Yesterday trading on the main currency pairs was quite active. The dollar index (#DX) once again closed in the positive zone (+0.18%). At the moment, investors have taken a wait-and-see attitude before the publication of statistics on the labor market in the United States. Experts expect in November the number of employed in the non-agricultural sector of the country to slow from 261,000 to 200,000. We recommend paying attention to the difference between the actual and forecasted value of the indicator. It should be recalled that the preliminary report from ADP went beyond the market expectations. At the same time, the index of business activ...
Three times. Figure 1: Ten year minus three month Treasury spread (blue), and ten year minus three month Treasury spread (blue). December observations pertain to 12/6 daily observation. NBER defined recession dates shaded gray. Source: Federal Reserve via FRED, NBER and author’s calculations. In general, once the yield spread is shrinking, it continues to shrink (so the question posed pertains to observations of the 1% threshold being breached as the spread goes down). You can see these instances where the yield curve breaches 1% from the topside in the following graph (red arrows). Figure 2: Ten year minus three month Treasury spread (blue...
GBPUSD: The pair held of lower prices to close higher on a rally on Thursday. This development has opened the door for more strength in the days ahead. Support lies at the 1.3450 level where a break will turn attention to the 1.3400 level. Further down, support lies at the 1.3350 level. Below here will set the stage for more weakness towards the 1.3300 level. Conversely, resistance stands at the 1.3500 levels with a turn above here allowing more strength to build up towards the 1.3550 level. Further out, resistance resides at the 1.3600 level followed by the 1.3650 level. On the whole, GBPUSD looks to recover higher. ...
COVINGTON, La., Dec. 07, 2017 (GLOBE NEWSWIRE) — Globalstar, Inc. (“Globalstar”) (NYSE American: GSAT), a leading provider of mobile satellite voice and data services to businesses, governments and consumers, today announced an offering of 38,000,000 shares of Globalstar’s voting common stock on an underwritten basis by FL Investment Holdings, LLC, a stockholder affiliated with Thermo Capital Partners, LLC (“Thermo”) and controlled by James Monroe III, the Chairman of the Board and Chief Executive Officer of Globalstar, to Morgan Stanley, as the underwriter in a registered offering of these shares (the “offering”). Thermo ...
Ranges on stocks continue to increase as the S&P average true range nearly doubled in just few weeks. This has set up some much better intraday trading and short term trades. In this video market update let’s analyze a short-term trade in the FXI. Video Length: 00:06:45...
Thursday felt like a bit of a reprieve from the past couple of days as the tech selloff abated and outside of Bitcoin, nothing too outlandish happened. The S&P snapped a four-day losing streak and the Nasdaq outperformed again, perhaps easing concerns about the tech rout (note: small-caps outperformed as well): If you’re keeping track of how things have unfolded since the tech selloff last week this is amusing: The curve reversed early flattening thanks in part to reports that Trump is set to put out something on infrastructure in January. TRUMP IS SAID TO READY INFRASTRUCTURE PLAN FOR JANUARY RELEASE That should be funny. Remember, his...
I’m going to go out on a limb and claim there is something seriously wrong in repo. All jokes aside, I know it sounds like a broken record but the dimension that matters is not intermittent collateral problems so much as the greater intensity to them and in a condensing timeframe. Escalation is a description you really don’t want to fit the circumstances. Earlier this week I noted the suspiciously shallow track of the 4-week T-bill equivalent yield, now less than a week ahead of the next “rate hike.” It continues to suggest, as it has for much of this year, collateral tightness (unrelated to the Fed’s symbolic federal funds policy...
As readers likely know, the CBOE and CME are planning to launch Bitcoin futures on December 10 and 18, respectively. Anthony Tu-Sekine, partner with Seward & Kissel LLP, and his team from the firm’s Blockchain and Cryptocurrency Group, provide comment on the legal and operational challenges the introduction of Bitcoin futures may bring. Anthony and his team frequently advise issuers, funds and financial advisers in connection with cryptocurrency issuances and investments. You can find some initial commentary on the news below: TheDigitalArtist / Pixabay According to Daniel Bresler, member of Seward & Kissel’s Blockch...
Railroads are riding high in 2017 after years of struggle, primarily due to declining coal shipments. The improving fortunes of railroad operators are well reflected by the 29.3% improvement in the Dow Jones U.S. Railroads Index on a year-to-date basis. Railroads Aided by Coal Revival Behind this revival is primarily the improving scenario pertaining to coal. In fact, President Trump’s pro-coal stance is a huge positive for railroads, given their significant dependence on the commodity for revenue generation. We note that coal had lost significance as a source of fuel during former President Obama’s tenure. Now, President Trump’s plan...
We’ve been persistently bearish on precious metals since September and that has annoyed our readers. The weak price action, negative divergences and bearish fundamentals are too much to currently overcome for the time being. The gold stocks finally cracked this week and have lost another 7%-8% in only the past seven trading sessions. Silver and Gold denominated in foreign currencies have joined the breakdown. Gold meanwhile has not broken down yet but all indications are that it will soon. The chart below shows the daily candle charts for GDX and GDXJ which began their breakdown on Monday. They have declined sharply over the past seven ...