“Yeah but it’s junk credit… who cares! I am invested in solid megacaps and even solider FANGs – what can go wrong?” The biggest buyer of stocks in 2016, will be, according to Goldman Sachs, the same as it was in 2015 – corporate management teams buying back their own stock in near record quantities. But there is…
Stocks were in a wide trading range today, as the algo held a little preliminary ‘wash and rinse’ ahead of the FOMC announcement on Wednesday, and the quad witch option expiration on Friday. Have a pleasant evening.
Crude oil traders are on much slicker slopes these days and the short-term offers no clues on technical support because the energy commodity continues to make new lows. Instead, one has to widen their perspective to a monthly time frame to get a better reference on price support levels. OPEC recently concluded its bi-annual meeting and,…
With junk bonds finally reverting to their intrinsic value, the question on everyone’s mind is “what blows up next?” Here’s the first in what might be a long, painful list: CLOs Hammered as Energy Rout Plays Havoc With Other Markets (Bloomberg) – The bust in commodities that’s roiling junk bonds is also taking its toll…
Being slow to market, or failing to meet new customer demands can have a significant negative impact on a firms operations. In high growth and highly profitable industries, competition eventually enters the market and leaves those laggards behind. Despite deteriorating margins, lack of competitive advantage, and a sky-high valuation, Qlik Technologies (QLIK: $31/share) is up…
Alphabet Inc., (GOOG) through its subsidiaries, builds technology products and provides services to organize the information. The company offers Google Search that provides information online; Google Now that offers information to users when they need it. In January 2015, I Know First correctly predicted the bullish trend of Google, claiming that 2015 will be a…
The U.S. Federal Reserve’s two-day policy meeting starts tomorrow, so it’s time to look at what impact a rate hike will have on silver prices. To fully understand this, let’s look at how silver prices are tied to rates. How Silver Prices React to Fed Rate Hikes Historically, silver prices have fallen right after a Fed rate hike. When the…
British CPI and PPI During the course of the session on Tuesday, we have a lot of announcements that could move the market. One of the strongest will be the British CPI and PPI numbers, but we also have the German ZEW announcement, and of course the handful of US announcements. Ultimately, we believe that…
Define irony: a world in which the past 7 years have been characterized by an unprecedented “search for yield.” Well, now that junk debt is finally dumping, and yields are suging (over 8% blended average at last check) virtually nobody wants any of this so highly yielding junk. The good news is that out of…
In financial markets rot starts at the periphery and spreads to the core. For weeks, rot has been visible in the junk bond market and that rot has deepened sharply recently. JNK – Barclays High Yield ETF HYG – iShares iBOXX High Yield Corporate Bond Fund Liquidity Trap A potentially destabilizing run on junk debt…
