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  • Finance 0

    The Fed And The SPX: Catalyst Fizzle

    The minutes from the last Fed meeting, released a few minutes ago today and summarized as follows (courtesy of Nasdaq.com), present a mixed view of the economy… So far, market reaction to this report has been muted and non-committal, as evidenced by the long tails on both the tops and bottoms of the candles of the following 5-minute intraday chart of the SPX. This lack of commitment by traders is also prevalent in the day-to-day action since June, as shown on the following Daily chart, which is consistent with what I reported in my post of July 2nd (which presented an outlook for longer timeframes for this market). So, if trade...
    On July 5, 2017 / By
  • Finance 0

    Auto Retailers Fall After O’Reilly Announces Comp Sales Miss

    Shares of auto retailers are falling after O’Reilly Automotive (ORLY) reported second quarter same-store-sales that were below previous expectations. SSS MISS: O’Reilly Automotive reported Q2 comparable store sales results of 1.7%, which fell short of previously issued Q2 comparable store sales guidance of 3%-5%. CEO Greg Henslee stated, “After exiting Q1 and entering April on an improved sales trend, we faced a more challenging sales environment than we expected for the remainder of the quarter.” Henslee added that the Q2 comp sales results of 1.7% represent an improvement over our Q1, but fell below the 3%-5%, “...
    On July 5, 2017 / By
  • Finance 0

    Tesla Stock Growth Options And Risk

    Stewart Myers of MIT coined the term “growth options” to refer to future projects a company has the opportunity to undertake. Because the projects have not yet been undertaken, and in some cases may not yet be envisioned, the market valuation of growth options is prone to large swings. It depends on the perceptions of investors regarding what a company might be able to profitably do in the future. And those perceptions are likely to be mercurial because they are, by necessity, based on speculation regarding future businesses rather than the performance of actual businesses. Investor perceptions regarding the growth options of Tesla hav...
    On July 5, 2017 / By
  • Finance 0

    FPX Nickel: A Contrarian Investors Dream With A Tier 1 Deposit

    FPX Nickel CEO Martin Turenne joined me on the show to discuss the company’s flagship Decar Nickel project. FPX has the 2nd largest undeveloped Nickel deposit and in a period where nickel prices are very depressed, this presents an excellent contrarian investment opportunity. Video Length – 00:35:27...
    On July 5, 2017 / By
  • Finance 0

    Fed Minutes: Key Points And Highlights

    I’m not sure how much markets are going to care about the Fed minutes given how much hawkish rhetoric we’ve gotten since the June hike and given the fact that it is now abundantly clear that the committee is pursuing a bubble-busting “third mandate” aimed at curbing risk taking by leaning against loose financial conditions (lackluster inflation be damned), but I suppose if you parse them to death, you can find something to trade on. Below, you can find a list of 4 things Citi is looking for – basically it’s the same list anyone who hasn’t been asleep for six months is looking at… Minutes from the June meeting are unlikely to h...
    On July 5, 2017 / By
  • Finance 0

    Set Up For Major Profits No Matter Which Way This Company Moves

    This company that I’m about to recommend you move in on is about to make a major move. The only problem is that it’s set up to swing either way. That’s why we’re getting creative. First, I’ll explain what I plan we do, and then I’ll lay down the dirty details on this company. It’s struggling with some major lawsuits over a recent acquisition, but the stock has been steadily rising over the past week. Position yourself right and you stand to make serious gains no matter what happens next. Here’s a quick trading lesson, and our next big play… Straddle Basics A straddle is a fairly generic strategy. It means you want to straddl...
    On July 5, 2017 / By
  • Finance 0

    4 Best Performing International ETFs Of 1H

    The worldwide stock markets put up a stellar show in the first half of 2017, shrugging off political turmoil in Washington, Middle East tensions, increased Brexit uncertainty and high stock valuations. According to The Wall Street Journal analysis of the world’s 30 biggest stock markets by value, all but four (Canada, China, Israel, and Russia) registered gains in the first half, marking the performance the best since the immediate bounce back from the depth of the 2008-09 global financial crisis. While the S&P 500 index posted its strongest first half since 2013, the spotlight was on international investing. This is especially true a...
    On July 5, 2017 / By
  • Finance 0

    Oil Prices Snap Bullish Sequence Ahead Of EIA Inventory Update

    Ticker Last High Low Daily Change ($) Daily Range ($) GBP/USD 1.2921 1.2948 1.2894 1 54 Dismal prints coming out of the U.K. economy paired with mixed rhetoric from Bank of England (BoE) officials may continue to suppress the broader outlook for GBP/USD as the Federal Open Market Committee (FOMC) appears to be on course to further normalize monetary policy over the coming months. After voting to raise the benchmark interest rate in June, Ian McCafferty and Michael Saunders may continue to push for a 25bp-hike at the next meeting on August 3 ‘since then the economy has not slowed to the extent we feared it would last summer.’ However,...
    On July 5, 2017 / By
  • Finance 0

    FOMC Minutes Show “Divided” Fed Fearful Of High Asset Prices, Low Inflation

    Having hiked in June amid gravely disappointing macroeconomic data, all eyes are now on the minutes for inflation (weakness blamed on “idiosyncratic factors”), labor market (concerns about “sustained employment undershoot”), balance sheet normalization (Fed “divided” over when to start), and market valuation concerns (“equity market high on standard metrics”). Rate hike odds for Sept (22%) and Dec (56%) were rising into the release. Additional headlines… *FED OFFICIALS DIVIDED OVER WHEN TO START BALANCE-SHEET RUNOFF *FED OFFICIALS REPEATED SUPPORT FOR GRADUAL INTEREST-RATE HIKES *A FEW FE...
    On July 5, 2017 / By
  • Finance 0

    Factory Orders Down Second Month: Consumer Demand For Junk Falters, Auto Sector Channel Stuffing

    The manufacturing sector is not quite on a roll despite the widespread belief in ISM reports and Fed regional activity reports that have been wildly off the mark. Factory orders for May came in at -0.8% vs an Econoday consensus estimate of -0.5%. In addition, the commerce department revised April factory orders lower, from -0,2% to -0.3%. Nonetheless, Econoday dug deep to find positives. Forecasters thought factory orders would get a lift from nondurables but they didn’t as total orders fell 0.8 percent in May vs Econoday’s consensus for minus 0.5 percent. Nondurable orders, held down by weakness in petroleum and coal, also fell 0.8 pe...
    On July 5, 2017 / By