Biotech ETF Ugly, But…
The Biotech ETF (iShares, IBB) sported a lousy looking pattern earlier in the year. Lousy looking pattern 1.0 = new highs to come. Lousy looking pattern 2.0 = ?
Finance
USDCHF: Tumbles Lower On Strong Sell-Off
USDCHF: With USDCHF turning lower on a strong sell-off on Wednesday, it now faces further corrective weakness in the days ahead. On the downside, support comes in at the 0.9700 level. A turn below here will open the door for more weakness to occur towards the 0.9650 level and then the 0.9600 level. A cut…
Is The China Bubble Bursting Now? Here’s What To Do
The Chinese stock market as measured by the Xinhua China 25 Index (FXI) has declined 18.3% in the last 3 months. The Chinese government is doing everything it can to prop up the company’s faltering economy and stock market. The Chinese government recently drastically increased brokerage financing capabilities. Nothing screams ‘bubble’ more than investors buying on credit. Heavily…
EC Everyone Is
Bob Farrell once penned: “When all the experts and forecasts agree – something else is going to happen.” This rule fits within Bob Farrell’s contrarian nature. This view was also confirmed by Sam Stovall, investment strategist for Standard & Poor’s, who said: “If everybody’s optimistic, who is left to buy? If everybody’s pessimistic, who’s left to…
Vancouver’s Revolting! This Is One Housing Bubble Ready To
Vancouver is my favorite city in North America. It’s my second favorite in the world, roughly tied with Capetown, South Africa. The top spot goes to Sydney, Australia. Then San Francisco and Austin round out my top 5. That said, I’m not the least bit surprised that Vancouver has become a prime example of the…
Google’s Restructure Perfect For Growth And Clarity
In 2004, Google (GOOG) (GOOGL) founders Larry Page and Sergey Brin wrote a letter to investors telling them what they’re getting themselves into. They wrote that Google was never intended to be a “conventional company” and that investors should expect the company to make “smaller bets in areas that might seem very speculative or even…
Dow Priced In Gold Is 65% Off Its High
“You can’t print gold.” For some perspective on the long-term performance of the stock market, today’s chart presents the Dow priced in another global currency — gold. Today’s chart illustrates how it currently takes 15.7 ounces of gold to ‘buy the Dow’ (i.e. the Dow / gold ratio) — well off the 44.8 ounces it…
Alibaba Group Holding Ltd. Plunges As Q1 Revenue Misses Estimates
Shares of Alibaba fell as much as 6.93% in pre-market trading Wednesday after the company reported its fiscal first-quarter results. The e-commerce giant reported revenue of 20.24 billion yuan or $3.265 billion, which represents 28% YoY increase. However, its June quarter revenue missed the consensus estimate of $3.39 billion, sparking speculations that Alibaba is witnessing the impact of a…
Equity Futures Tumble Again, S&P To Open Under 200DMA, 10Y Yi
The overnight market has been a repeat of yesterday’s action, when following China’s repeat 1.6% devaluation of the CNY (which was to be expected since the PBOC made it quite clear the fixing would be based off the market value, a value which continues plunging), the second biggest in history following Monday’s 1.9% plunge, traders…
Great Graphic: China In Trade-Weighted Indices
The Financial Times headline story claims that “China risks clash with US as 19% devaluation surprises markets”. The text provides no support for the claim, except a quote from Senator Schumer who has tried and failed several times to toughen up US laws on currency manipulation. The FT notes that “The US Treasury offered a…