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  • Finance 0

    Bonds & Bullion Best As Dollar Crashes To 4-Month Lows

    European bonds are collapsing… systemic risk is rising… US Services economy “pillar” plunges… and jobs data is dismal – stocks shrugged… The USD Index is down over 3% this week – the worst 4-day drop since China’s devaluation in August and plunging it back to 4-month lows…   Perhaps this is why? PBOC is actively intervening – selling USDs to support offshore Yuan…   Trannies were ecstatic… but the rest of the US equity market just could not get with the program…   VIX spikes broke the market and sparked rallies…   US Financial credit risk broke out t...
    On February 4, 2016 / By
  • Finance 0

    Global Markets Update

    Not a whole lot has changed since the last update post. The lows at 1812 on the S&P 500 has held so far and the market has retraced back into the lower of the two resistance levels that were outlined. So far the US stock market is down around 15% from its 52 week high, but it, along with the rest of the indices of the developed world, are below their 200 day moving averages. It’s a sign of caution and also signals a real possibility of some further downside to match the size of the 2011 correction (20%). China’s stock market is down 49% from its 52 week high. Europe is down 23%. And Japan is down 24%. So the US continues to outperform...
    On February 4, 2016 / By
  • Finance 0

    How Long Will “Risk-Off” Sectors Outperform Riskier Stock And Bond Segments?

    Some stock sectors thrive when an economic recovery gains traction. Industrials tend to perform well due to increases in the demand for capital goods. In a similar vein, consumer discretionary companies spike alongside improvements in employment data, where people spend more of the money they make. One can visualize the above-described outperformance of cyclical sectors by charting corresponding ETFs over the initial six years of the current economic recovery. The Guggenheim S&P 500® Equal Weight Consumer Discretionary ETF (RCD) as well as the Guggenheim S&P 500® Equal Weight Industrials ETF (RGI) outhustled the S&P 500 SPDR...
    On February 4, 2016 / By
  • Finance 0

    Gold Daily And Silver Weekly Charts – Non-Farm Payrolls Tomorrow

    Gold continued to advance higher and silver join in, edging up to the cusp of the 15 handle. They are a little short term overbought, and we are going to be enjoying another chapter in the ongoing fictional story of the US Economic Recovery tomorrow. I refuse to draw the tentative ‘cup and handle’ formation on the charts for fear of jinxing it. I know, but hey its hard for any trader to be perfectly rational ALL the time, especially in the teeth of a three year bear market that seems to defy all the facts and fundamentals. There was little to no delivery activity for the PM’s at The Bucket Shop yesterday. The movement of bul...
    On February 4, 2016 / By
  • Finance 0

    S&P 500 Snapshot: A Fractional Gain In A Relatively Tame Session

    Within the context of the 2016 volatility to date, the S&P 500 traded in a relatively narrow range. Following a somewhat weaker than expected unemployment report, the index hit its -0.63% intraday low in the opening minutes and then bounced to its 0.77% intraday high about an hour later. It then fell into the shallow red and oscillated around the flat line until shortly before some action at the close lifted the index to its 0.15% closing gain. Today’s intraday range of 1.41% is close to the 1.45% average since 2007, but quite tame compared to recent volatility — the third smallest intraday range of the 23 market days so far in 2...
    On February 4, 2016 / By
  • Finance 0

    Pause In Action

    Small Gains as indecision held sway. The S&P finished inside the range of last Friday’s breakout and held rising support, but the index did the minimum to pacify bulls. The Nasdaq breakout has eased alongside former resistance turned support. Volume was lighter, and the spinning top finish marks indecision. While Thursday’s action offered no side an advantage, a push towards 4,900 would appear to be the favoured path. The Russell 2000 is caught inside the apex of support and resistance, but as the consolidation appeared below support in what is increasingly looking like a failed ‘bear trap’, a push lower would appe...
    On February 4, 2016 / By
  • Finance 0

    LinkedIn Corp Tanks After Swinging To A Loss, Posting Weak Outlook

    LinkedIn released its fourth quarter earnings report after closing bell tonight, posting 94 cents per share in adjusted earnings, compared to the consensus estimate of 78 cents per share, and revenue of 862 million, against the consensus of $857.6 million. Despite the top and bottom beats, shares of LinkedIn plummeted in after-hours trading, falling by as much as 25% to $144.47 per share as a result of a surprise GAAP loss and weak guidance.   In last year’s fourth quarter, the social network posted earnings of 61 cents per share and $643.4 million in revenue. LinkedIn swings to a loss LinkedIn posted a GAAP loss of 6 cents per share, comp...
    On February 4, 2016 / By
  • Finance 0

    The War On Savers And The 200 Rulers Of World Finance

    There has been an economic coup d’état in America and most of the world. We are now ruled by about 200 unelected central bankers, monetary apparatchiks and their minions and megaphones on Wall Street and other financial centers. Unlike Senator Joseph McCarthy, I actually do have a list of their names. They need to be exposed, denounced, ridiculed, rebuked and removed. The first 30 includes Janet Yellen, William Dudley, the other governors of the Fed and its senior staff. The next 10 includes Jan Hatzius, chief economist of Goldman Sachs, and his counterparts at the other major Wall Street banking houses. Then there is the ...
    On February 4, 2016 / By
  • Finance 0

    Damn The Side Effects, More Stimulus Coming

    Damn the Side Effects A debate between the inflation doves and hawks in the ECB is underway. We already know the winner: In a speech today on the Risks of Low Inflation, ECB president Mario Dragio effectively said damn the side effects, more stimulus is coming. European Central Bank President Mario Draghi on Thursday said it could be risky to delay additional stimulus for the eurozone, hitting back at a warning from Germany’s Bundesbank that the ECB shouldn’t overreact to lower inflation. Adopting a wait-and-see attitude” to the steep fall in oil prices “brings with it risks,” Mr. Draghi said in a speech at the Bundesbank’s home ...
    On February 4, 2016 / By
  • Finance 0

    SP 500 And NDX Futures Daily Charts – Credibility Trap

    “The fear of a backlash against the political establishment is absolutely palpable in Washington. Whatever they may dutifully mouth in public, even the professional denizens of the nation’s capital really believe that there has been a recovery.  It is not difficult to believe in a recovery when your stock portfolio has been inflated by the Fed’s QE. So, they are all genuinely mystified about why the common folk are restless.” Le Cafe’s Samoan Attorney in Washington DC Well technically he is Greek, but has a polymathic intellect of truly Samoan proportions. And he tends to hang out with the politicos, such is the...
    On February 4, 2016 / By