Apr 6, 2010

Daily Markets - Financial News And Opinions

Daily Markets - Financial News And Opinions

Forex Trading: Gbp/Jpy Below 100 Hour M/A

Posted: 06 Apr 2010 03:03 AM PDT

As stated earlier, Gbp/Jpy had found some support at its 100 hour M/A and threatened to break below. The pair has indeed broken below this level and has met some support at 142.00-10. I suspect this is a brief stop on its way down to 141.73, where there should be stronger support. If the pair reverses and goes higher the 100 hour M/A should be looked upon as resistance. To the downside its 200 hour M/A lies down at 140.68, though we are still pretty far off this … [visit site to read more]

Currency Manipulation - The US Dollar And The Yuan

Posted: 06 Apr 2010 03:01 AM PDT

With Alice in Wonderland back on the screen, I guess it’s okay to make up the meaning of words. When I started at the Richmond Fed in August 1968, what they are now calling currency manipulation was the standard, accepted international monetary system. It was set up at Bretton Woods at the end of WWII. The U.S. committed to exchange for gold dollars held by foreign central banks and Treasuries (governments) while other countries used their dollar reserves to peg (i.e. manipulate) their … [visit site to read more]

Why Brazil’s Economy Will Continue To Boom

Posted: 06 Apr 2010 02:01 AM PDT

Brazil has been a hot ticket amongst emerging markets and, despite fears of inflation, other forces suggest that it is likely to continue to witness a booming economy.

The South American nation is rich in natural resources which are likely to continue to be in demand as global populations expand.  Additionally, the nation has been selected to host the 2014 World Cup Soccer Championship as well as the 2016 Summer Olympics, which will likely result in increased infrastructure spending and an … [visit site to read more]

Forex Trading: Eurozone Sentix Investor Confidence

Posted: 06 Apr 2010 01:34 AM PDT

Eurozone Sentix Investor Confidence came in at 2.5 , stronger than the -5.9 expected and prior reading of -7.5.
This number is normally not a big market mover. The release may give a boost to the Euro which has been trading at depressed levels.
Currently Eur/Usd trades at 1.3415, Eur/Jpy at 125.90 and Eur/Gbp at … [visit site to read more]

U.S. Job Growth Now In Goldilocks Range - What Now For Stocks & Commodities?

Posted: 06 Apr 2010 01:01 AM PDT

As we wrote on Friday, the US employment report nailed the Goldilocks range - now what? Our biggest concern was the hand-off from public to private spending would be short circuited by lackluster job growth. To be sure, the employment report did not show a robust recovery, but it was good enough to keep the momentum going and the Fed on the gas.

Energy
The obvious and most immediate beneficiary of the economic expansion is the energy market with oil playing the leading role. Over the last … [visit site to read more]

Video: U.S. Delays Report On Chinese Yuan

Posted: 06 Apr 2010 01:00 AM PDT

The U.S. Treasury will postpone a ruling on whether China manipulates its currency. … [visit site to read more]

The Grant (inflation) Vs. Rosenberg (deflation) Debate

Posted: 06 Apr 2010 12:11 AM PDT

There is a great video showing a debate between Jim Grant, who recently "downgraded" his credit rating of US government debt, against David Rosenberg, bond bull. Grant's case was that the overwhelming fiscal pressures on the US government would lead to a credit downgrade, which would be bearish for the US Dollar and bullish for the commodity inflation outlook.

Rosenberg's contention was that we went through a recession that was induced by a credit induced contraction, which is … [visit site to read more]

U.S. Bond Market Alert: This Is What Should Scare The Heck Out Of Us Right Now

Posted: 06 Apr 2010 12:01 AM PDT

I remember a few years back when in fact, I knew nothing about “bonds” and the word confused me. I’ll save you that ignorance and suffering real quickly here; A government bond is a low risk loan and it pays you a steady low interest rate, for example, such as a 10 year U.S. Treasury Bond; for 10 years, you’ll receive a yield, for example of, 3% per year and your money is regarded as being in the safest possible place it could be.

However, now interest rates in the bond market are … [visit site to read more]

Forex Trading: Markets Respond To U.S. Employment Results

Posted: 05 Apr 2010 11:52 PM PDT

Markets Respond to U.S. Employment Results
Following Friday’s U.S. Employment figure, the best in three years, risk taking returned to the marketplace. Additionally, the U.S. economy saw further signs of improvement after yesterday’s ISM Manufacturing PMI and Pending Home Sales reports. While risk taking caused the Euro to trade above the 1.3500 level throughout yesterday, it has since fallen almost 100 pips to its current level of 1.3430.
Economic News
USD - Unexpectedly Higher Pending Home … [visit site to read more]

Biotech ETFs Hit New Highs - Which Is The Best One For You?

Posted: 05 Apr 2010 11:01 PM PDT

Biotech is back - and Biotech ETFs are breaking records, with one up over 30% YTD.  So are many other sectors like Tech, as well as the return of beaten down financials, insurance and real estate, so perhaps that explains the relative lack of coverage of the Biotech resurgence in comparison to some of these other sectors.  The difference is that the latter are simply rebounding from near collapse and still stand at a fraction of their prior share price highs.  Meanwhile, many biotechs … [visit site to read more]

Forex Trading: Gbp/Jpy Finding Support At 100 Hour M/A

Posted: 05 Apr 2010 10:41 PM PDT

Gbp/Jpy seems to be running into support at its 100 hour M/A of 142.96. After trading lower for the last 6 hours. If the pair holds above a retracement to 143.60, which is the 38.2% Fibo, is likely. A break below could send the pair down to 141.70-80 , an area of old hourly lows, as there is not much support below the 100 hour … [visit site to read more]

Forex Trading: AUD/USD Tests Trendline

Posted: 05 Apr 2010 10:15 PM PDT

The AUD/USD pair has found trendline resistance on the daily chart since November 16 and has tested the line six times until now. After the RBA raised their cash rate 25 basis points the pair broke above the trendline which comes in at .9217 and made a new session high of .9228, but has since retreated back below the line. Now trading at the support level, it will be interesting to see if the pair can break and hold above the … [visit site to read more]

U.S. Stock Market Sentiment Overbullish, But Not In Danger Zone

Posted: 05 Apr 2010 09:31 PM PDT

“Any way you look at it, the treacherous stock market has reached its goal - it’s turned the crowd bullish,” said long-timer Richard Russell (Dow Theory Letters). “Nearly everybody I read or talk to is convinced that we’re in a new bull market - a primary bull market which they claim started at the March 2009 low.”

In addition to fundamental and technical analysis, it is particularly important to measure the crowd’s sentiment regarding extreme bearishness or bullishness. A convenient … [visit site to read more]

Bond Bear Has Resumed

Posted: 05 Apr 2010 09:15 PM PDT

I argued in two recent posts, US bonds - the end of a 30-year bull market and Government bonds - what’s up?, that government bond yields have embarked on a primary upward path (of course as long as the economy doesn’t double dip).

The paragraphs below from BCA Research concur with my viewpoint and are published without further comment.
“Cyclical 'fair value’ for government bond yields is conceptually equivalent to long-run nominal GDP and is not much higher than current levels. … [visit site to read more]

Daily Forex Commentary April 5, 2010: Better Than Expected Economic Data Fails To Support U.S. Dollar

Posted: 05 Apr 2010 08:59 PM PDT

The U.S. Dollar opened down and remained lower against most major Forex markets as traders seemed to reassess Friday’s employment report while brushing aside Monday’s jump in ISM Non-Manufacturing and the unexpected surge in pending home sales. Instead of supporting the Dollar because of its traditional relationship with the economy, investors instead took interest in stocks and Dollar-denominated commodities.

Some traders blamed the Treasury’s decision to postpone a ruling on whether China … [visit site to read more]

Stock Picks For Tuesday 6 April: Canadian Solar, Level 3 Communications, Banner, THQ

Posted: 05 Apr 2010 08:14 PM PDT

( click to enlarge )

Canadian Solar (NASDAQ:CSIQ) is showing signs of a good buy as it tries to mold a reverse head and shoulders formation and eventually breakout. Once the price surges above the neckline ( horizontal line), a minimum target price of 30.65 would easily be achieved.

( click to enlarge )

Level 3 Communications (NASDAQ:LVLT) looks like it is gonna squeeze some shorts to me. I have an ascending triangle forming on the one year chart and it could attempt to breakout soon. … [visit site to read more]

iPad To Bolster Apple

Posted: 05 Apr 2010 08:11 PM PDT

This past weekend, Apple’s (NASDAQ:AAPL) much hyped iPad was released to consumers and it appears to be a hit which will likely bolster the company’s stock price.

The iPad is an addition to Apple’s already well-established line of innovative devices, like the iPhone and the iPod, which were revolutionary to the wireless phone and digital music industries, respectively.  It is expected that the iPad will have the same effect on the tablet PC world as its sister products have had on their … [visit site to read more]

Regent Communications Case Summary

Posted: 05 Apr 2010 08:01 PM PDT

As noted in my 2010 Q1 portfolio update, I purchased common shares of Regent Communications Inc (RGCIQ).

Regent Communications Inc is currently under Chapter 11 bankruptcy and is working to reorganize the company under a prepackaged plan.

RGCIQ is an interesting situation because under the proposed plan, common shareholders will be “gifted” 12.8c for every common share they hold.

The market offered multiple days of mispriced action when RGCIQ was being sold for 10c which would have … [visit site to read more]

Same Data, Different Viewpoint

Posted: 05 Apr 2010 07:48 PM PDT

In “Summers, Greenspan Say Economy, Job Creation Gaining Strength,” Bloomberg details the views of one former and one current policymaker who claim the economic recovery has become self-sustaining.

White House economic adviser Lawrence Summers said U.S. companies will ratchet up the pace of hiring in coming months as the economy recovers from the worst recession since the 1930s.
"Now the process of job creation has started, we expect it will accelerate," Summers, director of President … [visit site to read more]

Forex Trading: EUR/USD Continuing Lower In Asia

Posted: 05 Apr 2010 07:26 PM PDT

The EUR/USD has been moving lower for most of the new trading day as speculation of continued difficulties raising funds for Greece and a negative outlook for the Euro-Zone on growth and inflation from PIMCO has the USD on the move against the Euro. On the daily chart we've been examining the lack of technical support for the pair is evident, at least until the March lows are reached.

From an hourly perspective we have seen the pair break below the 200hr moving average and find some … [visit site to read more]

The Reflation Bill Is Outstanding And Growing

Posted: 05 Apr 2010 07:01 PM PDT

If we are to believe the markets are predicting a rebound in the economy (I do not blindly accept that to be the case) then it is high time we address the next enormous question facing our country. That is? The bill that has been accruing for the ’so-called’ saving of our economy.

Whether the economy has been saved or not is a relative question. Please be careful as to how use that phrase in light of the fact that there are 6.5 million people out of work now for at least 27 weeks (long … [visit site to read more]

Video: The Day Ahead: FOMC Minutes

Posted: 05 Apr 2010 07:00 PM PDT

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

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)