(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are occasionally posted on twitter using the #120trade hashtag. T2107 measures the percentage of stocks trading above their respective 200DMAs) T2108 Status: 68.6%T2107 Status: 63.0%VIX Status: 11.8General (Short-term) Trading Call: bullishActive T2108 periods: Day #200 over 20%, Day #20 over 30...
Premium bonds may be a good investment choice for retirees looking to increase their income. Consider premium bonds In today’s low interest rate environment, if you park your money in bank deposits or money markets, the interest you receive generally will not be enough to pay your bills. Even leaving a million dollars in Certificates of Deposit (CDs) in a bank will only generate a few thousand dollars a year of spending money. So how can retirees supplement their income without too much risk to their principal? A solution may be to purchase bonds, especially “premium bonds.” Buying a bond means lending money to a country or a company....
I recorded a conversation I had last week with my friend Brent Johnson who is the CIO at Santiago capital, a fund dedicated to investing in gold and gold equities. Brent is one of my “go-to” guys in this particular market. While I chat regularly with Brent, I had previously recorded a call with him back in July which you can revisit here. I’m publishing our recent chat for you today. The recording cuts straight into our conversation, the skinny of which is as follows: Headwinds to gold in the short to medium term. What a strong dollar means for gold. Good inflation vs. bad inflation. Or at least the market perception of ...
War is Declared! – China just dropped the warning Yuan! In the middle of the night, on Dec 6, 2016, silently, China Declared War on the United States by dropping their currency, the Yuan, by 8.8 percent. Most people missed it because it only lasted for a millisecond, but that was enough. They had done this before. This time, the message was received! The last time the Chinese did this was in August of 2015. The Chinese economy had begun to slow just as the U.S. economy was picking up. The U.S. central bank increased U.S. interest rates for the first time in many years, against the direct wishes of the Chinese authorities. Since the Yuan h...
Image via European Central Bank The European Central Bank’s meeting this Thursday is unlikely to prove to be a market mover as expectations are high that the central bank will be expanding its QE purchases. The ECB’s governing council meets on Thursday, December 8 where the central bank is expected to announce its decision on whether it will expand its QE purchases and perhaps tweak the size of its bond purchases as well. The central bank could also be seen announcing whether it will change the eligibility criteria for its bond purchases. The European central bank had initially set a date for the QE purchases to end by March 2017. This vi...
“…any business that leaves our country for another country fires its employees, builds a new factory or plant in the other country, and then thinks it will sell its products back into the U.S. without retribution or consequences, is WRONG! There will be a tax on our soon to be strong border of 35% for these companies wanting to sell their product, cars, A.C. units, etc., back across the border.” President-elect Donald J. Trump, December 4, 2016 To many who voted for him, the above image1 is exactly what they want to see America project to the world. One problem is that the above words that accompany this thinking is in direct contrav...
Since August the XAU has displayed the following behavior. A sharp drop followed by a 14-day to 16-day correction that retraces between 50% and 61.8% of the previous decline. Today, prices hit the 50% retracement level and made a bearish reversal candle on the 15th day off the 75.54 low. Prices breaking below the green trendline could lead to another selloff. It’s hard to believe the pattern will repeat since gold prices are already oversold. However, it’s something I will be monitoring the rest of the trading week. -XAU WEEKLY- On a weekly basis, prices have bounced into stiff resistance where the 10, 50, and 200-week moving averages ar...
In what may be the most direct admission that China’s economy is about to grind to a deflationary halt, today China’s Global Times, a newspaper which is seen as a propaganda companion to the official People’s Daily, revealed data showing this year’s proposed salary guidelines according to which there is a broad wage growth declines in virtually every single province on the mainland, which according to the Chinese publication “confirms the country is experiencing an economic slowdown.” Salary guidelines are issued by local governments as a reference to help firms decide how much they should increase their em...
The European Central Bank convenes tomorrow. After this preview from Morgan Stanley, we have one here from Goldman Sachs: Here is their view, courtesy of eFXnews: For markets, this week’s ECB holds two questions. First, will there be a formal taper decision. Second, if there is no formal announcement to this effect (our base case is for a continuation of the bond buying program at an unchanged pace through late 2017), is the backdrop to the Governing Council sufficiently caustic that President Draghi in the press conference essentially signals that a taper will soon be coming. We think markets will treat either outcome with little dist...
Crude oil is very volatile in recent weeks. Weekly movements of more than 10 pct are the norm nowadays. It is very easy to get excited as prices are moving 5 pct higher. But is now the time to buy crude oil or energy stocks? First, let’s look at the crude oil price. Crude’s weekly chart gives us the sharpest view, see first chart. Crude is clearly bumping into heavy resistance. The $50 area is not only double the price from crude’s lowest point this year, it also coincides with an area which has capped crude’s prices from moving higher in recent years. The most interesting observation on this chart is how crude is building a base ri...