“The discount on the Canadian effective price (CEP) vis-à-vis WTI has risen to over US$20, more than double its 2017 average (US$9.61). Futures contracts currently suggest that the differential between WTI and the CEP will narrow to the US$15 range by the summer, in line with a return to full capacity of the TransCanada Keystone…
VIX pulled back from a test of its March 2 high at 26.22 a week ago, closing above Short-term support at 18.83. The next probe higher may exceed the prior high in the next 1-2 weeks. (Bloomberg) The prime suspects in last month’s global rout may be at it again. Inverse exchange-traded funds — which…
There is a core concept in finance that states that an investor should be properly compensated for the amount of risk taken. While central banks have certainly distorted the amount of compensation per degree of risk, the axiom still holds true. It is in this light that we recently read an article entitled GDP-linked bonds could…
The US maps below show: a) the share of each US county’s employment in steel- and aluminum-producing industries in 2016 (top map) and b) the share of each US county’s employment in steel- and aluminum-using industries (bottom map). The maps were featured in a recent New York Times article titled “How Trump’s Protectionism Could Backfire.” Here’s a slice: Tupelo…
The US maps below show: a) the share of each US county’s employment in steel- and aluminum-producing industries in 2016 (top map) and b) the share of each US county’s employment in steel- and aluminum-using industries (bottom map). The maps were featured in a recent New York Times article titled “How Trump’s Protectionism Could Backfire.” Here’s a slice: Tupelo…
Veeva Systems Inc. (NYSE: VEEV), a healthcare firm with a market capitalization of $10.3 billion, saw its share price increase by 30.7% over the prior three months. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. Is there still an…
Following futures positions of non-commercials are as of March 27, 2018. 10-year note: Currently net short 305.2k, down 8.1k. For the first time since mid-December last year, 10-year Treasury yields went under the 50-day moving average this week. On March 21 – the day the FOMC concluded its two-day meeting by raising the fed funds…
We find it amusing how much digital ink continues to be spilled to predict i) when the ECB will end its QE and ii) whether it will hike before or after it finally stops purchasing government and corporate bonds, or funnier yet, start selling them. The reason for that is that over the past 4…
Streak Of 9 Positive Quarters Is Snapped There were many record winning streaks snapped by the correction in February. With the weakness in March combined with the February decline, the market had its first down quarter since 2015 as the S&P 500 fell 1.22%. The Wall Street phrase “the easy money has been made” is…
Oil prices have been erasing the gains from last week, as weekly U.S. shale production witnessed a sharp increase. Moreover, weakness in the financial markets owing to trade fears and the tech sector’s headwinds are exerting pressure on oil prices as investors became more risk averse. OPEC’s fears came true. Amid the rally in crude…
