USD/JPY The US dollar had a volatile session on Thursday, as we continue to go back and forth just above the 113 level during the Janet Yellen congressional testimony. With the action that we have seen this week, it appears that the market is trying to roll over a bit, and if we break down below the bottom of the range for the previous sessions this week, I think we will probably go looking towards the 112 level. Rallies at this point still should prove themselves, but I do recognize that longer-term it looks as if we are trying to buy the US dollar over the Japanese yen, and considering that the interest rate situation in America is stronger...
The Australian dollar has taken over leadership in the dollar bloc from the Canadian dollar. The Aussies are up about 0.35% today to extend this week’s gains to more than 2% and reach a new high for the year a little more than $0.7760. The Canadian dollar is up 1.1% this week, in comparison. The softer yields in European and the US appear to be at flows in Australia, which offers about 45 bp more than the US on two-year money, an 18 bp increase over the past month. The New Zealand dollar cannot keep pace here with its Tasmanian cousin following the disappointing June manufacturing PMI fell to 56.2 in June from a downward revision to ...
It was another painfully low-volume overnight session, which however did not prevent global stocks from hitting another record highs, capping their best week in over two months as the dollar stayed close to nine-month lows following Yellen’s dovish retreat in which she noted caution on persistently low inflation (hence today’s CPI print will be especially important) as odds of future rate hikes in 2017 and 2018 dropped. “(The Fed comments) add to our conviction that no further Fed hike should be expected for the rest of the year, which should prove reassuring for markets concerned about excessive tightening risk globally,...
After a tough week in the cryptocurrency space with all major digital currencies registering a negative performance, market heavyweight BTC has stabilized and may be looking to re-coup some of its losses. A look at the daily chart shows a potential bullish pennant formation, although the lower-high/higher-low pattern normally seen is not quite so distinct. Chart: Bitcoin Daily Timeframe (February – July 14, 2017) Chart by IG The four-hour chart however signals a potential for BTC to move even lower as the recent downturn has seen the currency move below its 20-, 50- and 100-day exponential moving averages (ema). The break lower was conf...
As I noted in yesterday’s missive, Yellen’s recent testimony on Capitol Hill sent robots frantically chasing asset prices on Thursday even before testimony began. The catalyst was the release of prepared testimony which included this one single sentence: “Because the neutral rate is currently quite low by historical standards, the federal funds rate would not have to rise all that much further to get to a neutral policy stance.” And on that statement, doves flew and algorithms kicked into to add risk exposure to portfolios. Why? Because she just said that rates will remain low forever. As my partner, Michael Lebowitz, noted yeste...
Event Overview The 180-day lockup period for Rev Group (NYSE: REVG) is scheduled to expire on July 26, 2017. The company’s pre-IPO insiders will then have the opportunity to sell 49.32M shares that are currently restricted from sale. This represents 77.4% of the total shares outstanding. With such a large percentage of the shares becoming available for sale, the event could lead to heavy selling activity and potentially push share price down. (S-1/A) The company’s largest shareholder is American Industrial Partners (AIP), an operations and engineering-focused PE firm based in New York, NY. AIP owns 70% of the total shares outstan...
AT&T (T) is planning to shake up its ranks following the completion of the $85.4B acquisition of Time Warner (TWX), Bloomberg reports, adding that AT&T CEO Randall Stephenson could have a “redefined role.” According to the report, Stephenson will become executive chairman and drop the CEO title; as executive chairman, he will oversee a “pair” of CEOs who would independently manage the company’s telecommunications and media businesses, sources say. He will still be the company’s top executive, though he won’t be called CEO, the report notes. John Stankey, who runs DirecTV and other entertainmen...
Global Equities were given a boost the past few days, which has been bullish for the GJ pair. Japanese data has been solid the past week, and its major trading partner in China has posted strong data for the week. Whereas, US data has largely been meeting expectations. At this point, we can spot 2 POC zones where the price could reject as the pair is making a technical zig-zag pattern. POC1 (D H3, 23.6, EMA89, ATR pivot) comes within the 146.65-80 zone. POC1 rejection should be a sign of a strong trend due to technical confluence it makes within the POC itself. If it rejects from this zone the pair should target 147.80 where the doors for 148...
It’s Friday in the Wall Street Daily nation. That means it’s time to embrace the adage that a picture is worth a thousand words. For the newbies in the group, each week I select a graphic or two to convey an important economic or investment insight. This week, I’m debunking a stubborn myth about stock markets that’s making the rounds. Then it’s onto a dire warning we hope you heeded. Last, but not least, I’m highlighting the hottest growth sector in the market — and the best way to profit from it. So let’s get to it… Stocks Destined to Tread Water? If we’re supposed to believe Wall Street strategists, we should pack up f...
As we approach the beginning of earnings season, it is important to remember that earnings estimate revisions and projections are extremely important in determining the Zacks Rank, and quarterly earnings reports have the ability to greatly affect a stocks financial outlook and a company’s future potential. Zacks customers can utilize our Stock Screener to search for companies that have consistently surprised and beaten earnings projections in recent quarters. Companies that are constantly able to defeat its earnings projections usually exhibit effective management, stronger upward momentum, and more impressive future outlooks. As many e...