Jan 21, 2010

Daily Markets - Financial News & Opinions

Daily Markets - Financial News & Opinions

We Might Have Just Witnessed The Turning Point In Gold

Posted: 21 Jan 2010 07:45 PM PST

This week, we are witnessing something that should become fairly “as usual” over the coming months:  Broad based price declines in virtually every major asset except the USD.

Gold is down about 3% for the week so far, silver is down about 6.5% for the week, and the USD is up (according to our analysis there really isn’t much chance of it going anywhere else for the next while).

But here’s the interesting thing - finally, after 5 weeks of watching gold top and begin its bear market … [visit site to read more]


Forex Trading: USD/JPY Reverses Four Day Rally On Renewed Risk Aversion

Posted: 21 Jan 2010 07:15 PM PST

The USD JPY reversed its four day rally as traders sought safety in lower yielding assets following an announcement by President Obama to curb trading at financial institutions. The immediate reaction was to sell higher risk assets after Obama called for a reduction in the size and trading activities of financial institutions. The downside reversal in the USD JPY sets up a test of a major 50% price at 89.30.
The U.S. Dollar traded mixed against most major currencies as profit-taking and … [visit site to read more]

Goldman Sachs’ Easy Money Days Are Over

Posted: 21 Jan 2010 07:01 PM PST

If I had a nickel for the number of people who have asked me how Goldman Sachs (GS) makes money, I would have a lot of nickels.

Goldman Sachs as a company is easily vilified. America always wants a villain when times are tough. Goldman makes the most money on Wall Street so they must be the 'baddest’ guys. Well, generally speaking people are never as good nor as bad as they may seem. Look at Tiger Woods. He fooled America for a good long time. The fact is, Goldman Sachs mastered a … [visit site to read more]

Video: The Day Ahead: Earnings Reports

Posted: 21 Jan 2010 07:00 PM PST

The stories, data, and stocks that may have the greatest impact during the next trading session. … [visit site to read more]

Rydex Market Timers: Update!

Posted: 21 Jan 2010 06:29 PM PST

The Rydex market timers continue to serve as a good short term contrarian gauge to market action.

It is late at night and I will be brief.

Figure 1 is a daily chart of the S&P500 with the ratio of the Rydex leveraged and bullish assets to the leveraged and bearish assets in the lower panel. Prior to today’s drubbing, this ratio was greater than 2 - which is our level of extreme bullishness - for 5 out of the last 6 trading days. After today, the bulls have backed off such that the ratio … [visit site to read more]

How Can You Play The Transportation Sector?

Posted: 21 Jan 2010 06:22 PM PST

Today I’d like to tell you about a sector that is deeply intertwined with economic recovery.

I’m talking about transportation.

We live in a mobile society, even if we are in the internet age. Not only do we move ourselves around, we also depend on quick, efficient transport to sustain our advanced economy.

Ever wonder how your neighborhood grocery store keeps fresh fruit and vegetables year-round? Transportation, that’s how. Food doesn’t just magically move itself from wherever it … [visit site to read more]

Recipe For Disappointment

Posted: 21 Jan 2010 05:37 PM PST

According to Bloomberg, the latest reading of one widely-watched indicator confirmed that the U.S. economy is on the road to recovery.

The index of U.S. leading indicators rose more than anticipated in December, a sign the economy will keep growing through the first half of the year.
Fewer firings, rising stock prices and Federal Reserve efforts to keep interest rates low propelled the leading index, while growth in exports and inventories have spurred production. Sustained demand and faster … [visit site to read more]

Will Obama Get Rid Of Geithner And Appoint Volcker As Next Treasury Secretary?

Posted: 21 Jan 2010 05:21 PM PST

One year into his presidency, Barack Obama is losing support from many corners. The American public is clearly sending Obama specifically and Washington at large a strong message of disapproval. Obama’s liberal base of support within the Democratic Party is growing increasingly disenchanted. Individual supporters such as The New York Times’ Paul Krugman are backing away from Obama.

Obama and team have nobody to blame but themselves. They were elected to bring real change to Washington. … [visit site to read more]

The Top And Bottom 10 Percentage Performing Stocks In The S&P 500

Posted: 21 Jan 2010 05:21 PM PST

On a major day in the equity markets, it can be a good idea - particularly for swing traders - to know what the top ten and bottom ten performing S&P 500 stocks were on the session, which could generate a few trading candidates or ideas.

Let’s take a look at the top 10 and bottom 10 percentage performing stocks in Thursday’s wild market action.

First, the Top Ten:

Due to earnings, eBay (EBAY) and Estee Lauder (EL) were the top two percentage gainers, followed by … [visit site to read more]

Goldman Sachs Sharp Enough To Continue Profiteering Like The Stereotypical Banker

Posted: 21 Jan 2010 05:01 PM PST

13.4Billion! A staggering number when counting just about anything, but especially so when one is counting all of the dollars of profit made by investment banking titan Goldman Sachs (GS) in 2009. Revenue for the year topped out at $45Billion, another massive figure.

$4.79Billion in profits in the latest quarter sees Goldman once again having the eyes of the banking industry squared directly on itself. This time however, more than just the envious glares of rivals await Goldman, as … [visit site to read more]

Never Short A Country With $2.3 Trillion In Forex Reserves

Posted: 21 Jan 2010 04:20 PM PST

The first rule of successful global investing - to paraphrase the words of New York Times columnist Thomas Friedman - is a simple one.

Never short a country with $2.3 trillion in currency reserves.

I’m well aware that bond king Bill Gross has been sounding the alarm about a China bubble, and that Forbes magazine is predicting a major meltdown by the Asian giant. I’ve also heard all about noted short-seller James S. Chanos - who made his name by correctly calling the Enron Corp. demise - … [visit site to read more]

China Tells Banks To Restrict Lending After A Generous January Start

Posted: 21 Jan 2010 04:17 PM PST

Stocks worldwide plunged yesterday (Wednesday), commodities sank, and the dollar pushed higher after Chinese authorities demanded domestic banks slowdown lending amid concerns about asset bubbles growing in the economy.

Overall credit growth in China will be capped at $1.1 trillion (7.5 trillion yuan) for 2010, Liu Mingkang, chairman of the China Banking Regulatory Commission, told Bloomberg News in an interview in Hong Kong. Some banks were asked to limit credit because they failed to meet … [visit site to read more]

Daily ETF Roundup: EWZ Sinks, UNG Jumps

Posted: 21 Jan 2010 03:52 PM PST

Thursday marked a second consecutive day of chaos on Wall Street, as an Obama proposal to curtail risks taken by banks weighed on the financial sector. Commodity producers saw shares plummet as well, as concerns that governments are beginning to pull back support plans impacted expectations for global growth. After the bell, Google reported that its fourth quarter earnings surged more than 33% from the same period a year ago as the company was successful expanding its business into new areas, … [visit site to read more]

How To Find The Right Dividend ETF

Posted: 21 Jan 2010 03:45 PM PST

Value investing is one of the oldest and most popular equity strategies, mastered by legendary investors like Warren Buffett and Benjamin Graham and embraced by countless professional money managers and individual investors. The rise of the ETF industry has presented investors in pursuit of superior dividend yields dozens of options, each offering a unique twist on value investing strategies.
While some investors pursue value strategies regardless of the economic environment, others view … [visit site to read more]
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