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China Delivers Desperately Needed RRR Cut Amid Stock Slide, Liquidity Jitters, Tariff Worries

China Delivers Desperately Needed RRR Cut Amid Stock Slide, Liquidity Jitters, Tariff Worries

Well, everyone knew this was coming, and it’s welcome news. China delivered an RRR cut on Sunday of 50bps, a move that will effectively equate to a liquidity injection of more than $100 billion. Specifically, the PBoC is “encouraging” policy banks to promote debt-to-equity swaps, presumably in an effort to help companies reduce leverage while the […]
OPEC Production Increase Shows It’s Still Fighting U.S. Shale Oil

OPEC Production Increase Shows It’s Still Fighting U.S. Shale Oil

It felt like opposite day as traders bid up the price of oil last week even as OPEC announced an increase in oil production that should have sent prices downward. The cartel decided it had room to move because of outages in Venezuela, Libya and Angola amounting to 2.8 million barrels per day (mbpd). The increase apparently wasn’t as […]
Weighing The Week Ahead: Will Incipient Headwinds Derail The Economy?

Weighing The Week Ahead: Will Incipient Headwinds Derail The Economy?

The economic calendar is loaded. The many reports include several of the most-watched. The data may even generate enough fresh news to break the summer slumber. There is plenty of skepticism about the most recent economic data. I expect pundits to be asking: Will incipient headwinds derail the economy? Last Week Recap In my last edition of […]
Death Cross Analysis

Death Cross Analysis

I’m starting to see some analysts beginning to panic because the 50 day moving average on gold has dropped below the 200 day moving average. The so called death cross. However if these guys would do their research they would know that this is an almost completely worthless signal. Yes there must at some point […]
GBPUSD Weekly Analysis – Sunday, June 24, 2018

GBPUSD Weekly Analysis – Sunday, June 24, 2018

GBPUSD extended its downside movement from 1.4376 to as low as 1.3101. As long as 1.3472 resistance holds, the downtrend could be expected to continue and the next target would be at 1.2500 area. On the upside, a breakout of the 1.3472 resistance would indicate that the downside movement had completed at 1.3101 already, then […]
These 5 Top Household Products Stocks Are Cleaning Up For Investors

These 5 Top Household Products Stocks Are Cleaning Up For Investors

Consumer stocks have many good qualities in common. The best stocks in the household products industry have recognizable brands, and see steady demand in good economies and bad. Consumer staples are household essentials—products that people can’t (or won’t) do without, even when the economy enters a recession. These are typically stable businesses that sell products […]
Gold COT Report Vs Price Of Gold: Investigating A Tweet Claim

Gold COT Report Vs Price Of Gold: Investigating A Tweet Claim

How closely does the price of gold follow the Commitment of Traders (COT) report? Here’s a pair of Tweets from a person I follow and respect. Now we know why gold dropped $40oz in just a little over a week -the biggest one-week increase in large speculator futures short contracts (from 72.5K to 106.4K up […]
OPEC’s Next Move

OPEC’s Next Move

The Organization of the Petroleum Exporting Countries (OPEC) met this weekend in Vienna and agreed with Russia and other oil-producing countries to increase production starting in July. Saudi Arabia committed to a “measurable” supply increase but did not provide exact details of what it was planning. Brent crude spiked on Friday in advance of Saturday’s […]
How To Profit From MLPs Overnight

How To Profit From MLPs Overnight

A few months ago the NY Times ran an interesting piece on the difference between intra-day and overnight returns on the stock market. The article compared a strategy of buying on the open and selling every day at the close (“IntraDay”), with a strategy of buying on the close and selling the next morning at the open […]
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                        Euro Area Economic Growth Was Still Quite Robust In The First Quarter

E Euro Area Economic Growth Was Still Quite Robust In The First Quarter

“Despite a strengthening euro, trade growth was very strong in the second half of 2017 on the back of robust growth in Europe and the rebound in world trade, and has continued at a solid, even if slower, pace in the beginning of 2018. However, in the first quarter of 2018, high frequency indicators and […]