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  • Finance 0

    EUR/USD: Flat Waiting For A Signal, GBP/USD: Inverted H&S – RBS

    Both major pairs have interesting patterns emerging on them. The team at RBS explains: Here is their view, courtesy of eFXnews: The EUR/USD medium-to-long technical picture has been bearish for a while with a bear flag triggered pointing to the targets as low as 1.05 and 1.01 (with a possibility of extending a dip to 0.96 on a long-term horizon), notes RBS. However, RBS also notes the EUR/USD near term technical picture is quite different with a sideways theme being in place for two month and 1.0950/81 marking a key resistance area and a bullish flag trigger. “If the 1.0981 level is broken, the EUR/USD would tactically become bullish to 1.1...
    On February 3, 2016 / By
  • Finance 0

    EU Session Bullet Report – Asian Stocks Tumble, Safe Assets Rise As Oil Retreats

    Oil is once again ongoing a severe drop in value with the prices now under $30 after rebounding to 34.70 last week. As a result, US stocks underwent through a sharp selloff with DJI dropping -1.8% and SP500 -1.87%. The drop was led by energy stocks along with Financials. The risk aversion, is benefiting JPY which pushed the dollar down to 119.40. USDJPY was trading over 121.60 last week. Overnight ion Asia, the drop was carried over with Japanese Nikkei leading the drop and trades at -3.2% on the day. Chinese stocks are also under pressure (surprise surprise). The only beneficiary of this situation is gold which prices are nearing a very impo...
    On February 3, 2016 / By
  • Finance 0

    Portion Of U.S. Treasury Yield Curve Inverts

    Inversion! Curve Watchers’ Anonymous has had its eyes on the yield curve in expectation that portions of the curve would invert. A small inversion did happen on Tuesday when yield on 6-month treasuries briefly traded at a higher yield than 1-year treasuries. Bloomberg Screen Shot I captured the above chart at 5:00PM but similar conditions existed for several hours. Yield Curve 6-Month to 5-Year Red: 5-Year Blue: 3-Year Green: 2-Year Orange 1-year Purple: 6-Month Brown: 3-Month I created the above chart in Stockcharts. Alas, Stockcharts uses end-of-day vales only so it appears there is no inversion today. Yesterday the 6-month and 1-year tre...
    On February 3, 2016 / By
  • Finance 0

    Stocks To Buy Before The 2016 Presidential Election

    The Iowa Caucus has left uncertainty about what two candidates will be running in the general election.This uncertainty is disruptive to markets, as investors will not commit new money until they feel comfortable in the future direction of price. Market participants are forced to pay attention to the primaries because of the effect a winner might have on equities, bonds, commodities and currencies. The remaining five candidates all seem to have equal chances to get to the presidential election, bringing their policies and ideals with them. Each candidate has different policies and goals that will affect market prices, not just domestically, b...
    On February 3, 2016 / By
  • Finance 0

    “We Need To Rise Up”: Bilked Chinese Investors Call For Nationwide Uprising After Massive Ponzi Uncovered

    Well, don’t say we didn’t warn you. Just yesterday, in the course of documenting the largest ponzi scheme the world has ever known (in terms of number of victims), we remarked that if China’s beleaguered masses needed yet another excuse to rise up and stage massive street protests, they got one in the form of online P2P lender Ezubao, which defrauded nearly a million people. Ezubao’s model wasn’t exactly complicated. Investors, they said, could earn between 9% and 15% by funding a variety of projects presented on the company’s website. When the money came in, management simply absconded with it all and attempted to repay old inv...
    On February 3, 2016 / By
  • Finance 0

    Euro Ready To Pass 1.0950 Resistance

    Yesterday’s Trading: My Tuesday’s expectations came off in full. The euro/dollar fell one point short of the 1.0940 target. The falling stock indices and oil prices helped the euro strengthen. The European stock indices fell by 2% on average and the US ones fell from between 1.9% and 2.3%. Brent fell 4.5% to $32.50. The price of oil came under pressure after the National Iranian Oil Company’s (NIOC) CEO Javadi came out saying that Iran is to up its exports to 2.3 million barrels per day this year. Main news of the day (EET): 10:15 – 11:00, service sector PMI (Spain, Italy, Germany, France, Eurozone); 11:30, UK service sector PMI; 12:0...
    On February 3, 2016 / By
  • Finance 0

    The Importance Of Global Asset Allocation – Japan Edition

    I’m a big fan of owning a global financial asset portfolio consistent with something resembling the Global Financial Asset Portfolio (though, I would also add that this portfolio isn’t necessarily ideal).¹  If you’re a U.S. investor this has looked like a pretty silly idea in the last few years as foreign stocks have been poor performers in relative terms.  Despite this short-term performance there is widespread evidence that a global portfolio is ideal (this is one of the rare cases where I disagree with John Bogle who has a healthy dose of home bias in his views).²  Home bias is a common result of excessive short-termism and...
    On February 3, 2016 / By
  • Finance 0

    Nikkei Index Teeters On The 2007/08 Brink

    Japan’s Nikkei Index was above the 17,000 level yesterday and it was down around 3.3% from Monday’s close. You can see from the Monthly chart below that this is around the same level just before the 2007/08 crash. A drop and hold below 17,000 could spell another big plunge in this index and confirms what I mentioned in my previous post. If it holds, this “island reversal” candle formation on the Daily chart below should produce some “interesting” results!...
    On February 3, 2016 / By
  • Finance 0

    Gold Trades In Narrow Range Near Three-Month High

    Gold prices rose slightly on Tuesday closed the day at $1128.78 an ounce. Although the precious metal’s safe-haven appeal intact as equities and oil prices continued their slide, the market remained in a relatively tight range. The pattern on the daily chart suggests that gold prices will tend toward consolidation as markets await key U.S. data. Today sees the release of ADP employment report and ISM non-manufacturing PMI data but of course the highlight of the week will come on Friday when the Labor Department releases its employment report for January. The XAU/USD pair is sailing above the Ichimoku clouds on the daily and 4-hour time ...
    On February 3, 2016 / By
  • Finance 0

    Hang Seng Feels The Pain Of Chinese Adjustment

    Growing concerns about the state of emerging markets and the global economy at large continue to weigh on risk sentiment as the latest bout of financial market volatility that began in China has quickly spread to other major world benchmarks. Hong Kong in particular, which has long benefited from the impressive rise of neighboring China, is currently feeling the brunt of the massive transition in underway in the Chinese economy. Since the opening of 2016, the Hong Kong Hang Seng equity index, a collection of the 50 biggest companies by market capitalization traded on the Hong Kong Stock Exchange, has seen valuations tumble as concerns about h...
    On February 3, 2016 / By