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  • Finance 0

    Morning Call For February 11, 2016

    OVERNIGHT MARKETS AND NEWS March E-mini S&Ps (ESH16 -1.69%) are down sharply by -2.11% at a 3-week low and European stocks are down -3.44% at a 2-1/2 year low after Wednesday’s testimony to Congress by Fed Chair Yellen failed to boost confidence in the markets. Crude oil prices (CLH16 -2.95%) are down -4.04%at a 3-week low and copper (HGH16 -0.57%) is down -0.67% at a 2-week low, which has pushed energy producers, miners, and raw-material companies lower with Exxon Mobile sliding more than 5% in pre-market trading. The plunge in global equities has fueled a massive rush into the safe-haven of government bonds as the 10-yea...
    On February 11, 2016 / By
  • Finance 0

    Yen Broadly Higher As Market Jitters Grow

    Demand for the Japanese Yen was significantly higher during the Asian trading session which helped push the currency up 2% versus the greenback. That was largely a factor of the escalation of markets’ concerns over the general health of the global economy. Analysts also say that the chaos in equity markets, both in Europe and the US, has whetted safe haven demand. Also benefiting from market jitters was the Swiss Franc which touched a 4-month peak versus the US Dollar. As reported at 10:50 am (GMT) in London, the USD/JPY was trading at 111.7040 Yen, a fall of 1.55%; the pair has ranged from a session low of 111.9805 Yen to 113.5570 Yen. The...
    On February 11, 2016 / By
  • Finance 0

    The Dawg Also Rises

    The yellow dog is howling a hurricane this morning, gathering its recent gains and just punching through 1200, running up to challenge 1270 one might hope. Let’s see how the metal copes with an overbought condition in the short term.  ...
    On February 11, 2016 / By
  • Finance 0

    The Deals You Could Have Made In The New Year

      The global financial markets experienced one of their most turbulent starts to a year ever this past January. Asian and European markets entered into bear market territory, while US stocks plunged to multiyear lows. All this while oil prices plumbed 13-year lows amid deepening oversupply concerns. In retrospect, January 2016 was an opportune time for short-selling. Using the power of hindsight, below we look at five profitable trades that could have made you a lot of money in January. Shorting WTI Crude Oil prices sold off at an unprecedented rate in January, plunging nearly 30% in the first three weeks amid signs of a slowing Chinese econ...
    On February 11, 2016 / By
  • Finance 0

    Rail Week Ending February 6, 2016: Contraction Continues But Short Term Improvement Continues

    Week 5 of 2016 shows same week total rail traffic (from same week one year ago) only marginally declined according to the Association of American Railroads (AAR) traffic data. Intermodal traffic continued to improve year-over-year, which accounts for approximately half of movements but the weekly railcar counts remained in contraction. This analysis is looking for clues in the rail data to show the direction of economic activity – and is not necessarily looking for clues of profitability of the railroads. The weekly data is fairly noisy, and the best way to view it is to look at the rolling averages (carloads and intermodal combined)....
    On February 11, 2016 / By
  • Finance 0

    4 Bargain Stocks With Low PE Ratios

    The stock market has been beaten down to the point where people are selling and not asking questions. Multiples have been taken out of the high flying momentum stocks across the board. The stocks that typically have low PE Ratios, well they are even ridiculously lower. Is the selling justified? Is the fear warranted? Do people have 2008 fresh in their minds and just can’t afford to take that risk again? No simple answers there, but what we do know is that people are going to react to what is in front of them.  And right now, there is only red numbers on their screens. This panic currently being created allows opportunity to the patient inv...
    On February 11, 2016 / By
  • Finance 0

    Corporate Taxation Gets Nasty

    Governments have been getting tougher on the use of corporate tax havens. Britain recently reached a $200 million deal with Alphabet Inc. (GOOGL) – better known as Google – for back taxes. French Finance Minister Michel Sapin also said Google would pay “way more” to France. Yet when you look at U.S. figures, the share of corporate income taxes paid in the U.S. has declined steadily and is now at little more than half the level from the 1950s. In short, all the money is disappearing down rabbit holes. Indeed, the trend in corporate tax payments is very clear – and startling. Corporate tax payments averaged 46% of profits in the 195...
    On February 11, 2016 / By
  • Finance 0

    Financial Ratio Analysis: Sometimes Rules Of Thumb Do Not Work

    Anyone who has ever tried to value a company has used some rules of thumb when conducting the financial ratio analysis. For me personally, these form a base upon which various screens and shortlists are structured. Looking for undervalued stocks can at times feel link looking for a needle in a haystack, and these rules of thumb can come in very handy ease the screening process and get to the shortlist faster, so we can quickly commence the joyous process of reading the appropriate financial statements and conducting a deeper due diligence on each stock. So what kind of financial ratio analysis we are talking about? Which rules of thumb...
    On February 11, 2016 / By
  • Finance 0

    “It’s Probably Something” – Gold Surges Above $1200; USD/JPY, Oil, Stocks Plunge

    With US markets failing to hold on to today’s “Deutsche Bank” euphoric gains today despite, or rather due to Janet Yellen’s Congressional testimony, traders in mainland China remain locked out due to the Lunar New Year holiday, while Japan is mercifully taking a break – mercifully, because otherwise the Nikkei would be crashing. However, one market is back online as Hong Kong traders return to their desks to see carnage around the globe, and most importantly, are unable to hedge exposure between China, Japan and the US. So, with few options, they are buying the one asset that provides the best cover to central ba...
    On February 11, 2016 / By
  • Finance 0

    Should You Place Call Options Or Put Options On Alphabet?

      Alphabet Inc. (GOOG) has hogged the headlines in recent weeks as one of the top tech companies in the world. And the earnings reports certainly give credence to this perception: Google has performed remarkably well while Apple Inc. (AAPL) has floundered. Before we get into the mechanics of call options or put options, it is important to analyze most every aspect of the latest data pertaining to Alphabet Inc. Analysts have given this stock a mean recommendation rating of 1.6. On a rating scale of 1.0 (strong buy) to 5.0 (strong sell), Alphabet Inc is clearly in bullish territory. The mean target price for the stock is $924.42, with a high o...
    On February 11, 2016 / By