WTI Crude Oil The WTI Crude Oil market had a very volatile session during Wednesday, as currency markets were moved drastically by Janet Yellen’s comments for the Congressional members. However, more importantly, we saw a very bearish inventory number, so I think that we are going to continue to see selling on the rallies, and that is the thesis going forward. By forming the shooting star, it suggests that the buyers are probably doing nothing more than short covering, and that, of course, is no way to build a rally. I believe oil continues to go lower longer-term, and because of that, I have no interest in buying. I look at rallies as oppo...
The biotechnology industry is one of the most popular targets for investors seeking untapped growth opportunities. There has been a lot of research in recent years on alternative treatments for various diseases and conditions. Every startup biotech company out there is seeking a breakout product that will repay years of research and development in their clinical pipelines. And while most of the research is focused on biotechnology growth markets such as cancer, cell regeneration, immunotherapy, medical marijuana and nanotechnology, the smart drug market has now emerged as an interesting area for drug makers as demand continues to soar. Man wa...
On Thursday, July 6, in the late afternoon (as reckoned in Arizona), the price of silver crashed. The move was very brief, but very intense. The price hit a low under $14.40 before recovering to around $15.80 which is about 20 cents lower than where it started. Buyers of silver are rejoicing. They can now get more money (silver, like gold, is money) in exchange for their dollars than before. However, as we see from the reactions in the community, there were few buyers. Cries of woe are heard everywhere. Those who are crying are sellers, including those who say they don’t plan to sell but who really want a high price in case they change...
Yesterday’s signals were not triggered as none of the key levels were ever reached, although the support at 0.9600 was just a couple of pips below the low of the day. Today’s USD/CHF Signals Risk 0.50% per trade. Trades must be taken before 5pm London time today only. Short Trade 1 Go short after bearish price action on the H1 time frame following the next touch of 0.9688. Place the stop loss 1 pip above the local swing high. Adjust the stop loss to break even once the trade is 20 pips in profit. Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride. Long Trades Go long...
Overseas stock funds are finally making a difference for fund investors. Investors are looking to trim U.S. investments which are getting increasingly expensive. Instead, they intend to put that cash into cheaper foreign stocks, which in turn has helped foreign stock funds outdo U.S. equals in the first half. Support from central banks also played a major role in lifting foreign stock funds. This calls for investing in such sound funds for better returns. Overseas Stock Funds Outdo US Funds Mutual funds focused on U.S. stocks have gained 2.7% in the second quarter, marking the fifth straight quarterly gains as corporate earnings are on a roll...
Following reports from OPEC that supply shall exceed demand in the oncoming year or so, we have a consolidating Crude Oil price around USD44-45/bbl. BoC has increased their rate overnight following signs of inflation. Given this, the USD/CAD could be further sold-on on rallies. My previous analysis showed a drop in the pair and I expect this to continue. At this point the pair is just above W H5, and above D L3. According to my CAMMACD method, we could see another drop below D L3. The drop could happen with or without retracement. If we see a retracement, pay attention to POC 1.2790-1.2810 (50.0, W L4, D H3, ATR pivot) where the price could...
There are four interesting developments taking place in the gold and silver market that precious metals investors should be aware of. While Americans continue to place all the BETS in the CASINO called Wall Street, via stocks, bonds and real estate, the EAST has been acquiring record amounts of gold and silver. Furthermore, something interesting seems to have changed recently in the Silver Eagle sales market. FIRST DEVELOPMENT: Let’s start off with showing the stunning amount of silver India imported in May. According to Smaulgld.com, India imported nearly 2,000% more silver in May 2017 vs May 2016: Matter-a-fact, India imported nearly t...
China’s rapidly growing corporate and personal debt is always cited as being one of the main risks to the global economy. The country’s debt mountain has exploded higher since the financial crisis, and after the World Economic Forum had warned that China’s debt would increase by a worrying $20 trillion by 2020 and could soon catch up to the US Debt To GDP levels. It seems policymakers took it upon themselves to make sure this target was not only met but also exceeded. By 2016 debt had increased to $22 trillion and the current rates it will hit $50 trillion by 2020. In the first quarter of 2017 , China added debt equal to more than 40%...
I greatly under-estimated the confidence of the Bank of Canada (BoC) when I mapped out the possibilities for a currency market that highly anticipated a rate hike from the Bank. In its latest statement on monetary policy, the BoC increased its target for the overnight rate by 25 basis points (bps) to 0.75%. The Bank cited its growing confidence in the Canadian economy: “Recent data have bolstered the Bank’s confidence in its outlook for above-potential growth and the absorption of excess capacity in the economy. The Bank acknowledges recent softness in inflation but judges this to be temporary. Recognizing the lag between monetary polic...
S&P 500 The S&P 500 had a strong showing on Wednesday as the Congressional testimony of Janet Yellen assured traders that although there will be interest rate hikes in the near future, they will be gradual and data dependent, which of course means that the Federal Reserve is very cognizant of how fragile the markets could be. Because of this, it looks as if the S&P 500 is trying to break out, and I believe that the market will look for reasons to try to overcome the 2450 handle. Once we do, the market should then go looking towards the 2500 level which has been my longer-term target for quite some time. When you look at this chart...