Author Archives: Darren Marchal

Gold Sinks As U.S. Dollar Resumes Rally

Gold prices ended Tuesday’s session down $22.63 an ounce, extending losses to a third straight session, as rising bond yields and a strong U.S. dollar abated investor appetite for the precious metal. The dollar index surged to a five-month high on the back of upbeat U.S. economic data. XAU/USD broke below the support in the…

Outlook For Stocks – Wednesday, May 16

Thoughts Small cap stocks continue to lead large cap stocks. A medium-term bullish sign for the stock market. High yield spreads continue to make new lows. A medium-long term bullish sign for the stock market. Retail Sales growth: this bull market in stocks still has 1-2 years left. GDP growth will pick up in Q2…

Explanation Of Corporate Debt & Leveraged Loans

There has been a huge increase in corporate debt to record levels, but the cost to service the debt is manageable because interest rates are low and investors are extremely sanguine. As you can see from the chart below, the spread between junk bonds and investment grade bonds is the lowest of this business cycle. This means that…

Can Options-Derived Levels Catch AUD/USD On Jobs Data, Fed Speak?

The Australian Dollar could be in for some volatile price action in the coming days with fundamentals pointing to potential losses while technicals say otherwise. In either instance, the pair may find itself being supported or restrained by near-term options-derived levels. Looking at the table below, AUD/USD one-day implied volatility is the highest of its major peers at 12.24%….

Sensex Opens On A Negative Note; Banking Stocks Witness Selling

Asian shares are trading on a negative note today. The Nikkei 225 is down 0.2% while the Hang Seng is down 0.1%. The Shanghai Composite is trading down by 0.2%. Back home, India share markets opened the day on a negative note. The BSE Sensex is trading down by 225 points while the NSE Nifty is trading down by 66 points. The BSE Mid Cap index is trading…

Silver’s Long Consolidation Looks Like A Launching Pad

The primary trend for gold and silver over the past year and a half has been the absence of any clear direction in prices. Metals markets have been stuck in consolidation mode. Yet for silver, in particular, that consolidation has formed a clear and potentially powerful pattern. The silver market’s consolidation has formed a symmetrical…

Subprime Chaos: The Auto Bubble Is Bursting And It’s Worse Than 2...

Last week, used car prices had their biggest drop since 2009 – directly after the financial market meltdown of 2008. And right now, the auto market is showing signs of incredible worry. Delinquent subprime auto-loans are higher than they were in the last recession. Look for yourself. . .      What’s interesting – and worrisome – is that consumers are…

5 Ultra Cheap PEG Stocks Value Investors Will Love

Value investing is gaining popularity by the day. The success of value investors like Warren Buffett further underscores this. Buffett believes that proper understanding of the “intrinsic value” of a stock makes the task easier. Yardsticks such as dividend yield, the ratio of price to earnings or to book value are the most common forms…