Oil prices are pulling back from 3 and a half year highs after a leap in the U.S. oil rig count and a relatively calm weekend when it came to geopolitical tensions. Drillers added 10 oil rigs and 3 gas rigs bringing the total oil rig count to 844, the highest level since March 2015,…
In a flat to bullish market, most call writers will sell an at-the-money call on the stock they own. The rationale for selling an ATM call is that they have the highest premium in terms of time value. Of course, the option seller can sell at any strike price. What should the call seller do…
A couple of weeks ago, I discussed the coming “Pension Crisis.” The important point made was the unrealistic return assumptions used by pension managers in order to reduce the contribution (savings) requirement by their members. “However, the reason assumptions remain high is simple. If these rates were lowered 1–2 percentage points, the required pension contributions from salaries,…
Year to date, Micro (IWC) and Small Caps (IWM) are acting stronger than large caps. The strength in IWC and IWM have both of them testing all-time highs this week, which could be the top of bullish ascending triangles at each (1). Two-thirds of the time the ascending triangle pattern leads to higher prices. If they break above line…
The U.S. stock market indexes were mixed between 0.0% and +0.4% on Friday, as investors hesitated following recent run-up. The S&P 500 index slightly extended its short-term uptrend after breaking above 2,700 mark on Thursday. It currently trades 5.1% below January 26 record high of 2,872.87. The Dow Jones Industrial Average gained 0.4%, and the technology Nasdaq…
ECB member and Bank of France governor, Francois Villeroy de Galhau, hit the wires this morning insisting that despite sluggish inflation, the governing council is set to stick with the plan and end QE over the near-term, citing September or December as the likely cut off point, and warning that the first rate hike could…
The EUR/USD is extending its recovery after hitting new lows for the year. The pair nears $1.2000 but faces a dense cluster of resistance. The Technical Confluences Indicator shows that the pair faces congestion of resistance lines around $1.1983. This includes the one-week high, the Bolinger-Band one-hour Upper (Stdv. 2.2), the BB 15m-Upper, and the Pivot Point…
After opening their day on a flat note, Indian share markets witnessed choppy trades and ended their session marginally higher. Losses were largely seen in the consumer durables sector and telecom sector, while banking stocks ended the day in the green. At the closing bell, the BSE Sensex stood higher by 21 points (up 0.1%) and the NSE Nifty stood flat. Both, the BSE Mid Cap index and…
After opening their day on a flat note, Indian share markets witnessed choppy trades and ended their session marginally higher. Losses were largely seen in the consumer durables sector and telecom sector, while banking stocks ended the day in the green. At the closing bell, the BSE Sensex stood higher by 21 points (up 0.1%) and the NSE Nifty stood flat. Both, the BSE Mid Cap index and…
The US equity market rebounded last week, posting a gain after two straight weekly declines. The advance topped performances for the major asset classes,based on a set of exchanged-traded products. Vanguard Total Stock Market (VTI) surged 2.5% for the five trading days through May 11, the ETF’s biggest weekly increase in two months. Last week’s rally…
