This is why I am not a huge fan of holding my short positions for extended periods of time. Ideally, I like holding a short 2-3 days. Once I get profits in the 4-7% profits, that is where I start getting itchy to cover my position. While I embrace shorting stocks when the market calls…
Written by Joseph Joyce The recent research related to the trilemma (see here) confirms that policymakers who are willing to sacrifice control of the exchange rate or capital flows can implement monetary policy. For most central banks, this means using a short-term interest rate, such as the Federal Funds rate in the case of the Federal…
Risk-aversion in the financial markets is abating which lifts the FTSE 100 and it seems fair to expect the FTSE 100 to digest its losses today. I assume that short-term traders will be booking profits at current levels given that the FTSE 100 lost 9.52% of its value over the last two weeks, substantially fattening the gains…
During yesterday’s amazing rush-up on gold (making Q1 2016 the best quarter for gold in thirty YEARS, and we’re not even halfway into the quarter yet!) I did a post stating I was shorting the miners into the strength (in dollar terms. Heh.) To be specific, I am short GDX (big), RGLD (small), and SLW (small). Judging from pre-market action, that looks like a good…
Jim Grant didn’t hesitate when asked. He sees the price of gold is going up. Grant made the rounds Wednesday, appearing first on CNBC, saying he thinks the US is already in a recession, and we can expect even crazier monetary policy in the future. Then he did an interview with The Street and made an…
The “move to digital” was the main theme on Cisco (NASDAQ:CSCO) earnings conference call on the 10th of February after market close. Cisco produced an impressive set of Q2 earnings (EPS of $0.57 non-GAAP and $0.62 GAAP) beating estimates of $0.54 per share by some distance considering the weak guidance it had for this quarter. Revenue came in at $11.8 billion…
Oil has been getting crushed over the past several months, and the major driver behind the fall in prices is the worldwide oversupply of the natural resource.The Russians, and OPEC continue to pump out the black gold at the same levels when oil was around $100 per barrel.Further, with the Iranian sanctions lifted, more crude…
Remember the vicious cycle that threatened the entire European banking sector in 2012? It went something like this: over indebted sovereigns depended on domestic banks to buy their debt, but when yields on that debt spiked, the banks took a hit, inhibiting their ability to fund the sovereign, whose yields would then rise some more,…
In May of last year, the S&P hit a key level and stopped on a dime. We applied Fibonacci tools to the highs in 2007 and the lows in 2009, to the chart above. The 161% Fibonacci extension level came into play in the 2,150 zone last year and when hit at (1), the markets…
The Census Bureau’s Advance Retail Sales Report released this morning shows that seasonally adjusted sales in January posted a welcome rebound from the December data, and those December numbers were adjusted upward. Headline sales increased 0.2% month-over-month and are up 3.4% year-over-year. Core Retail Sales (ex Autos) increased 0.1% MoM and are up 2.5% YoY….
