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  • Finance 0

    The Real Story Of China’s Strong First-Quarter Growth

    After the solid first quarter performance, the central government may be in the unique position to achieve its growth target –  even while tightening. In the first quarter, China’s economy grew 6.9 percent; slightly faster than expected and led by strong expansion at factories. What the first quarter data reflects is solid growth in several fronts. Retail sales soared to 10.9 percent on year-to-year basis, which reflects steady progression in the ongoing rebalancing of the Chinese economy toward consumption. Clearly, it was driven by recent gains in wage and credit growth, despite declining subsidies on car demand. At the same time, ...
    On April 20, 2017 / By
  • Finance 0

    INDU Elliott Wave View: More Downside

    Short term Elliott Wave view in INDU (Dow) suggest that instrument is showing 5 swings sequence from 3/03 peak (21018) favoring more downside. From 3/03 peak INDU is following a Double three Elliott wave Structure, where Minor wave W ended at 20579 low and Minor wave X ended at 20887 peak. The index has since broken below the 20412 low, suggesting the next leg lower in Minor wave Y has started already. The Internal Subdivision of Minor wave Y is also unfolding as Double three Elliott wave structure where Minute wave ((w)) ended at 20453 and Minute wave ((x)) ended at 20645 peak. Below from there, the index is following another double three...
    On April 20, 2017 / By
  • Finance 0

    Dollar And Yen Push Lower

    With the exception of the yen, the US dollar is lower against all the major currencies. US Treasury yields are firm, extending yesterday’s rise a little. This may help keep the dollar straddling JPY109, but unwinding long yen cross positions is helping underpin the other major currencies. The Dollar Index is making a new low for the week and appears poised to test support around 98.85-99..00.  The Indonesian rupiah is one of the few emerging market currencies under water today, following what appears to be an electoral defeat for an ally of President Widodo in the Jakarta gubernatorial race. Separately, the central bank kept rates ...
    On April 20, 2017 / By
  • Finance 0

    ETFs-of-CEFs

    Closed-end funds (“CEFs”) are different animals from exchange-traded funds (“ETFs”) and traditional mutual funds. CEFs do trade on an exchange, like stocks and ETFs, which leads to some confusion. However, they cannot create and redeem shares in response to changes in demand, and therefore are not ETFs. Investing in CEFs can be potentially lucrative, but investors need to be keenly aware of the price premiums and discounts, which are sometimes extreme, that typically accompany these investment vehicles. ETFs-of-CEFs provide an alternative approach for investors. Similar to fund-of-funds ETFs, these ETFs provide a portfolio of closed-...
    On April 20, 2017 / By
  • Finance 0

    Is JP Morgan Taking Silver Out Of SLV?

    Yesterday I asked this question: What is going on with silver? The question is still open but let me show a probable solution. This year (till April 19) the SLV silver holdings decreased by 15.0 million ounces. However, in the same period JP Morgan has added as many as 19.9 million ounces of silver to its COMEX holdings. Interestingly, all that silver added by JP Morgan belongs to the category called “Eligible” (held by JP Morgan on its own account). In other words, JP Morgan increased its silver holdings (belonging to JP Morgan and/or its customers only) by 19.9 million ounces. Summarizing, it looks like this bank is withd...
    On April 20, 2017 / By
  • Finance 0

    Oil Bear Or Bull Interesting Times Ahead

    Greetings to all, after a sell off yesterday in Oil prices we are back to the drawing board to see which scenario is the most probable one. The bullish one looking for 60-70$ or the bearish one looking for new yearly lows towards 40-42$? Here we will look at the levels we focus on for the next few days. Bullish scenario The decline from 54$ to 47$ is most probably corrective. The upside move to recent highs at 53.75$ is impulsive and yesterday’s decline is most probably wave 2 of a new up trend that started at 47$. Oil price retraced to the 50% Fibo level yesterday. Price could make a new lower low up to the 61.8% Fibo level at 50-49.70$ bu...
    On April 20, 2017 / By
  • Finance 0

    Sentiment And Dollar Stabilize

    After the GBP storm that was triggered by Theresa May call for early elections, calmness has returned to the market. Yesterday and so far today, there are a few market movements worth mentioning. With the lack of significant data releases scheduled for today, it is very likely that the market will not be very volatile today either.  Major events of the day: Today’s calendar includes US initial jobless claims, Philly Fed business outlook and EU consumer confidence. UK PM Theresa May received House of Commons’ backing for her 8 June election call yesterday, and GBP/USD is trading just off the 1.28 mark, levels not seen since October last ...
    On April 20, 2017 / By
  • Finance 0

    Britain To Go To Polls (Confirmed)

    Let the games commence. By a resounding majority of 522 to 13 votes, Parliament surpassed the two thirds majority required to allow the PM to call a general election under the fixed parliaments act. Britain will go to the polls on 8th June and will have a rehearsal on 4th May in the shape of the local council elections. The Tories have a commanding opinion poll lead over the opposition Labour Party and whilst the strength of the LibDems is growing it remains firmly in third place on about 11% support. If 2016 taught us anything, it is that opinion polls don’t always accurately reflect voter intentions (and as a Bruce Willis character used t...
    On April 20, 2017 / By
  • Finance 0

    Sensex Trades In Green; Bank Stocks Drag

    After opening the day on a flat note, share markets in India witnessed volatile trading activity and are currently trading marginally higher. Except for stocks in the banking sector, all sectoral indices are trading in green. Stocks in the realty sector and stocks in the consumer durables sector are leading the gains. The BSE Sensex is trading up by 76 points (up 0.3%), and the NSE Nifty is trading up by 27 points (up 0.3%). Meanwhile, the BSE Mid Cap index is trading up by 0.6%, while the BSE Small Cap index is trading up by 1%. The rupee is trading at 64.63 to the US$. In news from stocks in the PSU sector. National Alumini...
    On April 20, 2017 / By
  • Finance 0

    GBP/USD Retracement Returns To 38.2% Fibonacci At 1.2750

    GBP/USD 4 hour The Members of the British Parliament have approved the Prime Minister’s plan yesterday to organise an early general election on June 8. The vast majority of the Parliament Members approved the motion (522 out of 650) clearing the bar of the two-thirds needed for accepting the plan. The election news did not impact the GBP/USD as much as it did on Tuesday. The Cable currency moved sideways which is forming a bull flag chart pattern (green/red lines) in the meantime. Price is testing the 61.8% Fibonacci level of wave 4 (purple) and could show one more higher high if it breaks above the bull flag. 1 hour The GBP/USD retrace...
    On April 20, 2017 / By