Latest Posts

  • Finance 0

    T2108 Update – The Latest Oversold Period Ends With A JP Morgan Chase Bottom

    (T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are occasionally posted on twitter using the #120trade hashtag. T2107 measures the percentage of stocks trading above their respective 200DMAs) T2108 Status: 23.0% (ends a 1-day oversold period)T2107 Status: 15.2%VIX Status: 25.4General (Short-term) Trading Call: bullishActive T2108 periods: Day...
    On February 15, 2016 / By
  • Finance 0

    When Trust Is Bust – All The Charts You Can Eat

    In his inimitable manner, Abraham Gulowitz unleashes 18 new pages of “all the charts you can eat” to expose the ugly reality of what is going on everywhere. Trust Busters… Market participants had penciled in stronger economies for 2016 and even a series of rate hikes by the Fed. Feeble world growth signals, the fallout from crashing oil and a weaker China plus tumultuous markets have combined to seriously dent expectations and encourage a serious reassessment of economic and financial prospects. Global equity prices have slumped by double digits so far this year and risk aversion has spread rapidly through the credit mar...
    On February 15, 2016 / By
  • Finance 0

    Book Bits

    ? Postcapitalism: A Guide to Our Future By Paul MasonReview via The Guardian Mason, like Marx, believes that capitalism will collapse under the weight of its own internal contradictions. These include unsustainable levels of debt on the part of both individuals and nations (“2008 was the tremor in advance of the earthquake”). In addition, the rise of information technology will corrode market mechanisms, erode property rights and destroy the relationship between wages, property and work. All this, plus burgeoning inequality, the inevitability of climate change and continued population growth, will open up the possibility of a brave new ...
    On February 15, 2016 / By
  • Finance 0

    Happy Markets, Despite Data

    Japan’s economy contracted and Chinese trade activity looks terrible. This did not stop markets from rallying and it carried away currencies: the safe haven euro and yen continued their downfall while commodity currencies are looking good. The pound is a bit mixed on worries that Cameron can really deliver a deal with his euro-zone peers and his own party. The better mood in markets could also mean the return of faith in central banks, something that wasn’t of abundance last week. Can this continue? This remains an open question especially in light of the Fed’s meeting minutes. We also discussed AUD/NZD alongside the usual round up of c...
    On February 15, 2016 / By
  • Finance 0

    WTI Crude Oil And Natural Gas Forecast – February 15, 2016

    WTI Crude Oil The WTI Crude Oil market rose during the course of the day on Friday, testing the $30 level. Breaking the top of the hammer from the Thursday session is a bullish sign, but quite frankly there is more than enough noise above in order to turn this market back around and start pushing us lower again in my opinion. I think that it is only a matter of time before sellers come back into this marketplace, and as a result I am a seller on the very first signs of exhaustion as we are without a doubt in a very massive downtrend in this marketplace. Keep in mind that supply is far stronger than demand, and having said that it’s very lik...
    On February 15, 2016 / By
  • Finance 0

    Investors, Still Chasing Hubcaps

    Lowing and Highing As we saw in The Proper Etiquette for Market Panics – which I wrote the last time we had some major market falls – what usually happens in a crisis is that markets fall and then exhibit volatility, as investors roam backwards and forwards in increasingly large herds while asking everyone else why it’s happened and what they should do about it. Often the noise they make sounds suspiciously like cattle lowing. Well, this happens (the volatility, not the lowing) because going down – and up – is what markets do, and if you don’t understand that you shouldn’t be allowed to play Monop...
    On February 15, 2016 / By
  • Finance 0

    Silver, Gold, The Argentina Peso, And Exponentially Increasing Prices

    The exchange rate between the Argentina Peso and the US dollar in January 1945 was 4.17 pesos to one dollar.Like the United States, Argentina created substantial price inflation – devaluation of their currency – in the 1950s – 1990s. According to Wikipedia Argentina devalued their currency by a factor of 100 in 1970, by another 10,000 in 1983, by another 1,000 in 1985, and by another 10,000 in 1992. From Alan Greenspan in 1966:  “In the absence of the gold standard, there is no way to protect savings from confiscation through inflation.” In summary the 1945 peso was devalued by 10 trillion to one between 1945 and 2015.Imagine wh...
    On February 15, 2016 / By
  • Finance 0

    Why Is Gold Suddenly Performing Well?

    A short commentary and answer to the question… Video Length: 00:05:33...
    On February 15, 2016 / By
  • Finance 0

    Is Copper Miner Freeport Mc-MoRan A Screaming Buy As It Reached Its Downside Target?

    Copper has lost 56% of its value since it peaked in 2011. That is not as bad as crude oil, but it remains a serious collapse. The largest copper miner Freeport-McMoRan (symbol FCX) has truly crashed in this environment. The stock price went from $50 in 2011 to $3.50 in January of this year, a 93% decline. That is an serious crash. Is this a buying opportunity from a contrarian point of view? In order to answer that question, we looked into the hidden trendlines on the secular chart. The chart below shows the hidden trendlines in purple. According to our methodology, hidden trendlines connect extreme swing lows or highs, and, by doing so, att...
    On February 15, 2016 / By
  • Finance 0

    AUD/USD Drops After China Trade Data Spurs RBA Rate Cut Bets

    The Australian Dollar fell against its US counterpart after China released its trade figures in Yuan terms. Exports fell at rate of 6.6 percent year-on-year in January versus economists’ estimate of a 3.6 percent growth and the 2.3 percent reading in December. Imports disappointed as well by contracting 14.4 percent (YoY), lower than the forecasted 1.8 percent growth and the prior decline of 4 percent. The trade balance in Yuan terms was 406.20b, higher than the anticipated 389.01b and the previous figure of 382.05b The currency continued its decline to a small degree when China’s data in US Dollar terms for the same period was released n...
    On February 15, 2016 / By