The S&P 500 Index is only down .60% from its November 8, 2017 high yet individual investor and institutional equity sentiment has turned significantly less positive. This negative sentiment has not translated into broadly lower equity prices though, but knowing sentiment measures are contrary indicators, they are approaching levels that would be suggestive of higher…
Shanghai Pharma (SHA: 601607) paid $1.2 billion to win the bidding war for Cardinal Health’s (NYSE: CAH) China drug distribution operations (see story). Cardinal was China’s eighth-largest drug distribution company, with $3.5 billion in 2016 China revenues, while Shanghai Pharma is number three. After the companies are combined, Shanghai Pharma will become number one. In 2010, Cardinal got a foothold in…
The US dollar is trading with a heavier bias against the euro, sterling, and yen, but is firmer against the Antipodean currencies and many of the actively traded emerging market currencies. This mixed performance is the story of the week. The US 2-10 yr yield curve is flattening further today with the two-year pushing above 1.70% for the first time since the…
Here are my forecasts for upcoming economic data. Forecast Prior Observation Consensus Week of November 20 November 20 Leading Indicators 0.4% -0.1 0.6 November 21 Chicago Fed National Activity Index – October…
VIX rallied from its mid-Cycle resistance at 14.59 before closing above Long-term support at 11.11. VIX is on a buy signal. The inverted Head & Shoulders formation now has a completed right shoulder giving a potential target for the next move higher when the neckline is exceeded. (Barrons) The CBOE Volatility Index spiked to…
We have already moved past the traditionally busy stretch of earnings season, but there are still several key reports to look forward to next week. So far, Q3 earnings have been strong across the board, so it will be interesting to see whether these reports will continue that trend and inspire strong trading for the…
Unfortunately, many people wrongfully associate Forex trading with a scam. The problem lies in the increasing number of unscrupulous companies marketing false info. The number of Forex-related scams has significantly increased over the past few years, so it’s important for you to be able to identify a hoax. After all, Forex trading should be…
Last week, there was an article in Barron’s describing how many mutual fund families take advantage of a provision in the law allowing them to have funds lend to one another.Quoting from the article: Under normal circumstances the Securities and Exchange Commission bars funds from making “affiliated transactions,” but there’s a loophole in the Investment…
Fundamental Forecast for Gold: Neutral Gold remains stuck in a narrow trading range with neither the bulls nor the bears giving an inch, while both sides press for range break which is likely coming soon. We remain on the sidelines for now, although growing risk aversion has us leaning towards a long position on a…
