In a recent interview with Chuck Butler, he warned us that we may be in for a significant “Minsky Moment”. The federal reserve is raising interest rates and unloading trillions in their US debt holdings. Countries that normally buy our bonds are slowing down their purchases or reducing their holdings. With fewer buyers, what happens…
The US Dollar (via DXY Index) bottoming efforts continue to take steps forward, with price now at its highest level since January 18. Earlier this week, the DXU Index closed above two key trend levels yesterday: the downtrend from the December 18, January 11, and now February 21 highs; as well as the descending channel top off…
Crude oil price is hard to forecast because there are so many factors that could influence its movement. Many of those factors are political, have to do with how certain events are perceived: The interpretation of political and economical events in the Middle East, China, Opec’s decisions, and oil inventories. If you read financial media,…
It’s Sunshine on the Shoulder season as U.S. refineries slow runs to 87.8% of capacity, running just 15.9 million barrels, the lowest level of the year as seasonal maintenance flips into high gear. The trade seemed disappointed that the overall 3-million-barrel build in crude oil supply was higher than expected. That is what should you…
OVERNIGHT MARKETS AND NEWS Mar E-mini S&Ps (ESH18 -0.38%) this morning are down -0.42% and European stocks are down -1.17% ahead of Fed Chair Powell’s second day of testimony before Congress. His comments on Tuesday roiled the markets as they fueled speculation the Fed may quicken the pace of monetary tightening. The markets are also on edge on U.S. trade…
The basic materials sector includes thirteen industries all related to mining, making and delivering essential commodities. The basic material industries are: agricultural inputs; aluminum; building materials; chemicals; coal; copper; paper; silver; specialty chemicals; steel. Today I’m reviewing an industrial metals and minerals company, South32 Limited. It’s trading ticker symbol is SOUHY. South32 Ltd is a mining…
This week I read a story about Canadian businessman who bought some low volatility ETF products backed by nothing but margin. “Harvey Hajiyan, a 35-year-old financial adviser who lives in Toronto and has been investing for more than a decade, assumed stocks would continue to grind higher this year, similar to the gains the Dow…
The ECB January Meeting Minutes were released from the monetary policy meeting held in January. The minutes surprised the markets as policymakers were unwilling to make any changes in its forward guidance for the markets. The minutes revealed a stark turnaround from officials who had at the previous meeting discussed opportunities for tweaking the language of its…
Previous: On Wednesday the 28th of February, trading on the euro closed down. Including during today’s Asian session, the single currency has dropped to 1.2184. As the dollar was rising across board, the euro’s drop could have been more intense. It was saved by the euro/pound cross, which posted a 1% gain to reach 0.8869. The…
As noted on Wednesday afternoon, the dollar managed its first monthly gain in four in February, leading some to wonder if we’ve seen a turning point for a greenback that’s been more “beleaguered” than Jeff Sessions after a Trump Twitter tirade. Of course the dollar story is complicated these days. On one hand, you’ve…
