Thursday, July 23, 2015
The ‘Real’ Reason the Fed Wants to Raise Interest Rates / Interest-Rates / US Interest Rates
In case you thought you were smart enough to know why the Fed wants to do what it supposedly wants to do [1] MarketWatch sets you straight with the real scoop. We’ll use this as a talking point and see what comes of it…
Here’s the real reason the Fed wants to raise rates
Policy makers want to give themselves some room to maneuver
That is the commonly held belief and who am I to dispute it? A big part of the problem is and has been their refusal to begin a journey toward normalization 2 years ago, when the economy began to visibly (we noted the seeds of that improvement in January of that year) improve. They had no confidence and I was left to wonder (aloud here, frequently and I am sure, sometimes obnoxiously) why Grandma [2] (and her 0% savings account payout) had to continue to bear the brunt of this non-action despite a recovering economy.
Read full article... Read full article...
Thursday, July 23, 2015
The War on Cash is Now a Global Phenomenon / Stock-Markets / Credit Crisis 2015
More and more institutions are trying to make it harder for you to move your money into cash.
Globally, over $5 trillion in debt currently have negative yields in nominal terms, meaning the bond literally has a negative yield when it trades. In the simplest of terms this means that investors are PAYING to own these bonds.
Read full article... Read full article...
Thursday, July 23, 2015
5 ways in which Real Estate has changed in the US in the last decade / Housing-Market / US Housing
Peter Scully writes: Following a ten year review of the real estate market in the United States, it is clear to see that things have changed a lot. Ten years is a long time but in that period there is a huge difference, and it may be surprising to hear that it is not all related to finance.
Read full article... Read full article...
Thursday, July 23, 2015
Gold and Gibson's Paradox / Commodities / Gold and Silver 2015
There is a myth prevalent today that the gold price always falls when interest rates rise. The logic is that when interest rates rise it is more expensive to hold gold, which just sits there not earning anything. And since markets discount future expectations, gold will even fall when a rise in interest rates is expected. With the Fed's Open Market Committee debating the timing of an interest rate rise to take place possibly in September, it is therefore no surprise to market commentators that the gold price continues its bear market. Only the myth is just that: a myth denied by empirical evidence.
Read full article... Read full article...
Thursday, July 23, 2015
Stock Market Fluctuations Following Recent Rally - Flat Correction Or Topping Pattern? / Stock-Markets / Stock Markets 2015
Briefly: In our opinion, speculative short positions are favored (with stop-loss at 2,140, and profit target at 1,980, S&P 500 index)
Our intraday outlook is bearish, and our short-term outlook is bearish:
Intraday outlook (next 24 hours): bearish
Short-term outlook (next 1-2 weeks): bearish
Medium-term outlook (next 1-3 months): neutral
Long-term outlook (next year): bullish
Thursday, July 23, 2015
Gold Price Smash Leads to Surge in Demand For Coins, Bars Around World / Commodities / Gold and Silver 2015
- U.S. Mint sees highest monthly gold eagle sales in over two years
- Indians take advantage of low price in a season not typically known for gold buying
- Chinese investors, disillusioned with stock market, are buying gold in large volumes
- Demand for coins from Perth Mint 37% higher in June and even higher for July
Thursday, July 23, 2015
U.S., Russia: The Case for Bilateral Talks / Politics / GeoPolitics
Phone calls between relatively low-level diplomats are normally not newsworthy. But Monday's conversation between U.S. Undersecretary of State Victoria Nuland and Russian Deputy Foreign Minister Grigory Karasin on the simmering conflict in Ukraine is an exception. The bilateral nature of the conversation and its timing amid mounting claims of cease-fire violations from the Ukrainian government and separatist forces makes it uniquely significant. Moreover, it reaffirms that the evolution of the Ukrainian conflict — whether toward a settlement or toward escalation — will be most strongly shaped not by Kiev but by the actions of and relationship between Moscow and Washington.
Read full article... Read full article...
Thursday, July 23, 2015
Crude Oil Price Slump is a Once in a Decade Opportunity to Make Money, Guaranteed / Commodities / Crude Oil
All investments carry risk. There are no safe investments in the sense that “you just can´t lose”. But risk can be greatly reduced, according to the entry point and the timespan of the investment.The commodities cycle
The world is currently awashed in oil and natural gas. This is the reality of today. But as sure as day follows night, this glut will turn into production deficit over the next few years. All commodities traders know this and have seen gluts turn into deficits dozens of times, in different markets. Why does this happen?
Read full article... Read full article...
Thursday, July 23, 2015
AAPL Disappoints.... Stock Market Holds Well.... / Stock-Markets / Stock Markets 2015
The market was looking forward to the earnings report from Apple Inc. (AAPL), the leader of all leaders. The anticipation was very high due to the news recently released from Google Inc. (GOOG), which was magnificent. Most thought AAPL would follow in their footsteps. The market was close to breaking out ahead of the report, but the big leader gave a small report for investors. A little shy this and not so great that, had the stock down at massive support at 119 last night after hours. It did hold there and start to push up a bit, which allowed for a big sigh of relief from the frothing bulls. A move below 119 on AAPL would open up a vein of selling to 114, and possibly further below. AAPL gapped down hard, roughly eight points, which gave the Nasdaq a major headache.
Read full article... Read full article...
Wednesday, July 22, 2015
Gold Price Hits a 5-Year Low: How to Time the Next MAJOR Bottom / Commodities / Gold and Silver 2015
See this surprising "central banks indicator" of big reversals in gold prices
Read full article... Read full article..."In what traders called a 'bear raid,' sellers on Monday dumped an estimated 33 tonnes of gold in just two minutes on exchanges in Shanghai and New York, sending prices on a nearly $50 downward spiral from which they never fully recovered." (Reuters, July 21)
Wednesday, July 22, 2015
Currencies Depend on Faith, Gold Doesn't / Commodities / Gold and Silver 2015
In his July 17th Blog, Let's Get Real About Gold, author and Wall Street Journal columnist Jason Zweig likened investor interest in gold with the "Pet Rock" craze of the 1970s, when consumers became convinced that a rock in a box would provide continuous companionship, elevate their social standing, and give them something hip to talk about at parties. Zweig asserts that investor faith in gold, which he argues is just another inert mineral with good marketing, is similarly irrational, and has kept people from putting money in the much more lucrative stock market.
Read full article... Read full article...
Wednesday, July 22, 2015
Stock Market Early Shorting Opportunity / Stock-Markets / Stock Markets 2015
This may be an early entry opportunity for shorts, since we may see SPX retrace all the way to yesterday’s close. This would be considered to be super aggressive, since the battered VIX isn’t registering any signals, yet.
I believe the VIX is being suppressed, in order to prevent investors to properly hedge for the decline. This would also discourage short-sellers, who rely on the VIX for their signal. This portends a very deep decline, since there is virtually no hedging and very little short-selling, which would provide a bottom for this decline as short-sellers take profits.
Read full article... Read full article...
Wednesday, July 22, 2015
Should Stock Investors You Buy Microsoft On the Dip? / Companies / Microsoft
Microsoft has had a rocky relationship with investors over the years, especially the last one. If you look at the numbers over the last two years, it looks like the stock has soared with a 48.59% increase. But if you take a look at the last year alone, it’s up only 5.37%. Year to date it’s even worse at 1.79%.To say the company has struggled to stay innovative amid competition with the likes of Apple and Google is an understatement. There’s a cartoon that’s been floating around the internet for years showing two small children representing Google Chrome and Mozilla Firefox fighting it out, while another small child representing Windows Explorer is off in the corner eating glue.
Read full article... Read full article...
Wednesday, July 22, 2015
Crude Oil Price Barrier of $50 Holds - For Now / Commodities / Crude Oil
Trading position (short-term; our opinion): Short positions with a stop-loss order at $65.23 are justified from the risk/reward perspective.
Although crude oil declined after the market's open, hitting a fresh multi-month low, the commodity rebounded in the following hours and closed the day above the Jul 7 low. Did this upswing change anything in the short-term picture of crude oil?
Read full article... Read full article...
Wednesday, July 22, 2015
Silver and the Deflation Thesis / Commodities / Gold and Silver 2015
56,859 contracts represents over 284 million ounces of silver in a market with a total of just under 1 billion ounces in open contracts (open interest of 197,092) and a combined warehouse “physical” inventory of just over 180 million ounces.
I decided to make public and expand upon one section in my private newsletter weekly commentary.
As silver was monkey-hammered once again this week, I got the usual “see that, Harry Dent was right. Silver is going down” response.
Read full article... Read full article...
Wednesday, July 22, 2015
Gold Price Crash - Trend Forecast 2015, Gold Stocks Buying Opportunity? / Commodities / Gold and Silver 2015
The gold price bear market has continued in 2015 since its mid January 2015 peak of $1307 that had fooled many gold bugs into assuming that the preceding multi-year bear market was finally over and that 2015 would see a strong price rally to possibly even new all time highs! However, so far 2015 has seen a series of failed rally's rolling over into downtrends to new lows, punctuated by flash crash days such as that which took place on the 19th of July that saw a series of flash crashes that lasted no more than a couple of seconds that took the gold price to well under $1,100, to a new five year low of $1080 before recovering to currently stand just over $1,100.
Read full article... Read full article...
Wednesday, July 22, 2015
The Three Reasons Behind Iran’s Resistance to the Nuclear Deal / Politics / Iran
MoneyMorning.com Dr. Kent Moors writes: Years ago, when I was doing monthly analysis on Iran’s oil and gas industry, one of the biggest quandaries was trying to make market sense out of what came from the leadership in Tehran.
Well, the past 48 hours have brought me back to those days.
Back then, it was not unusual for Iran’s religious and political heads to shoot themselves in the foot economically every time they opened their mouths on policy matters. And Iran remains one of the most convoluted webs of power relationships and brokerages anywhere.
Read full article... Read full article...
Wednesday, July 22, 2015
Market Bubble in Trouble? Rinse & Repeat / Interest-Rates / Liquidity Bubble
Our new, FREE report shows you specific areas of the U.S. stock market that have become dangerously frothyWhen I was in college, I had this weekly ritual. I'd drive home to my parents' house every Friday, run inside to say hello, grab some food, and leave several bags of dirty laundry to be picked up the next morning.
Read full article... Read full article...
Wednesday, July 22, 2015
Winning the Hunger Games - How to Choose Successful Agriculture Investments / Commodities / Agricultural Commodities
Starting with the premise that people have to eat, The Agletter Editor Tom Wallace has found productive fields in the many subsectors of the ag investment space. Without discounting the risks, he explains to The Energy Report how investors can recognize and hedge those risks. Wallace also names three favorite companies that span the spectrum, from planting the seed to foodstuff.
The Energy Report: Is investing in agriculture like investing in any other commodity, or do investors new to the space need to get familiar with special considerations?
Read full article... Read full article...
Wednesday, July 22, 2015
US Dollar Breakout / Currencies / US Dollar
The previous Friday's expected cycle low was successful in starting a rally last week in which the US Dollar had its best week since May. DXY gained 1.89% to close at 97.99 above the June 1 high and printed an engulfing bullish candlestick on the weekly chart.
Read full article... Read full article...