As this rally has often done, just as you expect a reversal to start, bulls come in (hard) to bid up the market. The S&P had the clearest switch as it moved from a ‘bull trap’ to a ‘bear trap’. If it can post a break of 2,597 it will have little to stop it; in such a scenario watch for a fresh MACD ‘buy’ which would confirm recent losses as a pullback ‘buy’ opportunity. Stops on a loss of 2,557. More impressive was the recovery in the Russell 2000. I’m not sure it has done enough to consume what will be plentiful supply all the way to 1,515.Despite the 1.5% gain there wasn’t...
Concerns over timing and implementation of President Donald Trump’s tax cut plans weighed on the key U.S. indexes recently. Investors remain pensive after Senate Republicans revealed a tax cut plan that entails the deferment of corporate tax cuts for a year. Adding to markets’ woes is a near certain rate hike post Fed’s December meeting. Investors need to digest the uncertainties over implementation of Republicans’ tax cut plans and December rate hike prospects over the coming months. In this context, mutual funds that are capable of offering favorable returns and bear a lower level of risk might be prudent investment options. Tax Cut...
Video length: 00:09:38 Stocks pop higher today on the news the House passed the tax reform bill and good earnings from WMT. Does this mean more new highs or is the market setting the range of trading for the rest of the year. Watch this video to find out....
Capitalism inherently veers towards a monopolistic and unequal society (ie, capitalists try to own all the means of production). This means that capitalists must understand that their own actions are the biggest risk to the system they love. This is because the labor class will not likely allow a persistent inequality to exist. This can either resolve itself via government action (greater redistribution) or the capitalists can resolve it themselves by ensuring that they aren’t obtaining an excessive surplus of wealth. Now, the American system of capitalism is an interesting case study here because America is both the most giving country in ...
Video length: 00:07:00 Japanese stocks have been rallying of late, particularly after Shinzo Abe’s strong victory in snap elections, which gave his party a two thirds majority in the parliament. His win has cleared the way for another round of Abenomics, which means we could see more fiscal and monetary stimulus as well as corporate reforms. Recently, the Bank of Japan governor reiterated that the central bank would continue its monetary easing policy to ensure that it meets its inflation target of 2%. Last week, the Nikkei index rose to its highest level in more than 25 years, though it is still far below its 1989 peak. Japanese economy gr...
With the oil markets much closer to balance, geopolitical uncertainties are beginning to have a larger influence on the price of oil, something that hasn’t been the case for the last 2-3 years, Robert Rapier at R-Squared Energy recently told Financial Sense Newshour. For related podcast, see Frank Barbera on Possible Market Top; Robert Rapier: “Fear Cycle” Returning to Oil Market What’s Driving Oil Prices Now Historically, the oil industry has cycled between fear and complacency, Rapier noted. A decade ago, the peak oil narrative was the driving force behind prices. Fear and negative news pushed the price higher. Ultimately, th...
Pandora (P) is higher in afternoon trading after shares were upgraded to Outperform by BMO Capital, which cited better than expected subscriber numbers and positive channel checks on audio ads, among other things. POSITIVE CHECKS ON ADS, WIDER AUDIENCE: BMO Capital analyst Daniel Salmon this morning upgraded Pandora to Outperform from Market Perform, saying that despite a lack of near-term catalysts the market underappreciates longer-term factors. In a note to clients, Salmon specifically called out recent positive channel checks on audio ads among several industry executives, as well as the potential to widen Pandora’s audience and imp...
As we lurch through successive credit crises, central bankers and economists believe they learn valuable lessons every time, and that the ultimate prize, the suppression of business cycles through monetary policy, will be achieved. We saw, over Brexit, how wrong the Bank of England’s and the UK Treasury’s models were, and these errors were also evident in the OECD’s model. Brexiteers smelled conspiracy, but in the absence of evidence, perhaps we should give them the benefit of the doubt and assume the errors were genuine. If so, all computer economic modelling has been a waste of time. Then there’s the old mantra of garbage in, garbag...
The Chart of the Day belongs to Salesforce.Com (CRM). I found the computer software stock by using Barchart to sort today’s 52 Week High list first for the most frequent number of new highs in the last month, then I used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Spotter signaled a buy on 10/3 the stock gained 12.11%. Salesforce.com is the market and technology leader in on-demand business services. The company’s Salesforce suite of on-demand CRM applications allows customers to manage and share all of their sales, support, marketing and partner information on-demand. The ...