Physical gold ‘flowing’ into GLD and the other gold ETFs does not cause the gold price to rise and physical gold flowing out of gold ETFs does not cause the gold price to fall. The cause and effect actually works the other way around, with the price change being the cause and the flow of gold into or out of the ETFs being the effect. I’ve covered the reasons before (for example, HERE and HERE), but cause and effect are regularly still being mixed up in gold-related articles so I’m revisiting the topic. The Net Asset Value (NAV) of a gold ETF such as GLD naturally moves up and down by the same percentage amount as the gold price, so...
The US dollar turned in a mixed performance last week. Firmer oil and commodity prices more generally helped lift the Australian and Canadian dollars, and many emerging market currencies. These currencies initially extended their gains ahead of the weekend in response to the Bank of Japan’s surprise 20 bp cut on some excess reserves ( to -10 bp). The yen lost 2.25% on the week, its biggest weekly decline since the BOJ’s surprise expansion of its Qualitative and Quantitative Easing in October 2014. The Swiss franc was the second worst performer of the majors, losing 0.75% on the week. It fell to its lowest level against the euro si...
The Chart of the Day belongs to PT Telekomunikais Indonesia (NYSE:TLK) I fund the telephone stock by sorting Barchart’s Top Signals list first for the highest technical sell signals then I review the charts using the Flipchart feature. Since the Trend Spotter signaled a buy on 1/22 the stock gained 4.49% TLK is a telecommunication Co.that provides local and long distance telephone services. In addition, the Co. also provides non-telephone telecommunication services such as telegrams, telexes, and leased circuits. The status of Barchart’s Opinion trading systems are listed below. Please note that the Barchart Opinion indicators...
By Nadeem Walayat of marketoracle.co.uk My forecast conclusions are for the oil price bear market to have made its final bottom BY early February 2016 and embark on a bull market that will target a trend towards a late year high of $60…This oil price trend and the stock market’s oversold state are also converging towards a stock market bottom…for 2016 in a time window that probably runs for another 2-3 weeks. [Here are the specifics.] My forecast conclusion is for the crude oil price to trade within three distinct trading ranges for 2016: $20 to $40, $35 to $50 and $62 to $40. Furthermore the trend pattern imposed onto the t...
The urge to store oil is irresistible. Lots of folks responded to our last column “Oil’s Slump: Boon Or Bust For Refiners?” with questions. While many opinions were jockeyed on the fate of refiners’ stocks, some readers wondered why so much oil was being stockpiled in the first place. Well, first and foremost, because it’s a money maker. And not just for refiners. For arbitrageurs, too. A “cash-and-carry” trade in oil can, sometimes, provide a return better than high yield bonds and lottery tickets. The trade relies on the contango – the positive curve — in oil futures pricing. When spot oil trades at $32 a barrel wh...
It seems we may have bottomed in the oil market, and a lot of shorts are starting to get nervous considering their large short trading book right now. Can you say short squeeze? Video Length: 00:16:47...
What is the stock market’s current psychology and what is the one indicator that best capsulizes it? Perhaps no yardstick best measures the stock market’s mood than the CBOE Volatility Index or VIX (Chicago Options:^VIX). Also known as the “fear index,” the VIX represents the expected volatility (up or down) in S&P 500 stocks (NYSEARCA:SPY) over the upcoming 30 days. When fear is up, the VIX is up and when the VIX is down, the market is less fearful. (Audio) How do stock prices compare to history? It’s impossible to invest directly in the VIX index, which leaves traders with a few choices: VIX exchange-traded products (ETPs) ...
Normally, we think of frontiers as boundaries that mark and often regulate our passage from one realm to another. In finance, though, the one frontier worth mentioning – the Efficient Frontier – isn’t a place through which we pass. It’s a destination, supposedly the only place we should want to be. Whatever traveling we do is back and forth along the frontier with the aim of picking a one spot at which we’ll settle down (and move to a new one later on if or when our preferences change). NOTE: This post focuses on Wealthfront because its web site provides for the greatest level of insight as to how it works. Bear in mind, though, t...
Cintas (CTAS) is one of the highest scoring dividend stocks in our database for Dividend Safety (98) and Dividend Growth (99). The company has proven to be an extremely durable business with roots dating back nearly 90 years, and it has rewarded its shareholders with higher dividend payments for 32 consecutive years. This is really one of the most consistent sales and earnings growers around, and it operates in a very slow-changing industry where it maintains leading market share. At the right price, we would certainly considering owning CTAS in our Top 20 Dividend Stocks portfolio. Business Overview CTAS started out as a laundry service for...