Jan 25, 2010

Daily Markets - Financial News & Opinions

Daily Markets - Financial News & Opinions

Forex Trading: Eur/Usd Jumps Above 100 Hour M/A

Posted: 25 Jan 2010 03:07 AM PST

In the last hour of trading Eur/Usd has jumped above its 100 hour M/A of 1.4165. The 61.8% fibo lies at 1.4187. This level may act as temporary resistance. A break above there should bring the pair up to 1.4225-30 level which is an area of recent hourly highs. If the pair pulls back below its 100 hour M/A, 1.4125-30 should be a good level of support. The former scenario appears more … [visit site to read more]


Is The Cadbury Deal Sweet For Food And Beverage ETF?

Posted: 25 Jan 2010 03:01 AM PST

The world’s second-largest confectioner has approved a revised takeover bid from Kraft Foods, in a $19.5 billion deal that may seem bittersweet. What does the related food and beverage exchange traded fund (ETF) stand to gain from this?

After months of less-than-friendly negotiations, Cadbury (CBY) has accepted a bid from food giant Kraft (KFT). Cadbury Chairman Roger Carr said the $19.5 billion deal amounted to “good value for Cadbury shareholders.”

Originally, the $16.3 billion … [visit site to read more]

The Week Ahead For Stocks And ETFs: Fasten Your Seat Belt!

Posted: 25 Jan 2010 02:01 AM PST

Professional investment managers never get far from the market.  When I was recovering from surgery a few years ago, I asked the nurse for an extra pillow.  Since I was supposed to be resting, she was suspicious.  “Why?”  My explanation — that I couldn’t see the tape — fell on deaf ears.  In fact, she turned off CNBC.

Nearly everyone uses the weekend for some extra reading and planning.  Trading is easier when you have thought about possibilities in advance.  In this new … [visit site to read more]

Economic, News And US Earnings Reports For The Week Of Jan 25 - 29 2010

Posted: 25 Jan 2010 01:47 AM PST

The key item on the economic calendar is the Fed’s rate decision this Wednesday. It is expected that the Federal Funds Rate will stay at 0.25%. Unabated unemployment rate and the lack of inflation prevents the Federal Reserve from raising rates at this point. We are also going to get a picture on manufacturing via Chicago PMI, durable orders, consumer confidence, GDP and existing home sales. You can view complete timeline of this week’s economic reports by visiting any of the links listed … [visit site to read more]

Last Week’s Stocks Sell-Off Leaves U.S. Investors In Unfamiliar Territory

Posted: 25 Jan 2010 01:32 AM PST

Friday’s sharp sell-off in U.S. stocks capped a week of heavy losses that has the market in the red for 2010. And that has investors wondering where U.S. stock prices are headed next.

On Friday, accelerating concerns about U.S. corporate earnings combined with newly emergent worries about China’s health hit stock prices hard. A 6% drop in the shares of Aloca Inc. (AA) helped send the Dow Jones Industrial Average into a 216.90-point nosedive, a 2.1% decline that had it end the week at … [visit site to read more]

Challenges Metals & Mining ETFs Could Be Facing In The Coming Months

Posted: 25 Jan 2010 01:01 AM PST

Countries all over the world have long relied on China’s insatiable appetite for raw materials and other commodities. But China is tightening its lending, which could have an adverse effect on metals and mining exchange traded funds (ETFs).

Among the potential challenges metals and mining ETFs could be facing in the coming months include:

China. Investors are primarily concerned about any slowdown in the Chinese economy, which could have a contagion effect in the metals market. China’s … [visit site to read more]

Video: Bernanke’s Confirmation In Question

Posted: 25 Jan 2010 01:00 AM PST

Ben Bernanke’s term as Fed Chairman is scheduled to end on January 31st. The Senate is required to come up with 60 votes in order to confirm Bernanke. … [visit site to read more]

A Counter-trend Rally Led By Financials?

Posted: 25 Jan 2010 12:41 AM PST

The massive selloff seen last week broke a number of key support levels and it now appears that the bears are now in control of the stock market. In the short run, the market is now short-term oversold and poised for a rally.

The spark for a rally may come from a re-assessment of the Obama proposals to limit banking activity. Simon Johnson’s post Is the “Volcker rule” more than a marketing slogan? suggests that the Obama proposals may be more sizzle than steak. Go and read it in full.

Now … [visit site to read more]

More On The California Real Estate Recovery

Posted: 25 Jan 2010 12:01 AM PST

From the California Association of Realtors report for December:

· Existing, single-family home sales increased 4% in the month of December to a seasonally adjusted rate of 558,320 units on an annualized basis, from 536,846 in November. Statewide home resale activity increased 1.7% from the revised 549,190 sales pace recorded in December 2008.
· The statewide median price of an existing single-family home increased 0.8% in December to $306,820, compared with November 2009.
· … [visit site to read more]

Why The US Dollar Rally Has Legs

Posted: 24 Jan 2010 11:01 PM PST

In December I wrote a Money and Markets column making the case for a bottom in the dollar. And since then the evidence supporting that thesis has grown. I also said there are plenty of ugly currencies out there that will likely take scrutiny away from the dollar. In fact, in recent weeks I outlined the blemishes burdening three key major liquid currencies. And those blemishes are now being exposed …

Just eight weeks ago, the pontificators were targeting a break of the all-time highs for … [visit site to read more]

UK Inflation Hedges Up And Unemployment Rate Improves

Posted: 24 Jan 2010 10:45 PM PST

Inflation in the UK climbed by 2.9% y/y in December, scaling 1% more than in November. This sharp increase was due to 1) the base effect in energy prices; 2) the reversion of last year’s temporary VAT reduction; 3) the decline in Sterling. The reversion of last year’s VAT reduction and the Sterling’s depreciation are likely to push up prices again in January. However, the effect of the former is highly uncertain, since it depends on how retailers will respond. With consumer spending still … [visit site to read more]

Are Gold, Silver And The Dow Index Dead?

Posted: 24 Jan 2010 09:45 PM PST

It was a heart pounding week on Wall Street as traders and investors locked in profits during 2010’s first round of earnings season. While it is normal to see selling of shares after good news hits the market, last weeks melt down was over exaggerated and for good reasons.

In short, we expected good earnings and that is why the markets have been crawling higher the past couple months (buy on rumor, sell on news). But what made last weeks sell off so strong was the fact the market was … [visit site to read more]
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