Category Archive: Finance, No picture
USDCAD Daily Analysis – Thursday, Oct. 4
USDCAD’s bounce from 1.2782 extended to as high as 1.2884. However, the bounce is likely consolidation for the downtrend from 1.3081. Another fall is possible after the consolidation and a breakdown below 1.2782 support could trigger further downside movement to 1.2700 area. Resistance is at 1.2930, only a breakout of this level could signal completion […]
Top 5 Charts Of The Week – Thursday, Oct. 4
This week we look at the following charts and themes: US vs the World (PMI divergences – how long can the US do its own thing?) Taiwan and China (the slowdown on the Mainland is mirrored in Taiwan) US treasuries and bond market volatility (at a clear turning point) US 30 year bond yields (breaking […]
3 Reasons For USD Strength That Weighs Heavily On EUR/USD
The EUR/USD is trading below 1.1500, consolidating the falls. The US Dollar is propelled higher by three factors related to each other. The technical picture is bearish for the pair, with the “death cross” looming. The EUR/USD is trading below 1.1500, the lowest levels in six weeks. The pair fell sharply on Wednesday on US Dollar strength […]
Indian Indices Continue Sell-Off; Sensex Plunges 830 Points
Indian share markets are trading deep in the red presently. The sell-off is seen on the back of rising crude oil prices and falling rupee. Sectoral indices are trading in the red with stocks in the IT sector, realty sector and energy sector witnessing maximum selling pressure. The BSE Sensex is trading down 830 points (down 2.3%) and the NSE Nifty is trading down 250 […]
AUDUSD Daily Analysis – Thursday, Oct. 4
AUDUSD is facing 0.7085 support, a breakdown below this level could trigger further downside movement towards 0.7000. Near-term resistance is at 0.7130, only a break of this level could bring the price back towards the falling trend line on the 4-hour chart.
Sensex Falls Over 490 Points; Rupee Sinks To Historic Low
Asian stock markets are lower today as Japanese and Hong Kong shares fall. The Nikkei 225 is off 0.2% while the Hang Seng is down 1.6%. The Shanghai Composite is trading up by 1.1%. Wall Street advanced on Wednesday and the Dow Jones Industrial Average closed at a record for a second day, after US economic data fueled a rise in Treasury […]
E U.S. Repatriated Earnings Have Been A Boon To The Stock Market
U.S. multinational corporations had up to recently accumulated as much as $2.6 trillion of overseas profits. To avoid recently higher U.S. corporate tax rates, U.S.-based companies operating internationally have kept their foreign earnings in subsidiaries overseas rather than bringing them back to the United States. One of the main purposes behind Congressional Republicans attempt to […]
Earnings Growth Drives Total Return And Dividend Income
Introduction This article was inspired by an interesting debate between two commenters on my most recent article “Why a 15 P/E Ratio Represents Fair Value for Most (Not All) Companies.” In a nutshell, the argument revolved around whether dividends were a driver or a contributor to total return. Interestingly, one of the commenters even suggested […]
Another Italian Drama – Why It Matters
Government deficit out of control, irresponsible government policies, tumbling bond prices and bank share prices, threat of rating-agency downgrades, political instability – we have seen similar Italian dramas in the past that, in the end, did not lead to serious financial market contagion. Nevertheless, there are reasons to be concerned that this time the impact […]
Q2 GDP Remains Robust: 5 Growth Fund Picks
According to the Bureau of Economic Analysis’ final estimate, U.S GDP increased 4.2% in the second quarter, unchanged from the earlier estimate. The fastest pace of growth in almost four years was powered by increases in investment and expenditure across several categories. The Trump administration’s tax cuts program was the primary force that powered the […]
