The majority of Q1 earnings are behind us, and overall weakness is confirmed. As of May 13, 2016, 91.8% of the S&P 500 index’s total members have announced their results with a total earnings decline of 7.3% year over year on a 1.4% fall in revenues. Adding to this gloomy earnings picture is the precarious…
EUR/USD 4 hour The EUR/USD broke the bear flag chart pattern (dotted purple) as price heads lower to the Fibonacci targets. For the moment the wave count has been labeled as a continuation of wave C (blue). The alternative is a wave 3 if price manages to break below the 161.8% Fibonacci target. 1…
How much more can the gold rally sustain? On a year to date basis, the precious metal has carved for itself a unique distinction of gaining over 20%. A quick comparison of the US stock indices shows Gold’s performance out beating every other asset. The rally in the commodity has sent gold mining stocks on…
After showing weakness last week and creating some bearish-looking technical formations, stocks took a turn for the better on Monday. Perhaps it was renowned value investor Warren Buffett breaking from his usual aversion to tech companies and investing $1 billion in Apple (AAPL) that gave bulls a much-needed shot of confidence. But then things went…
The news out of Japan is positive. Its annualized quarterly growth came in much higher than expected surprising markets and investors alike. Real gross domestic product (GDP) for the January-March period expanded an annualized 1.7 percent against expectations of a 0.2 percent rise. On a quarterly basis, GDP grew 0.4 percent against a poll forecast…
Warren Buffett’s newest 13F filings were recently released… The Oracle of Omaha has invested in another tech company. This is only Buffett’s 2nd large technology company investment. The first came in 2011. That’s when Warren Buffett began building a position in IBM (IBM). Today, IBM is Berkshire Hathaway’s (BRK-A) 4th largest holding – 9.6% of the company’s total stock portfolio. Buffett has famously…
No one knows if it’s a hand grenade or a nuclear warhead… The ramp up in Chinese debt accumulation has been a leading concern of investors for years. The average total debt of emerging market economies is 175% of GDP, and skyrocketing corporate non-financial debt has launched China far beyond that number. The real question…
The US dollar is rising against all the major currencies today. The Australian dollar is retracing a sufficient part of its recent gains to suggest that the current phase of the US dollar’s recovery is not over. Given that the Aussie topped out a week before the other major currencies, it is reasonable that it begins…
EUR/USD Signal Update Yesterday’s signals gave a profitable short trade following the rejection of the resistance level at 1.1340. As the price at the time of writing is at a key previous swing low and also close to a key support level, it would make sense to take some more profit on any open trade from…
It is obvious that the unintended consequences of ZIRP have destroyed financial market structure which ultimately flows through to the broader economy. All the financials, the layoffs on Wall Street, and the way assets are trading in the financial markets in general illustrate that financial markets are not healthy right now, and slowly deteriorating every…
