S&P 500 And Nasdaq 100 Forecast For March 11, 2016
S&P 500 The S&P 500 had a wild session during the day on Thursday as we went back and forth rather rapidly. Ultimately, this is a very neutral looking candle, and as a result I think that you can’t really take too much from the day. The best trade I see here is to simply […]
Global Liquidity Collapses To 2008 Crisis Levels
The last time that global liquidity conditions contracted at this pace was March 2008 (right as stocks dead-cat-bounced on the back of The Fed’s guarantee of Bear Stearns’ sale to JPMorgan)… and things escalated rather quickly thereafter. Liquidity conditions also contracted (though not as severely as the current conditions) in Dec 2011… which prompted Bernanke to unleash […]
US Dollar Index Downside Risks Increase. FOMC, The Next Big Event!
Following last week’s analysis, the US Dollar index saw the rally being clipped near the 98.5 – 98.0 resistance. With the Euro turning bullish and the Yen staying flat, the US Dollar Index is starting to look more and weaker with the likelihood of a dip to 94.5 – 94.0 support level. Next week, the […]
Five Gold Mutual Funds To Buy On Immense Upside Potential
It’s been a stunning rally for gold this year, with the yellow metal surging 20% from the end of December to last week’s peak of $1,279.60 an ounce. It is easy to understand why gold was gaining in the beginning of the year, given the slump in oil prices, weak global economy and volatility in […]
On The Fly: Top Stock Stories For Thursday
Stocks began the session in positive territory thanks in part to stable oil prices and additional stimulus measures announced by the European Central Bank. Europe rallied and the U.S. futures followed until the news was digested. Before the pre-market trading session had ended the futures were well off their highs and oil prices were retreating. […]
Daily Market Analysis – 3/11/2016
Video length: 00:01:27 During the day on Friday, we probably won’t get much in the way of headline announcements, so having said that we feel that the market will probably be fairly quiet. Will be interesting is to see whether or not the Euro can continue to strengthen, after what had been a very volatile […]
Financial Wonderland: Reader Questions On Negative Rates And Money Heaven
Questions on negative rates keep coming in: Where does the money go? Who benefits? Will the Fed do the same? What’s Draghi up to? A quick refresher course on paying interest on excess reserves vs. charging interest on excess reserves is in order. Q: Who has negative rates?A: The European Central Bank (ECB), Sveriges Riksbank […]
By Contrast, The Chinese Are Skipping Full ‘Stimulus’ No Matter The Inflation Rate
Europe is not the only location seeking out more “inflation”, as almost any central bank around the world except Banco do Brasil would do anything to find it. The ECB provided more emphasis in their panicked escalation today. In China, by contrast, consumer prices moved to +2.3% in February, which was the highest rate since July 2014. […]
ECB: I Cannot Do Whatever It Takes
The ECB just announced a further reduction in interest rates, extended its QE program by increasing the rate at which buys assets, beefed up the TLTRO program and extended its horizon. It all sounds like good news and many of these actions had been expected in the last meeting of 2015 and they did not […]
E The Diminished Efficacy Of Central Bank Expansion Policies
The diminished efficacy of central bank expansion policies increasingly is being recognized by traders, if not monetarists or official interpretations. While I did correctly refer to the ECB-triggered bounce (in advance) as a highly likely ‘buy the rumor / sell the news’ event (a hair above the rebound S&P highs with a ‘pop & flop’ outcome); […]
