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    US Equity And Economic Review: This Is Not A Market That Wants To Move Higher

    The Institute for Supply Management (ISM) released its monthly manufacturing and non-manufacturing report last week. Although manufacturing increased .2% to 48.2, this was the fourth consecutive month of contraction. But new orders and production were both above 50, indicating we could see slightly higher numbers next month.And the anecdotal comments were surprisingly positive: “The oil and gas sector continues to be challenged by low oil and gas prices. Risk of suppliers filing for bankruptcy and reducing their workforce is becoming an increasing risk. Our company workforce is also declining.” (Petroleum & Coal Products) R...
    On February 7, 2016 / By
  • Finance 0

    These 3 Major Events Will Trigger A 20% Market Rally

    While most of the market remains hyper-focused on anything bearish, there have been three major events brewing on the sideline that could cause a dramatic and fast 20% rise in the markets. Investors have had few places to hide in the first five weeks of the year, and all the major averages are down significantly in 2016. Other sectors such as small caps, biotechs, and transports are faring much worse and are in official bear market territory. Distress among energy producers is increasing as oil stubbornly stays around the $30.00 a barrel level. Correspondingly, defaults in the high-yield credit market are projected to be at their highest le...
    On February 7, 2016 / By
  • Finance 0

    Negative Interest Rates Are The Next Stage In Global Stimulus

    Since late 2008, central banks around the world have used unprecedented QE to try and stoke the global economy. Then in June 2014, the ECB took it a step further. They went negative. Zero short-term interest rates apparently weren’t enough. The ECB realized that if they couldn’t get banks to loan or consumers to spend, why not really light a fire under their ass and tell them: “if you’re not going to spend, you have to pay to keep your money in the bank!” The Swiss thought this was a great idea and did the same in December 2014. Later on, the Danish and the Swedes joined the party. And last week, the Bank of Japan decided zero was...
    On February 7, 2016 / By
  • Finance 0

    Key Support Holds For Nikkei 225; More Gains Ahead?

      Asian stock indices plunged last week including the Nikkei 225 falling from around 17,700 to end the week at 16,819.59. Japanese equities have made several attempts at rallies and this time was supported by stimulus measures from the Bank of Japan with their latest move to negative interest rates. However, optimism over central bank stimulus, which usually leads to a large reaction translating into higher stock prices, has so far failed to spark a sustainable rally in the Nikkei 225 index. Using data since 1989, the average length of a bear market is 161 trading days for the Nikkei 225 index. Investors have used the recent 5% gain in the N...
    On February 7, 2016 / By
  • Finance 0

    E Immunomedics Receives FDA Breakthrough Therapy Designation For Breast Cancer Drug

    On Friday, shares of Immunomedics (IMMU) closed up by over 20% after the company announced that it was given Breakthrough Therapy Designation for a Breast Cancer drug. The company’s drug is known as sacituzumab govitecan, or IMMU-132. More specifically the company is developing for a type of breast cancer known as Triple-negative Breast Cancer — TNBC.  Triple-negative breast cancer is a type of breast cancer that occurs because it doesn’t express a particular type of gene. Such genes that are excluded in TNBC are:  Estrogen Receptor Progesterone Receptor HER2/NEU In order for patients to quality for this trial and be able ...
    On February 7, 2016 / By
  • Finance 0

    2016 Roadmap Should Be The Focus When Tesla Reports Q4 2015 Earnings

    Tesla is due to report Q4 2015 earnings on Feb 10th 2016 after market close. Tesla stock has been selling off heavily going into the earnings call on account of Wall Street’s concerns regarding Model X production ramp and delivery, as well as the impact of the production of the new model on Tesla’s margins. Are these concerns deserved and is Tesla still a worthwhile investment?   Leading electric vehicle manufacturer Tesla (Nasdaq: TSLA) is slated to report Q4 2015 earnings on Feb. 10th 2016 after market close. Wall Street expects Tesla to report fourth quarter revenue of $1.82B, non-GAAP EPS of $0.10 and GAAP EPS of ($0.34)....
    On February 7, 2016 / By
  • Finance 0

    US Bond Market Week In Review: The Bond Market Sees Weak Growth

    This week’s column will focus exclusively on various yields and segments of the treasury market for one reason: the bond market does not think the economy will grow  meaningfully in the foreseeable future. Let’s start by comparing the yield curve on January 4 with that of Friday’s close: The following maturities have declined by the following amount of basis points: 2-year: 28; 5-year: 48; 7-year: 48; 10-year: 38 and 30-year: 30.These data points, in and of themselves, are concerning.Part of the rise is the safety bid.  But bonds rally when traders see little growth.  And, given the weak initial 3Q GDP read, there is plenty of suppor...
    On February 7, 2016 / By
  • Finance 0

    PBOC Prepared The Yuan Ahead Of One-Week Holiday

    Fundamental Forecast for the Yuan: Neutral PBOC says China’s Economy Will Continue to Face Pressure in 2016 China Eases Lending Standards to Boost Housing – Will it Work? What Are the Traits of Successful Traders? Get FXCM’s Free New eGuide Both the offshore (CNH) and onshore yuan (CNY) rates closed higher on Friday after China’s central bank raised the yuan reference against the dollar to a one-month high of 6.5314. Looking forward from February 7 to February 13, Chinese financial markets including equities and onshore exchanges will be closed for the Lunar New Year; the offshore yuan market will be open with normal hours. P...
    On February 7, 2016 / By
  • Finance 0

    EUR/USD: Looks To Pullback Ahead Of Key Resistance.

    EUR/USD: With EUR pulling back (see daily chart) ahead of its key resistance following its rally above its declining trendline the past week, EUR/USD looks to pullback ahead of key resistance. On the downside, support is located at the 1.1100 level and if violated, expect more weakness to happen towards the 1.1050 level. Further down, support lies at the 1.1000 level where a violation will aim at the 1.0950 level. A break of here will aim at the 1.0900 level. On the upside, resistance is comes at 1.1200 level with a cut through here opening the door for more upside towards the 1.1250 level. Further up, resistance lies at the 1.1300 level wher...
    On February 7, 2016 / By
  • Finance 0

    $1,900 Gold – Again – Isn’t Hard To Imagine

    By Peter Cooper (thenational.ae) A weakening U.S. economic recovery, falling profit and revenue, the effect of the high U.S. dollar on multinational earnings, valuations not seen since the days of the dot-com bubble—they all point to a lower stock market. What does this mean for gold? Most gold analysts go back to the global financial crisis to see what happened the last time Wall Street tumbled. In the initial stages of the 2008 crash, gold sold off, but this time around, gold has already been through a 4-year correction, and is not coming off a 7-year bull market top. However, given that a falling stock market tends to drag everything els...
    On February 7, 2016 / By