U.S / China Trade Policies: The Nuclear And Near Nuclear Options
Substantial attention has been devoted to the disasterous effects of implementing a Donald Trump agenda of imposing 45% tariffs on imports of goods from China. To gain some perspective, consider the implications for prices of goods imported from China if such a tariff were imposed (and a large country assumption used, so that only half […]
Strong Labor Numbers Wipe Out Gold Gains
Despite gains throughout the month, gold slid Wednesday, wiping out this month’s gains as hints of a stronger U.S. labor market and a rally in equities curbed demand for safe haven assets. Friday’s unemployment numbers should show a definite increase with companies taking on 200,000 workers in March, beating an expected forecast of 195,000 and […]
E Small Cap Best & Worst Stocks – March 31, 2016
The strongest small cap sectors are utilities and consumer goods. The best small cap industry is business software. The average small cap score is 51.16 and that’s below the four week average score of 52.54. The average small cap stock in our universe is trading -36.39% below its 52 week high, -5.45% below its 200 […]
The Dynamic Duo Of Risk Factors: Part II
<< Back to: The Dynamic Duo Of Risk Factors:Part 1 Last week’s post on analyzing US equity value and momentum risk premia ended with a question: How much, if any, improvement should we expect by adding a dynamic system for managing exposure to these risk factors vs. a buy-and-hold strategy? What follows is a preliminary effort in searching […]
AUD/JPY Bearish Divergence Could Bring Risk-Off Sentiment To The Fore
Commodities and Equities prices have rebounded from their interim lows of Early February 2016, and it has resulted with strong gains across these markets. Clearly this has been a risk-on scenario, causing AJ to be bullish during this period as well. Equities are reaching key resistance levels and are showing signs of market fatigue by […]
Morning Call For March 31, 2016
OVERNIGHT MARKETS AND NEWS June E-mini S&Ps (ESM16 +0.01%) are mildly lower by -0.16% this morning due to a resumed decline in crude oil prices, S&P’s cut in its rating outlook for China, and lower European stocks. The Euro Stoxx 50 index this morning is down -1.35%. The China Shanghai index today closed slightly higher […]
Fed-Speak Back In Focus As US Dollar Digests Drop To 2-Week Low
The US Dollar traded broadly higher against its major counterparts in overnight trade as prices corrected after dropping to a two-week low in yesterday’s session. That move followed comments from Fed Chair Janet Yellen that traders (rightly or wrongly) perceived as diminishing the scope for interest rate hikes in 2016. The Japanese Yen diverged from its G10 FX counterparts, managing to narrowly gain against […]
WTI Crude Oil And Natural Gas Forecast – March 31, 2016
WTI Crude Oil The WTI Crude Oil market initially tried to rally during the course of the day on Wednesday, but we found enough resistance near the $40 level to turn things back around and form a shooting star. The shooting star of course is a negative sign, so it’s very likely that we could […]
European Peripheral Corporate Bond Yields Tumble To Record Lows Ahead Of Draghi’s Monetization
On the day Mario Draghi announced that the ECB would launch a historic corporate bond monetization program, the first of its kind, we said that we expect bond yields to tumble imminently as the market frontruns the ECB’s open-market purchases of corporate bonds and soaks up all available supply in the market. Not even we expected […]
Running With The Bulls Or The Bears With The CAC 40 Index?
The CAC 40 index is currently trading at 4,444.42, for a gain of 1.78% for the day, or 77.75 points. The index has a 52-week trading range of 3,892.46 on the low end and 5,283.71 on the high-end. The 1-year return is -9.69% and the year-to-date return is -4.15%. A big part of the reason […]
