Glass Half Full or Half Empty? There wasn’t a whole lot to today’s action. The Russell 2000 had the worst of it, but it still managed to stage a small recovery into the close. The index finished above support with technicals negative. A bullish rally would nicely set up a swing low and could see a run to test 1,414. Shorts would want to keep stops tight (measure risk) to the 50-day MA at 1,376. There wasn’t a whole lot to say about other indices. Most finished slightly down on (significantly) lighter volume, with indecision the real outcome of today’s action. The S&P continues to linger around its 20-day MA. Tehnic...
Tomorrow is Fed day. Metals and Miners near-term outlook hinges on their decision. The previous rate hikes supported prices after an initial drop. But, those rate hikes were 12-months apart. Therefore, it is unclear how metals will react this time around. Markets are anticipating a rate. However, what they will be looking for is forward guidance and changes to the dot plot. If the Fed takes an aggressive stance, proposing another hike in June metals could get spooked. If their posture is weak and indecisive metals and miners could stabilize. Of course, these are just my opinions – markets don’t always behave as expected. -US DOLLAR- The d...
Ever since governments began banning and licensing different parts of the economy, the black market has made sure people still have access to the things they need. Unstable governments always turn on their own citizens using price controls, heavy taxes, and even the threat of imprisonment to prop up their failing systems. As conditions inevitably deteriorate, as they have in Venezuela and Greece, the underground economy becomes invaluable to those living through the crisis. Markets Survive in Venezuela The shadow economy refers to more than just the trade of illegal goods. A grey market, for example, provides legal products distributed th...
MONACO, March 14, 2017 (GLOBE NEWSWIRE) — Navios Maritime Partners L.P. (“Navios Partners”) (NYSE:NMM), an international owner and operator of container and dry bulk vessels, announced today that it has agreed with investors to sell approximately 47.6 million common units for an aggregate of $100.0 million in a registered direct offering at $2.10 per common unit. The offering is expected to close on or about March 20, 2017. Navios Partners estimates that the net proceeds from the offering, after deducting estimated offering expenses and placement agent fees, are expected to be approximately $95.0 million. Navios Partners will use th...
The indexes ended the day slightly lower as all eyes are on the Fed. The market is pricing in a 93% probability of a 25 basis point increase in short term rates tomorrow. In tonight’s video let’s review what a rate hike could mean to the stock market. Is this another “sell the news” situation? Video Length: 00:07:39...
If you needed a reminder that oil prices can be volatile and are hyper-sensitive to every single data point and/or headline that crosses the wires, you got all the proof you needed last week. And then you got some more evidence on Tuesday when, as we wrote earlier, oil whipsawed as API data clashed with Saudi headline hockey. Needless to say, all the drama has had observable knock-on effects for anything commodity-related as HY credit, metals & mining, copper, and energy stocks all sold off in sympathy… …junk spreads widened… …and HY’s correlation with crude and copper spiked… All of this has at least one analyst wary abou...
The company reporting today was Alimentation Couche-Tard (ANCUF) which fell short with its Q3 results. It reports in US dollars because of its US operations are key. For some reason trading was suspended in Canada early this morning but resumed at 9:06 am. It reported $287 mn in net earnings, up 4.7% from $274 mn in the prior Q3, or a diluted 50 cents in Q3, vs 48 cents. The quarter ran to Jan. 29, 2017. The profits were below the consensus from Thomson-Reuters of 53.1 cents. It also restated earlier quarters and their cash-flow by an accelerated depreciation and amortization schedule affecting Q1 and Q2, for tax reasons, related to its ...
This post has to do with something which may seem like an oxymoron: integrity in financial prognostications. What inspired me to address this topic? Oh, that’s easy: As you can see, back on February 22nd, Dennis “Commodity King” Gartman went on CNBC to declare that, at long last, for the first time in about five years, he was bullish on crude oil. Savvy traders jumped on this and, knowing Gartman’s tendency to generate reputational pratfalls, shorted the bejesus out of crude oil and were richly rewarded for it. But this is not about Gartman’s well-documented tendency to, shall we say, not have a perfect record. It has to do wit...