Latest Posts
-
Finance 0
Fed Minutes Put A Bow On Earlier Fedspeak On Rate Hikes
“Most participants judged that if incoming data were consistent with economic growth picking up in the second quarter, labor market conditions continuing to strengthen, and inflation making progress toward the Committee’s 2 percent objective, then it likely would be appropriate for the Committee to increase the target range for the federal funds rate in June…Some participants were concerned that market participants may not have properly assessed the likelihood of an increase in the target range at the June meeting, and they emphasized the importance of communicating clearly over the intermeeting period how the Committee intends to respo... -
Finance 0
FTSE 100 Declines On Soft Energy And Mining Shares
The FTSE 100 (CFD: UK100) was lower by 0.72% on the day and at the time of writing. The biggest drag on the index was the Materials Sector (mining) and Energy-firm shares, down by 2.89% and 2.86% correspondingly. The decline in these sectors follows price declines in the precious metals and Brent crude oil, which in turn traded lower after the publication of the far more hawkish than expected FOMC minutes. The FTSE 100 itself remains confined to the same range, which has dominated price action since May 5, namely the 6053-6195 range. The lower end of this range is the May 6 low of 6053 while the upper end of the range is the May 12 high ... -
Finance 0
Pro-Inflation? Anti-USD?
This is the opening segment from the May 15 edition of Notes From the Rabbit Hole, NFTRH 395. I am releasing it for public viewing because it seems, the title’s question has come roaring to the forefront this week. So the information (including the charts) is slightly dated, but becoming intensely relevant as of now. We anticipated an ‘inflation trade’ or Anti-USD asset market bounce and this has been going on since mid-February. That was when silver wrestled leadership from the first mover, gold (which bottomed in December and turned up in January), and a whole host of other global asset markets began to rise persistently. So why ag... -
Finance 0
Morning Call For May 19, 2016
OVERNIGHT MARKETS AND NEWS Jun E-mini S&Ps (ESM16 -0.20%) are down -0.28% and European stocks are down -0.95% on negative carryover from yesterday’s late afternoon slide in stocks after the Apr 26-27 FOMC meeting minutes suggested that Fed members may want to raise interest rates as soon as their June meeting. The possibility of a June rate hike by the Fed has boosted the dollar index to a 1-1/2 month high, which has undercut commodity prices with crude oil (CLM16 -1.87%) down -1.83% and gold (GCM16 -1.56%) down -1.53% at a 3-week low. The sell-off in commodities has dragged down energy and raw material producers as well... -
Finance 0
Possibility Of A Fed Rate Hike Impacts On Global Markets
It may seem of late that even a small interest rate hike by the Federal Reserve Bank can cause a ripple effect in world markets. Or maybe it’s just the threat of the rate hike that is creating havoc across the globe. Higher interest rates help strengthen the dollar which in turn brings the price of most commodities down. Or so it seems of late. Oil Prices Drop The impact of a possible June rate hike, signaled by the minutes of the April 26-27 FOMC policy meeting, was felt immediately, pulling oil prices down from its recent 2016 highs and snapping a two-day rally on Wednesday. Before the release of the minutes, Brent and U.S. crude’s ... -
Finance 0
Bear-Market Risk For US Stock Market Remains Elevated
The bear-market bias that’s been lurking for the US stock market since last autumn remains intact, according to several econometric applications. Although equities overall continue to trade near all-time highs, the mild downward slope in pricing in recent months suggests that the market’s capacity to rally is wearing thin. What would kill the bear-market threat? A convincing run of strong economic reports. Granted, the macro trend isn’t terrible, as outlined in yesterday’s US economic profile. But the numbers aren’t particularly encouraging either. The net result: the market’s in a state of limbo, waiting for a convincing signal... -
Finance 0
Global Stocks Slide, S&P Set To Open Red For The Year As Hawkish Fed Ignites “Risk Off”
After yesterday’s algo-driven mad dash to close the S&P green both for the day and for the year following Fed minutes that came in shocking hawkish, the selling has continued overnight, led by the commodity complex as rate hike fears have pushed oil back down some 2% from yesterday’s 7 month highs, which in turn has dragged global stocks lower to a six-week low, while pushing bond yields higher across developed nations as the market suddenly reprices the probability of a June/July rate hike. For now the critical S&P500 support level at 2030 continues to hold, however that may be put in test today, leading to the next leg l... -
Finance 0
Gold Looks To Extend Its Corrective Pullback
Gold: Outlook for gold remains lower following its Wednesday weakness and with a follow-through underway. On the downside, support comes in at the 1,250.00 level where a break will turn attention to the 1,240.00 level. Further down, a cut through here will open the door for a move lower towards the 1,230.00 level. Below here if seen could trigger further downside pressure targeting the 1,220.00 level. Its daily RSI is bearish and pointing lower suggesting further weakness. Conversely, resistance resides at the 1,260.00 level where a break will aim at the 1,270.00 level. A turn above there will expose the 1,280.00 level. Further out, resistanc... -
Finance 0
UK Retail Sales Jump + Upward Revisions – GBP Extends Gains
Positive numbers on all measures of the UK retail sales report: 1.3% m/m against 0.5% expected and on top of an upwards revision worth +0.8% for the previous month. Year over year, we have a rise of 4.3%. Excluding fuel, a rise of 1.5% was reported m/m and y/y it is 4.2%. All the figures are accompanied by healthy upwards revisions. GBP/USD already advanced before the publication and is now slightly extending its gains. The shift in the Easter holiday from April to March may have had an impact on reporting, triggering the significant revisions. Here is the GBP/USD 30 minute chart, showing that the lion’s share of the move came before the re... -
Finance 0
Is The Dow Turning Bearish?
The first Minor Weekly Bearish Reversal in the Dow lies at 17434. A closing beneath this for the week will confirm what already appears to be in motion technically as well as after electing three Daily Bearish Reversals. The next critical area is really 17120 which happens to be a Daily and Weekly Bearish Reversal. This is the primary support. Breaking this area then opens the door for a more sharp drop ahead to retest 16000. We have a more important number for month-end and that is 17579 followed by 17210. A May close below this level will confirm a correction into the August/September period, which can extend even into early 2017. This shou...
Top Posts
-
The Importance for Individuals to Use Sustainable Chemicals
-
Small Businesses: Finding the Right Candidate for the Job
-
How to Write the Perfect Thank You Letter After Your Job Interview
-
3 Best Large-Cap Blend Mutual Funds For Enticing Returns
-
China suspected in massive breach of federal personnel data
