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  • Finance 0

    Gold Options Skew Signal Short-Term Upside Potential

    It has been a tough month for gold, tumbling over 6% from its early June $1300 highs, but options traders are now positioning for a rebound. As Bloomberg notes, the cost of bearish over bullish contracts in the $33 billion SPDR Gold Shares exchange-traded fund has dropped to the lowest level since U.S. President Donald Trump’s election. The precious metal slumped for the fifth time in six days today, with bullion for immediate delivery selling near the lowest price in two months....
    On July 6, 2017 / By
  • Finance 0

    ‘There’s Some Real Concern About Oil’: U.S. Oil Fund Put Volume Surges

    There’s some real concern about oil from people who are speculating. That’s from Eric Balchunas, an ETF analyst for Bloomberg Intelligence, and he’s referring to the following set of headlines which crossed a little while ago: U.S. Oil Fund Put Volume Surges, August Trade in 134k Block U.S. Oil Fund August $8.5 put options trade ~146.9k lots as of 1:45 p.m. ET, according to data compiled by Bloomberg. 134.1k bought for 10c in single block ~12:10 p.m. Open interest 218.8k Wednesday Thursday’s total put volume outpacing call volume by 2.6 to 1 USO total put volume 234.8k, vs 103k 5-day avg (BBG) You can draw your own conclusions there...
    On July 6, 2017 / By
  • Finance 0

    Stocks Watchlist: MTOR, RCI, RACE

    Today’s stock picks Long Meritor (MTOR) Long Rogers Communications (RCI) Short Ferrari (RACE)...
    On July 6, 2017 / By
  • Finance 0

    Market Overview – Thursday, July 6

    Based on the PMO index, the market has been oversold on a short-term basis for a number of days. The indicator was showing a little strength yesterday, but now it is pointed lower again. So a short-term rally is probably off the table until this index starts to turn higher again. The Small Caps sold off along with the market. This is not a very good looking chart, but while the small caps were above the 50-day, it was hard to bet against the broader market. Now, the bears have a chance. Junk bonds are under resistance, but so far they haven’t sold off much. The Semiconductors were one of the few groups that didn’t sell off today, ...
    On July 6, 2017 / By
  • Finance 0

    Silver Miners Starting To Break Down, Bearish For Precious Metals

    This does not look for precious metals. After yesterday’s strongly bearish observation on gold’s price chart as we wrote It’s Official: Gold Price Breaks Down we now see the silver miners breaking down as well. The fact that silver miners are breaking down is an extremely important event because we consider them a leading indicator for the precious metals space. The proof is in the ‘pixel perfect’ pattern they have been moving into since early last year. Today, silver miners started to move outside their pattern. That is very bearish, make no mistake. Not only is it bearish for miners, it also is for silver and the whole precious...
    On July 6, 2017 / By
  • Finance 0

    Tools For Under The 1929 Hood

    Leading up to the impending stock market crash, by February 1929, one million Ford Model A’s were sold and by July, two million. The original toolkit from the Model A looks practically medieval. Given the October 1929 stock market crash, I suspect many Model A buyers used some of those tools on themselves in a medieval fashion. Last night, we focused on the Transportation sector or the ETF IYT. As of Monday, IYT’s price moved above the monthly chart’s channel line resistance. That makes Monday’s low price 172.85 important, especially on a closing basis for this week. Henry Ford focused on “design for manufacturability”. The purpos...
    On July 6, 2017 / By
  • Finance 0

    Two Rules To Reversals

    Stocks fell across the board today. An all out equal selling is not something we have seen for a while although typical of markets. In tonight’s video we look at the two concepts we talk about a lot which are range expansion leading to range contraction. Watch tonight’s video for these two rules to reversals… Video Length – 00:11:39...
    On July 6, 2017 / By
  • Finance 0

    E Precious Metals And Miners: Further Decline

    Tomorrow’s employment numbers will likely decide if gold rebounds now or if prices will drop to break the May $1,214 low before bouncing. Whatever the case, precious metals and miners are expected to decline for several more weeks before reaching the 6-Month low. Currently, I like September for the 6-month low. However, if prices drop far enough and fast enough, we could see a bottom in August. The depth and duration of the next rebound will narrow our focus. US Dollar – The dollar can’t seem to get its footing; we need consecutive closes above the 10-day EMA to achieve a bottom. Gold – Tomorrow’s close could set the short-t...
    On July 6, 2017 / By
  • Finance 0

    A Closer Look At This Morning’s ADP Employment Report

    In this morning’s ADP employment report we got the June estimate of 158K new nonfarm private employment jobs from ADP, a decrease over May’s 230K, which was a downward revision of 23K. The popular spin on this indicator is as a preview to the monthly jobs report from the Bureau of Labor Statistics. But the ADP report includes a wealth of information that’s worth exploring in more detail. Here is a snapshot of the monthly change in the ADP headline number since the company’s earliest published data in April 2002. This is quite a volatile series, so we’ve plotted the monthly data points as dots along with a six-...
    On July 6, 2017 / By
  • Finance 0

    Gold Flashing Bullish Signals Again, USD/JPY Contracting Triangle In Play

    USDJPY 30 min 4 Hours Daily My Bias: LONGWave Structure: rally in wave [C]Long term wave count: wave [C] is underway, upside to above 136.00Important risk events: JPY: N/A. USD: Non-Farm Employment Change, Unemployment Rate, Fed Monetary Policy Report.  USDJPY has spent the week going sideways in a contracting range. This price action is beginning to look like a contracting triangle, Possibly within wave ‘4’ pink. If this interpretation is correct, then we should get a sharp move up in wave ‘5’ pink very soon. This triangle structure is very close to completion at the moment with possibly one more decline into th...
    On July 6, 2017 / By