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  • Finance 0

    Mr. Market Is Way Far Off On Wayfair

    I’ve been really intrigued by Wayfair (W) recently. It started with the purchase of a sleeper sofa last year. Furniture shopping sucks. Showcase stores are enormous but still have fairly limited inventory, just because of the sheer size of the product. I had a pretty specific idea of what I wanted. The room was painted and carpeted, and was designed around a particular theme that I wanted to fit into. It was also pretty small, so I needed something with very specific dimensions. To find what I was looking for at a store would have been really difficult and time consuming. Online seemed like a better option, but I was apprehensive. Ama...
    On May 18, 2016 / By
  • Finance 0

    GBP/USD Remains Weak And Vulnerable To The Downside

    GBP/USD: The pair continues to look weak and vulnerable to the downside in the short term despite its recovery attempts on Tuesday. On the downside, support lies at the 1.4400 level where a break will turn attention to the 1.4350 level. Further down, support lies at the 1.4300 level. Below here will set the stage for more weakness towards the 1.4250 level. Conversely, resistance stands at the 1.4500 levels with a turn above here allowing more strength to build up towards the 1.4550 level. Further out, resistance resides at the 1.4600 level followed by the 1.4650 level. On the whole, GBP/USD is recovering higher but with caution....
    On May 18, 2016 / By
  • Finance 0

    Copper Slides To Three Month Low Despite Flat Futures, Oil; Dollar Rise Continues

    After two violently volatile days in which the market soared (Monday) then promptly retraced all gains (Tuesday), the overnight session has been relatively calm with futures and oil both unchanged even as the BBG dollar index rose to the highest level since April 4. This took place despite a substantial amount of macro data from both Japan, where the GDP came well above the expected 0.3%, instead printing 1.7% annualized, which pushed stocks lower as it meant the probability of more BOJ interventions or a delay of the sales tax hike both dropped. Meanwhile, in China we got proof of the ongoing housing bubble when new property prices were repo...
    On May 18, 2016 / By
  • Finance 0

    US Business Cycle Risk Report – 18 May, 2016

    US economic growth remains sluggish, hinting at the possibility that a new recession may be near. But the numbers don’t align with a pessimistic intuition. The probability is extremely low that April marked the start of an NBER-defined downturn, based on published reports to date. Projecting a broad set of indicators into the near-term future suggests that the US will continue to sidestep a macro slump. Yes, the outlook could deteriorate if the incoming numbers stumble. But for the moment, recession risk remains low. In fact, the prospects look encouraging for a modest rebound in economic activity in the second quarter, based on the Atlan...
    On May 18, 2016 / By
  • Finance 0

    E Elliott Wave Analysis: EUR/USD Continuing Towards 1.1217

    EUR/USD is trading lower for the last few weeks away from 1.1616 where pair found a high of a complex corrective recovery up into blue wave C-circled that represents part of a big consolidation on higher time frames. Notice that price recently fell beneath the trendline support so it appears that lower levels are in play, maybe even for wave three with red wave 3) that has minimum target at 1.1217 followed by 1.1000 psychological level that comes in near 1.618% Fibonacci level. We see pair in bearish mode as long as 1.1448 level is not breached. EUR/USD, 4H  ...
    On May 18, 2016 / By
  • Finance 0

    USD And GBP Look Strong Ahead Of Key Data For Both

    The pound continues enjoying optimism regarding remaining in the EU and the USD reacts to Fed officials talking about a hike. Today these currencies will be tested on the UK jobs report which provides a relief from the Brexit talk. In the US, the Fed minutes. Also watch for a potential move in EUR/USD with updated euro-zone inflation data and the CAD for crude oil inventories. Wrap up of the morning show for May 18th 2016: Video length: 00:06:05...
    On May 18, 2016 / By
  • Finance 0

    Oil Heads Higher As Supply Issues Give Momentum

    On Tuesday, oil closed higher as there is an expectation that U.S. stockpiles are heading lower. There was news that the wildfires in Canada are now targeting a new oil supply line, which should boost oil prices. U.S. crude oil closed up 1.2% to $48.31 a barrel, which is the best level it has seen since October of 2015. Brent Crude finished up by 0.7% to $49.58 a barrel. Even the Nigerian and Venezuelan outages gave rise to higher oil prices. U.S. Oil Output Declines Continue The U.S. government’s forecast, posted on May 16, suggests that U.S. shale output is expected to fall in June. Typically oil sometimes sees a rebound in supply, but no...
    On May 18, 2016 / By
  • Finance 0

    S&P 500 And Nasdaq 100 Forecast For May 18, 2016

    S&P 500 The S&P 500 fell during the day on Tuesday, as we continue to bounce around the 2050 region. We tested the 2040 handle for support again, and of course found it there but as you can see the market does not look ready to move in any one particular direction. Perhaps later today after we get the FOMC Meeting Minutes somebody will make a move, but until then I think that we are looking and short-term back and forth type of trading at this point. Any bounce off of the 2040 level will probably find resistance there 2070 so if you have the ability to trade short-term charts, you may do so in this particular market in my opinion.   ...
    On May 18, 2016 / By
  • Finance 0

    Japanese Economy Recovers In 1Q GDP Data, Investors Unconvinced

    Japan’s economy returned to growth through the first quarter (1Q) of 2016. However, the optimism this data may otherwise supply is significantly diminished by the volatility in the economy’s performance figures and a perpetual diversion from monetary policy and intervention threats. In the official GDP figures, Japan grew 1.7% on an annualized basis through the quarter. That was significantly better than the 0.3% pace expected and much more encouraging than the unfavorably revised -1.7% contraction from the previous quarter. The quarter-over-quarter figure similarly beat expectations with a 0.4% clip of growth versus the 0.1% expected; wh...
    On May 18, 2016 / By
  • Finance 0

    Are Property Taxes A “Wealth Tax” On The (Mostly) Non-Wealthy?

    The fallacy in this assumption is that homeowners’ incomes do not automatically rise along with housing valuations. In my recent entry Dear Homeowner: If You’re Paying $260,000 in Property Taxes Over 20 Years, What Exactly Do You “Own”?, I questioned the consequences of high property taxes. Some readers wondered if I was saying all property taxes should be abolished. The short answer is no–what I was questioning is local government reliance on property taxes to the point that owning a home no longer makes financial sense because the property taxes consume any appreciation other than the transitory “wealth...
    On May 18, 2016 / By