Jan 12, 2010

Daily Markets - Financial News & Opinions

Daily Markets - Financial News & Opinions

US Regulators Seek To Shed Light On Hedge Fund Impact On Energy Trading

Posted: 12 Jan 2010 03:01 AM PST

Do hedge funds have an impact on energy trading?

While the answer might seem intuitive, the debate as to whether they actually do has come to resemble the medieval theological dispute about how many angels can dance on the head of the pin.

Because, like angels, many trades in energy futures are invisible, and it is often not possible to pinpoint where they take place.

And yet, for most of us, including lawmakers on Capitol Hill, it seems obvious that when hedge funds buy and … [visit site to read more]


Forex Trading Review For 12 January

Posted: 12 Jan 2010 02:30 AM PST

USD Dollar (USD)

The Dollar remained weak against most currencies, as a risk appetite has been triggered and signs of a global economic recovery boosted demand for higher-yielding and commodity linked currencies. Wall Street finished mixed as Dow Jones rose by 0.43% and NASDAQ depreciated by -0.21%. Crude oil rose to new high during the session but then dropped and closed with -0.62% change at 82$ a barrel. Gold (XAU) soared and closed at 1150.7$ an ounce. Today, The Trade Balance index is … [visit site to read more]

Stock News Briefs: Alcoa Misses Estimates; Google Slammed With Complaints On Nexus One Phone; IRS Set To Audit Harvard’s Investments

Posted: 12 Jan 2010 02:16 AM PST

Alcoa Narrows Loss, Misses Estimates; Financial Services Fee Part of Obama’s Budget Plan; China’s Exports Grow For 1st Time in 13 Months; Google Slammed With Complaints on Nexus One Phone; Femsa Sells Beer Franchise To Heineken; IRS Set to Audit Harvard’s Investments

Alcoa Inc. (AA) yesterday (Monday) reported a fourth-quarter net loss of $277 million, or 28 cents a share. In the year-earlier quarter, Alcoa lost $1.2 billion, or $1.49 a share, when aluminum prices and demand collapsed. … [visit site to read more]

Silver Futures Reversal: Can The 2008 Highs Be Taken Out?

Posted: 12 Jan 2010 02:01 AM PST

Silver bulls have been rewarded for their patience during the recent sell off with a very strong bullish weekly reversal bar, one that also forms one end of a very nice up trend line (see dotted blue line on the chart). For the moment, the momentum is now back in the hands of the bulls, and there seem to be numerous technical clues that suggest that another attempt to take out the March 2008 near $21.19 may be launched soon.

A look at the weekly chart for cash Silver may help us discern how … [visit site to read more]

Asset Inflation, Here We Come!

Posted: 12 Jan 2010 01:55 AM PST

I see that central bankers really haven't figured out this "bubble" thing. The deputy governor of the Bank of Canada recently stated that the Bank of Canada won’t raise interest rates to cool housing:

"Some observers – those who see a housing bubble forming – have said that since low interest rates have stimulated housing market activity, the Bank should now raise interest rates to dampen that activity," deputy governor Timothy Lane wrote in a speech delivered by an adviser on … [visit site to read more]

How Contango Impacts ETFs

Posted: 12 Jan 2010 01:45 AM PST

After a chaotic 2008, most financial markets regained some degree of normalcy in 2009, as unprecedented volatilities subsided and a gradual calming of anxieties led to the return of rational trading. But for exchange-traded commodity products 2009 was a rather tumultuous period, as expectations for increasingly stringent regulations swirled and correlations began to break down.

The ETF industry has grown by leaps and bounds in recent years, but the learning curve is still a steep one, and … [visit site to read more]

Two Reasons Metals ETFs Are On A Joyride

Posted: 12 Jan 2010 01:01 AM PST

The U.S. dollar is continuing on the path toward weakness today and the latest numbers from China show that its appetite for raw materials has only grown. Both factors are contributing to gains in commodity-focused exchange traded funds (ETFs). Is it sustainable?

A weaker U.S. dollar and overall commodity strength has given gold another rally, sending it up to $1,159.50 an ounce on the Comex division of the New York Mercantile Exchange. Allen Sykora for The Wall Street Journal notes that a … [visit site to read more]

Video: D.C. Office Rents Poised To Outpace NYC

Posted: 12 Jan 2010 01:00 AM PST

Washington D.C. is positioned to surpass New York City, as the most expensive commercial real estate market in the U.S. Real estate research firm, Reis, Inc. expects D.C. to outpace NYC by the end of 2010. … [visit site to read more]

Mandatory Retirement Bonds? More Reason To Be Concerned About Your IRA And 401k

Posted: 12 Jan 2010 12:03 AM PST

If you're saving for retirement under a tax "advantaged" plan like an IRA or 401k, please be skeptical. The very same US government that's offering you "advantages" is also your tax collector. Uncle Sam probably wants to help you save for a happy and healthy retirement, but maybe not. In a pinch — when his own bill collectors come knocking and he finds no money in his pocket — don't expect him to forget that you still owe him a little something.
The nation's balance … [visit site to read more]

The Most Popular Alternative Energy No One Is Talking About

Posted: 12 Jan 2010 12:01 AM PST

Solar power doesn’t work at night. Wind power needs wind. Hydro runs into droughts. Geothermal works great, but it’s scarce.

Alternative energies are a pain in the neck. They’re expensive and inconvenient. “Biomass” is America’s newest alternative power source. It doesn’t have any of these problems…

With a market cap of $26 billion, Southern Company (SO) is one of the largest electric utilities in the world. In November, Southern Company broke ground on a new biomass power plant … [visit site to read more]

Beyond EFA: Five Alternative EAFE ETFs

Posted: 12 Jan 2010 12:00 AM PST

Following a meltdown in the U.S. financial markets that sparked a global recession, many investors have begun to question traditional asset allocation strategies that call for a significant weighting to American stocks. While emerging markets have seen huge cash inflows as a result of this trend, developed markets beyond North America have also benefited. For investors looking to spread their developed markets exposure beyond the U.S., EAFE index funds and ETFs are one of the most popular … [visit site to read more]

Reasons To Consider A Diversified Portfolio Of Emerging Market ETFs

Posted: 11 Jan 2010 11:01 PM PST

After poring over news and charts this weekend, I must say that, even though this is precisely what we’ve been forecasting for many months, I’m still in a state of amazement.

Never before in my lifetime have I seen a greater gap between the U.S. economy, bogged down in massive, chronic unemployment … and major Asian nations, gaining equally massive momentum!

U.S. Jobs Mess

The unemployment report on Friday was an unmitigated disaster. Based on the government’s payroll survey, the … [visit site to read more]

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