Apr 7, 2010

Daily Markets - Financial News And Opinions

Daily Markets - Financial News And Opinions

Update On The Rounded Arc On The NASDAQ Index

Posted: 07 Apr 2010 04:01 AM PDT

A reader asked me to update the March 30 post “A Rounded Arc Forming on the NASDAQ Index” and I thought that was a good idea, given that the arc is continuing to form on the intraday charts - spanning two months now.

Let’s take a look at the updated “NASDAQ Arc” charts:

The 60 min chart provides the best look at the entirety of the arc, starting with the February 2010 lows and continuing until today.

Just think of arcs as slanted or rounded trendlines - that’s really all they … [visit site to read more]

European Central Bank - Seize The Opportunity!

Posted: 07 Apr 2010 03:01 AM PDT

For better or worse, any support to Greece is a political matter. However, in the absence of a political process, much of the focus has been on the European Central Bank (ECB): one of the few European institutions that has provided consistent and robust leadership throughout the financial crisis. ECB President Trichet has rightfully argued that it is not the ECB’s role to provide financial assistance to Greece.

When a central bank veers into fiscal policy, it invites political backlash that … [visit site to read more]

Forex Trading: Eurozone Final GDP & PPI

Posted: 07 Apr 2010 02:08 AM PDT

Eurozone Final GDP q/q came in at 0.0%, weaker than the 0.1% expected.
PPI m/m came in at 0.1%, weaker than the 0.2% expected.
Not much market reaction to release as generally the final reading does not pack the  punch that the initial or flash reading, which comes weeks earlier, does.
Eur/Usd trades at … [visit site to read more]

Crude Oil Prices Likely To Head Even Higher

Posted: 07 Apr 2010 02:02 AM PDT

Oil prices are at their highest level in more than a year and a half and are likely to head even higher as the global economy bounces back from recession.

Benchmark crude for May delivery rose $1.75 to settle at $86.62 a barrel on the New York Mercantile Exchange (NYMEX) Monday. That followed gains of $1.11 a barrel on Thursday and $1.39 a barrel last Wednesday.

In all, prices are up over 5% since last week and over 70% since April 2009. And right now oil is trading at its highest … [visit site to read more]

Forex Trading: Eurozone Final Services PMI

Posted: 07 Apr 2010 01:02 AM PDT

Eurozone Final Services PMI came in at 55.9, stronger than the 55.5 expected.
Eur/Usd might get a little boost off of  release. The pair is up 8 points to 1.3388 thus … [visit site to read more]

Video: Daimler, Renault And Nissan Plan Alliance

Posted: 07 Apr 2010 01:00 AM PDT

Germany’s Daimler AG, France’s Renault SA and Japan’s Nissan Motor Co. will announce a partnership that develops energy-efficient electric cars. … [visit site to read more]

Signs Of The Apocalypse?

Posted: 07 Apr 2010 12:22 AM PDT

The economy appears to be rebounding from a very nasty recession which was induced by a credit crisis. Unfortunately, a lot of people don't seem to have learned their lesson and they are behaving like 16 year olds again. Otherwise, what else should we make of these developments?

The Wall Street Journal reports that covenant-lite loans are making a comeback.
Junk bonds resurgent: Companies sold $54.3 billion in U.S. high-yield debt during the first quarter of the year, according to Dealogic, … [visit site to read more]

Forex Trading: EUR Falls Versus USD Over Renewed Greece Concerns

Posted: 07 Apr 2010 12:13 AM PDT

EUR Falls versus USD over Renewed Greece Concerns
Disagreement over Greece’s rescue package reignited concerns over the pace of recovery in the Euro-Zone, dampening demand for the common currency. The U.S Dollar reached parity with the Canadian Dollar yesterday, briefly trading below the CAD for the first time since July 2008.
Economic News
USD - USD Trades Higher versus Most Counterparts
The Dollar strengthened Tuesday as new doubts surfaced about Greece’s financial situation and economic … [visit site to read more]

Greek ‘Drama’ Only In First Act

Posted: 07 Apr 2010 12:01 AM PDT

Prior reports that Greece’s financial problems are now in the rear view mirror are exceedingly premature.

As we navigate 'across the pond,’ we learn that the Financial Times’ Wolfgang Munchau believes Greece Is Going to Default but Not This Year:
Greece will not only have to make an extremely large public sector deficit reduction effort but it will also have to do this under a condition of disinflation, and possibly deflation, which would push its nominal growth rate to negative … [visit site to read more]

Consumer Staples ETF (XLP) Approaching All Time High

Posted: 06 Apr 2010 10:01 PM PDT

File this under “In case you missed it,” the XLP Consumer Staples ETF (XLP) is knocking on resistance that - if broken - would result in an all-time price high (not just new bear market recovery high).

Surprised?  So was I (especially if you don’t watch this fund actively).

Let’s take a look at the weekly chart spanning the entirety of the recent Bear Market and recovery to (almost) new lifetime highs.

In the Sector Rotation model, consumer staples - things we have to buy/use … [visit site to read more]

Forex Trading: Eur/Jpy Above 200 Hour M/A

Posted: 06 Apr 2010 09:49 PM PDT

Eur/Jpy currently trades above its 200 hour M/A of 125.70. It is now approaching the 38.2% fibo of the move down from 127.79 to 125.20. This level is the first level of resistance for the pair. A break above could catapult Eur/Jpy to 126.80, where the 61.8% fibo and 100 hour M/A lie. If this resistance  holds then a move back down to 125.70 is likely, with possibly further momentum down to … [visit site to read more]

Daily Forex Commentary April 6, 2010: Greek Financial Woes, Fed Minutes Boost U.S. Dollar

Posted: 06 Apr 2010 08:31 PM PDT

The U.S. Dollar finished higher against most major currencies on Tuesday, boosted by renewed trouble in Greece and comments from the minutes of the Fed’s last meeting.

Greece’s problems began to resurface overnight as the troubled country was reportedly asking for more favorable interest rates on loans from the European Union and to amend certain parts of the bailout proposal from the International Monetary Fund.

The spread between Greek Bonds and German Bunds has been widening, … [visit site to read more]

Stock Picks For Wednesday 7 April: Solarfun Power, DryShips, Genta

Posted: 06 Apr 2010 07:48 PM PDT

( click to enlarge )

Solarfun Power (NASDAQ:SOLF) looks to be setting up for an upside move, as the stock has held up well the past few days. The stock is in the middle of a short-term range and I’m watching for this upside move on Thursday. Resistance is $8.07, which was the high of this past bounce in the stock. From the technical daily chart the stock shows very strong bullish sign. First of all the stock is trading above both 50 day and 200 day moving average. Then the MACD indicator … [visit site to read more]

No Argument From Me

Posted: 06 Apr 2010 07:40 PM PDT

You’ll get no argument from me regarding Kid Dynamite’s latest post, “LOL Fed”:

I mean what else can you say about this headline:

“Fed keeps eyes out for speculative bubbles.”

It’s like I’m living in a dream world where every day is April Fools and every story is from The Onion… only neither of those conditions apply.

I am starting to wonder if I’m surfing some hacked version of the internet where someone is trying to f*@k with my head.

Dear Federal Reserve:  the entire market is … [visit site to read more]

Not Your Father’s America

Posted: 06 Apr 2010 07:09 PM PDT

Although every generation has probably asked the same question, I still have to wonder: what happened to our country? How did we allow greed, corruption, and incompetence to destroy the American Dream for so many people? When did we reach the point where being an Average Joe (or Jane) is increasingly seen as a dead end rather than a good thing? I have to admit, the following excerpts, from My Budget 360 and Wall St. Cheat Sheet, made me feel pretty depressed:

“What Does it Mean to be Middle … [visit site to read more]

Singapore Stock Market: Our Focus For Today Is On Offshore And China Sector

Posted: 06 Apr 2010 07:07 PM PDT

Morning Highlights
Our Focus For Today Is On Offshore and China Sector
Singapore market opens slightly higher at 2979.21. The other Asian stock markets were mixed, broadly in line with Wall Street’s tepid finish…

 Indofood Agri broke high of 2.37

 UOL broke high of 4.02

 Sound Global broke high of 1.02

 Midas broke high of 1.11 

Corporate Announcements

Noble announced yesterday morning a $12.60 per share all cash offer for Gloucester for the remaining … [visit site to read more]

Video: The Day Ahead: Euro-Zone GDP

Posted: 06 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]

Forex Trading: EUR/USD To Potentially Continue Strong Downtrend

Posted: 06 Apr 2010 06:40 PM PDT

Price action on EUR/USD, a daily chart of which is shown, has once again tentatively broken down below a countertrend bullish retracement and the key 1.3400 support/resistance level in its bid potentially to continue the strong downtrend that has been in place since the early December high.

Since that high, this currency pair has been characterized by short-term bullish retracements and consolidations followed by substantial breakdowns in the direction of the overall downtrend. The most … [visit site to read more]
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