Tuesday, July 04, 2023
Stock Market As Bullish As It Gets / Stock-Markets / Stock Market 2023
By: Monica_Kingsley
S&P 500 didn‘t look back following the tame core PCE report, clearly betting on no recession and Fed to declare victory against inflation. For all the positive broadening of stock market breadth in cyclicals and tech alike, other asset classes incl. bonds didn‘t get as carried away, meaning that stocks are likely to do a shallow consolidation of steep Friday‘s gains just next (today and tomorrow premarket).
As I have written on Friday – on top of dip buying being the name of the game following Thursday‘s reaction:
(…) As I don‘t expect a hot inflation figure … this should work to ultimately let stocks overcome any initial gyration with ES move to the upside, helping real assets and weakening USD,
Tuesday, July 04, 2023
Russia Set to Blow Zaporizhzhia Nuclear Power Plant or Use Tactical Nukes - Act Now to Protect / Politics / Ukraine War
By: Eliza_Walayat
RADIATION FALLOUT WARNING! Tactical Nukes or even worse the blowing up of the Zaporizhzhia Nuclear Power plant, Europe's biggest would result in nuclear fallout spreading across Western Europe! The time to act is NOW Not AFTER it happens as you would have zero chance of being able to get your hands on what's needed to protect from nuclear fallout, that's Potassium Iodide tablets and a Radiation Detector as covered in this video.
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Thursday, June 29, 2023
Stock Market Trend Forecast 2023 / Stock-Markets / Stock Market 2023
By: Nadeem_Walayat
Will resolution of the Debt ceiling nothing burger send indices such as the S&P to the moon? Despite the fact that I have stated countless times that they are a red herring as the red hot chili pepper AI stocks rally illustrates S&P has been flat whilst AI tech stocks have gone to the moon. Nevertheless most remain obsessed by what the S&P will do, just as long as I can continue to ignore the Nasdaq! Getting ones knickers in a twist over the Nasdaq is what would sow maximum confusion when one just needs to stick with the script of gaining and maintaining exposure to the AI tech stocks as long as they remain largely grounded in reality and not go nuts as Nvidia has just done, more on Nvidia later.
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Thursday, June 29, 2023
Stocks and Junk Bonds: "This Divergence Appears Meaningful" / Stock-Markets / Financial Markets 2023
By: EWI
The trends of the junk bond and stock markets tend to be correlated.
The reason why is that junk bonds and stocks are closely affiliated in the pecking order of creditors in case of default. The rank of junk bonds is only slightly higher than equities because debt involves a contract.
Given these two markets are usually correlated, it's worth paying attention when a divergence takes place. Indeed, a divergence is in the works now. In other words, while stocks have been holding up, the price of junk bonds have been trending lower for much of the year.
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Thursday, June 29, 2023
Can We Live in a World without Silver? / Commodities / Gold & Silver 2023
By: MoneyMetals
The World Silver Survey is an annual report published by The Silver Institute since 1990. It provides market participants with supply and demand statistics for critical sectors of the silver market, along with price and trade data.
The 2022 World Silver Survey reported a global silver deficit of 154 million ounces, the most significant since 2015. The 2023 World Silver Survey reported a global silver deficit of 129 million ounces, the second-largest since 2015.
Thursday, June 29, 2023
Mark Denning’s 6 Effective Strategies To Ensure Success / Personal_Finance / Learning to Invest
By: Sumeet_Manhas
Entrepreneurs must recognize that building a successful business requires dedication, resilience, and a willingness to adapt. It's a transformative journey, one replete with both triumphs and trials. While these lessons are often best learned through experience, it’s worth heeding experts like Mark Denning, a leader in global finance who has helped manage more than $300 billion of investors’ money.
By staying focused and committed to their vision, entrepreneurs can navigate the winding path, overcoming obstacles and inching closer to their goals. While preventing business failure is never guaranteed, implementing these strategies provides a robust foundation for success. By constantly evolving, learning from mistakes, and staying passionately dedicated to their venture, entrepreneurs can breathe life into their dreams, create an enduring impact, and leave an indelible mark on the dynamic tapestry of the business world.
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Thursday, June 29, 2023
Peculiarities of cargo security you should know / Companies / SME
By: Sumeet_Manhas
Today, previewing the factors that interfere with running your business becomes far more tricky. Some are almost classical, while others appeared from modern tendencies and tech development. It also touches on transportation issues, so securing your goods on their way to the destination is always better. The most reliable approach is building a security system with an armed guard onboard. But what to pay attention to, and how to decide which option is the most effective? Find it out below in our article.
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Thursday, June 22, 2023
Why Most investors Underperform the Stocks Indices / Stock-Markets / Stock Market 2023
By: Nadeem_Walayat
Dear ReaderThe stock market ended the week at S&P 4410 off a new bull market high of 4448 against my expectations for a fuzzy week to deliver a correction this week enroute to the 4500+ final destination by late July to complete the first leg of this bull market and to herald a significant correction into October as illustrated by my original road maps -
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Thursday, June 22, 2023
Stock Market Liquidity Perfect Storm / Stock-Markets / Stock Market 2023
By: Monica_Kingsley
S&P 500 decline led by tech met a first hesitant, then more resolute, intraday rebound led by tech retracing prior decline that XLI, XLB and XLE were unable to counter. Thanks to weighting as the share of Top 7 stocks had grown considerably with this bear market rally, these rotations have been insufficient in lifting up the index.
And today isn‘t shaping up to be much better – after breaking my key 4,403, the bears have 4,385 followed by 4,360 in sight. Notably, this is happening when Treasury is sucking liquidity from the market place (that money to buy fresh debt issuance has to come from somewhere, and we can be debating the transmission mechanism strength and accounting) and the Fed is still shrinking its balance sheet. As yet another tightening sign, BoE just raised...
Today‘s unemployment claims are likely to reiterate the hawkish Fed message ultimately, as in that the central bank still has room to tighten – and more of the realization that it would do that, which neither 3m nor 6m yield reflect totally.
Thursday, June 22, 2023
How to Profit From the Smart Money Footprints / InvestorEducation / Learning to Invest
By: Submissions
By Justin Spittler Imagine you’re sitting at a bar in Manhattan.
As the bartender’s making your drink, you overhear a conversation from the table behind you.
Two well-dressed men are talking. One looks familiar. He’s a hedge fund manager you’ve seen on TV.
You don’t recognize the other guy. But, from the sound of it, they work together.
Tuesday, June 20, 2023
Stocks Climb a Wall of Worry, Technical Analysis Broken / Stock-Markets / Stock Market 2023
By: Nadeem_Walayat
The stock market is literally climbing a wall of worry, refusing to give any opportunity for the mass of investors sat on the sidelines to jump on board the AI gravy trains unless they buy the highs! Most AI tech stocks are now very overbought i.e. Nvidia, Microsoft, Apple, KLAC, AVGO which had an insane spike last week to $933 that triggered one of my distant SELL limit orders at $899 (current $812).
Whilst many are very overbought that does not mean they cannot become more overbought! This is the problem with TA, the charts tells you that markets are over bought and ripe for a correction, and so one anticipates a fat juicy correction to accumulate into on buying opps perhaps down to below S&P 4000, but as I often state Technical Analysis on it;s own is a coin flip, and worse still is that which most focus on the S&P which is a RED HERRING! Put the two together and you can see how easy it is for most investors to be constantly wrong footed by a. focusing on the S&P and b. not realising that TA is not that reliable going forward, in hindsight its perfect, but going forward it's at best 55/45. One has to go beyond the charts and crunch the numbers and understand the fundamentals that differ for every stock.
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Tuesday, June 20, 2023
Inflation is Expected to do What?! Implications for Gold. / Commodities / Gold & Silver 2023
By: P_Radomski_CFA
The markets just assumed a dovish U-turn in interest rates, thinking that the inflation problem is handled. The below chart features the inflation that’s expected in one year.
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Tuesday, June 20, 2023
How Germany's Economy is Turning Ugly / Economics / China Economy
By: EWI
This economic gauge "dipped back below zero in less than a year"
In November 2020, when fears were rampant over a second wave of the coronavirus pandemic, the president of the European Central Bank called for economic stimulus (Reuters):
Facing gloomy outlook, Lagarde calls for unlocking EU aid
In December of 2020, what is known as the Next Generation EU package became operational. This economic aid was massive, amounting to more than €2 trillion at current prices.
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Monday, June 19, 2023
Why Most investors Underperform the Indices / InvestorEducation / Learning to Invest
By: Nadeem_Walayat
Time and time again I hear this mistake in the comments section, S&P is going down down should I sell x,y,z, stock and buy back later. As I often voice the indices such as the S&P are a red herring, ask anyone heavily invested in the likes of Apple, Nvidia or Microsoft and so on, The S&P is definitely not of much use for timing purposes in terms of accumulating and distributing as we saw this past week opps to distribute in the likes of MGNI and accumulate in the likes of Qualcom. So keep things in perspective, the indices are just that indices, a metric to gauge the direction of travel on an average basis and to perhaps swing trade the index but they are not that useful for buying and selling individual stocks, in fact can prove highly dangerous! For instance if the S&P looks toppy and a stock breaks higher then the investor might sell the strong stock. (META) as the index was heading lower. Similar for when the index is going up and a stock starts falling and the investor buys on perception that the stock is now cheaper (SVB).
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Sunday, June 18, 2023
Silver Hangs on by a Thread / Commodities / Gold & Silver 2023
By: Submissions
As anxiety grips the white metal, is a retest of the 2023 lows or highs more likely?
With the Fed’s hawkish crusade helping to suppress gold, silver, and mining stocks, the permabulls have gone from loud to quiet. Moreover, with resilient demand supporting inflation and keeping the pressure on the Fed, we warned on Mar. 31, 2022, that consumer spending would cause problems for the central bank. We wrote:
There is a misnomer in the financial markets that inflation is a supply-side phenomenon. In a nutshell: COVID-19 restrictions, labor shortages, and manufacturing disruptions are the reasons for inflation’s reign. As such, when these issues are no longer present, inflation will normalize and the U.S. economy will enjoy a “soft landing.”
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Sunday, June 18, 2023
Fed Claims It CAN Resume Rate Hikes While Doubts Grow / Interest-Rates / US Interest Rates
By: MoneyMetals
As the Federal Reserve begins to back off on tightening, the U.S. dollar is becoming increasingly vulnerable to selling.The Fed left its benchmark interest rate unchanged at just above 5% at this week's policy meeting. It was the first time in over a year that central bankers decided not to hike.
In his remarks, Fed chairman Jerome Powell tried to maintain a hawkish tone despite the dovish policy move. He vowed to deliver more rate hikes later this year.
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Sunday, June 18, 2023
Possible Replay of an Ominous Stock Market Price Pattern / Stock-Markets / Stock Market Crash
By: EWI
"I became panicky and covered at a considerable loss..."
The reason price patterns tend to repeat in the stock market is that investor psychology never changes.
The Elliott wave model directly reflects these largely predictable swings in investor psychology. That's what the Elliott wave principle is all about.
One of those price moves which has historically fooled investors is the first big rally in a bear market.
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Sunday, June 18, 2023
Countdown to ES Stock Market Downleg / Stock-Markets / Stock Index Trading
By: Monica_Kingsley
S&P 500 spike into options expiry Friday was predictably rejected, and tech led the daily reversal, joined by communications and discretionaries. This shot across the bow in the topping process (major top preceding lackluster summer culminating in Sep bottom) shows that Nasdaq wouldn‘t hesitate in leading the decline. That‘s the strength of passive investing in reverse – leading higher, and then leading lower.
This quad witching was a trial run, for I think the downtrend would establish itself within 2 weeks latest – and it wouldn‘t happen because of sharp deterioration in incoming data or proving that the mirage of avoiding recession is just that, a mirage. The market topping process thoroughly described a week ago would come from sheer overvaluation driven by AI FOMO that has taken stocks into extreme greed territory already – from realization thereof. Perhaps characteristically, while the bullish sentiment rises, stock funds are seeing outflows to bond funds.
Friday, June 16, 2023
GPN Stock Targeting $150 / Companies / Investing 2023
By: Nadeem_Walayat
GPN $99 - EGF +3%, +15%, P/E 10, F5.2
The unloved or even hated financial sector is ripe for a turnaround. GPN is on the launch pad pending a break of a previous high at $114 to get the ball rolling. Target of $150 would represent a 50% advance on the current price. I am locked and loaded 172% invested.
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Friday, June 16, 2023
Fed Rate Hold is a Game-changer for the Price of Gold! / Commodities / Gold & Silver 2023
By: P_Radomski_CFA
Yesterday’s FOMC and the following press conference were groundbreaking. Rates stayed, but Fed said about raising them twice this year = no U-turn!
This is a game-changer because so many investors were still believing in a quick, dovish U-turn. And those dreams were just dispelled. The fact that rates were not hiked yesterday doesn’t matter as much as the fact that their expected future path is still to the upside.
While the core CPI didn’t move recently, inflation is moving down. With inflation moving down and interest rates going higher, what does that imply?