King Dollar- Creating Bullish Reversal Patterns At Support
The chart above looks at the US Dollar and Euro, on a monthly basis, over the past 10-years. Over the past year the US$ has traded sideways, after a strong rally. The Euro pattern is the opposite, trading sideways, after a large decline. I do find this one issue interesting; the US$ as it hits […]
Draghi’s Shock And Awe Bazooka Backfires With Huge Whipsaw
ECB president Mario Draghi pulled out a bazooka today with a package that allegedly exceeded expectations. QE goes from €60bn to €80bn ECB to buy corporate bonds ECB Cut the deposit rate to -0.4% from -0.3% The The main refinancing rate fell by 5 basis points to 0 per cent The Financial Times reported “The […]
Euro Destructo
Well, Draghi whipped out the bazooka… And the destructive effect so far on the Euro has been pretty epic so far… How the day ends will be quite telling. At the moment… not happy!
How To Trade Citigroup Stock
The performance of Citigroup Inc. (C) leaves traders with little room for second-guessing this bearish option. Unfortunately, for those going long on the stock there is little to be optimistic about – at least over the short-term. The declines in banking and financial stocks in 2016 have been precipitated by a loss of confidence in central banks […]
The ECB’s Embarrassing Inflation Forecast Implodes
Three months ago, when the ECB released its latest quarterly inflation expectations, we mocked that “there is a bit of a hockeystick” going from 2015 to 2016, when HICP inflation was expected to soar from 0.1% to 1.0%. We said the following: “in March 2014, the ECB predicted 2016 year end inflation would be 1.5%. It […]
ECB Increases QE And Cuts Rates
Today’s Economic events Japan PPI y/y -3.40% vs. -3.40% Australia MI inflation expectations 3.40% vs. 3.60% previously China CPI y/y 2.30% vs. 1.80%; PPI y/y -4.90% vs. -4.90% Germany trade balance 18.9bn vs. 19.2bn Italy quarterly unemployment rate 11.50% vs. 11.50% ECB cuts refi rates to 0% from 0.05% ECB cuts deposit rate to -0.40% […]
E Nine Reasons Why Volatility Is So High
After years of steadily upward grinding markets, we have suddenly seen three stock market shakeouts of more than 10% over the past six months. The Volatility Index (VIX) has spiked over $50 once and $30 on three separate occasions during the same time period. What gives? Is the bull market over? Is it time to […]
3 Things: Fed Problem, Oil – Ain’t 2009, NFIB Un-Optimism
The Fed’s Got A Problem The most recent employment report sent the financial market pundits abuzz claiming that the economy was on solid footing with no recession in sight. The problem, for anyone willing to actually look at the data, was the underlying data was mostly disappointing. While the BLS trumpeted 242,000 new jobs in February, wages […]
ETFs To Watch As Mortgage REIT Q4 Earnings Boost Optimism
This year has been marked with ups and downs for mortgage REITs that provide real estate financing through the purchase of mortgages and mortgage-backed securities (MBS). Volatile markets triggered by global growth worries and a stronger dollar weighed on these REITs. Meanwhile, these companies are buying back shares and diversifying their businesses to beat market […]
EC Secular Trends In Employment: Goods Producing Versus Services Providing
The Department of Labor’s Bureau of Labor Statistics has monthly data on employment by industry categories reaching back to 1939. At the highest level, all jobs are divided into two categories: Service-Providing Industries and Goods Producing Industries. The adjacent chart illustrates the ratio of the two categories since 1939. In 1939 service providing industries employed […]
