Gold Sets Up To Weaken Further
Gold: The commodity reversed its previous week losses to close lower on Friday. On the downside, support comes in at the 1,270.00 level where a break will turn attention to the 1,260.00 level. Further down, a cut through here will open the door for a move lower towards the 1,250.00 level. Below here if seen […]
What The ECB Will Announce This Week: A Summary Of All QE Tapering Scenarios
The main risk event in the coming week, in addition to a barrage of corporate earnings, will be the ECB’s long-awaited announcement of what the central bank’s QE tapering will look like. Conveniently, thanks to a trial balloon released on October 12, we already know the general parameters of this phasing out of monetization: ECB officials […]
BoC Awaits: USD/CAD To Six-Week High As CAD Data Continues To Soften
Fundamental Forecast for CAD: Bearish CAD Weakness Becomes an October Theme as Hawkish BoC Pulls Back. USD/CAD, EUR/USD in the Spotlight Ahead of ECB, BoC. USD/CAD, EUR/USD in the Spotlight Ahead of ECB, BoC. And while there is little hope for any actual hikes at that meeting, all eyes (and ears) will be on BoC Governor […]
Fastenal Company: Wedgewood Capital Views Company As ‘High-Quality Growth Business’
Wedgewood Capital is bullish on Fastenal Company (Nasdaq:FAST), a Minnesota-based firm engaged in the wholesale distribution of industrial and construction supplies. The fund views the firm as “a high-quality growth business” that is benefiting from the long-term renaissance in U.S. manufacturing and energy production. At the same time, the fund believes that Fastenal is gaining share in […]
Large Caps Accelerate Gains; Small Caps Break Out
Friday belonged to Large Cap stocks as both the S&P and Dow Industrials posted gains which looked better than the less than 1% they managed. Volume climbed to register accumulation. Technicals are healthy and the S&P posted a new ‘buy’ trigger relative to the Russell 2000 (Small Caps).This may end up as a blow-off top […]
Why Don’t MLPs Do Buybacks?
Ten days ago Enterprise Products (EPD) announced that they may in the future initiate a buyback of units, perhaps in 2019. Bigger news was the moderation in the growth rate of their distribution, so the buyback received less attention. But it highlights an interesting fact about MLPs, which is that they rarely do buybacks. Part of the […]
Are Cryptocurrencies Inflationary?
There’s a debate raging over what, exactly, bitcoin and the thousand or so other cryptocurrencies actually are. Some heavy-hitters are weighing in with strong, if not always coherent opinions: JPMorgan Chase CEO Jamie Dimon did not mince words when asked about the popularity of virtual currency bitcoin. Dimon said at an investment conference that the […]
Yen Falls After Japanese Election As Nikkei Eyes Record Winning Streak
So just a quick note as trading gets underway and we start the new week in Asia. As expected, USD/JPY is up following the Japanese elections. With Abe’s ruling coalition retaining a two-thirds majority in the lower house, Abenomics isn’t going anywhere although, as noted earlier, it really wasn’t clear that an “adverse” outcome would have materially […]
E Market Briefing For Monday, Oct. 23
Endangered species like bears are struggling to emerge from an historic hibernation. Also there’s no assurance that’s immediately on tap now for a single reason…expectation of an expedited movement toward tax reform. I am going to add another reason, because it matters a lot to the S&P now. As we observed in Thursday’s remarks (which […]
Forex Weekly Outlook October 23-27
The US dollar rebounded last week after the senate adopted 2018 fiscal budget. However, the weaker than expected inflation rate, 0.5 percent, and retail sales, 1.6 percent, remain concerns as the Federal Reserve prepares to start unwinding its balance sheet in October. In Europe, the Brexit got a huge support from German Chancellor Angela Merkel in a […]
