S&P 500 On The Cusp
A couple days ago it was noted that stocks are high risk, but also that I was more long than short. Yesterday we reviewed the still bearish state of the broad market. This bounce has tested my patience (vs. the preferred scenario seeing it as just a relief bounce) but this morning it looks like […]
Oil & Stocks Starting The Move Down Into Daily Cycle Lows
As I mentioned in one of my prior charts the oil and stock cycles have been tethered together for a while now. Once oil began the move down into its daily cycle low stocks will most likely follow. This morning oil has broken it’s cycle trend line so the odds are good that the corrective […]
Morning Call For March 24, 2016
OVERNIGHT MARKETS AND NEWS Jun E-mini S&Ps (ESM16 -0.54%) are down -0.47% and European stocks are down -1.44%, as a stronger dollar undercuts commodity prices and drags down raw-material and energy producing stocks. Hawkish comments from Fed officials this week have bolstered the chance of a Fed rate hike next month and boosted the dollar and led to a […]
GBP/USD Risks Further Losses On Slowing U.K. Retail Sales
– U.K. Retail Sales to Contract for First Time Since December. – Will Slower Consumption Encourage the BoE to Further Delay Normalizing Monetary Policy? Trading the News: U.K. Retail Sales The U.K. Retail Sales report may produce headwinds for the British Pound and drag on GBP/USD as signs of a slowing recovery provides the Bank of England (BoE) with greater […]
The Safety Net: A 20% Yielder Got A Downgrade
I last looked at Calumet Specialty Products Partners L.P. (Nasdaq: CLMT) in the Safety Net more than two years ago. At the time, I gave the stock a dividend safety rating of “D.” Though its 10% yield at the time was attractive, the company’s distributable cash flow – a measure of cash flow used by MLPs – did not […]
A Scam Called Valeant —Why The Casino Is Going To Blow
If you need evidence that Wall Street is a financial time bomb waiting for ignition look no further than the recent meltdown of Valeant Pharmaceuticals (VRX). In round terms, its market cap of $90 billion on August 5th has suddenly become the embodiment of that proverbial sucking sound to the south, having plunged to less than $12 billion by Wednesday’s […]
The Dynamic Duo Of Risk Factors
The value and momentum factors have earned high praise in recent years as complementary sources of risk premia for designing and managing equity portfolios. AQR’s widely cited paper “Value and Momentum Everywhere” a few years back helped popularize the idea, pointing to applications in equities and beyond. There’s no shortage of support from the wider world of […]
Dollar Rises As Rate Hike Prospect Intensifies
For a 5th straight day, the US Dollar Index edged higher, moving toward a record for best string of gains in nearly a year. That comes as a result of FX traders pricing in the likelihood of two additional rate hikes later this year. The most recent improvement in sentiment came in the wake of […]
Trading Opportunities – 3/24/2016
EUR/GBP: Above the 0.7900 The Euro is trading in advance against the British Pound, reaching the 0.7900. We might be buyers of call options, with short-term resistance the area of 0.8000-0.8079. On the other hand, a reversal move below the support area of 0.7700, it might open the way for put options. AUD/USD: […]
