The US 10-year yield is at its highs for the year, and yet the US dollar has been struggling to gain traction. Some suggest that this means that the dollar rally is over. Charts like this one are circulating among market participants. This Great Graphic was created on Bloomberg. The white line is the Dollar Index, and the yellow line is the US 10-year yield. The two look highly correlated over the past six months, until very recently. We are not convinced. First, one can see on the chart other times over the past six months where the relationship looked less tight but did not signal a change in drivers. Second, correlation is not so...
Switzerland’s Gold Exports To China Surge To 158 Tonnes In December Switzerland’s gold bullion exports to China saw a huge jump in December, climbing to 158 tons versus a much lower 30.6 tons in November – a jump of 416%. According to Eddie van der Walt as reported on the Bloomberg terminal this morning, total Swiss gold exports surged to 287.6 tons in December (valued at CHF 10.8b) according to data on the website of the Swiss Federal Customs Administration. Switzerland’s gold exports had already been very robust in November coming in at 191.4 tons. This means that total Swiss gold exports rose by over 50% from November to ...
TM editors’ note: This article discusses penny stocks and/or microcaps. Such stocks are easily manipulated; do your own careful due diligence. As I said in early January, resource exploration companies stop putting out results from the middle of December pretty much until the middle of January knowing that most of their investors are caught up in the hoopla surrounding the holidays. This year results were delayed a little longer than usual due to the inauguration of President Trump on the 20th but good results have been flowing for days now. Redstar Gold delivered final drill results from their drill program completed in November at the...
The USD/CAD dropped in Asia session and it mainly trades lower during Europe and early US Session. The rooftop pattern that has been formed at the top of weekly trading range might be a sign of a bearish continuation. The first POC 1.3125-1.3152 (38.2, H4, ATR pivot, order block, trend line) might spike the price down to 1.3090, 1.3040 and 1.3010. Breakout trade might happen at the break of 1.3010 where the target is 1.2970. However if the pair proceeds higher than 1.3152 pay attention to POC2 1.3180-1.3210 (61.8, ATR top, H5, rooftop support). Targets for PC2 rejection are 1.3150 and 1.3090. The POC zone is wider due to ATR of 122 pips, mark...
Well it finally happened. Dow 20K, that is. And yes, there were hats – lots of hats. Photo Credit: WSJ.com After struggling with the big, round number since the middle of December, the venerable Dow Jones Industrial Average finally broke above the 20,000 level and closed Wednesday at a new all-time high of 2068.51. The S&P 500, NASDAQ Composite, and S&P 400 Mid cap indices confirmed the move as all the major indices save the Russell 2000 small caps, broke above their respective trading range ceilings into new high territory. And from a technical perspective, this is a good thing. S&P 500 – Daily View Larger Image The question...
I would like to update the Basic Materials sector as this area now looks like it’s ready to resume its bull market. Also with the stock markets breaking out today, especially the INDU, this adds another layer of confirmation that the breakout is the real deal. As we’ve discussed previously there are many big cap Dow stocks that make up the XLB, Basic Materials fund, and with the INDU making a new all time high today there will be some individual components making new all time highs as well. Lets start by looking at a weekly chart for the XLB, Basic Materials fund, that is breaking out of a bullish rising flag this week. This bull flag has...
“Index shows economic growth increased in December.” This is the headline for today’s release of the Chicago Fed’s National Activity Index, and here are the opening paragraphs from the report: Led by improvements in production-related indicators, the Chicago Fed National Activity Index (CFNAI) increased to +0.14 in December from –0.33 in November. Three of the four broad categories of indicators that make up the index increased from November, and two of the four categories made positive contributions to the index in December. [Link to News Release] The previous month’s CFNAI was revised downward from -0.27 to ...
Technically-poised to breakout – Over the past several sessions (led by the NY Comp and NASDAQ, while Oil bears got trapped as hoped for), we got our forecast post-Inauguration ‘relief rally’ upside resumption we were pointing to with recognition that most Indexes were already at new highs, with the achievement by the Dow Industrial Average of 20,000 not so much anticlimactic, but a validation of what already happened in so many areas. The alleviation of the market’s prior overbought status sure helped position this for higher prices as consistently outlined. Now we have the historic DJIA 20,000 achievement, which is a...
Ford (F) and Blackstone (BX) released their latest earnings reports before opening bell this morning. Ford posted adjusted earnings of 30 cents per share on $38.7 billion in sales. Analysts had been expecting 31 cents per share and $34.99 billion in revenue. Blackstone reported profits economic net income of 68 cents per share or $1.6 million, compared to the analyst estimate of 66 cents per share. In the same quarter a year ago, the firm reported 37 cents per share or $435.7 million. Ford’s results decline ? Ford’s GAAP losses were 20 cents per share, while net income was -$800 million, a decline of -$2.7 billion compared to the same qua...
After over a month of foreplay, Dow 20,000 is in the rearview mirror. And yet in retrospect, it didn’t take long. Deutsche Bank’s Jim Reid looks at how Dow numbers were first achieved and how long it took between each 1000 increment. Firstly the Dow only hit 1000 for the first time in January 1987. 5000 was reached in November 1995, 10000 in December 2003 and 15000 in May 2013. This is the quickest ever between round number thousand point increments as it only took 64 calendar days to go from 19000 to 20000. Of course, as the number gets bigger the % gains are smaller and therefore more achievable so this number is a little mea...