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    E Mid Cap Best & Worst Report – February 10, 2016

    The top mid cap sectors are utilities and consumer goods. Packaging and containers is the best scoring industry. The average mid cap score is 50.91, which is below the four week average score of 52.61. The average mid cap stock is trading -34.23% below its 52 week high, -15.3% below its 200 dma, has 6.33 days to cover held short, and is expected to grow its EPS by 12.97% in the next year. Utilities, consumer goods, and technology are the top scoring mid cap sectors. Financials and services score in line with the average universe score. Healthcare, industrial goods, and basics score below average. The following chart shows historical mid cap s...
    On February 10, 2016 / By
  • Finance 0

    S&P 500 Drawdown Below 10% For First Time Since 2012

    The positive bias to the US stock market over the long run means that drawdowns rarely exceed 10%. But this isn’t one of those times. The S&P 500 (SPY) is posting a decline in excess of 10% from the market’s previous peak, offering one more sign that the trend is weak—the weakest, in fact, in several years, according to this metric. Surprising? Perhaps not. The S&P 500 enjoyed several years with relatively brief and shallow drawdowns. In other words, the market has had a long stretch of quickly bouncing back and moving on to new highs after run-ins with the bears. But defying gravity can’t last forever, courtesy of mean rev...
    On February 10, 2016 / By
  • Finance 0

    Fed’s Bag Of Tricks: Op-Twist 2?

    Yesterday we reviewed the Scariest Chart in the World, an overly sensational tongue in cheek title for a chart that has bearish historical implications for the S&P 500. Here it is again. Whether the Fed is looking at this exact combination of data points or something similar, you can bet they are aware that things have come to the brink. The spread in the bottom panel is trying to turn up and that condition has not worked well for the stock market on the last two cycles. Here is a simpler view that we routinely follow in NFTRH’s Macro Indicators segments… Here is the weekly S&P 500 right on the brink… And here is a Fed Chair wh...
    On February 10, 2016 / By
  • Finance 0

    Currencies Keep The Pressure Against USD. Yellen In Focus

    Since January this year, central bankers have tried their best to soothe the markets in a bid to weaken their currencies and boost the equity markets. Mario Draghi was the first to attempt during his ECB press conference. The markets did take heed back then but the rally soon fizzled out. Almost a few weeks later, BoJ’s Kuroda came to the rescue, or so it seemed. While the Yen did indeed weaken, USD/JPY was back to where it was pre-BoJ and even lower. Today, Janet Yellen takes the spotlight at the semi-annual testimony to Congress and the question is whether Yellen will be successful, where her counterparts have failed? The currencies, with...
    On February 10, 2016 / By
  • Finance 0

    4 Tech Stocks That Offer Better Value Than FANG

    Once the darling of the markets, FANG stocks are suddenly falling fast. Their fate is more or less identical to those of other tech stocks which have suffered a rout since last Friday. This was a consequence of weak earnings guidance offered by LinkedIn Corporation (LNKD – Analyst Report) for the rest of the year. At this point, it seems that the market is looking very carefully at the valuation of most stocks. Despite their undeniable long-term potential, it may be a good idea to pick undervalued tech stocks in this environment which are likely to mop up gains following a market rebound. Fate of the FANG During 2015, these four tech ...
    On February 10, 2016 / By
  • Finance 0

    Dollar Pressured As FX Trade Awaits Fed Decision

    The US Dollar Index remained near to a multi-month low versus a weighted basket of peers as traders await the outcome of today’s Federal Reserve Bank policy meeting. The Dollar Index, used by traders to assess the relative strength of the Dollar against peers, has now lost more than 3% of its value over the past fortnight. Earlier today, the Index hit 95.663 .DXY, a level not seen since last October, several months before the Fed’s interest rate hike. In pair trading, the US Dollar is also under some pressure. As reported at 10:53 am (GMT) in London, the US Dollar Index was trading at 96.26 .DXY. The USD/JPY pair is trading at 115.0550 Ye...
    On February 10, 2016 / By
  • Finance 0

    GBP Accumulating Bad News

    Four out of four measures of the UK industry missed: manufacturing production dropped by 0.2% m/m instead of a rise of 0.1% expected. Year over year it fell 1.7% instead of 1.4%. The wider industrial output figures plunged by 1.1% against only -0.1% predicted and y/y, a rise of 1% expected was met with a drop of 0.4%. GBP/USD did slide in the immediate aftermath, but this didn’t last. Is sterling accumulating bad news that will eventually hit it hard? Manufacturing was always the weakest link in the economy, as also seen in the purchasing managers’ indices. This isn’t unique to the UK: also in the US, manufacturing is seen as already...
    On February 10, 2016 / By
  • Finance 0

    Going Negative: Analysts See Increasing Likelihood Of Sub-Zero US Interest Rates

    On the heels of the Bank of Japan dropping a key interest rate to negative 0.1% late last month and indicating it is willing to go deeper into negative territory, Bloomberg reports that American analysts see an increasing likelihood that the Federal Reserve is willing to follow suit: If the world’s biggest economy weakens enough that traditional policy measures don’t help, the Fed may consider pushing rates below zero, according to Bank of America Corp. and JPMorgan Chase & Co. That step would broaden the Fed’s toolkit beyond what was available during the financial crisis, when it slashed its overnight benchmark near zero and bough...
    On February 10, 2016 / By
  • Finance 0

    Carnage Continues – Japanese Stocks Crash (Again) As Australia Enters Bear Market

    Shortly after we detailed the scale of carnage in Japan – a mysterious massive panic-seller of Yen appeared… as Kuroda heads for Parliament… But it’s not holding… Another night, another utter bloodbath in AsiaPac. Japanese markets are plunging (NKY down 600 from US session close) along with USDJPY as Kuroda readies himself to face parliament (and Abe says he “trusts Governor Kuroda.”) Once again banks leading the pain. Australia is also in trouble, after admissions of cooked data sent stocks lower pushing the ASX 200 into bear market territory. Kuroda has utterly failed to inspire the non-deflation ...
    On February 10, 2016 / By
  • Finance 0

    Loonie Stable Ahead Of Fed Meeting

    The loonie remained stable Tuesday despite a tumble in oil prices and reported some gains after the Canadian and U.S. bond yield spreads narrowed due to the softness of the USD which was being sold off in exchange for investors looking for safety and moving into the EUR, CHF and JPY. The CAD advanced on the USD despite the heavy link shown earlier this year between the price of crude and the loonie. Fed Meeting Tomorrow Investors are looking towards tomorrow’s Federal Reserve meeting and the announcement by Chair Janet Yellen about a March interest rate hike. The decision to implement a hike or not could determine the fate of the USD. The F...
    On February 10, 2016 / By