Admin – Page 8 – I Love Trading

What Wall Street Expects From The ECB, And How Will The Market React

September 8, 2016September 8, 2016 Admin

While there have been various trial balloons in recent days, hinting that the ECB could start purchasing equities, most notably by the Peterson Insitute, it is unlikely that Mario Draghi will commence outright monetization of ETFs at the ECB’s meeting tomorrow. Still, that does not change the fact that the ECB is rapidly running out of bond to government monetize, which has pushed government yields to all time negative lows, and has so distorted the corporate market that non-backstopped corporations have issued negative yielding bonds: an unheard of event. On…

“This Ain’t Rocket Science Folks” – Fundamentals Matter (And Will Always Matter)

August 23, 2016 Admin

Submitted by Thad Beversdorf via FirstRebuttal.com, Challenge For the Market Pros, CEOs and PhDs…Read and Answer the Last Sentence Now we’ve all heard a lot of statistics that depict both a good and bad employment picture. We have 5% U3 (historic lows) but we have 62% labour force participation rate (record lows for double income household era). We hear Obama suggest he’s created 7 million new jobs but wages are stagnant. So is the job market good or bad? Remember job growth figures are irrelevant without the context of the working…

What The Fed Hasn’t Fixed (And Actually Made Worse)

August 21, 2016 Admin

Submitted by Charles Hugh-Smith via OfTwoMinds blog, The Fed has not only failed to fix what's broken in the U.S. economy–it has actively made those problems worse. The Federal Reserve claims its monetary interventions saved America from economic ruin in 2009, and have bolstered growth ever since. Don't hurt yourself patting your own backs, Fed governors past and present: it's bad enough that the Fed can't fix the economy's real problems–its policies actively make them worse. After seven long years of politicos and the financial media glorifying the Federal Reserve's…

Is The Donald A Dollar Risk?

August 9, 2016 Admin

The U.S. dollar will weaken sharply if Donald Trump wins the presidential election in November, according to Bloomberg's Mark Cudmore. But it’s less clear if the sell-off has legs beyond his potential inauguration in January. Given some of the pronouncements made during his campaign to date, markets will rightly be concerned about the direction of Trump’s policy. But, without taking a view on whether he actually intends to preside as indicated, the reality is that he’ll be severely constrained in his ability to dictate policy. Recent polls show that a…

In 50 Years This Has Never Failed To Trigger A Bear Market

July 30, 2016July 31, 2016 Admin

Authored by Jesse Felder of TheFelderReport.com,

It’s earnings season once again and it looks as if, as a group, corporate America still can’t find the end of its earnings decline since profits peaked over a year ago. What’s more analysts, renowned for their Pollyannish expectations, can’t seem to find it, either.

So I thought it might be interesting to look at what the stock market has done in the past during earnings recessions comparable to the current one. And it’s pretty eye-opening. Over the past half-century, we have never seen a decline in earnings of this magnitude without at least a 20% fall in stock prices, a hurdle many use to define a bear market.

In other words, buying the new highs in the S&P 500 today means you believe “this time is different.” It could turn out that way but history shows that sort of thinking to be very dangerous to your financial wellbeing.

Bank Of Japan Shocks Market, Shuns Government Pressure: Leaves QE, Rates Unchanged, Questions Policy Effectiveness

July 30, 2016 Admin

Expectations were extremely high heading into tonight's BoJ decision, and market liquidity disappeared with massive violent swings in FX, rates, and equity markets before Kuroda unleashed his disappointing statement: *BANK OF JAPAN TAKES ADDITIONAL ACTION *BOJ EXPANDS PURCHASES OF ETFS TO 6T YEN *BOJ DOUBLES USD LENDING PROGRAM TO $24B But… *BOJ MAINTAINS POLICY BALANCE RATE AT MINUS 0.100% *BOJ BOARD VOTES 7-2 TO KEEP NEG RATE UNCHANGED *BOJ MAINTAINS MONETARY BASE TARGET AT 80T YEN Finally, details are emerging of the stimulus package, NHK reporting: ~7.5t yen of fiscal…

The Fed Is Preparing For Negative Rates – Here’s The Sign Everyone Missed

July 30, 2016 Admin

Submitted by John Mauldin via MauldinEconomics.com, I think it’s possible that the Fed will push rates below zero when the next recession arrives. I explained why a few months ago in my free weekly column, Thoughts from the Frontline, at Mauldin Economics. In that regard, something important happened recently. And not many people noticed. I’ll do a quick review to explain. In Congressional testimony last February, a member of Congress asked Janet Yellen if the Fed had legal authority to use negative interest rates. Her answer was this: In the spirit…

What investors need to know about USA’s FOREX rules

July 24, 2016July 24, 2016 Admin

US lawmakers dropped a nuclear bomb on the Forex industry called “Dodd-Frank” which implemented a series of rules and regulations that killed all life in the budding Forex industry, in USA. We explain this is detail in Splitting Pennies – Understanding Forex; the rules are widely misunderstood, and widely catastrophic for trading Forex. You can read more about this massive legislation here, in summary. A summary of the rules, that impact Forex traders: 50:1 leverage, no cross netting (meaning, if you are long EUR/USD and long USD/CHF, it eats into…

The Fundamental Reason The Silver Price Will Explode Much Higher Than Gold

July 17, 2016 Admin

By the SRSrocco Report, Investors need to understand an important fundamental reason why the silver price will explode much higher than gold. While many analysts state several reasons why silver will outperform going forward, I believe one vital fundamental factor is overlooked. This critical factor is based upon a certain supply versus demand component of the gold and silver markets. Actually, I came across this data while working on the research for a completely different article. However, the more I compared the figures, the more surprised I was by the…

3 Things Stock Investors Need To Know About Fx

July 10, 2016 Admin

The stock market cap in the United States is about $22 Trillion. The amount of money in Managed Currency strategies is unknown, but it’s very small, even by CTA standards. According to data based on CTAs listed with Barclay Hedge, there’s about 19 Billion in Currency Strategies. That’s a lot of money, but not a drop in the bucket when compared with equities. And remember that although money in equities isn’t all ‘managed’ – all money in equities is an investment of some kind – because people don’t need equities…