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Early April Cold Is For Real

Early April Cold Is For Real

Natural gas prices started the week off with a modest rally, something that has not been seen for awhile in this steady grind lower. The April contract settled up around a percent on the day before continuing a bit higher from there.  After a gap lower and slow start for the April contract, it rallied […]
COT Report: Yen Bears Flee As Dollar Bears Double Down

COT Report: Yen Bears Flee As Dollar Bears Double Down

Looking at this week’s Commitments of Traders Report, notable changes include rising net speculator positions in the Japanese yen, British pound and Australian dollar. US dollar net positions also fell significantly this week. While crude oil remains at a bullish extreme (looking at 36-month trailing averages, and net positions as a proportion of total open […]
Overstock Plunges To 6-Month Lows After Announcing New Equity Issuance

Overstock Plunges To 6-Month Lows After Announcing New Equity Issuance

Amid a collapse in the crypto space and under investigations over its ICO, Overstock’s (OSTK) share price is tumbling after-hours – near 6-month lows – after announcing a new offering of 4 million shares. As of March 12th, Overstock had 29.5 million shares outstanding, so this is a significant dilution. Full Statement: Overstock.com, Inc. today announced […]
Agriculture Markets Report – Monday, March 26

Agriculture Markets Report – Monday, March 26

NY Fed President Proposes “Paying” Bankers With Long-Term Debt

NY Fed President Proposes “Paying” Bankers With Long-Term Debt

What a topsy-turvy world we live in thanks to Fed nonsense. Consider the outgoing NY Fed president’s latest brainchild. Outgoing New York Fed President William Dudley has a new proposal to mock. Dudley proposes paying bankers with long-term debt. Wall Street should force banks to share the pain of regulatory penalties by docking executives’ pay, a […]
5 Top-Ranked Small-Cap Stocks To Ride Out Trade War Fears

5 Top-Ranked Small-Cap Stocks To Ride Out Trade War Fears

Last week, U.S. equities suffered their gravest losses in more than two years. Fears of an impending trade war between the United States and China crippled markets, with the Dow suffering its worst week weekly loss since January 2016. These losses underscore the challenges faced by large-cap stocks in recent times, a trend that is […]
Relative Tightening Already More Intense Than The 2003-06 Cycle

Relative Tightening Already More Intense Than The 2003-06 Cycle

While interest rates have risen over the past couple of years, it’s true that they are still well below the mean of the past 30 years. More importantly, however, the net change in key borrowing rates from this cycle’s lows to present has already been intense.   This table summarizes the net change to date for […]
China’s Inexorable March

China’s Inexorable March

While the pundits are talking trade wars, Chinese officials are taking the latest US provocations in stride. Pressure on China’s trade practices are not new. The US has been complaining about intellectual property violations since Bill Clinton was President. China’s trade practices have also raised the ire or US and Europe, which has resulted in […]
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                        XLE Underperforming Crude Oil – Divergence To End Soon?

E XLE Underperforming Crude Oil – Divergence To End Soon?

Generally speaking, crude oil and the energy exchange traded fund XLE have a pretty high correlation. Since mid-February, that correlation has been breaking down. In mid-February, Light Crude Oil (WTIC) hit a low of $58.07 while XLE dropped to $63.99. Since then, WTIC has rallied 12.88% to $65.55 while XLE has only rallied 6.22% to […]
Higher Rates Are A Headwind For US Stocks

Higher Rates Are A Headwind For US Stocks

Nice market today! Things are definitely looking a lot better than last week. I don’t think we can declare a new uptrend quite yet though because the new 52-week lows are still a bit too elevated. In addition, the bullish percents continued to drift lower today, although sometimes these indicators don’t turn as quickly as […]