Mar 23, 2010

Daily Markets - Financial News And Opinions

Daily Markets - Financial News And Opinions

Inflation In The U.S.: Why I Don’t Expect It

Posted: 23 Mar 2010 02:01 AM PDT

It’s taken for granted in some circles that a sharp acceleration of inflation is the inevitable result of the monetary and fiscal policies of the past year or so. I disagree for the following reasons.

*While budget deficits have grown dramatically, in absolute terms and as a percentage of GDP, for the most part they have not been financed with newly created money. Since late 2008 and early 2009, monetary expansion has been moderate, especially given the slack created by the recession. … [visit site to read more]


Forex Trading: Usd/Chf Finds Resistance, For Now

Posted: 23 Mar 2010 01:23 AM PDT

As cited in an earlier post, Usd/Chf found resistance at the 61.8% fibo of 1.0623. Though it did spike up to 1.0638 briefly, the pair has since retreated back to its 200 hour M/A and has now settled down to trade either side of the 50% fibo of 1.0611. If the pair holds above the move upward should be more decisive, with Usd/Chf  testing the 1.0638 … [visit site to read more]

Gold And Silver Now In A Key Technical Range

Posted: 23 Mar 2010 01:01 AM PDT

Gold and silver are both in a fairly tight consolidated trading range over the past several weeks, keeping both metals bound within a compressed psychological battle between mid-term bulls and mid-term bears.

This range is extremely important, and is probably the largest hurdle that needs to be overcome before a sizeable move to either the upside or the downside.  Our opinion is still that the downside is more probably than the upside, and if the range is broken down it should usher in a … [visit site to read more]

Video: PepsiCo Develops “Designer Salt”

Posted: 23 Mar 2010 01:00 AM PDT

PepsiCo plans to cut sodium, saturated fat and sugar in its products. … [visit site to read more]

Cardium Oil Stock Valuations: Have We Seen The Peak?

Posted: 23 Mar 2010 12:01 AM PDT

Aftermarket on Wednesday March 17, one of the Calgary oil and gas boutique securities firms, Peters & Co., issued an updated Cardium report - which in a nutshell said

They estimated decline rates on wells were higher than expected (meaning the production levels of the wells dropped faster than expected)…
…which means operating costs are higher as costs get amortized over a smaller production base…
…and once you factor in the very high land costs recently paid by some … [visit site to read more]

Earnings Season Highlights Emerging Market Financial ETFs

Posted: 23 Mar 2010 12:00 AM PDT

For much of 2010, investors around the world have scoured any release of data or news from the Chinese government in an attempts to glean information on Beijing's plans for implementing monetary tightening. China is expected to account for a significant portion of global GDP growth in 2010, and has become an important trade partner for several developed and emerging markets. Investors have worried that a slowdown in Chinese consumption could ripple through international equity markets.
The … [visit site to read more]

Forex Trading: Usd/Chf Above 200 Hour M/A, Trying To Break Out Of Tight Range

Posted: 22 Mar 2010 11:15 PM PDT

Usd/Chf has been stuck in a tight range in during a very quiet Asian session. The pair is just starting to show signs of life with a methodical move above its 200 hour M/A of 1.0603. It is also trading  just at the 50% Fibo retracement of the move down from 1.0661 to 1.0561.
If the pair could hold above 1.0603 (200 hour M/A) look for a move to 1.0625-30 where we should find some resistance. A further push should bring Usd/Chf to 1.0655-60 signifying a full retracement.
A failed break … [visit site to read more]

Outlook For Financial Stocks And ETFs Seems Gloomy

Posted: 22 Mar 2010 11:01 PM PDT

Last year the financial sector took a bath as poor lending decisions forced many to shut their doors, leaving only the fittest to survive.  Many thought the worst was over, but there are plenty of signs to indicate that the sector still remains fragile and faces an uphill battle.

Favorable trends in the sector include a report released by Goldman Sachs (NYSE:GS) indicating that the current credit-loss cycle in the U.S. financial sector is two-thirds of the way done.  From an aggregate … [visit site to read more]

The BIG Hole In U.S. Financial Regulatory Reform

Posted: 22 Mar 2010 10:11 PM PDT

Why am I so skeptical that Senator Chris Dodd’s proposed Financial Regulatory Reform (for overachievers in the audience, the link connects to the 89-page proposal) will truly change behaviors on Wall Street? For the very simple reason that I have seen no highlighting of the Financial Industry Regulatory Authority within the proposed Financial Regulatory Reform. Strike you as a little odd? It strikes me that the Wall Street lobby is hard at work keeping its self-regulator, that being … [visit site to read more]

Wall Street Isn’t Capitalism!

Posted: 22 Mar 2010 09:21 PM PDT

Is our nation trending away from the principles of capitalism which built the foundation upon which we rest? Another healthcare whine? Nope. I am talking about the once proud pillars of capitalism centered on lower Manhattan, otherwise known as Wall Street.

Let me simplify the debate. What is capitalism? Are you willing to accept the definitions provided by my Investing primer, Investopedia?
What Does Capitalism Mean?
An economic system based on a free market, open competition, … [visit site to read more]

Forex Trading: Early US Dollar Gains Erased By Stock Market Rally

Posted: 22 Mar 2010 08:55 PM PDT

A turnaround in U.S. equity market pressured the Dollar on Monday as traders sought risk in higher yielding assets. Overnight, the Dollar traded weaker, driven down mostly by traders taking protection in the lower yielding Dollar and Japanese Yen
The Dollar erased earlier gains and was under pressure most of the New York trading session after U.S. equity markets rallied as Wall Street celebrated the passing of the health care reform bill. The inability to follow-through to the downside in the … [visit site to read more]

Stock Picks For Tuesday 23 March: Las Vegas Sands, THQ, Skilled Healthcare Group

Posted: 22 Mar 2010 08:14 PM PDT

( click to enlarge )

Las Vegas Sands (NYSE:LVS) - Extremely bullish moves on the pair are taking place over the last session’s. LVS broke resistance today as the stock traded up $1.93 on heavy volume. The stock hit a high of $21.59, which is now resistance for Tuesday’s continuation move. If the stock can break through resistance, we should see another strong upside move. LVS will move very quickly, so watch the stock closely on Tuesday.

( click to enlarge )

THQ (NASDAQ:THQI) displayed … [visit site to read more]

Video: The Day Ahead: U.S. Existing Home Sales

Posted: 22 Mar 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]

Weekly Gold, Silver, Oil & Natural Gas Analysis

Posted: 21 Mar 2010 12:30 PM PDT

March 21, 2010
Last week was nothing special as stock market continued to drift higher on light volume and the Volatility Index (VIX) reaching a new multi year low. This mix of higher prices on light volume, multi year lows in the VIX and an overbought market paints a clear picture to a market technician – Be Ready for a Pullback!
Last Wednesday I sent out a report covering sector rotation comparing the price performance of these sectors from the January peak with last weeks price action. It … [visit site to read more]
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