According to BRIC projections, the economic power of the BRICs is on the rise. But the other side of the coin is equally interesting. Among the G6 countries, US economic power is increasing at the expense of Europe and Japan. Recently, the 10th BRICS Summit took place in Johannesburg, South Asia. As the international focus…
Arguably, US stocks are giving off some signs of fatigue. The S&P 500 large cap index (2840.35) is still below its late-January high of 2872.87. The Nasdaq 100 index (7395.49) in the week before was rejected at six-month-old channel resistance; it is 1.6 percent from its all-time high. The Russell 2000 small cap index (1673.37)…
With US-China Trade tension continuing to escalate, short USD/JPY? China said that it would impose levy tariffs on about $60b US goods as soon as the US enacts measures The focus for the coming week will be the ongoing trade-war escalations and the impact of the recent tariff measures on producer and consumer prices. Last week, Trump…
For gold bugs the weekly chart for the December gold contract makes for dismal viewing, and despite the rally for gold intraday last week as seen on the deep lower wick to the candle, this morning’s early price action seems to have picked up the bearish tone once again, with a gap down open as…
WTI Crude Oil The WTI Crude Oil market initially fell during trading on Friday but found enough support near the $68 level to show its proclivity to stay within the consolidation area that we have seen over the last couple of weeks. At this point, I believe that the $67 level will continue to attract…
In trading, all that matters is price. And I tend to look use it to identify patterns that can help investors and traders. We can also use market ratios as a gauge of the stock market’s health. Today, we’ll look at the Invesco S&P 500 Equal Weight ETF RSP vs the S&P 500 Cap Weighted SPY. In…
This chart comes from the weekly survey I run on Twitter, which asks respondents whether they are bullish or bearish on equities and bonds for primarily fundamental vs technical reasoning. There has been an interesting pattern in “fundamentals” sentiment, with the turnaround in bond fundamentals sentiment seeming to presage the reset in equity fundamental sentiment. With a…
We’re definitely on the backside of 2018-Q3’s earnings reporting season, where the pace of news about the previous quarters earnings is slowing and investors are turning their attention toward other diversions. In the first week of August 2018, the biggest diversion was the news that Apple (NYSE: AAPL) had become the U.S. stock market’s first trillion dollar…
The EUR/USD kicked off the new trading week with a downside move and now eyes the 2018 low. Will it bounce or break lower? The Technical Confluences Indicator shows that the pair faces significant support around 1.1508. This is the convergence of the 2018 low, the Pivot Point one-week Support 1, and the Pivot Point one-day Support 3. Below, there…
EM FX has come under pressure again due to ongoing trade tensions and rising US rates but saw some modest relief Friday after the PBOC announcement on FX forwards. This helped EM FX stabilize, but we do not think the negative fundamental backdrop has changed. Best performers last week were MXN, PHP, and PEN while the worst…
