Dollar Firmer, But Vulnerable
The US dollar, which traded heavily throughout last week, turned better bid today. However, with no significant data, and the renewed pressure on European bonds, the greenback’s firmer tone looks fragile. Core European bond yields are 3-4 bp higher, including German bunds. Peripheral bonds yields are up 8-11 bp, with Greek 10-year yields up […]
EUR/USD Testing Massive Resistance At 1.15
The EUR/USD pair initially fell during the session on Friday, but found enough support near the 1.13 level to turn things back around and form a hammer shaped candle for Friday. This is the top of a massive move higher and I now believe that we are getting ready to complete a “W pattern”, which […]
What Is The Single, Most Serious Problem Facing The U.S. Economy?
by Rodger Malcolm Mitchell, www.nofica.com What is the single, most serious problem facing the U.S. economy? If you’re a regular reader, you know the answer, because I’ve been beating the same drum for years. The answer is the too-wide-and-widening income/wealth/power Gap between the rich and the rest. Here are excerpts from an article that appeared in Harvard Magazine; […]
Weekly Wrap-Up + Market Forecast + Sector Watch: SPX, Nasdaq – May 18, 2015
It was a very volatile week! Markets sold off to start the week, but, rallied back to record territory to end the week! It was truly amazing! We have been staying mostly in cash, because it looked like stocks were heading for a pullback. They did pull back. But, once again buyers drove them higher! […]
Rate Shopping Whores And Chicago’s Bond Rating
Moody’s vs. S&P Rating of Chicago On May 12, Moody’s downgraded Chicago’s GO bonds to Junk. I commented on that downgrade in Moody’s Cuts Chicago Bond Rating to Junk; City Faces $2.2 Billion in Various Termination Fees; Irresponsible to Tell the Truth. On May 14, S&P Downgraded Chicago General Obligation Bonds from A+ to A-. That rating is […]
WTI Crude Oil Finds Support During Friday Trading
The WTI Crude Oil market initially fell during the course of the day on Friday, but found enough support towards the end of the session to turn things back around and form a rather positive looking hammer. Because of this, the market looks as if it is continuing to find buyers every time we drop […]
Abolishing Cash – New Age Of Economic Totalitarianism
Europe is moving full speed ahead to eliminate all cash. Instead of reforming and tackling the economic problems, government always seeks to maintain the same course of thinking and that now leads us to the totalitarian approach coming from Brussels. To maintain the euro, they must maintain the banks. But the bank reserves are debts […]
How China Covered The World In “Liquidity Swap Lines”
As we’ve discussed on a number of occasions and at great length, the market is periodically hit by systemic dollar shortages. For instance, in 2007 European commercial banks found themselves staring down a dollar funding gap on the order of several trillion (all in). Meeting USD funding requirements became immeasurably more difficult as the crisis […]
World Markets Weekend Update: China Bounces Back And Europe Takes A Dive
Five of the eight indexes on our world watch list posted gains over the past week, with China’s Hang Seng roaring back into its top-performer slot with a 2.44% advance following its -5.31% rout the week before. Japan’s Nikkei was a strong second with its 1.83% gain. The three European indexes were the week’s losers […]
Gold Extends Gains On Soft U.S. Data
Gold prices settled at $1224.25 per ounce, rising 2.9% over the course of the week, as investors pushed back bets on when the Federal Reserve will increase interest rates following a new batch of disappointing U.S. data. During Friday’s session, the XAU/USD pair initially pulled back to the 1214.50 – 1212 area, which the market […]
