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  • Finance 0

    S&P Valuation Behind The Curve

    Apparently, no one sent the market memo to the S&P 500 until last week when investors woke up to the prospect of “stretched” valuations after months of warnings from US Federal Reserve Chairwoman Janet Yellen. Last Friday’s substantial losses come on the heels of global equity losses to which US benchmarks are not immune, but the shift in sentiment fails to unearth the true fundamentals of the S&P 500 Index which has seen the valuation largely intact despite contracting constituent revenue growth and broader softness in the US economy. Although the index is not trading far from all-time record highs, a return to those levels see...
    On July 27, 2015 / By
  • Finance 0

    The Secular Advisor – July 27, 2015

    Economy – Additions & Updates Additions – inflation expectations, World trade, China electricity consumption & manufacturing Updates – initial jobless claims, housing, sentiment, manufacturing  Asset Allocation – Additions & Updates Additions – US only allocations, currency trends Updates – none Economic Summary: Initial Jobless Claims – falling Inflation Expectations –  on target Housing – existing home sales: expanding, new home sales: falling Sentiment – falling Manufacturing – falling / recessionary World Trade – falling China Electricity Consumption & Manufacturing – falling  Initi...
    On July 27, 2015 / By
  • Finance 0

    Baidu Inc Shares Fall After Earnings Miss

    Baidu Inc (ADR) (NASDAQ:BIDU) released its latest quarterly earnings report after closing bell tonight, posting adjusted earnings of RMB11.19 per ADS or $1.81 per share on RMB16.58 billion ($2.673 billion) in revenue, a 38.8% year over year increase. Analysts had been looking for earnings of RMB10.58 or $1.88 per share on revenue of RMB16.57 billion for the second quarter. Key metrics from Baidu’s earnings report Diluted earnings per ADS were RMB10.19 or $1.64 per share. Adjusted EBITDA increased 4.7% year over year to RMB7.7 billion ($759.1 million) for the quarter. “With Baidu’s cornerstone search business delivering soli...
    On July 27, 2015 / By
  • Finance 0

    The Most Important Market Trendline Since 2009 Was Just Broken

    The trend is your friend… until it ends… Charts: Bloomberg...
    On July 27, 2015 / By
  • Finance 0

    Fifth Day Of Selling

    Sellers in the S&P made it five days of downside in a row. On this last day it closed near the day’s lows, but also on its 200-day MA. If there was reason for a bounce, then tomorrow could be the day. Technicals are all net negative.   The Dow took the selling harder. It undercut the July swing low having earlier lost its 200-day MA. Next up is the February swing low.   Small Caps finished at its 200-day MA, after it lost trendline support on Friday. Value players may get a bite of the cherry tomorrow as the index makes it first test of the 200-day MA since February.   The Nasdaq remains caught inside the range. It suffered a fai...
    On July 27, 2015 / By
  • Finance 0

    Inflation Deniers Emboldened By Gold’s Struggles

    The vultures are circling. Precious metals bulls, laid flat by gold and silver prices dropping for the 5th week in a row, are watching deflationists such as Harry Dent and the financial media squawk about the imminent demise of precious metals. The superficial and condescending coverage of the metals markets in the financial press has only intensified over the past two weeks. In an article that typifies recent mainstream coverage, Matt O’Brien with the Washington Post declared “Gold is Doomed.” He tells us just how smart economists such as socialist Paul Krugman are, and just how silly and backwards gold-bugs are for questioning them. W...
    On July 27, 2015 / By
  • Finance 0

    Gold Daily And Silver Weekly Charts – Miner Miner

    There is a chart of the GDX relative to the Price of Gold. This is why some will say that the miners are ‘weak relative to the price of the metal.’ And they are. They can get even cheaper, and the underlying metal can also get ‘cheaper.’ Sentiment is obviously at a negative extreme, and some of the chortling from the opinion vendors is disheartening to those who take that sort of thing seriously. But it is what it is, and we must play the cards as they fall. Let’s see how gold can trade through the advance GDP number this week and the Non-Farm Payrolls report next week. I am becoming more aware of the mining ...
    On July 27, 2015 / By
  • Finance 0

    The Fed Is About To Rattle The Market

    “Everybody has a plan until they get punched in the mouth.” This quote, one of former heavyweight champion Mike Tyson’s most famous, is always relevant when investing. After countless hours of research, diversifying portfolios and strategies, investors feel confident about weathering a market storm — until they are punched in the mouth. Today, we are going to take action, making that proverbial punch a nonfactor… Last week, I explained how I expect stocks to be in for a short-lived rally that you want to ride higher. I still believe that will be the case. But, in the middle of this week, the Federal Reserve ends a two-day meeting th...
    On July 27, 2015 / By
  • Finance 0

    Greece After Its Salvation

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    On July 27, 2015 / By
  • Finance 0

    S&P 500 Snapshot: Day Five Of The Selloff

    The big pre-open news today was the historic -8.48% Monday rout in the Shanghai Composite, an event that no doubt rattled the optimists hoping that the China benchmark index had bottomed out last week. Euro zone indexes also saw some suffering, with DAX and CAC 40 both deep in the red and destined to close with -2.5% losses. The S&P 500 dropped at the open, ignoring a modest improvement in June Durable Goods. A rebound attempt topped out in late morning, and the index spent the day drifting lower to its -0.58% close, its fifth consecutive finish in the red. The yield on the 10-year note closed at 2.23%, down 4 bps from Friday’s clo...
    On July 27, 2015 / By