Crude oil prices have plummeted by more than 70% over the past 20 months, to twelve-year lows. The impact on both producing companies and countries has been significant. Major oil and gas companies have seen large dips in profits. In 2015, BP suffered its largest annual loss in two decades while ExxonMobil, Royal Dutch Shell and Chevron had 50%, 80% and 76%…
Apple has a lot further to go to the downside as a stock. This stock will be putting in lower highs and lower lows for years to come.
In our column last week we were warning you about Deutsche Bank’s problems and potential issues with its derivatives portfolio and its capital structure. The story continued to unfold in the past week and Deutsche Bank was pushed into a corner as more and more investors started to lose confidence in the bank. A plan to buy…
The action this past week has been, to say the least, dismal. However, the major lows that have been support for the bull market since 2009 continue to hold for now, but are under attack. We continue to watch these lows closely as a failure would likely accelerate selling. This week, I am going to…
The Commitment of Traders (CoT) report reveals surprisingly good traction on the move between $1,128 and $1,198 (last Tuesday’s reporting date). Specs went net long 33,562 contracts for the $70 lift and ended at about 61,000 net long. This great traction is what set the stage for Wednesday’s and Thursday’s fireworks. If gold Eagle coin…
A slowing global economy may have barred investors from splurging, but is unlikely to hold back lovers from celebrating Valentine’s Day. If you go by the recent data provided by the National Retail Federation earlier this month, we will likely end up seeing Americans spending about $19.7 billion for this Valentine’s Day, up about a billion dollars…
“We see six signs of capitulation flows data,” begins UBS’s weekly European Flow Watch research note sent to clients yesterday. According to the bank’s analysts, the six signs of capitulation in European equity markets in European equity markets are: Banks: Investors have been net sellers of the banks the first time in five and half years. The recent…
Commensurate with the increase in the market’s volatility that began late last year, high quality stock outperformance has accelerated this year. As volatility increases it is common for investors to seek the safety of higher quality equity holdings. The below chart displays the ratio of S&P’s high quality index to the low quality index.The S&P Quality…
Bank of Japan Governor Haruhiko Kuroda met with Prime Minister Shinzo Abe Friday and discussed global economic and market developments. Kuroda told reporters that “There was no particular comment from the prime minister. “ According to the BOJ governor, Japan’s economy was moving in line with the BOJ’s scenario and that now is the time…
Since the start of 2016, investor sentiment has led to a shoot now, ask questions later mentality. In the court of economic justice, all stocks have been convicted guilty of recession despite the evidence and defense that proves the economy innocent. Even the Federal Reserve Chair Janet Yellen did not prove to be a great…
