There are some interesting dynamics in play in the small-cap sector – encompassing both fundamentals and technicals. Post-tax cuts of last December, earnings estimates were sharply revised higher. The Tax Cuts and Jobs Act of 2017 was signed into law on December 22. On December 21, operating earnings estimates for 2018 were $145.31 for S&P…
We still believe that Silver Investing In 2018 May Become Very Profitable. That is primarily because of the indicators that look super bullish in the Silver Market In 2018. Is now the time to enter? Well, the silver mining chart says to hold on a bit, and that is not necessarily a bad thing, on the contrary…
WTI Crude Oil The WTI Crude Oil market had a volatile session during trading on Tuesday, initially trying to go higher but finding enough resistance at the $72 level to turn things around. Beyond that, we also saw a lot of selling due to a massive move for a stronger US dollar. The $70 level…
US Treasury note yielded 3.09% which open doors for more aggressive Fed tightening, Long USD/JPY? After months of dollar sell-off since the start of 2018, the dollar has reach its strongest point since December. Chart below shows the 10-year yield breaking back to 2011 levels. The implication of 10-year yield breaking 3% is that inflation…
EUR/USD 4 hour The EUR/USD reversed at Fibonacci resistance levels of wave 4 (green) and is now challenging the previous bottom (blue line) after a strong bearish break below the support trend lines (dotted green). A bearish breakout could indicate a continuation of the 5th wave (blue) and aim for the 1.1750 round level. This…
Over the last 15 years that I have been trading, I have made efforts to fully understand multiple asset classes as I believe this is the best way for anyone to ensure maximum diversity, minimum risk and, of course, better profits across their investment portfolio. While I have always been very active in FX trading,…
Despite positive developments around the token, Litecoin (LTC) erased the gains from earlier this week on Tuesday in a sudden change in the bullish sentiment. What Positive Development? The world’s 6th largest currency, Litecoin (LTC), founded by Charlie Lee has been a fan favorite for a while. Most recently, the positive news included Abra starting to…
Gold prices ended Tuesday’s session down $22.63 an ounce, extending losses to a third straight session, as rising bond yields and a strong U.S. dollar abated investor appetite for the precious metal. The dollar index surged to a five-month high on the back of upbeat U.S. economic data. XAU/USD broke below the support in the…
Thoughts Small cap stocks continue to lead large cap stocks. A medium-term bullish sign for the stock market. High yield spreads continue to make new lows. A medium-long term bullish sign for the stock market. Retail Sales growth: this bull market in stocks still has 1-2 years left. GDP growth will pick up in Q2…
There has been a huge increase in corporate debt to record levels, but the cost to service the debt is manageable because interest rates are low and investors are extremely sanguine. As you can see from the chart below, the spread between junk bonds and investment grade bonds is the lowest of this business cycle. This means that…
