The new week has begun much like last week ended, with rising rates helping to extend the dollar’s recent gains. The US 10-year yield is flirting with the 3.0% threshold. The two-year yield is firmer, and, like in the second half of last week, the US curve is becoming a little less flat. The market, as…
AT40 = 55.2% of stocks are trading above their respective 40-day moving averages (DMAs)AT200 = 46.4% of stocks are trading above their respective 200DMAsVIX = 16.9Short-term Trading Call: cautiously bearish Commentary The stock market faded from bullish undertones and back into the resting position. Now we can just look back at what could have been. This is like a painting…
Global stocks stumbled on Monday ahead of an avalanche of earnings in this season’s busiest reporting week but the big story overnight was the spike in 10Y Yield which climbed as high as 2.9957%, the highest level since January 2014, and nearing the psychological 3% level which has triggered market spasms and more than one tantrum in…
Weak smartphone demand implies a soft global growth ahead, continue to Short USD/JPY at peak? Five reasons to explain the flat bond yield curve One of the iPhone maker’s biggest suppliers, Taiwan Semiconductor Manufacturing, warned last week of weak demand from the mobile phone sector. The warning heightened concerns about a slowdown in smartphone sales….
Gold ended the week down $9.89 at $1335.68 an ounce, weighed down by a strong dollar. The dollar rose to its highest level since January after a series of economic data out of the world’s largest economy came out better than expected. Global stock markets were mostly firmer last week. U.S. stocks tumbled on Friday,…
USD/CAD broke above the top trend line of the price channel on its 4-hour chart, suggesting that the downside movement from 1.3124 had completed at 1.2526 already. Further rally would likely be seen after a minor consolidation and next target would be at 1.2900 area. Support is at 1.2600, as long as this level holds,…
Earnings reporting season for 2018-Q2 is now underway in the U.S. stock market. And where the S&P 500 is concerned, the arrival of earnings season appears to have coincided with a shift in how far investors are looking into to the future, with investors shifting the majority of their forward-looking attention away from the distant…
I was updating some of my bond strategy charts this morning and one that caught my eye that I thought would be timely and interesting to share is the seasonality charts. No, not the “sell in May” stock market charts, but the much lesser known bond market seasonality charts. Indeed, you might be surprised to…
USD/JPY 4 hour The USD/JPY is in a bullish channel but the price action remains corrective and weak. The upside can also be seen as a rising wedge reversal chart pattern due to the weak angle of the resistance trend line (red). Price is approaching a key break or bounce spot at the 38.2% Fibonacci…
Photo: Getty Images China is the world economy’s elephant in the room. We can’t possibly ignore it, yet many try anyway. Admitting China’s influence forces us to admit the world is changing—and we all must change with it. This year, China is in the headlines because President Trump wants better trade terms. That’s important, but…
