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USDCAD Daily Analysis – Tuesday, Oct. 16

USDCAD Daily Analysis – Tuesday, Oct. 16

USDCAD broke below the bullish trend line on the 4-hour chart, suggesting that lengthier consolidation for the uptrend from 1.2782 is needed. Range trading between 1.2926 and 1.3071 would likely be seen in a couple of days. However, as long as 1.2926 support holds, the uptrend could be expected to resume, and another rise towards […]
Credit Spreads And The Stock Market

Credit Spreads And The Stock Market

This post was prompted by a recent article authored by the always thought-provoking Pater Tenebrarum (a pseudonym) at acting-man. The article looks at the relationship between credit spreads and the stock market, in particular, the historical tendency for credit spreads to begin widening prior to substantial stock market declines and thus to act as timely warning signals […]
Indian Indices Trade Strong; Capital Goods Stocks Lead Gains

Indian Indices Trade Strong; Capital Goods Stocks Lead Gains

After opening the day in green, share markets in India have continued the momentum and are presently trading above the dotted line. All sectoral indices are trading in green stocks in the capital goods sector and stocks in the bank sector leading the gains. The BSE Sensex is up by 198 points (up 0.6%) and the NSE Nifty is trading up by 50 points (up […]
Zero-Down Subprime Mortgages Are Back, What Could Possibly Go Wrong?

Zero-Down Subprime Mortgages Are Back, What Could Possibly Go Wrong?

Ten years after the collapse of Lehman Brothers, banks are once again taking bets on the same type of loans that nearly collapsed the economy amid a flurry of emergency bailouts and unprecedented consolidations.  Bank of America has backed a $10 billion program from Boston-based brokerage Neighborhood Assistance Corporation of America (NACA), to offer zero-down mortgages […]
West Pharma Brokers Say Its Future Is Grim. I Disagree.

West Pharma Brokers Say Its Future Is Grim. I Disagree.

This week I’m seeking a prestigious and long-term dividend-paying stock from the healthcare business sector.  That healthcare sector includes ten industries all related to testing, diagnosing and treating what ails us. Healthcare industries are: biotechnology; diagnostics & research; drug manufacturers – major and – specialty & generic; health care plans; long-term care facilities; medical care; […]
Delta Airlines Vs. American Airlines: Which Is A Better Buy?

Delta Airlines Vs. American Airlines: Which Is A Better Buy?

Airlines experienced a resurgence in recent years as investors flocked to these once hated stocks. After the September 11th, 2001 attacks the Dow Jones Airline Index (XAL) dropped from $180 to $120. It barely peaked above $60 before tanking to $15 with the rest of the market in 2009. Since then the index increased 8x […]
Gold Eyes Further Strength Towards 1,235.00 Zone

Gold Eyes Further Strength Towards 1,235.00 Zone

Gold, eyes further strength short term as it looks for strength. On the downside, support comes in at the 1,220.00 level where a break will turn attention to the 1,210.00 level. Further down, a cut through here will open the door for a move lower towards the 1,200.00 level. Below here if seen could trigger […]
WTI Crude Oil And Natural Gas Forecast – Tuesday, Oct. 16

WTI Crude Oil And Natural Gas Forecast – Tuesday, Oct. 16

WTI Crude Oil Monday was a wild session for crude oil, simply because as we started out the trading session, energy markets gapped higher as tensions between the United States and Saudi Arabia picked up. This has people thinking that perhaps the Saudi Arabia government would not increase output to help with pricing pressures, and […]
St. Louis Fed Discloses More Free Money: A Carry Trade In Liquidity

St. Louis Fed Discloses More Free Money: A Carry Trade In Liquidity

Not only do banks earn free money on excess reserves, they can borrow money and make guaranteed free money on that. The Federal Reserve Bank of St. Louis discusses the Carry Trade in Liquidity. The IOER [interest on excess reserves] has been the effective ceiling of other short-term interest rates. The figure above compares the IOER […]
Up In Smoke?

Up In Smoke?

Breathtaking (literally and figuratively) how this stock is forming a gargantuan top, even after having lost so much of its value. Not that I have much sympathy for the cancer-stick maker… anyway, here’s the pattern for Phillip Morris: