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  • Finance 0

    Despite “Bazookas”, Eurozone Composite PMI At 16-Month Low

    Markit reported on three key manufacturing surveys today: Japan, US, and Eurozone. This article puts a spotlight on the Eurozone report in the wake of record stimulus by ECB president Mario Draghi. Markit reports Flash Eurozone PMIEdges Down to 16-Month Low. Key Points Flash Eurozone PMI Composite Output Index at 52.9 (53.0 in April). 16-month low. Flash Eurozone Services PMI Activity Index at 53.1 (53.1 in April). Unchanged. Flash Eurozone Manufacturing PMI at 51.5 (51.7 in April). 3-month low. Flash Eurozone Manufacturing PMI Output Index at 52.4 (52.6 in April). 3-month low. The May Flash PMI reinforced the picture of subdued growth of eu...
    On May 23, 2016 / By
  • Finance 0

    Does The Stock Market Follow Institutional Investor Selling Activity?

    Does the Stock Market Follow Institutional Investor Selling Activity? Let’s plot data to see if Institutional Investors are responsible for the Stock Market’s direction. On the top of this chart is the NYA Index and on the bottom is the trending of daily Institutional Selling Activity. Basically, when the red line is trending over the blue line, Institutional Selling is increasing and the market is going down. Opposite to that, when the red line is trending below the blue line, Institutional Selling is becoming less and less so the stock market goes up. Why is that? Because Institutional Investors own and control so much of the st...
    On May 23, 2016 / By
  • Finance 0

    EURJPY: Weakens Below Its Consolidation Range

    EURJPY: With the cross breaking and trading below its consolidation range, risk of more weakness is likely in the days ahead. Support comes in at the 122.00 level where a break will aim at the 121.50 level. A turn below here will target the 121.00 level with a breach turning focus to the 120.50 level. Its daily RSI is bearish and pointing lower supporting this view. Conversely, resistance lies at the 123.00 level. Further out, resistance comes in at the 123.50 level where a break if seen will threaten further upside towards the 124.00. Further out, resistance resides at the 124.50 level. All in all, EURJPY eyes further bearishness having decl...
    On May 23, 2016 / By
  • Finance 0

    Gold Mining Shares: This Is Only A Hiccup In The Big Bull Rally

    It’s pretty calm at the stock market for the moment. When you want some action, it’s not the place to be. If we wouldn’t know better, we would say it’s summer already. Thank God there’s a place where you can find plenty of action: the gold market. Especially gold mining shares are seeing a lot of action lately. Since the beginning of May we saw 3 pretty harsh smackdowns: -10%, – 7% and -8% in a matter of days. It’s enough to shake your head and throw in the towel. Most investors can’t handle this kind of action. But those are the same investors who can’t handle big gains ether. This is normal in a new bull market. The HUI st...
    On May 23, 2016 / By
  • Finance 0

    Dull Market Has Some Nice Bullish Setups

    You get the feeling that today is going to be yet another one of those trading sessions that you say to yourself, “I wish I could get back those 6.5 hours of trading!” Since the early ramp Friday morning, the market has been insanely dull and boring and today is doing little to change that if not exasperating the problem.  I’ve added one additional short position and I’m not inclined to add anything else at this moment. I don’t have any current plans to add any long positions either.  But if I did, they’d be coming from the watch-list I’ve posted below. There are plenty of nice setups, you just have...
    On May 23, 2016 / By
  • Finance 0

    Instant Articles Could Boost LinkedIn Marketing Solutions Segment

    The Marketing Solutions or advertising-related segment of LinkedIn (LNKD) is still not generating as much money as its Talent Solutions segment. I am therefore elated to learn that LinkedIn is allegedly negotiating with media publishers to help it build a rival to Facebook’s (FB) Instant Articles. Creating an Instant Articles-like service is a great way to improve the future revenue stream from Marketing Solutions. As a global social network, LinkedIn professionals badly needs to improve its advertising business. As you can see from Statista’s chart below, Marketing Solutions only delivered $154 million during Q1 2016. Talent Solutio...
    On May 23, 2016 / By
  • Finance 0

    Why Is Mastercard Stock Lagging Its Market?

    Mastercard (NYSE:MA) has done well for shareholders over the last five years but its performance now lags its peers in the payment space. The reason is that it is more globally-focused than other payment companies, which hurts it at a time when the dollar is strong and global growth is uncertain. The company’s return to shareholders over the last five years is over 200%, but over the last year that has slowed to about 2%, including a dividend that currently yields 0.8%. The debt load, 54% of assets, is nearly double that  of rival Visa (NYSE:V) and its first quarter earnings were actually down 3%. At its current price of about $...
    On May 23, 2016 / By
  • Finance 0

    US Manufacturing PMI Declines First Time Since September 2009

    According to the Markit Flash Manufacturing PMI survey, manufacturing activity in the US declined for the first time since September 2009. Key Points Manufacturing Output Manufacturing Employment Markit Chief Economist Chris Williamson’s Comments “The weak manufacturing PMI data cast doubt on the ability of the US economy to rebound from its disappointing start to the year in the second quarter. The survey is signalling that manufacturing will act as a drag on economic growth in the second quarter, leaving the economy once again dependent on the service sector, and consumers in particular, to sustain growth.” “Output is falling for ...
    On May 23, 2016 / By
  • Finance 0

    Why Has Business Investment Been So Weak?

    Business Investment  “depends on the prospective yield of capital, and not merely on its current yield” – John Maynard Keynes One of the many puzzles of the recovery since the 2008 crisis has been the corporate sector’s reluctance to add to a nation’s capital stock. Investment in new plant and equipment along with the construction of new productive facilities has lagged behind the experience of previous recoveries. Throughout  the industrialized world, the rate of growth in fixed capital investment has been dismissal, resulting in below average rates of growth in national income. Hence, the general malaise we experience today....
    On May 23, 2016 / By
  • Finance 0

    The Next Top Performing Asset To 2020 & Beyond

    2016 has been a great year for gold. Its currently up 17%. This is the best time to invest in gold for the long-term investor. The Elliott Wave Principle is a form of ‘technical analysis’ that believes investors move between periods of bullish and bearish thinking in a reasonably consistent pattern. The Elliott Wave Principle is based on his ‘empirically’ derived discovery in the 1930s that market prices move in recognizable, repeating patterns and that these patterns reflect a basic natural harmony manifested in the inherent herding behavior of crowds. Elliott discovered that these crowd behavior cycles appeared at every time s...
    On May 23, 2016 / By