Last week I posted an analysis on Oil and the highs chances it had to get rejected and reverse lower. Oil price made a double top at 47.50$ and got rejected at the Ichimoku daily Kumo (cloud). This was sent to our subscribers: I’m short since 47$ and we could now be starting a new downward wave that could bring Oil to low 40’s…..trend remains bearish. Gold as per our analysis here and here has reached the $1,250-60 area where the first important test for bulls is to be made. I remain longer-term bullish Gold (Since the turn of 2015). The USD/JPY has turned as expected and has already reached our 1st target of 111.25. The USD/JPY i...
While I remain committed to making at least one purchase every month, it’s clear that my buying frequency has slowed down a bit. It seems that I’m making my buys about every four or five weeks rather than every week or two as I have done earlier this year. This fact just illustrates my continued frustration in finding the “perfect” stock to deploy my fresh capital. My trades last month saw me expand my portfolio holdings in the health/biotech sector as I sought to further diversify my portfolio and, more importantly, my passive income stream. Now, with three weeks already gone in July I felt it was time to pull the trigger and make ...
Business confidence in Germany still points to robust growth, but slightly weaker than expected. The purchasing managers’ index for the manufacturing sector missed with 58.3 against 59.2 expected. The services PMI slipped from 54.3 to 53.5 points. EUR/USD ticks down just a bit, trading around 1.1644. It remains above the 2016 peak of 1.1620. Further support awaits at 1.1580. Resistance is at the 2015 high of 1.1712. These are the preliminary figures for July. They will be revised early in August. Earlier, French manufacturing PMI beat expectations by scoring 55.4 points against 54.6 expected. On the other hand, the services sector indicato...
In Week 3 of July 2017, the S&P 500 continued to set new all time highs, with the newest peak closing value of 2473.83 set on Wednesday, 19 July 2017. No real surprise there, right? With investors apparently focused on 2018-Q1, the S&P 500 is behaving pretty much as our dividend futures-based forecasting model anticipated. Coming into the fourth week of July 2017, we anticipate that our dividend forecasting model will be affected by the echoes of past volatility in stock prices during this week and the next, where we expect that our model’s projections will fall on the high side of the actual trajectory of the S&P 500. Th...
The dollar struggled against most of its trading partners including the euro, yen and pound on Monday morning, skirting 13-month lows. The greenback was weighed by political woes which seem to be plaguing the United States since President Trump took office in January. The most recent trouble for the President came this weekend with the resignation of Sean Spicer, Trump’s press secretary, whose resignation was prompted by Trump’s appointment of Anthony Scaramucci as communications director. Scaramucci has a highly-respected resume, having served as a successful hedge fund manager and the U.S. Export-Import Bank’s senior vice president. ...
GBP/USD remains in an uptrend from 1.2589. The pullback from 1.3125 could be treated as a correction of the uptrend. A deeper decline towards the bottom trend line of the price channel on its 4-hour chart is possible in a couple of days. As long as the channel support holds, the uptrend could be expected to resume, and another rise to test 1.3200 resistance is still possible. Key support is at 1.2811. Only a breakdown below this level could signal completion of the uptrend....
After opening the trading day on a positive note, Indian share markets continue to trade firm in the morning session. Gains are largely seen in stocks from consumer durables sector stocks and FMCG sector. Meanwhile, metal stocks and healthcare stocks are trading in the red. The BSE Sensex is trading higher by 192 points and the NSE Nifty is trading higher by 50 points. The BSE Mid Cap index is trading up by 0.4% while the BSE Small Cap index is trading up 0.6%. The rupee is trading at 64.32 to the US$. As per an article in a leading financial daily, Singapore has sought to defend its visa regime, saying that one-third of its...
Gold prices settled at $1254.70 an ounce on Friday, gaining 2.07% on the week, as recent volatility in global equity markets and new worries about U.S. politics lent support to the precious metal. Fluctuations in the wider markets usually give a temporary boost to safe-haven gold but continued weakness in the dollar may have stronger impact on gold in the long run. A breach of some key technical levels also pushed gold higher. XAU/USD was able to successfully break through $1232 and $1250.30-$1248. Consequently, the market reached the daily Ichimoku cloud as anticipated. Friday’s price action produced a technically bullish weekly close, whi...
Is inflation still transitory? This is the main question that markets will want to hear an answer to in the upcoming Fed decision on July 26th. The FOMC convenes in one of its “in between” meetings. The meetings in June and in September consist of new forecasts and a press conference by Fed Chair Janet Yellen. In addition, the end of August features the Jackson Hole Symposium in which Yellen may provide hints towards future policy moves. Yet in this July meeting, the main goal will probably be not to rock the boat, a wait and see mode. No changes are likely to the interest rate nor are any other announcements on the cards. Back in June...
As the currency markets progress into the final weeks of July, the main highlights of the week include the FOMC meeting on Wednesday. The Fed is expected to keep monetary policy on hold. Investors are likely to focus on any forward guidance that will be issued by the Fed this week. Questions still remain on the pace of rate hikes as well the balance sheet normalization. Elsewhere, traders will turn their attention to the quarterly inflation report from Australia. Following the disappointing inflation figures from New Zealand last week, the Australia CPI will be an important data point. The UK will be seeing the preliminary GDP report this wee...