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  • Finance 0

    Above The 40 – Breadth Returns To The Stock Market…Just In Time

    AT40 = 55.3% of stocks are trading above their respective 40-day moving averages (DMAs)AT200 = 56.8% of stocks are trading above their respective 200DMAsVIX = 9.8 (volatility index)Short-term Trading Call: cautiously bullish Commentary In my last Above the 40 post, I noted how the trading action made it hard for me to cling to my cautiously bullish short-term trading call. The stock market answered my criticism with a sudden burst of breadth. Who flipped the switch? The S&P 500 (SPY) closed May with financials sounding fresh alarm bells. At the time, AT40 (T2108), the percentage of stocks trading above their respective 40DMAs, bounced...
    On June 4, 2017 / By
  • Finance 0

    If Gold Starts The Week Running We Could See An Extension Beyond $1,300

    The Dollar sold off, and metals rallied after Friday’s weak employment numbers. The April and March data was revised lower, adding fuel to gold’s rebound. Oddly, the softer than expected economic data didn’t affect the odds for a June rate hike which remain at 94.6%. The steadfast underperformance in miners contradicts the persistent rally in metals. Nevertheless, it appears the 6-month gold cycle is stretching, and prices could temporarily exceed the April $1,297 high. Once the rally concludes, a 4-8 week correction should follow. The price action Monday and Tuesday will set the stage for the rest of the week. If gold begins to rollo...
    On June 4, 2017 / By
  • Finance 0

    Solar Senior Capital: 8%+ Dividend Yield And Monthly Dividend Payments

    Business Development Companies, or BDCs, have become popular among income investors, particularly retirees. That is because BDCs, as an alternative asset class, offer very high dividend yields, thanks in part to a favorable tax structure. For example, Solar Senior Capital (SUNS) has a current dividend yield of 8.4%. You can see the full list of established 5%+ yielding stocks by clicking here. Solar Senior’s yield towers above the average stock in the S&P 500 Index, which has a 2% dividend yield. Not only that, but Solar Senior also pays its dividend each month, rather than once per quarter. This allows investors even faster compoundin...
    On June 4, 2017 / By
  • Finance 0

    US Bond Market Week In Review: Is The Fed’s Fundamental Analysis Wrong?

    As I observed over the last two weeks, most Fed presidents believe they have achieved their dual mandate – full employment and inflation near 2%. Today, I want to look at the counter-arguments to this assessment – that the U.S. is not at full employment and that inflation is in fact weaker than 2%. Assuming the following observations are accurate, then the Fed’s decision to raise rates over the next 18 months would be premature and potentially harmful to the economy. Let’s begin with employment. The unemployment rate is a very low 4.3% and the U-6 rate is approaching lows seen before the recession. But despite these low numbers, overa...
    On June 4, 2017 / By
  • Finance 0

    USD/CAD Forecast June 5-9

    The Canadian dollar was almost unchanged last week, with USD/CAD closing at 1.3480. This week’s key event is Employment Change. Here is an outlook on the major market-movers and an updated technical analysis for USD/CAD. In the US, Nonfarm Payrolls was dismal, as the gain of 138 thousand was well below expectations. This reading was surprising, coming on the heels of an excellent ADP nonfarm payrolls. Canada’s GDP posted a strong gain of 0.5% in March, beating the forecast and giving the loonie some tailwind. Updates: USD/CAD daily graph with support and resistance lines on it. Click to enlarge: Ivey PMI: Tuesday, 14:00.  This indic...
    On June 4, 2017 / By
  • Finance 0

    ECB Meeting And UK Election Key Drivers In Week Ahead

    This week’s two main events, the ECB meeting and the UK national election have drawn investors intentions in recent weeks. The ECB may take a baby step on what promises several quarters before an exit path from its extraordinary monetary policy.    UK Prime Minister May’s call for a snap election was seen as a strong move, taking advantage of the apparent weakness of her domestic rivals and strengthen her hand in negotiations with the EU. At the same time preventing an election that would have complicated the conclusion of the Brexit negotiations. May used the reaction to the US decision to pull out of the Paris Accord as an op...
    On June 4, 2017 / By
  • Finance 0

    Economic Events Of The Coming Week – Sunday, June 4

    Monday: April Factory Orders data will see light in the U.S., where analysts eye a 0.2% MoM contraction. It will be followed by the final estimate of April’s Durable Goods Orders data. Tuesday: May Consumer Price Index data will see light in Russia, where inflation has recently moderated to 4.1% annually. Wednesday: April Factory Orders data will see light in Germany – Analysts eye an impressive increase, to 4.7% annual gain, at the headline figure. In the U.S., the weekly MBA Mortgage Applications will see light. Thursday: U.K. elections are likely to mark the highlight of the day. Ample volatility is expected at the GBP, amid Theres...
    On June 4, 2017 / By
  • Finance 0

    EUR/USD: Broader Bias Remains Higher On Bullishness

    EUR/USD: With the pair closing higher the past week, risk of more strength is likely. Resistance comes in at the 1.1300 level with a cut through here opening the door for more upside towards the 1.1350 level. Further up, resistance lies at the 1.1400 level where a break will expose the 1.1450 level. Its daily RSI is bullish and pointing higher suggesting further upside pressure. Conversely, support lies at the 1.1200 level where a violation will aim at the 1.1150 level. A break of here will aim at the 1.1100 level. All in all, EUR/USD faces further recovery threats in the new week....
    On June 4, 2017 / By
  • Finance 0

    US Equity And Economic Review: Very Mixed Signals

    Last week’s news was evenly divided between good and bad release. Starting with the negative, there is Friday’s jobs report: the headline figure was a paltry 138,000. Adding to the bearishness was the 60,000 decline in previous month’s growth. There are other negative elements starting with weak wage and hourly earnings growth: The percentage of people unemployed for 27 weeks or longer is still very high: Retail employment is limping along:  Finally, the 3 and 6 month moving averages of establishment job growth are all declining: Secondly, auto sales are still weaker than levels over the last 6-12 months; they declined to a 16.6 millio...
    On June 4, 2017 / By
  • Finance 0

    E Comey’s Testimony, European Central Bank & U.K Snap Election May All Produce Greater Volatility This Week

    Concern! If there is one major theme fast approaching investors and traders as we blast through record levels for the major U.S. indices it has to be concern. Concern will rear its cautiously optimistic head this week as several major events will play out in the public limelight. The testimony of James Comey The European Central Bank meeting The U.K. election, called by Prime Minister Theresa May Impact from the weekend’s UK terrorist attacks With U.S. equities continuing their yearlong rally into early June, a hiccup in the rally may come to pass this week. European Central Bank leaders may find themselves forced to change some of the lang...
    On June 4, 2017 / By