upside On Trend Resumption

    GBP/USD: The pair now faces risk of a trend resumption after reversing its Friday losses on during Monday trading session. Support lies at the 1.3500 level where a break will turn attention to the 1.3450 level. Further down, support lies at the 1.3400 level. Below here will set the stage for more weakness towards the 1.3350 level. Conversely, resistance stands at the 1.3550 levels with a turn above here allowing more strength to build up towards the 1.3600 level. Further out, resistance resides at the 1.3650 level followed by the 1.3700 level. On the whole, GBP/USD continues to face upside pressure short term.  ...
    On December 4, 2017 / By
  • Finance 0

    Keep Faith In Rising P/E: Play 5 Top-Ranked Stocks

    Generally, investors love stocks with a low price-to-earnings (P/E) ratio. The general perception is that the lower the P/E, the higher will be the value of the stock. The simple logic that a stock’s current market price does not justify (is not equivalent to) its higher earnings and therefore has room to run is behind investors’ inclination toward low P/E stocks. But stocks with a rising P/E can also be worth buying. We’ll tell you why. Why Rising P/E a Valuable Tool? Investors should note that stock price moves in tandem with earnings performance. If earnings come in stronger, the price of a stock shoots up. Solid quarterly earnings a...
    On December 4, 2017 / By
  • Finance 0

    Dollar Bounces On High Hopes

    The US Dollar was broadly higher on Monday after the US Senate approved legislation to overhaul the controversial US tax reform code. With the exception of a single vote, all Republican members voted in favor of the legislation which includes significant rate cuts for corporations and high-income tax payers. Analysts say that gains on the Dollar were limited, however, on uncertainty as to whether US interest rates would also rise as a consequence of the tax plan. This vote was the first major victory for the President and came with a great deal of anger from the opposition, not to mention a majority of interest groups and US tax payers who co...
    On December 4, 2017 / By
  • Finance 0

    The Bear’s Lair: Triumph Of The Bureaucrats

    The typical form of human government moved from absolute monarchy, to oligarchy, to democracy, but it did not stop there. As government grew, popular control over it declined, while its own bureaucracy became the principal factor determining its direction. We have now reached the stage where to term the result a “democracy” is laughably in error. We have entered the era of the Bureaucrat State, and the mechanisms for restoring popular control are very limited indeed. Two centuries ago, governments had almost no bureaucracy. Under Lord Palmerston in the 1830s, the foreign policy of the world’s greatest power was managed by a total of abo...
    On December 4, 2017 / By
  • Finance 0

    Positive Expectations, But Will S&P 500 Continue Higher?

    Intraday trade: Our Friday’s intraday trading outlook was bearish. It proved accurate because the S&P 500 reached our intraday profit target level of 2,615 (daily low at 2,605.52). the index fell sharply following relatively neutral opening of the trading session. The market has managed to close neutral (-0.2%). We still can see some short-term technical overbought conditions. However, there have been no confirmed negative signals so far. Therefore, we prefer to be out of the market today, avoiding low risk/reward ratio trades. Our intraday outlook is neutral today. Our short-term outlook is neutral, and our medium-term outlook is n...
    On December 4, 2017 / By
  • Finance 0

    Pound’s Breakout Exposes Yearly Highs

    Speculators piled into the British pound, triggering a range breakout, according to the latest Commitment of Traders (COT) report. Equity markets remain resilient despite cautious positioning trends by (non-commercial) speculators and an increased bout of volatility. Meanwhile, speculators were mixed in terms of positioning vs the USD, but managed to up their extremely bullish bets in gold and oil. The most recent COT report highlighted that the overall (net long) position in British pound futures is now trending higher again, as it advanced the 3rd straight week to reach 52%. The retail FX population, meanwhile, has continued to scale back t...
    On December 4, 2017 / By
  • Finance 0

    What’s The Point, Gold And Silver Report

    A reader emailed us, to ask a few pointed questions. Paraphrasing, they are: Who cares if dollars are calculated in gold or gold is calculated in dollars? People care only if their purchasing power has grown. What is the basis good for? Is it just mathematical play for gold theorists? How does knowing the basis help your readers? Is it just a theoretical explanation of what has already happened? Prove that if someone has known the basis for the last four years, he has benefitted. He also added: “Most websites on gold I’ve seen I have no respect for. They are snake oil salesmen trying to sell gold. Yours is not. So in that sense you guys a...
    On December 4, 2017 / By
  • Finance 0

    Latest Thoughts On U.S. Market Valuations

    Professor Jeremy Siegel recently appeared on CNBC and suggested that the U.S. equity markets were approaching fair value and that markets might “pause” some of their strong gains in 2018. Siegel still believes corporate tax cuts are one factor that supports the market strength and that earnings should receive a boost from pending changes. He saw about 5% more gains in 2017 and predicts stocks having more difficulty next year. Absent the corporate tax plan, we’d have a cloudier picture for U.S. stocks. But one question continues to come up in conversations: what about extended market valuations and the cyclically adjusted price-to-ear...
    On December 4, 2017 / By
  • Finance 0

    British Pound Optimism Looking Stretched

    The last time the pound looked stretched was due to rate hike expectations, but this time Brexit is in the driver’s seat. According to the BBC, deals have been struck in recent days relating to the size of the divorce bill and EU citizen’s rights in the UK. Hopes are also rising for an Irish border deal following comments from Ireland’s foreign minister who suggested a deal was “doable” prior to the upcoming EU summit. As such, the currency is rallying on the belief that a broader Brexit deal (particularly relating to trade) is within reach. Until the risk of a ‘no-deal’ scenario is removed, the pound will stay subdued even w...
    On December 4, 2017 / By