Thursday, July 29, 2010

Daily Markets - U.S. Dollar Stress Next?

Daily Markets - U.S. Dollar Stress Next?


U.S. Dollar Stress Next?

Posted: 29 Jul 2010 03:01 AM PDT

The crisis is dead! Long live the crisis! In an attempt to address the debt crises swirling around the globe, policy makers have responded with a mishmash of somewhat questionable approaches:

The U.S. has passed a financial reform bill not worthy of its name;
The U.S. & Europe have engaged in stress tests that aren’t all too stressful; and
China, in an effort to contribute to a more balanced global economy, has allowed its currency, the yuan, to appreciate by a whopping 0.7% … [visit site to read more]


Is It Really Good News When Companies Prosper By Starving Themselves?

Posted: 29 Jul 2010 02:01 AM PDT

Fashion can be a brutal business. The starvation look is on the wane, thank goodness - women who look like walking sticks are no longer the envy of the catwalk.

But fashion is fickle in the corporate world too… and now public companies have picked up the anorexia bug.

“Many companies are focusing on cost-cutting to keep profits growing,” The New York Times reports, “but the benefits are mostly going to shareholders instead of the broader economy, as management conserves cash rather … [visit site to read more]


Municipal Bonds Not As Safe As Brokers Say They Are

Posted: 29 Jul 2010 01:01 AM PDT

Of the speculative excesses that misguided monetary policy and a prolonged recession has caused, the one that poses the most danger to investor wealth is the financial bubble in state and local municipal bonds.

Municipal bonds - usually referred to as “munis” - are very popular portfolio plays because of tax advantages that, in effect, enhance their rates of return. There’s also an allure because of their local nature: Investors can invest in specific bond issues that provided the … [visit site to read more]


One Of The Best Gold Watchers

Posted: 29 Jul 2010 01:01 AM PDT

Pierre Lassonde is one of the smartest people in the gold world, and he has the track record to prove it.

He’s a former president of Newmont Mining (NYSE:NEM), the world’s largest gold producer, and was chairman of the World Gold Council. His achievements aren’t all in the past - now he’s chairman of Franco-Nevada Corp., the most successful gold royalty company.

I’ve known Pierre for years, and have learned that when he talks about gold, it makes sense to listen.

In a recent … [visit site to read more]


Singapore Stock Market Update For Thursday 29 July

Posted: 29 Jul 2010 01:01 AM PDT

STI opens flat for today after the first dip from overnight US stock market since it had been rallying for the past four days. We do expect market to be choppy for the next few days since it near important resistance of 3000. Please practice small risk trading or avoid trading for the time being and wait for a clean break through of 3000. Please be mindful of high created on 15th April of 3037.
Till now, we are bullish.

News update :

Boeing affirms 2010 outlook as quarterly net, revenue drop … [visit site to read more]


Forex Trading: EUR/JPY Grinding Higher

Posted: 29 Jul 2010 12:05 AM PDT

In the prior post we acknowleged that the pair was using the 100 hour moving average as support, and it is still holding.  The pair has been slowly grinding higher and has reached a session high of 113.89. If this momentum continues we may see it reach 114.35 where we have seen some short term support and … [visit site to read more]


Forex Trading: Disappointing U.S. Macro Data Hit Markets Yesterday

Posted: 28 Jul 2010 11:46 PM PDT

Disappointing U.S. Macro Data Hit Markets Yesterday
Plenty of important macro data from the U.S. was published yesterday. Investors were disappointed by the figures and responded mainly by moving away from riskier assets. At first U.S. Durable Goods came negative at -1%, at 12:30GMT later at 18:00GMT Beige book revealed a gloomy outlook for U.S. economy. Although company earnings are still high, yesterday fears about recovery came back to dominate the markets.
Economic News
USD - Traders Shift … [visit site to read more]


Financials, Oil & Gold On The Move

Posted: 28 Jul 2010 11:01 PM PDT

Most traders I have been talking with are feeling the same thing. Something big is brewing for the equities market but most do not want to get heavily involved until there is a clear direction. The broad market has been consolidating for almost 3 months and it’s important to remember that the larger the consolidation the bigger the move.

Also the biggest and best moves come from failed patterns. So is the big head & shoulders pattern on the SP500 which everyone is yelling about … [visit site to read more]


GM Hopes To Lead Budding U.S. Electric Car Market With Chevrolet Volt

Posted: 28 Jul 2010 10:37 PM PDT

General Motors Corp. on Tuesday announced the price tag on its hybrid Chevrolet Volt due out this fall, hoping to blaze the trail for an up-and-coming U.S. electric car industry and entice buyers to take a greener route.

The extended-range electric Volt, running on battery power and a small engine, will be priced at $41,000 and will qualify for a $7,500 tax credit. The price is close to analysts’ $40,000 estimate, but significantly higher than the $32,780 cost of its competitor, the … [visit site to read more]


Crude Oil Falls On Bearish Inventory Data, Gold Liquidation Continues

Posted: 28 Jul 2010 10:11 PM PDT

Crude oil fell following a bearish inventory report on Wednesday. In the coming weeks we will see whether the enormous build was the start of a trend of an aberration.
Commodities - Energy
Crude Oil Falls on Bearish Inventory Data
Crude Oil (WTI)        $77.12       +$0.13        +0.17%

Commentary: Spurred by a bearish DOE inventory report, crude oil prices finished the Wednesday session $0.51, or 0.66% lower. Immediately … [visit site to read more]


Yes, You Can Time The Market – Here’s How!

Posted: 28 Jul 2010 10:01 PM PDT

The trend is your friend and this article reviews the 7 most popular trend indicators to help you make an extensive and in-depth assessment of whether you should be buying or selling stocks, bonds, ETFs, gold or silver for your portfolio. If ever there was a “cut and save” investment advisory this article is it.

It is always hard to know what to buy or sell let alone just when to do so. Thank goodness there are indicators available that provide such information. Below are descriptions of the … [visit site to read more]


Forex Trading: EUR/JPY Testing 100 Hr MAVG

Posted: 28 Jul 2010 09:19 PM PDT

On the hourly chart, EUR/JPY has tested the 100 hour moving average with the last three candlesticks but has not been able to break through to the downside. The pair is currently trading around the 113.30-40 area, which was a level of resistance from July 15th to the 20th. If support holds, the first target to the topside is the 23.65 fibo line (on the move from the low on July 21st to the high on the 28th) at … [visit site to read more]


Four Forces That May Bolster Real Estate

Posted: 28 Jul 2010 09:17 PM PDT

Despite an elevated unemployment rate, weak consumer sentiment and a hoard of homeowners strategically defaulting on mortgages, an opportunity may exist in real estate.  
One positive force working in favor of an upbeat real estate market is affordability.  With the real estate sector being depressed for such a long period of time, prices are at record lows on a per-capita disposable income basis.  In fact, when adjusted for inflation, organic income growth is on the rise … [visit site to read more]


Middle East Sovereign Wealth Funds Might Consider BP Investment

Posted: 28 Jul 2010 09:10 PM PDT

With BP (NYSE:BP) poised to move on from the Gulf oil spill with a new chief executive, the beleaguered London-based company might look attractive to Middle East sovereign wealth funds after all.

It would be a parting legacy from outgoing CEO Tony Hayward if his efforts earlier this month to court the funds in Abu Dhabi and other oil-producing countries were to bear fruit.

It may seem counter-intuitive at first blush that funds set up to diversify assets for oil exporters would want to … [visit site to read more]


Hot Stocks To Watch Thursday 29 July: Deere & Co, NV Energy, Virgin Media, Clorox Corporation, Dole Food Company

Posted: 28 Jul 2010 08:37 PM PDT

Here are a few stocks that for the watchlist. As always, its earnings season and please first check on when the company is reporting if you decide to get into any of these plays.

Dole Food Company (DOLE) - Cup and two handles!! I got into this today. A break of 11.15 on good volume is what is needed.

Clorox Corporation (NYSE:CLX) - Broke out after a nice period of consolidation and low volume pullback right to the support today. A buy if the support holds.

Deere & Co (NYSE:DE) … [visit site to read more]


Did The Gold Bubble Just Pop?

Posted: 28 Jul 2010 08:25 PM PDT

Say what?! Yeah.. You read that correctly. After making a bullish run for the longest time and even marking new historical highs one after another, gold apparently has just lost its upward momentum. In my last post about it back in June 28 (kindly see it here), gold was pretty much in fashion as it just registered a new historical high of just above $1,250.00 per ounce. But as you can see on today’s weekly chart, its bullish run appears to have come to an end. Notice that it has just … [visit site to read more]


US Stock Markets Not Overbought Anymore

Posted: 28 Jul 2010 08:15 PM PDT

A couple of days ago, in fact even yesterday, I had remarked that there were couple of ways a market could work itself off from overbought conditions like we found ourselves in after Monday - a sharp pullback or a period of consolidation preferably on low volume. Now that the latter is exactly what has happened in the last couple of days, let us check on how overbought are the markets now.

Let’s start with the NYSE and NASDAQ McClellan Oscillators as usual. I have market the overbought … [visit site to read more]


Stock Picks For Thursday 29 July: GigaMedia, Generex Biotechnology, Las Vegas Sands

Posted: 28 Jul 2010 06:11 PM PDT

( click to enlarge )

Las Vegas Sands (NYSE:LVS) traded higher today, after the company released earnings. Las Vegas Sands Corp reported better-than-expected quarterly results, as revenue was aided by strong performance in Macau and Singapore. The casino operator run by billionaire Sheldon Adelson, had earnings of US$129.3 million, or 17 cents a share, for the second quarter after adjusting for items. That compared with US$8.8 million, or 1 cent a share, a year earlier. LVS was very … [visit site to read more]


Crude Oil Inventory Watch: Surge In Imports Brings Inventories Near 10-Year Highs

Posted: 28 Jul 2010 05:53 PM PDT

Inventories
The Department of Energy reported that in the week ending July 23, 2010, US crude oil inventories increased by 7.3 million barrels, gasoline inventories were close to unchanged, distillate inventories increased by 0.9 million barrels, and total petroleum inventories increased 9.0 million barrels. The latest movements put all inventory components at or near record seasonal highs. Refinery utilization finally ticked lower, but gasoline production hit a new all-time high. More … [visit site to read more]


Singapore Stock Market Update For Wednesday 28 July

Posted: 28 Jul 2010 06:19 AM PDT

Morning Highlights
Index opened little changed at 2976.79 after Wall Street sagged overnight on consumer confidence.
Watch out for Economic News Release Today:

U.S. Durable Goods Orders in June

Corporate Announcements:

CDL Hospitality Trusts (CDLHT) posted a 49.2 per cent increase in net property profit at $28.70 million for the second quarter ended June 30, from a year ago.

News Updates:

US home prices rise 0.5% in May

US consumer confidence fell to 50.4 in July from a revised 54.3 … [visit site to read more]


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