Category Archive: Finance
International Economic Week In Review: Solid News Continues
Three years ago, Larry Summers reacquainted us with the term “secular stagnation” – a term originally used during the Great Depression to describe an extended period of weak but positive economic growth. In an interview this week, he stated he still agrees with that particular assessment of the overall economic situation: “When I made my comments […]
The Week Ahead: Critical ECB Decision, UK Elections And More
After a focus on the US, markets now shift to the old continent. The ECB has its inflation numbers. Will it decide to initiate the beginning of the end of the QE program? Or will Draghi drag down the euro? In the UK, the night between Thursday and Friday could be critical for the pound […]
Above The 40 – Breadth Returns To The Stock Market…Just In Time
AT40 = 55.3% of stocks are trading above their respective 40-day moving averages (DMAs)AT200 = 56.8% of stocks are trading above their respective 200DMAsVIX = 9.8 (volatility index)Short-term Trading Call: cautiously bullish Commentary In my last Above the 40 post, I noted how the trading action made it hard for me to cling to my cautiously bullish short-term trading […]
If Gold Starts The Week Running We Could See An Extension Beyond $1,300
The Dollar sold off, and metals rallied after Friday’s weak employment numbers. The April and March data was revised lower, adding fuel to gold’s rebound. Oddly, the softer than expected economic data didn’t affect the odds for a June rate hike which remain at 94.6%. The steadfast underperformance in miners contradicts the persistent rally in metals. Nevertheless, […]
Solar Senior Capital: 8%+ Dividend Yield And Monthly Dividend Payments
Business Development Companies, or BDCs, have become popular among income investors, particularly retirees. That is because BDCs, as an alternative asset class, offer very high dividend yields, thanks in part to a favorable tax structure. For example, Solar Senior Capital (SUNS) has a current dividend yield of 8.4%. You can see the full list of established […]
US Bond Market Week In Review: Is The Fed’s Fundamental Analysis Wrong?
As I observed over the last two weeks, most Fed presidents believe they have achieved their dual mandate – full employment and inflation near 2%. Today, I want to look at the counter-arguments to this assessment – that the U.S. is not at full employment and that inflation is in fact weaker than 2%. Assuming […]
USD/CAD Forecast June 5-9
The Canadian dollar was almost unchanged last week, with USD/CAD closing at 1.3480. This week’s key event is Employment Change. Here is an outlook on the major market-movers and an updated technical analysis for USD/CAD. In the US, Nonfarm Payrolls was dismal, as the gain of 138 thousand was well below expectations. This reading was surprising, coming on the […]
ECB Meeting And UK Election Key Drivers In Week Ahead
This week’s two main events, the ECB meeting and the UK national election have drawn investors intentions in recent weeks. The ECB may take a baby step on what promises several quarters before an exit path from its extraordinary monetary policy. UK Prime Minister May’s call for a snap election was seen as a strong […]
Economic Events Of The Coming Week – Sunday, June 4
Monday: April Factory Orders data will see light in the U.S., where analysts eye a 0.2% MoM contraction. It will be followed by the final estimate of April’s Durable Goods Orders data. Tuesday: May Consumer Price Index data will see light in Russia, where inflation has recently moderated to 4.1% annually. Wednesday: April Factory Orders data will see […]
EUR/USD: Broader Bias Remains Higher On Bullishness
EUR/USD: With the pair closing higher the past week, risk of more strength is likely. Resistance comes in at the 1.1300 level with a cut through here opening the door for more upside towards the 1.1350 level. Further up, resistance lies at the 1.1400 level where a break will expose the 1.1450 level. Its daily […]
