The single biggest event overnight was the PBOC's devaluation of the Yuan to the lowest since March 2011, setting the fixing at 6.5693, the highest in over 5 years and in direct response to a stronger dollar, which however if one looks at the DXY remains well below the recent highs in the 100 range, suggesting for China this is only just beggining. However, the fact that there was not more volatility in onshore and offshore overnight FX also comforted the market that at the same time as its was devaluing the PBOC was also intervening in the FX market, thus providing some assurance it would not allow runaway "risk off" sentiment prevail, nor would it promote another blitz round of capital outflows, leading to another gradual levitation in overnight risk.
The vast under-performance of industrial metals compared to precious metals may be a warning sign regarding the strength of economic demand and/or investor skittishness. Furthermore, if recent history is a guide, the stock market may have a difficult time defying gravity much further as the industrial metals continue their relative deterioration
Technical Analysis is a tool that requires a lot of Art in its application compiled with the mathematical science underlying the craft.
A "Bullish Pennant" has been spotted in the chart of Bitcoin, one which suggests a major breakout is imminent.
Mood swings have been fluctuating so quickly they resemble rapid-eye-movement rather than the expected ebb and flow of a normal market, such as it is in a QE world... With market noise at a cacophonous pitch, it’s far better to lean on technical pivots and to keep it really simple. In this environment a chart really is worth 1,000 words.
There are two conditions that should be met when a company engages in a stock buyback. 1) The shares should be trading below intrinsic value 2) there are no investment opportunities available that would allow the company to continue to grow at a desirable rate. If both conditions can be met a case may be made for share buybacks.
In Q1 2007, the so-called "godfather" of technical analysis Ralph Acampora told a 'Goldilocks'-prone Larry Kudlow on CNBC that "I'm bullish, but I don't think I am bullish enough...there's new leadership." That call turned out to be very close to top-ticking the market before it's collapse. Fast-forward nine years and Ralph is back, proclaiming that Yellen has "lit a fire under the stock market... and the correction is over." Trade accordingly...
Experience is an expensive commodity to acquire, which is why it is always cheaper to learn from the mistakes of others.
We delve into the technicals of the Bitcoin Market in this video.
The story on Wall Street and CNBC continues to be that we’re in a correction and this is a buying opportunity. Even Warren Buffett joins the chorus of stock market cheerleaders for the skeptical public. Well, I agree with the skeptical public, not the experts here!
"The Fed has a history of tricking it self into believing the economy is stronger than it really is - something that has happened a lot during this recovery. And there is reason to believe it is doing so again. If that’s the case, the Fed could be living in denial about its ability to raise interest rates... ‘The road we’re on is coming to an end,'”
The technical situation for the gold price has sharply improved, to the evident surprise of many mainstream analysts, but what are the reasons behind the turnaround, and implications for the future?
Is the bounce in energy stocks for real?
While the market has climbed from the ground floor all the way back up the elevator shaft, it may find the access to upper floors there rather limited. After rallying 14% in just about 3 weeks, a ratcheting down of upside expectations would certainly seem warranted.
In his annual newsletter to shareholders, Buffett makes the argument that $56,000 today is six times better (even after his adjustment for inflation) than the $858 of GDP per Capita each US Citizen earned in 1929 but forgets to mention that $858 in 1929 was equivalent to 41.5 Troy Ounces of Gold in 1929. When measuring on an apple to apples comparison, there has been little to no gain in GDP per capita over the last 86 years in the United States. We show you the math.