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  • Finance 0

    Buy Gold Near $1,200 “As Insurance” – UBS Wealth

    Buy gold as insurance against Kim’s ‘gift giving’ Yesterday North Korea sent the US a ‘package of gifts’ for Independence Day. Unsurprisingly the successfully tested and launched intercontinental ballistic missile (ICBM) was not well received. US Secretary of State Rex Tillerson called the move a “new escalation of the threat” to the U.S. and its allies and that “global action is required to stop a global threat.” As the US and South Korea began military exercises in response to North Korea’s gift giving ceremony, safe haven assets rose and gold made a small rebound in the face of these escalating geopolitical concern...
    On July 5, 2017 / By
  • Finance 0

    The Economic Trend Usually Looks Positive When Recessions Start

    Recognizing when a recession starts in real time is, for all practical purposes, impossible. The one exception to that rule is if you’re willing to endure a high number of false signals in your model. In that case, you’ll see lots of new recessions starting, but only a handful will be the genuine article. But if reliability with a low error rate is required — as it should be – the usual routine won’t suffice. Instead, you’ll need a methodology that focuses on a broad set of key indicators. No less critical is how you define the analysis of the dataset. An optimal set of indicators won’t mean much if you’re running the analysis...
    On July 5, 2017 / By
  • Finance 0

    US Dollar Rebound Looks For Fuel In FOMC Minutes Today

    Video length:00:08:01 After light trading conditions marked the start of the week thanks to the US holiday yesterday, traders look for liquidity conditions to normalize a bit today amid the first full trading day in North America. Thankfully for traders, there are quite a few economic data releases and policy-related events through the end of the week that should help stir volatility. For the US Dollar, the timing of upcoming releases dovetails neatly with its recent rebound (via DXY Index). The June FOMC minutes set to be released today, for example, are likly to contain hawkish undertones as it was at the June FOMC meeting that the Fed not ...
    On July 5, 2017 / By
  • Finance 0

    Crude Crashes Abruptly

    We just hit technical levels that were a bridge too far at this stage. That’s from Ole Hansen, head of commodity strategy at Saxo Bank and he imagines that largely explains this: One-minute volume on Brent jumped to ~2.8k lots at 9:52am in London and WTI dropped by a similar amount on one minute volume of 4.6k lots. We’re blaming that on Brent not being able to push above $50. “News has not been supportive, OPEC and Russia not contemplating any additional steps to cut,” the above-mentioned Ole Hansen said. “The failure to push through $50/bbl was likely most significant driver.” I see. Well whatever the case, it comes on the...
    On July 5, 2017 / By
  • Finance 0

    USD/JPY And AUD/USD Forecast – Wednesday, July 5

    USD/JPY The US dollar initially fell against the Japanese yen on Tuesday but found enough support near the 112.50 level to turn things around and form a hammer like candle. The hammer of course is a bullish sign, and if we can break the top of it, that should send this market towards the upside, perhaps reaching towards the 114 handle, and then eventually the 115 level. A break above the 115 level is very bullish, and send this market much higher over the longer term. Alternately, if we do breakdown from here, the market should probably reach towards the 112 level. I think that there is a significant amount of volatility just waiting to happe...
    On July 5, 2017 / By
  • Finance 0

    Technically Speaking: How Big Could A Correction Be?

    “There is nothing wrong with America that the faith, love of freedom, intelligence, and energy of her citizens cannot cure.” – Dwight D. Eisenhower “If we just stick together, and remain true to our ideals, we can be sure that America’s greatest days lie ahead.” – Ronald Reagan Hope you had a great “Independence Day.”  On Monday, the market was open for a half-day preceding the “Independence Day” holiday, and with the majority of the “human element” on vacation, the markets surged as the “robots” kicked in to “buy the recent dip.” As I noted in this past weekend’s missive: “As noted on Friday, ...
    On July 5, 2017 / By
  • Finance 0

    Factor Investing 2017: Quality And Dividends Dominate In EAFE

    Over the last several months, we’ve seen an increased debate about not only where investors should be allocating, but also how. To answer the first question: While the U.S. has generally been the place to be since 2008, our base case going into 2017 was that there were likely better values to be had in international markets. As for the second question, as one of the earliest proponents of fundamentally weighted Indexes, WisdomTree continues to believe in the ability of dividends to help compound returns over time. In 2013, our focus expanded to include not only companies with attractive dividend yields but also businesses that may have...
    On July 5, 2017 / By
  • Finance 0

    Sensex Finishes Flat; Raymond Surges 6.4%

    Indian share markets traded marginally higher in the afternoon session. At the closing bell, the BSE Sensex stood higher by 36 points, while the NSE Nifty finished up by 24 points. Meanwhile, the S&P BSE Mid Cap & the S&P BSE Small Cap finished up by 1% and 1.1% respectively. Losses were largely seen in software stocks and FMCG stocks. Realty stocks, metal stocks and energy stocks witnessed maximum buying momentum. Raymond share price finished the trading day up by 6.4% in today’s trade to Rs 815. The stock gained 14.5% in last six trading sessions and so far this year, it gained 62%. The company will inve...
    On July 5, 2017 / By
  • Finance 0

    Global Stocks Rebound From Korea Jitters; S&P Flat As Fed Minutes Await; Oil Slides

    S&P futures were little changed at 2,425, ignoring the N.Korea tensions of the past two days which will likely be a major topic in the upcoming G-20 summit, as European stocks fluctuate and Asian markets advance. Crude oil fell, snapping the longest winning streak this year, as Russia said it opposed any proposal to deepen OPEC-led production cuts. Just like Tuesday, it was a session of two halves, with the Yen initially starting the day stronger as military tensions built up in Korean peninsula, and cash Treasuries breaking with a firmer tone as 10-year yield initially fell. Aussie reversed part of Tuesday’s losses despite a drop in Ca...
    On July 5, 2017 / By
  • Finance 0

    EUR/USD, USD/JPY Setup Contracting Triangle Chart Patterns

    EUR/USD 4 hour The EUR/USD pullback is creating a contracting triangle chart pattern via the trend lines (blue/red). A bullish break above resistance (red) could see price approach the Fibonacci targets of wave 5 (purple) which could complete wave 3 (green). A bearish break could see price retest the broken resistance levels. 1 hour The EUR/USD is still completing its ABC zigzag correction (orange) within wave 4 (brown). The Fibonacci levels of wave 4 vs 3 (brown) plus the broken resistance levels (blue box) are a key support zone. A bullish bounce confirms the wave 4 whereas a bearish beak invalidates it. USD/JPY 4 hour The USD/JPY uptrend i...
    On July 5, 2017 / By