Paul Simon says it best when you’re talking about the action in the oil markets lately: Oil just keeps ‘slip slidin’ away. Prices are at levels not seen since 2010. This startling price action is causing fascinating reactions in a broad number of industries and sectors. One particularly interesting reaction is that of the automobile…
As everyone knows, stocks do not go up in a straight line, not even during the holidays. So although the future looks bright for U.S. equities as the major indexes continue to hit or challenge new highs, the market has been gasping for a breather to gather bullish conviction. My fear has been that we…
The Jobs Report scored big Friday, reporting 321,000 new jobs for November and a strong monthly wage increase. Unfortunately, the outlook for GDP growth indicates this robust level of jobs growth is not likely to continue for long. Over the last two quarters, the economy grew at a 4.2 percent clip, about double the pace for…
Well for the last decade, anyways! Chart below is a weekly chart of GLD and DXY. As shown below powerful moves in the USD (DXY) do not send gold crashing. The USD looks like it is completing a A-B-C correction. Once the C is done, and the DXY falls, gold will do well. How much…
The new week has begun with two macro-economic disappointments. First, after the recent capex data, economists had expected Japan’s 0.4% quarterly contraction in Q3 to be largely revised away. However, the actual report came out worse, showing slightly deeper contraction (-0.5%). Moreover, this was due primarily to the downward revision in business spending to -0.4% from…
How about the price of crude? It’s now down 40% in six months! The oil biz has been knocked on its ass as a result. The oil stocks have been taken behind the shed and beaten with a stick, losses of 20-40% in market cap are common. The fallout (good and bad) from the drop…
Gold got quite a pop intraday, as repeated attempts to take gold below the key support at 1190 failed. Oil was down, stocks were down, but gold was not going lower. And so the metals bears seemed to throw in the towel, and gold rebounded sharply running almost straight up towards the 1210 level. I…
The Chart of the Day belongs to Dentsply International (XRAY). I found the stock by sorting the All Time High list for the stocks hitting the most frequent new highs in the last month then used the Flipchart feature to review the charts. Since the Trend Spotter signaled a buy on 10/27 the stock gained 19.07%. Dentsply International Inc. designs, develops, manufactures…
Bears paid an early visit to Santa with a broad selling. The relative loss was minor, although volume climbed to register to confirmed distribution. The Nasdaq delivered on the ‘bear flag’ breakdown, which will give shorts something to work with. The index finished on its 20-day MA. but this hasn’t played as support in recent…
We are now far advanced into the third central bank generated bubble of the last two decades, but our monetary politburo has taken no notice whatsoever of its self-evident leading wave. Namely, the massive malinvestments and debt mania in the shale patch. Call them monetary Bourbons. It is no exaggeration to say that inhabitants of the…
