Keep Faith In Rising P/E: Play 5 Top-Ranked Stocks
Generally, investors love stocks with a low price-to-earnings (P/E) ratio. The general perception is that the lower the P/E, the higher will be the value of the stock. The simple logic that a stock’s current market price does not justify (is not equivalent to) its higher earnings and therefore has room to run is behind […]
Dollar Bounces On High Hopes
The US Dollar was broadly higher on Monday after the US Senate approved legislation to overhaul the controversial US tax reform code. With the exception of a single vote, all Republican members voted in favor of the legislation which includes significant rate cuts for corporations and high-income tax payers. Analysts say that gains on the […]
The Bear’s Lair: Triumph Of The Bureaucrats
The typical form of human government moved from absolute monarchy, to oligarchy, to democracy, but it did not stop there. As government grew, popular control over it declined, while its own bureaucracy became the principal factor determining its direction. We have now reached the stage where to term the result a “democracy” is laughably in […]
Positive Expectations, But Will S&P 500 Continue Higher?
Intraday trade: Our Friday’s intraday trading outlook was bearish. It proved accurate because the S&P 500 reached our intraday profit target level of 2,615 (daily low at 2,605.52). the index fell sharply following relatively neutral opening of the trading session. The market has managed to close neutral (-0.2%). We still can see some short-term technical […]
Pound’s Breakout Exposes Yearly Highs
Speculators piled into the British pound, triggering a range breakout, according to the latest Commitment of Traders (COT) report. Equity markets remain resilient despite cautious positioning trends by (non-commercial) speculators and an increased bout of volatility. Meanwhile, speculators were mixed in terms of positioning vs the USD, but managed to up their extremely bullish bets […]
What’s The Point, Gold And Silver Report
A reader emailed us, to ask a few pointed questions. Paraphrasing, they are: Who cares if dollars are calculated in gold or gold is calculated in dollars? People care only if their purchasing power has grown. What is the basis good for? Is it just mathematical play for gold theorists? How does knowing the basis […]
Latest Thoughts On U.S. Market Valuations
Professor Jeremy Siegel recently appeared on CNBC and suggested that the U.S. equity markets were approaching fair value and that markets might “pause” some of their strong gains in 2018. Siegel still believes corporate tax cuts are one factor that supports the market strength and that earnings should receive a boost from pending changes. He […]
British Pound Optimism Looking Stretched
The last time the pound looked stretched was due to rate hike expectations, but this time Brexit is in the driver’s seat. According to the BBC, deals have been struck in recent days relating to the size of the divorce bill and EU citizen’s rights in the UK. Hopes are also rising for an Irish border […]
Morning Call For Monday, Dec. 4
OVERNIGHT MARKETS AND NEWS Dec E-mini S&Ps (ESZ17 +0.62%) this morning are up +0.62% at a new record high after the Senate on Saturday passed legislation that will cut the U.S. corporate tax rate to 20% from 35% in 2019. Also giving U.S. equity markets a boost is the legislation in the House that will push […]
Watch For Reversal In The Dow Jones Transports (DJT) As It’s At Critical Resistance
Dow Jones Transportation Average (DJT): Short-Term/Daily: Stodgy Uptrend since May 2017. New high made last Thursday, November 30. Possible major reversal starting. Intermediate-term/Weekly: Uptrend since January 2016. Current new high hit circular resistance. Watch for possible reversal. Long-Term/Monthly: Uptrend since March 2009. Current market also appears to be topping at major geometric resistance. SHORT-TERM/DAILY: Last Thursday, November 30, […]
