Hello Traders everywhere. The stock market was trading and trending lower for the day to close at a four-day low when all of the sudden it reversed course. The cause for the reverse, news that White House strategist Steve Bannon was dismissed from his duties by President Donald Trump.
I can't recall such a clear and distinct turnaround caused by news from the White House like today; it sure came out of nowhere.
Oil prices jumped higher Friday as the stock market strengthened and the U.S. dollar weakened. However, crude oil futures remain on track to close the week down as traders are still worried about the global oil glut.
Key levels to watch next week: Continue reading "Stocks Turn On Bannon's Exit"
Analysis originally distributed on August 9, 2017 By: Michael Vodicka of Cannabis Stock Trades
A new and innovative business model is emerging in Canada’s cannabis industry. Not only is it a potentially safer way to invest in the highly volatile cannabis sector, it could also be more profitable than investing in individual cannabis companies.
No, it’s not an ETF or a mutual fund. It’s something called streaming – let me explain.
Cannabis Wheaton Income Corp.(CDNX:CBW) is a young Canadian cannabis company headquartered in Vancouver that just went public in early May.
CBW is pioneering a new and innovative business model in Canada’s cannabis industry known as streaming.
Streaming means providing funding to cannabis companies to help them build and expand operations in exchange for an equity stake and a portion of the cultivation production.
This model comes straight from the gold and silver mining industry. In fact, Cannabis Wheaton is actually named after Wheaton Precious Metals Corp. (NYSE:WPM), now called Wheaton Precious Metals Corp., a pioneer of streaming in Canada’s precious metals industry. Continue reading "This Cannabis Innovator Is Down 50% In Two Months - Time to Buy?"
A number of market participants have begun making year end predictions about where they believe stocks will finish. The predictions have the market finishing higher, lower, a lot higher, a lot lower, and right where it is today. Basically, no one really knows how the stock market will finish 2017 because no one can accurately predict the future.
But, when we look at the past, predictions have been made which aren’t as optimistic. Based on historical data a Goldman Sachs analyst has noted that when stock valuations have been where they are today, the market returns have been in single digits or negative.
Year-to-date the S&P 500 is already up 10.5%, which again compared to historical averages is an above average return. Furthermore, history tells us that we have market pull backs of 5%, 10%, and 15% rather often; about every 3 months, 8 months, and 14 months. We have not seen a 10% or 15% pullback in 2017. Continue reading "Market May End The Year Where It Is Today, But You Can Still Make Money"
The U.S. dollar is the primary benchmark for the expense of the time value of the money around the world. It affects all asset classes, and I want to analyze it to see if the speculation about the coming cycle of the rise in interest rates is valid or not.
The wise trader once said; “if you want to know the market trend just squeeze the chart to see the perspective.” I used that advice to focus on the long-term perspective, and in this post, I would like to share the result of my research in the three graphs below.
Chart 1. The Yield Of 10-Year U.S. Treasury Notes Quarterly: Downtrend Could Be Over Soon
Chart courtesy of stooq.com
The chart above shows the history of the yield on the 10-Year U.S. Treasury notes (UST) from 1980 to present day. I chose that period to highlight the whole move down of the yield from the top in 1981 at the 15.84%. I chose this instrument as it is a benchmark showing investors’ sentiment about the future interest rates for the U.S. dollar. Continue reading "Gold And The Era Of Rising Interest Rates"
Hello traders everywhere. Stock markets around the globe are posting gains today as the tensions between the U.S. and North Korea have eased a bit. The S&P 500 and NASDAQ are both posting 1% gains with the DOW trailing closely on their heels.
Concerns over a rise in OPEC crude production has pushed oil down little over 1% to 48.13, its lowest level in slightly over two weeks. Check out Robert Boselego's recent article on OPEC's production numbers and where he sees the price of oil heading.
Gold has retreated from its Friday high of 1298.10 and is currently trading lower for the day coming under pressure from a strengthening dollar.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 12.4, down about 20%. The index posted its largest weekly gain since December 2015 last week as the North Korea situation escalated.
Key levels to watch this week: Continue reading "Stocks Gain As Global Tension Eases"