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  • Finance 0

    E Elliott Wave Analysis: EUR/USD Trading Near The Support Line; Break Beneath It Could Put Weakness In Play

    EUR/USD is trading lower for the last few weeks away from 1.1616 where market might found a high if we consider a complex corrective recovery up into blue wave C-circled that represents part of a big triangle on higher time frames. Notice that price is currently trying to break beneath the trendline support so it appears that lower prices are in play, maybe even for red wave 3) that has targets at 1.1217 followed by 1.1000 psychological level that comes in near 1.618% Fibonacci level. EUR/USD, 4H...
    On May 13, 2016 / By
  • Finance 0

    Retail Sales And PPI Weigh On The US Dollar Index

    The dollar index is likely to see a minor pullback to 93.0 support ahead of what could be a new leg in the rally to 96 – 96.50 levels as speculators remain net short on the greenback. US retail sales and producer price index data will be the main data points to watch today as the US dollar lingers near a key support level. With prices closing bullish off the 93 handle last week, price action is however still not conclusive of an upside move. Last week’s CFTC data showed that speculators continued to add to net shorts on the US dollar, widening to $6.70 billion a record level since February 2013. For the most part this week, the dollar man...
    On May 13, 2016 / By
  • Finance 0

    Investors Piling Into Gold; Demand In Record Territory

    Gold demand hit near record levels in the first quarter of 2016. Despite the price rising nearly 17%, the demand for gold surged 21% in the opening quarter of the year. It was the second largest quarter on record, according to the World Gold Council. Gold demand hit 1,290 tons in Q1. Concerns about economic instability and an uncertain financial landscape drove the increase. Investors flocked to gold, and ETFs saw a huge inflow of the yellow metal. Total investment demand hit 618 tons, up 122% from the same period in 2015: Inflows into ETFs totaled 364 tons in the quarter – the highest quarterly level since Q1 2009 – compared to 26 ton ...
    On May 13, 2016 / By
  • Finance 0

    US Dollar Regains Traction Against Yen

    The US Dollar edged higher versus the Japanese Yen, finding support after a member of Japan’s academia suggested that the Bank of Japan could expand Quantitative Easing measures by next month. Takatoshi Ito is considered a very prominent figure in Japan’s academic world and holds very close ties to Haruhiko Kuroda, the Governor of the BOJ. Kuroda, himself has pointed out that he would take necessary measures given that large downside risks remain to Japan’s economy. Moreover, some traders who used the last bounce to sell off the greenback appear to now be on the buy side of the equation. As reported at 10:35 am (BST) in London, the USD/...
    On May 13, 2016 / By
  • Finance 0

    A Little Market Insight Into How The Game Is Played

    Every Game involves learning the rules of the game in order to be successful, the financial markets are the ultimate 4 dimensional futuristic chess game. There are different levels operating within the financial markets, the Game within the Game if you will. The Power Players at the top of the Food Chain run the show all things being equal....
    On May 13, 2016 / By
  • Finance 0

    EC The Most Crowded Trade

    Wise investors hate crowded trades. Good, high-alpha trades tend to be out-of-consensus and uncomfortable. Bad trades tend to be ones that everyone wants to talk about at the cocktail party. Think “Internet bubble.” That doesn’t mean that you can’t make money going along with a consensus trade, at least for a while; what it means is that exiting from a consensus trade can be very difficult if you wait too long, because you have a bunch of people wanting to go the same direction as you. So what is the most crowded trade? In my mind, it has got to be the bet that inflation will remain low and stable for the foreseeable future. This is...
    On May 13, 2016 / By
  • Finance 0

    Gold’s Long Term Chart Suggests No New Bull Market Until Triple Resistance Is Cleared

    Everyone, including mainstream media, is so excited about gold’s new bull market. Even JP Morgan is out on CNBC to announce the birth of a new bull market in gold. While we are firm believers in the fundamentals of gold, and believe that everyone should hold 10% of its personal wealth in physical gold, we are not convinced that a new gold bull market has started yet. There is much more work needed. Let us explain based on gold’s secular chart. Gold’s secular chart does not look as exciting as most believe. First, $1291 represents the key retracement level in gold’s secular uptrend which started back in 2001. We are no technical ...
    On May 13, 2016 / By
  • Finance 0

    USD/JPY Could Break Out Of Bearish Channel As BOJ’s Tolerance Expires

    Technical analysis of a 4-hour time frame chart spanning 6 months for the USD/JPY (US Dollar vs Japanese Yen) shows the pair attempting a bullish reversal from its bottom @ 105.546. Thus far, it has almost completed a 23.6% retracement near 109.84. A traditional 38.2% retracement takes it to @ 112.50, while 50% and 61.8% retracements would respectively push it up to levels @ 114.65 and @ 116.80. Resistance points are near $109.55, $110.70,  $112 and support can be found around $108.15 and $107.60. (See chart analysis below.) Despite the recent rally in the USD/JPY, it still trades within a bearish channel and buttresses resistance at ...
    On May 13, 2016 / By
  • Finance 0

    Unemployment Claims Spike Again As We Get More Scientific Evidence The Middle Class Is Shrinking

    As the U.S. economy slows down, we would expect to start to see evidence of this in the employment numbers, and that is precisely what has begun to happen. During the week before last, initial claims for unemployment benefits jumped by 17,000, which was the largest increase that we had seen in over a year. Well, last week we witnessed an even bigger spike. Seasonally adjusted initial claims shot up 20,000 more to a total of 294,000. Of course it makes perfect sense that more Americans are applying for unemployment benefits, because firms are laying people off at a much faster pace these days. Just a couple days ago I reported that job cut an...
    On May 13, 2016 / By
  • Finance 0

    Global Focus Capital: Market’s Inflationary Expectations Are Too Low

    Investors can get ahead of events by aligning their portfolios to “a world of lower expected capital market returns and higher forward volatility.” That, at any rate, is the upshot of a thoughtful analysis by Eric J. Wiegel of Global Focus Capital, a Boston based asset allocation advisor. Why does Wiegel think so? Because the market’s inflationary expectations are low. Inflationary expectations have been brought low by the recent past of … well, low inflation. Further, although the circumstances that will raise inflation going forward are in place, the market’s expectations are “sticky.”  They’re on the floor and are staying ...
    On May 13, 2016 / By