Well, everything’s green again this morning (except, mercifully, for bonds). Crude oil has been particularly strong for many months now, and I wanted to point out an interesting little tidbit. If you glance at the ETF symbol USO, which is a very popular instrument for trading crude oil, you will see its price gap is…
Since 1981, interest rates have been in a falling trend. Last week, we said this trend will continue, and the present blip up in rates is just a correction. We did not argue technical analysis, nor quantity of dollars, nor the general price level. Instead, we asked a question: …It seems obvious that if one wishes…
Technically speaking, the USD/CAD has been in a downtrend in a 4h timeframe, but at this point, it is looking a bit supported. The pair has formed two POC zones. The POC 1 1.2705-1.2720 ( W L3, 61.8, M L3, right shoulder) is the interim support zone and the bounce is expected as long as…
The euro is beginning this week with a four-week slide in tow. It has depreciated in eight of the past ten weeks. It fell in only three months in 2017 and has already fallen two this year. Nearly halfway through May, the euro is off almost a cent. Widening interest rate differentials have some explanatory power….
BTC/USD Bitcoin The bullish flag pattern we talked about last time did not work out as expected. Bitcoin price has tried to break upwards but pulled back towards the 38% Fibonacci retracement support of the latest rise. As long as we are above the 61.8% Fibonacci level I remain optimistic for a new cycle high…
Last week, the GBP/USD pair – commonly known as the cable – was little changed. This came as the data on the US inflation missed analysts’ consensus and as the ongoing political problems in the UK continued. In the former, data from the labor department showed that the country’s consumer prices for April rose at…
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…
