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  • Finance 0

    EUR/USD Bounce In Progress; Long At 1.1350

    The USD ended little changed on Wednesday after reaching a 13-month peak against a basket of currencies. Upbeat figures on U.S. retail sales, manufacturing output and worker productivity supported the greenback and the view of steady U.S. economic growth. But USD sell-off during the North American session suggests a corrective move is due. This is how MyFXspot.com trades now:EUR/USDTrading strategy: LongOpen: 1.1350Target: 1.1520Stop-loss: 1.1270Recommended size: 1.88 mini lots per $10,000 in your accountShort analysis: The long lower wick on Wednesday’s daily candle suggests a bounce is due. We opened EUR/USD long at 1.1350 today. GBP/...
    On August 16, 2018 / By
  • Finance 0

    A 20% Yield Guaranteed To Be Cut

    When a reader suggested I look at Cornerstone Strategic Value Fund’s (NYSE: CLM) dividend safety, I was intrigued. It pays a 20% yield. That’s not a typo… 20%. The fund invests in growth and value stocks. Its largest holdings are Apple (Nasdaq: AAPL), Amazon (Nasdaq: AMZN) and Alphabet (Nasdaq: GOOGL). Apple pays a 1.4% yield. Amazon and Alphabet don’t pay a dividend. Neither does the fund’s sixth-largest holding, Facebook (Nasdaq: FB). So how, in the name of all that is holy, can this fund pay a 20% dividend yield? Return of capital. If it does not generate enough income or capital gains to pay the dividend, it retur...
    On August 16, 2018 / By
  • Finance 0

    Conviction Is Low, On Both Sides Of The Table

    In the grand scheme of things, it can’t be too terribly surprising. After all, it is the dog days of summer. Traders aren’t terribly interested, and somewhat distracted by all the other things that require attention as August starts to molt into September. It would be surprising if the market was throwing out serious fireworks. All the same, between Wednesday’s action and Thursday’s action, if you were hoping the market collective would tip its hand as to its true undertow, you’ve got to be disappointed in little conviction traders have here… in either direction. Yes, the third reversal in three days is a c...
    On August 16, 2018 / By
  • Finance 0

    Wall Street – Island Of The Blessed

    Which Disturbance in the Farce can be Profitably Ignored Today? There has been some talk about submerging market turmoil recently and the term “contagion” has seen an unexpected revival in popularity – on Friday that is, which is an eternity ago. As we have pointed out previously, the action is no longer in line with the “synchronized global expansion” narrative, which means with respect to Wall Street that it is best ignored. Misbehaving EM currencies – the Turkish lira has become quite unruly of late, which is bad juju for a country with a huge balance of payments deficit and an external debt-to-GDP ratio of well above 50%. Ar...
    On August 16, 2018 / By
  • Finance 0

    The Auto Business Is Overall Business

    Automobiles have come a long way in two decades. The import craze of this latest bout of globalization was in the car business handed an open door by a lack of quality, or perceptions about a lack of quality. The domestic auto industry in the seventies and eighties really did not shine its brightest. By the nineties, near constant problems became a source of early internet amusement. One urban legend passed around chat rooms had Bill Gates trashing the auto industry at a computer conference, which then triggered, supposedly, a direct response from GM CEO Jack Welch. The story really grew out of an old joke: There’s word in business circles ...
    On August 16, 2018 / By
  • Finance 0

    Emerging Markets Crater 2.93%

    Emerging Markets – Stocks Fall Back On Wednesday Emerging markets – Wednesday reversed the gains from Tuesday as the S&P 500 was down 0.76%, the Nasdaq was down 1.23%, and the Russell 2000 was down 1.29%. The VIX was up 9.99% to 14.64. The good news is the CNN Fear and Greed index fell to 47 out of 100, which is neutral. That was a sharp decline from 58 on Tuesday, signaling the correction could be mostly over. In a previous article, I wondered when the dollar’s rally would begin to hurt equities. The answer was given quickly as the market reached a tipping point on Wednesday. The dollar index was only up 1 cent on Wednesday...
    On August 16, 2018 / By
  • Finance 0

    SEC Is Probing If Musk Tweeted About Tesla Deal To “Crush The Shorts”

    With every passing day, it is becoming increasingly likely that Musk’s “funding secured” tweet could end up the costliest in history, and could potentially land him, or others, in prison. Last week, before it was confirmed that the SEC had opened a probe into Tesla, by sending the company a subpoena inquiring into Musk’s actions, we wrote that “the biggest risk for Musk is if regulators find that he made a statement only intending to goose his company’s share price, or as he likes to put it, “crush the shorts.” Under US securities law, companies and corporate officers can (and will) be held liable...
    On August 16, 2018 / By
  • Finance 0

    Market Talk- Thursday, August 16

    The uncertainty seen in US markets shook Asian indices with all markets opening lower. Fortunately, these proved to be the day’s lows and most markets rallied from there. The Nikkei even managed to move positive and remained around there for the whole afternoon trading. The Yen traded back to 111 handle, but was to regain the 110’s just ahead of the US close. A narrow range with no clear direction, but has performed well against an ever-strengthening US Dollar. Hang Seng and Shanghai both saw a similar pattern but failed to recover at the close. Both lost around -0.7%; although, both are looking better as the US rallies. Of course, ea...
    On August 16, 2018 / By
  • Finance 0

    Stocks And Precious Metal Charts – Slow Down – Lessons Unlearned

    Stocks rallied as Walmart posted ‘better than expected’ results.  Nordstrom also beat after the bell, further juicing enthusiasm for retail trade. Gold and silver were bouncing quite a bit from the overnight lows but ended up with a little more modest gain over the close from yesterday. The precious metals are utterly oversold. They are setting up for a bottom and a major rally. Timing of these markets is for pros who don’t need any help from me, other than prayers. If you have not seen it, they are industrializing insider trading in Washington. We are truly in times of increased wickedness when lying and breaking of oaths...
    On August 16, 2018 / By
  • Finance 0

    A Finally Larger EIA Print Emboldens Nat Gas Sellers

    After a long string of EIA weekly storage reports that missed to the low side, this week the EIA announced a storage injection that was slightly larger than market expectations, quickly sending natural gas prices lower. The September contract settled down a bit over a percent on the day.  The Energy Information Administration announced that the natural gas market injected 33 bcf of gas into storage this past week, which was slightly more than our expectation of 31 bcf.   They also introduced some further uncertainty into the market by announcing new methodology for their weekly storage number which will be rolled out in early September and...
    On August 16, 2018 / By