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  • Finance 0

    Twitter About To Rebound?

    Twitter, (TWTR) Inc. is no stranger to buyout rumors and February is proving to be yet another month of more of the same. The microblogging site that was co-founded by Jack Dorsey back in 2006 has seen its stock price plunging over the years and with no end in sight for the declines there is speculation that a buyout could be in the offing. Before we get into the nuts and bolts of the matter, it should be remembered that Twitter has often been subject to these types of jolts. Talk of a buyout at Twitter is par for the course with this social media giant. The latest buzz is that Silver Lake under investor Marc Andreessen may be lining up t...
    On February 4, 2016 / By
  • Finance 0

    Eurozone Unemployment Eases

    The current turmoil on the stock markets (and we’ve just started another bout) is being induced by a weak oil price which is being taken as emblematic of weak global demand, although, clearly, it does have a direct effect on businesses related to oil production and its whole infrastructure. It is stoked by concerns that the Chinese economy is slowing, but, if official figures are to be believed, it is still enjoying extraordinary growth (6.9%). In general, cheaper oil is good news for industry and consumers alike, but investors are having none of it! Against this backdrop, it is nice to be able to report some concrete good news – albeit f...
    On February 4, 2016 / By
  • Finance 0

    Europe Continued Gold Repatriation At Faster Rate In 2015

    Germany ramped up its gold repatriation project last year, joining other European nations bringing gold home. The trend underscores the importance of holding physical gold within easy access. Germany’s Bundesbank transferred more than 210 tons of gold back into the country from vaults in Paris and New York last year. According to the Financial Times, with last year’s transfers, Frankfurt now ranks as the largest storage location for the country’s reserves after New York. In early 2013, the Bundesbank announced a plan to repatriate massive amounts of its physical gold reserves back into Germany. The goal is to have half of its gold bac...
    On February 4, 2016 / By
  • Finance 0

    Market Wrap February 03, 2016

    A review of last week’s performance, plus a summary of the best stock charts for the coming week and where I think the markets are headed. Video Length: 00:26:28      ...
    On February 4, 2016 / By
  • Finance 0

    Coffee Preparing For A Huge Move. Sugar Reached Moment Of Truth

    A huge move is brewing in coffee, mark our words. In this article, we take a look at the picture in coffee and sugar, separately. First, coffee is close to a MAJOR breakout or breakdown point. This pattern is so clear, both on the short and long term charts. The daily, to begin with, has a narrow range between $1.15 and $1.25 which is the end stage of a chart pattern that is in the making for more than 12 months now. The observation on the daily chart is not only confirmed, but also more outspoken on the weekly chart. The descending trendline (providing support) goes back to 2011, making it even more important. Expect a major move in coffee i...
    On February 4, 2016 / By
  • Finance 0

    Currency Wars And A Job Gain Recession?

    I am entertaining the notion of a “Job Gain Recession“. A chart of year-over-year nonfarm employment shows that’s nearly what happened in the 1970 and 1980 recessions. Nonfarm Payroll Job Losses Jobs a are a horribly lagging indicator. Recessions invariably start with the economy adding jobs as noted by the red squares in the above chart. Job losses in recessions vary widely. At the deepest point of the 1980 recession, the maximum year-over-year loss in nonfarm jobs was only 378,000. In contrast, the economy shed 6.8 million jobs in the 2007-2009 “great recession”. The peak of the job losses in most recessions is after the recession...
    On February 4, 2016 / By
  • Finance 0

    Let’s Talk About The U.S. Government’s Interest Burden

    Greg Ip had a piece in the Wall Street Journal yesterday discussing the debt burden in the USA and how low interest rates have “moved back” the “hands on the doomsday debt clock”.  The article touches on the important topic of entitlement spending and whether it’s sustainable, but does so in a manner that misleads readers about why this might be a problem. For instance, Ip says that “higher federal borrowing puts upward pressure on interest rates”.  This is classic “crowding out”,an argument that has been thoroughly debunked in the last 20 years as interest rates have fallen despite soaring government debts around the g...
    On February 4, 2016 / By
  • Finance 0

    Nothing Stops EUR/USD – Jumps 3 Hurdles To Higher Ground

    Draghi was dovish, the ECB’s monthly bulletin showed worries and the retail PMI remains in negative territory. Nevertheless, the common currency keeps taking advantage of the weak greenback and EUR/USD reaches new highs. Three things should have stopped the euro: Dovish Draghi: The president of the ECB showed his utmost determination to act in order to combat low inflation. He did ask governments to do their share but took the time to explain that inaction is much worse than any unintended consequences of acting. He certainly raises expectations for March. ECB warnings: The ECB Economic Bulletin reiterated what Draghi said in his last p...
    On February 4, 2016 / By
  • Finance 0

    S&P 500 And Nasdaq 100 Forecast – Feb. 4, 2016

    S&P 500 The S&P 500 initially fell during the course of the session on Wednesday, testing the 1880 region. We bounced from there and ended up forming a hammer, and that of course is a very bullish sign. I believe that the markets now are trying to find a reason to start going higher. Technically, if we break above the top of the hammer, this market should reach towards the 1950 handle. I don’t have any interest whatsoever in selling this market, but I also recognize we may not get a whole lot of clarity until we are done with the jobs number coming out on Friday. If we can get above the 1950 handle, I think at that point in time thi...
    On February 4, 2016 / By
  • Finance 0

    Navigating The Oil Market In 2016

    The oil price collapse was one of the biggest stories of 2015. It caused ripples and shocks throughout the global financial system, as energy exporting nations, shareholders and oil and gas companies all felt the brunt of the deepening bear market. If the first trading week of the year is any indication, 2016 may be a very long year for the global financial markets in general and oil in particular. China Growth Woes The year 2016 started off with a bang, with Chinese equities posting their biggest selloff since the August financial crisis. China’s Shanghai Composite Index plunged a staggering 6.9% in the first trading session of 2016; the C...
    On February 4, 2016 / By