Mar 22, 2010

Daily Markets - Financial News And Opinions

Daily Markets - Financial News And Opinions

America’s Weak Dollar Policy - The Biggest Currency Manipulation In Human History

Posted: 22 Mar 2010 03:01 AM PDT

The US Dollar depreciated by 37% between 2002 and 2008 (data here), see graph above.

Tough talk from abroad, an editorial in the London Telegraph:
Obama has called on China to adopt a more “market-oriented exchange rate.” The US Treasury Department, meanwhile, has set a mid-April deadline to decide whether China truly is a “currency manipulator,” warning that America could impose new levies on Chinese products if that’s judged to be the case.

The president is playing with fire. … [visit site to read more]


Forex Trading: Usd/Chf Hovering Above 100 Hour M/A

Posted: 22 Mar 2010 02:15 AM PDT

Usd/Chf is currently jsut above its 100 hour M/A of 1.0573. the pair has traded down from its 200 hour M/A of 1.0618 within the last couple of hours of trading. This area should be a level of suport for Usd/Chf with the 61.8% fibo adding some support at 1.0581. If it holds look for a move back above 1.0600. A further decline and break of 1.0573 should bring the pair down to 1.0540-50 level. I suspect the support should hold in the short … [visit site to read more]

Three Commodity ETFs In “Anti-Contango”

Posted: 22 Mar 2010 02:00 AM PDT

Exchange-traded commodity products have been embraced by investors eager to add an asset class to their portfolio that has historically exhibited a low correlation to stocks and bonds. Commodity ETPs saw more than $30 billion in cash inflows last year as both funds targeting diversified baskets of resources and commodity-specific funds surged in popularity.
As the use of exchange-traded commodity products has become more common, investors have become more educated on the nuances of various … [visit site to read more]

China And US: There Really Is NO Trade Imbalance

Posted: 22 Mar 2010 01:01 AM PDT

Click to enlarge.

Don Boudreaux picks a nit about “trade imbalances” with Jeremy Warner, who writes an otherwise excellent article in the London Telegraph about Paul Krugman’s misguided suggestion of a 25% surcharge tax on China’s imports American consumers and U.S. companies who buy goods from China for their low prices and great value:

“You write as if the alleged trade imbalances between the U.S. and China are real. They are not. The Chinese sell Americans goods; we pay … [visit site to read more]

Video: Unemployment Climbs In U.S. Cities

Posted: 22 Mar 2010 01:00 AM PDT

Unemployment in U.S. metropolitan areas edged higher, with 35 cities posting jobless rates above 15%. … [visit site to read more]

Another Step Down The Road To Argentina

Posted: 22 Mar 2010 12:46 AM PDT

I have written before about how U.S. may be making the same mistakes as Argentina did a century ago. Now there is one more worrying data point that America is going down the Argentina road.

The New York Times is reporting that American firms are offshoring high tech research jobs to China. As an example, Applied Materials built its biggest lab in China, and Chief Technology Officer Mark R. Pinto plans to move there. Another disturbing sign of the loss of competitiveness: Some US companies are … [visit site to read more]

Nuclear Energy ETFs Looking Promising

Posted: 21 Mar 2010 11:01 PM PDT

As economies around the world grow, standards of living in developing nations increase and clean energy remains on the forefront of the Obama administration, nuclear energy and its exchange traded funds (ETFs) are likely to reap the benefits.

Nuclear energy is a viable source of electricity and at its current utilization generates nearly 15% of all global electricity.  As wealth in developing nations continues to rise at astonishing rates, the demand for electricity will likely … [visit site to read more]

Three ETFs To Watch This Week: EFN, ITB, IHF

Posted: 21 Mar 2010 11:00 PM PDT

After a strong start to last week and a relatively uneventful Fed meeting, markets finished on a slide as investors began to worry that a recent rally was a bit overdone. As central bank meetings around the developing and emerging world continue, there is no shortage of data releases and earnings reports to create another active week ahead. Below, we profile three ETFs that could see above-average volumes and potentially major price swings in coming days:
Dow Jones Emerging Markets Financials … [visit site to read more]

Hot Stock Picks For Monday: RF Micro Devices, Alcoa

Posted: 21 Mar 2010 10:01 PM PDT

RF Micro Devices (RFMD)

RF Micro device has rebounded from a double bottom formation. Stock is now at $5.2 which is the center of the “W” formation.  Pullback volumes are low which indicates strength in the move. I expect the stock to test $5.7 soon and we shall monitor any further move of the stock to breakout on the upside.

Alcoa Inc. (NYSE:AA)

Alcoa has finally broken through the $14.02 price with a gap up on high volume. The two subsequent contraction days have much … [visit site to read more]

Forex Trading: Gbp/Usd Threatens Move Below Daily Trendline

Posted: 21 Mar 2010 09:31 PM PDT

Within the last hour Gbp/Usd has traded below a trendline connecting three daily lows dating back to March 1st. Though it is below the trendline for today's trading (1.4985) a true confirmation of Gbp bearishness would occur with a close below this level. In any event keep a close eye on this area as it may determine the direction for the pair for future days.

A true break below could send Gbp/Usd down to 1.4500-20 level which signifies lows dating back to April … [visit site to read more]

Picture Of The Day: Keep An Eye On Small Cap Stocks

Posted: 21 Mar 2010 09:01 PM PDT

As one would expect during a bull market, small caps have been a leading performer since the low of March 9 last year, with the Russell 2000 Index gaining 96.7% compared with the S&P 500 Index rising 70.9%.
Considering the last few days, however, it would seem if small caps have been tiring, resulting in the Russell 2000 Index being the only major US stock market index registering a loss for the past week as shown below.

Source: StockCharts.com
A few days’ underperformance is … [visit site to read more]

Forex Trading: EUR/USD Trading Heavy

Posted: 21 Mar 2010 07:30 PM PDT

On a Japanese holiday the market has been very quiet, but the thin market has not prevented the EUR/USD from moving lower. The pair is approaching last weeks lows and the pairs inability to close above the 21 day moving average last Friday continues to draw negative sentiment toward the pair. We will continue to look at the former trendline resistance and the 21 day moving average as short-term resistance and a break of the late February lows (support) changing the game plan early in the … [visit site to read more]

The Euro On Track To Move Lower

Posted: 21 Mar 2010 07:01 PM PDT

There are two major issues facing global currencies in the months ahead. And both have escalated in the past week.

Issue #1: The Greek Drama

Act I:

Sovereign debt fears

In the first act of the euro-zone sovereign debt shock, shaky Greek government finances exposed the structural flaws of the euro. And as the lens of scrutiny widened, the potential domino effect of weak euro-zone countries combined to represent a viable threat to the future existence of the euro.

I called … [visit site to read more]

Remember The Old Adage

Posted: 21 Mar 2010 06:49 PM PDT

Desperate for cash, many Americans are looking to make some money through risky gambles and “get rich quick” schemes. Meanwhile, there are plenty of seemingly genuine people out there who apparently believe it’s a great time to take advantage of their fellow men (or women). As the following reports make clear, it’s worth remembering the old adage: if it sounds to good to be true, it probably is.

“‘Gift Tables’ Lure Women: Inside the Social Event Some Call an Illegal Pyramid Scheme Bound to … [visit site to read more]
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