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  • Finance 0

    Gold Prices: Morning Star On D1 Opens Door For Continuation

    In our last article, we looked at the continued top-side run in Gold prices as a new near-term high had just printed at $1,303.62. As we advised at the time, pushing the top-side of the move could present challenges as Gold’s price action was considerably distant from any recent support levels. Instead, traders would likely be better served for support to show at a deeper support level before looking to trigger into long Gold positions. It took a little over a week, but support has finally shown with yesterday’s Doji formation; and today’s daily candle moving more than 50% above the heavy-down candle on Monday opens the door for a p...
    On May 12, 2016 / By
  • Finance 0

    Nissan To Take 34% Stake In Mitsubishi Motors To Form Strategic Alliance

    Nissan Motor (NSANY) and Mitsubishi Motors Corporation (MMTOF) announced that they have signed a Basic Agreement to form a far-reaching strategic alliance between the two Japanese automakers. Following an MMC share issue, Nissan will take a 34% equity stake in MMC for Y237B. The strategic alliance will extend an existing partnership between Nissan and MMC, under which the two companies have jointly collaborated for the past five years. Nissan and MMC have agreed to cooperate in areas including purchasing, common vehicle platforms, technology-sharing, joint plant utilization and growth markets. Under the terms of the transaction, Nissan will p...
    On May 12, 2016 / By
  • Finance 0

    Futures Halt Sell-off, Levitate Higher On Another USD/JPY Spike; Oil Rises

    If yesterday’s selloff had a specific catalyst, namely some of the worst consumer retail earnings seen in years, it merely undid the Tuesday rally which levitated global risk with no fundamental driver, aside for a 200 pip spike in the USD/JPY.Some central bankers may even say it was a “magical” levitation. (Recall: was a “magical” levitation).Fast forward to the overnight session when following a muted Asian session, it was once again up to the “magical” USD/JPY to send stocks well into the green without any actual catalyst whatsoever, but what merely appears to have been another “magicalR...
    On May 12, 2016 / By
  • Finance 0

    It’s Time To Make A Big Bet “The Other Way” On Apple Stock

    After its first quarterly miss in thirteen years, the financial press is humming with negative sentiment toward Apple Inc. (Nasdaq:AAPL). To hear them say it, the stock is a pure falling knife. Now, second-quarter earnings out of Cupertino were less than inspiring, and the miss was a bit wider than anticipated. Global economic growth concerns are looming large, too, given that Apple pulls in 67% of its revenue from outside the United States. All told, Apple is off about 26% in the past 12 months, and 13% since Apple’s earnings miss. But the same experts who are trading Apple down to $92 now were so bullish on the stock they traded...
    On May 12, 2016 / By
  • Finance 0

    Is Factor Timing A Good Idea? No… Most Of The Time

    AQR Capital Management’s Cliff Asness has launched a healthy discussion about the trials and tribulations of factor timing with a new essay (“The Siren Song of Factor Timing”). He’s recommends that investors steer clear, which is good advice because the crowd’s record, in the aggregate, to successfully engage in market-timing activities generally is overwhelmingly poor. But Asness isn’t an absolutist. Instead, he notes that sometimes the perceived opportunities for engaging in a bit of timing are just too compelling to pass up. “If you do decide to time factors, not something that I rule out entirely, and if timing is a ‘sin...
    On May 12, 2016 / By
  • Finance 0

    USD/CHF: Vulnerable On Bear Threats

    USD/CHF: With the pair holding on to its downside pressure on price failure, further bearishness is expected. On the downside, support lies at the 0.9650 level. A turn below here will open the door for more weakness towards the 0.9600 level and then the 0.9550 level. Its daily RSI is bearish and pointing lower supporting this view. On the upside, resistance resides at the 0.9750 level where a break will clear the way for more strength to occur towards the 0.9800 level. Further out, resistance comes in at the 0.9850 level. All in all, USD/CHF remains biased to the downside on price failure....
    On May 12, 2016 / By
  • Finance 0

    E The Daily Shot And Data – May 12, 2016

    Greetings, We begin with the energy markets where crude oil futures rose sharply in response to the first US inventory draw in weeks. Brent was up over 8% in two days, rising above $47/bbl.  Source: @barchart US gasoline futures rose 5% on Wednesday. Source: @barchart The inventory declines driving this rally took place at the Gulf Coast storage facilities. Oil in storage at Cushing, OK (the settlement hub for WTI futures), however, hit a new record.   US crude oil production fell to 8.8Mbbl/d. The question now is whether firmer crude prices will slow these declines, given that a number of shale operations are profitable at these levels. ...
    On May 12, 2016 / By
  • Finance 0

    The Latest News From Citigroup

      What’s in the Pipeline for Citigroup? Citigroup Inc. (C: NYSE) is currently trading at $45.07 per share, up 0.54% or $0.24. The recommendation summary for this week according to Thomson/First Call analysts is 1.9 on a rating scale of 1.0 (Strong buy) to 5.0 (Strong sell). The stock has a high target price of $70 per share and a low target price of $44 per share. Based on the current trading range, it is priced just above its low price target. The upgrades and downgrades history for the stock in 2016 has been largely negative, as can be seen by the previous 3 ratings reports by research firms: On 7 January 2016, Portales Partners upgraded...
    On May 12, 2016 / By
  • Finance 0

    USD/CAD Continuing The Downtrend

    The USD/CAD pair fell again during the day on Wednesday, continuing the downtrend that we’ve seen for some time. What further compounded this move was the fact that the Crude Oil Inventories number in the United States came out subtracting over 3 million barrels of oil. We had actually expected to see a little bit of a result, so this of course is a very bullish sign when it comes to the price of oil. Naturally, most currency traders initially started to buy the Canadian dollar, as it tends to be a bit of a proxy for the oil markets when it comes to the Forex trader. Continue the downtrend The pair looks as if it is continuing the downtrend...
    On May 12, 2016 / By
  • Finance 0

    The S&P 500 Chart Shows A “December Swoon” Is Straight Ahead

    With the recent rally showing increasing signs of exhaustion and the market topping, traders have begun to wonder if the S&P 500 (SPY) will suffer the same fate in the coming months as it did in August 2015, and – more apropos – in December, when the S&P failed to make a new high before starting a more significant correction leg into January. Two technicians who are convinced this is precisely the case, are UBS’ Michael Riesner and Marc Muller, who say that after hitting the April 20th reaction high at 2111 and seeing initial weakness, they see the SPX moving into a minor trading low late last week as the basis for a...
    On May 12, 2016 / By