Friday, April 08, 2016
Lumber Commodity Price Limbers Up / Commodities / Gold and Silver 2016
The lumber price has traded pretty much exactly as outlined in analysis, titled Lumber Lambasted and Lumber Looking Lousy, produced in May 2015 and September 2015 respectively.
I expect price to continue to trade as outlined in those analyses but it doesn't hurt to update the picture so let's do just that beginning with the monthly chart.
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Friday, April 08, 2016
US Stock Market Bulls Are the Most Complacent Since 2008! / Stock-Markets / Stock Markets 2016
I have to trade and invest in the markets that I have before me and not the ones that I desire! Therefore, I must be able to approach the market place from a completely ‘unbiased’ perspective. I do not care if the markets doubles in price, or if it is cut in half. I take advantage of moves in both directions by using my ‘short term spikes’ which I have shown you, over the past couple of weeks, in order to lock in profits in as short a period as 48 hours.
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Thursday, April 07, 2016
Stock Market Nice & Nasti / Stock-Markets / Stock Markets 2016
Volume & Breadth
Two reliable tools in my kit.
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Thursday, April 07, 2016
The New Case For Gold / Commodities / Gold and Silver 2016
James Rickards, Chief Global Strategist at West Shore Funds and a widely renowned author is interviewed by FRA Co-founder Gordon T. Long in which they discuss Jim’s just released book The New Case for Gold. They also delve into issues concerning the false perceptions of the world switching back to a Gold Standard and the reasons for a suspected G-20 stealth “Shanghai Accord”.
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Thursday, April 07, 2016
Can We Grow Out Of Our Economic Problems If We’re Not Actually Growing? / Economics / US Economy
The rationale for today’s easy money policies is pretty straightforward: Falling interest rates and rising government deficits will counteract the drag of excessive debts taken on in previous stimulus programs and asset bubbles, enabling the developed world to create wealth faster than it takes on new debt. The result: a steady decline in debt/GDP to levels that allow the current system to survive without wrenching changes.
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Thursday, April 07, 2016
The More Corrupt the State, the More Numerous the Laws / Politics / Social Issues
By Nick Giambruno
Today, I’m going to share one of the most important things I’ve learned traveling around the world: There’s a crucial difference between committing a real crime and breaking the law.
I’ve seen it firsthand in the Middle East as well as many other places.
The difference is huge and few people understand it.
Thursday, April 07, 2016
Negative Interest Rates Could Trigger Another Housing Market Bubble / Housing-Market / Global Housing Markets
"From top to bottom of the ladder, greed is aroused without knowing where to find ultimate foothold. Nothing can calm it, since its goal is far beyond all it can attain. Reality seems valueless by comparison with the dreams of fevered imaginations; reality is therefore abandoned." ~ Emile Durkheim
Sweden is already in the mature stages of experiencing a housing crisis. Take a look at the chart below. Home prices are surging simply because it is cheap to borrow money. The lower the interest payments, the more you can borrow. Hence, individuals throw caution to the wind and start chasing property because they believe prices will continue trending upwards. What they forget is that no market can trend upward forever.
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Thursday, April 07, 2016
The Interesting Relationship Between Silver Rallies and Interest Rates / Commodities / Gold and Silver 2016
It is not well known, that historically silver and interest rates have actually moved together (in the long-term). When interest rates are going up, then silver is going up. When interest rates are going down, silver is going down. In the short-term, interest rates and silver can diverge (like since about 2002 to now); however, this is temporary.
Interest rates have been going down for the last 34 years. Due to this long downward trend, many believe that interest rates will not rise. Unknowingly (due to the correlation between silver and interest rates), they indirectly believe that silver will not rise.
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Thursday, April 07, 2016
SPX Challenging 4.3-year Trendline / Stock-Markets / Stock Markets 2016
SPX is challenging its 4.3-year trendline at 2055.00 in the Premarket this morning. Should it break through, we may see Intermediate-term support at 2033.81 being challenged next.
ZeroHedge reports, “Two days after stocks slid in a coordinated risk-off session, and one day after a DOE estimate of US oil inventories sent US stocks surging while the failed Allergan-Pfizer deal unleashed torrential hopes of a biotech M&A spree leading to the single best day for the sector in 5 years, sentiment has again shifted, this time due to a violent surge in the Yen as the market keeps testing the resolve of the Japanese central bank to keep its currency weak, and so far finding it to be nonexistent.
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Thursday, April 07, 2016
Dow Jones Complacency Hits New Heights / Stock-Markets / Stock Markets 2016
What a difference two months can make as evidenced by the rapid rebound in the Dow Jones Industrial Average. A quick look at one of the most commonly quoted American equity benchmarks shows a remarkable rally over the past two months. However, fundamentally, nothing is different now than two months ago. In fact, the increasingly hawkish commentary of the Federal Reserve and potential rate hikes in the first and second half of the year could spell the beginning of a new round of asset reallocation as the upside benefits are negated by the potential downside risks. Chasing after this latest rally higher in equities may not be wise considering the growing risks not only to the economic outlook, but additionally from the revenue recession currently sweeping across publicly traded American companies.Read full article... Read full article...
Thursday, April 07, 2016
Roadblocks to a Full-Fledged Stocks Bull Market / Stock-Markets / Stock Markets 2016
Since bottoming in February, the stock market "tape" has been very constructive. The NYSE advance-decline (A-D) line led the rally off the February lows, which is the first thing we look for when judging the strength of a bottom. Even more importantly, the cumulative NYSE new highs-new lows indicator continues to climb off its bottom of a few weeks ago and is advancing on a daily basis (below). Internal momentum, as reflected in the highs-lows, also remains positive.
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Thursday, April 07, 2016
Gold Ratio Charts Revisited / Commodities / Gold and Silver 2016
As the consolidation phase continues to build out from this first impulse move up in the precious metals sector lets review some of the charts we’ve looked at previously that suggested the bear market might be over. Most of these charts will be ratio charts which compare different sectors to one another These rather complex charts can give us some hidden clues that an important reversal may have taken place.
The consolidation process takes its toll on both the bulls and the bears alike. As you know there are never any guarantees of anything when it comes to the markets so it’s always important to try and get the big picture right to get the odds in your favor.
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Thursday, April 07, 2016
Outstanding Day for Biotech’s, Spectacular Stock Market Day Overall / Stock-Markets / Stock Markets 2016
The stock market had a spectacular day today. They opened strong, moved up in waves all day, and closed at the highs for the day going away.
Net on the day, the Dow was up 112.73 at 17,716.05. The S&P 500 was up 21.49 to 2066.66, within a point of its high. The Nasdaq 100 was up 73.03 to 4543.78, within a point of its high as well.
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Thursday, April 07, 2016
IBB (Biotech ETF) Baby Bull Market / Companies / BioTech
Here we go again. Remember when I warned traders not to short the baby bull in miners and exhorted them to not lose their position because surprises would come to the upside? Needless to say, many ignored that advice and they cost themselves dearly.
Now we have a second baby bull just getting started in Biotech. It still has a long ways to go. Yet I’m seeing some traders making the same mistakes again.
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Thursday, April 07, 2016
America’s Ignorant and the Offended / Politics / US Politics
“If you've got a business. you didn't build that. Somebody else made that happen.” - Barack Obama
It takes an ignorant person to offend everyone.
America has become the land of the ignorant and the offended. Citizens remain profoundly ignorant of truth and everyone seems to be chronically offended. Maybe if people weren’t so ignorant, they wouldn’t be so offended.
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Thursday, April 07, 2016
Gold Once Again Proves To Be The Best Defense Strategy / Commodities / Gold and Silver 2016
Taki Tsaklanos submits: If you are used to making visits to your bank to make your credit card payments, you may find this no longer an option in the future. Some banks are no longer accepting (or limiting their acceptance) of cash deposits. The war on cash forges on. Paper money, that is indeed more or less worthless, is slowly being taken out of circulation and being replaced by digital currency forms. This shift presents of course the same fundamental problem as paper money itself: “digital money” is also not backed by gold or other precious metals or any asset representing real value. The whole concept of digitizing our transactions is being marketed as a convenience, a hassle-free payment method and a transparent, easy new way to smoothly run our lives and businesses, without the burden of carrying cash around. However, the realistic flip side of this joyful argument is more ominous than we might at first realize: Now, account monitoring or freezing, and confiscations will be easier than ever. And of course, by eliminating cash, central banks are getting rid of the last existing barrier to negative interest rates.
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Thursday, April 07, 2016
Fed Minutes Not Pretty....Bad News For Financial Stocks.... / Stock-Markets / Stock Markets 2016
The fed minutes came out today and they weren't pretty, if you're a believer in the global economic recovery theme. Ms Yellen said the committee felt that there were still strong risks to the global economy, and, thus, the unspoken words were that there won't be any further rate cuts for a while. Financial stocks hated this and moved lower, which temporarily hurt the action in the overall market. Nothing terrible, but that sector took a big hit on the news. When the financial stocks are struggling, it's a lot harder for the market to move up simply because of the heavy weighting in those stocks. If Yellen had hinted anything about a global future recovery, they would have exploded.
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Thursday, April 07, 2016
Best Cash ISA for 2016-17, 4% Help to Buy and P2P 9% Alternatives? / Personal_Finance / ISA's
Good news, its a new tax year which means savers can deposit upto £15,240 into a tax free cash ISA savings account. Now for the bad news, the banking syndicate's cash ISA rates continue to be relentlessly ground down towards ZERO, where each new tax year tends to see worsening rates offered and this year is no different, Worse still is that Britains banks tend to further penalise ISA savers by typically paying LESS interest than on the SAME term NON ISA account, which makes a mockery of the large annual ISA allowances of £15,240, which means its near impossible to find a rate even half the 5% that could be secured in the pre-funding for lending scheme days (July 2012).
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Thursday, April 07, 2016
Bullard - Fed Reserves the Right to Change U.S. Interest Rate Policy at Any Time / Interest-Rates / US Interest Rates
St. Louis Federal Reserve President James Bullard spoke with Bloomberg Radio's Kathleen Hays today on Bloomberg Radio & Television. While Bullard said he "didn't want to prejudge" whether the committee could act in April, the St. Louis Fed official said last month's employment report showed "continuing improvement" in the labor market.
Bullard said the Fed reserves the right to change policy at any time: "Not only have we moved at all kinds of different meetings, we've actually had inter-meeting meetings, special meetings, and moved at those meetings. So you can do a lot of things. You know, I'm not saying we're I'm planning on that or anything, but the Committee certainly reserves the right to make a move at any time... We debate at all meetings. I think all meetings are live meetings. There's no other way to think about it."
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Thursday, April 07, 2016
Gold Price Testing Key Technical Support – Is There More Downside Ahead? / Commodities / Gold and Silver 2016
The gold price advanced sharply during the first three months of 2016 (+16%), marking its best quarter in 30 years. However, it corrected from a high around $1,287 to $1,200 over the past few weeks. There was a nice bounce yesterday, but gold has once gain dropped today, back below $1,220. With this latest pullback in the gold price, many investors are wondering if the 2016 rally was a false breakout or if the new gold bull market is just getting started.
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