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Finance 0
Are Bearish Sentiment Responses Translating Into Actual Action?
The S&P 500 Index is only down .60% from its November 8, 2017 high yet individual investor and institutional equity sentiment has turned significantly less positive. This negative sentiment has not translated into broadly lower equity prices though, but knowing sentiment measures are contrary indicators, they are approaching levels that would be suggestive of higher equity prices ahead. In this week’s American Association of Individual Investors’ Sentiment Survey, bullish sentiment fell 15.8 percentage points to 29.4%. This was the largest weekly decline since the bullish sentiment reading fell 16.2 percentage points in Apr... -
Finance 0
Week In Review: Shanghai Pharma Acquires Cardinal’s China Drug Distribution Network For $1.2 Billion
Shanghai Pharma (SHA: 601607) paid $1.2 billion to win the bidding war for Cardinal Health’s (NYSE: CAH) China drug distribution operations (see story). Cardinal was China’s eighth-largest drug distribution company, with $3.5 billion in 2016 China revenues, while Shanghai Pharma is number three. After the companies are combined, Shanghai Pharma will become number one. In 2010, Cardinal got a foothold in the China market by paying $440 million to acquire Zuellig Pharma, a company that in-licensed China marketing rights to western drugs. Arcus Biosciences, a Bay Area biotech, announced a $107 million Series C financing (... -
Finance 0
Euro, Yen And Sterling Regain Footing
The US dollar is trading with a heavier bias against the euro, sterling, and yen, but is firmer against the Antipodean currencies and many of the actively traded emerging market currencies. This mixed performance is the story of the week. The US 2-10 yr yield curve is flattening further today with the two-year pushing above 1.70% for the first time since the financial crisis. The 10-year yield is slipping toward the middle of this week’s 2.32%-2.41% trading range. There are two big US stories being discussed today. The progress on US tax reform and news that the special prosecutor had subpoenaed documents from more th... -
Finance 0
Economic Data And Forecasts For The Weeks Of November 20 And November 27
Here are my forecasts for upcoming economic data. Forecast Prior Observation Consensus Week of November 20 November 20 Leading Indicators 0.4% -0.1 0.6 November 21 Chicago Fed National Activity Index – October 0.20 0.17 0.2 Existing Home Sales – October 5.430M 5.390 5.425 November 22 Durable Goods Sales – October 0.5% 2.0 0.5 Initial Unemployment Claims 235K 249 240 Michigan Consumer Sentiment Index – November (r) 97.8 97.8 97.9 November 23 Thanksgivng Nove... -
Finance 0
E SPX Declines To Short-Term Support
VIX rallied from its mid-Cycle resistance at 14.59 before closing above Long-term support at 11.11. VIX is on a buy signal. The inverted Head & Shoulders formation now has a completed right shoulder giving a potential target for the next move higher when the neckline is exceeded. (Barrons) The CBOE Volatility Index spiked to 14.5 early Wednesday morning and is hanging out at the 13 level as of this afternoon. Meanwhile in ETF land, the leveraged ProShares Ultra VIX Short-Term Futures (ticker: UVXY) is up more than 5% and its unleveraged sister ProShares VIX Short-Term Futures (VIXY) notched a 2.5% gain. Harvard Management Company to... -
Finance 0
Upcoming Earnings Reports To Watch: CRM, HPE, DE
We have already moved past the traditionally busy stretch of earnings season, but there are still several key reports to look forward to next week. So far, Q3 earnings have been strong across the board, so it will be interesting to see whether these reports will continue that trend and inspire strong trading for the remainder of the calendar year. With that said, investors can always use the Zacks Earnings Calendar to plan out their schedules for earnings, dividend announcements, and other important financial releases. This handy tool is your perfect one-stop-shop to properly prepare for the market events that will have an impact on your ow... -
Finance 0
Understanding Forex Brokers: ECN, STP, ECN+STP
Unfortunately, many people wrongfully associate Forex trading with a scam. The problem lies in the increasing number of unscrupulous companies marketing false info. The number of Forex-related scams has significantly increased over the past few years, so it’s important for you to be able to identify a hoax. After all, Forex trading should be a potentially profitable experience. When choosing a broker, always check if they are regulated by a relevant authority. Simply put, if a broker is not regulated, your money is not safe. Every broker should abide by the rules of a financial authority. In the context of defending citizens from fra... -
Finance 0
The Crisis Lending Fund
Last week, there was an article in Barron’s describing how many mutual fund families take advantage of a provision in the law allowing them to have funds lend to one another.Quoting from the article: Under normal circumstances the Securities and Exchange Commission bars funds from making “affiliated transactions,” but there’s a loophole in the Investment Company Act of 1940 for funds to apply for an exemption to make such “interfund loans.” Until recently, few fund families applied for this exemption. None had before 1990. From 2006 to 2016, the SEC approved just 18 interfund lending applications. But since January 2016, the agenc... -
Finance 0
Gold: The Battle Between The Bulls And The Bears Continues
Fundamental Forecast for Gold: Neutral Gold remains stuck in a narrow trading range with neither the bulls nor the bears giving an inch, while both sides press for range break which is likely coming soon. We remain on the sidelines for now, although growing risk aversion has us leaning towards a long position on a break-out. The argument for a lower price is predicated on higher US interest rates with the target range for the Fed Fund rate likely to be moved up by 0.25% to 1.25%-1.50% at the next Federal Reserve meeting on December 13. A look at short-term US interest rates gives us a slightly clearer picture about the Fed’s interest ra...
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