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Weak

LATAM: Watch Brazil But Buy The Peso

Lior Alkalay - INO.com Contributor - Forex


LATAM currencies are back in the game. Optimism over Brazil’s political future is growing and commodities, a key driver of regional growth, are recovering. Together, much of the uncertainty looming over the region has been removed and put regional currencies -the Brazilian Real, Mexican Peso and Chilean Peso into favor.

One important gauge of rising optimism is the price of Credit Default Swaps. Credit Default Swaps, or CDS for short, measure the cost of insuring against a bankruptcy. When the price of Credit Default Swaps falls, it points on lower risk and higher optimism. As the chart below indicates, Credit Default Swaps have fallen dramatically across the region since February, signaling a surge in optimism in the LATAM space.

LATAM CDS Chart
Chart courtesy of Deutsche Bank

But the CDS chart illustrates another very interesting picture. While the fall in risk is across the board, Brazil, the largest economy in the region, is deemed as the most probable to default on its debt by a wide margin compared to much smaller regional peers. [Continue reading]

Weekly Futures Recap With Mike Seery

We've asked Michael Seery of SEERYFUTURES.COM to give our INO readers a weekly recap of the Futures market. He has been Senior Analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets. Michael frequently … [Continue reading]

How The Mighty Have Fallen

Hello MarketClub members everywhere! You have heard me say this many times before, perception is an extremely powerful force in the markets. We see just how powerful this force is with the recent move down of Apple Inc. (NASDAQ:AAPL). Once the … [Continue reading]

The Japanese Gold Trapped In A Large Consolidation

This topic was promised in one of my previous posts to our readers, and I am pleased to offer it to you today. I was waiting to see the end of the month price action to try to write when I considered all the moves within a month for more accuracy. … [Continue reading]

Stock of the Week up more than 8.4% in 2 days

It's been only 2 days since we released this week's stock and, as of 1pm (EDT) today, it's already showing an 8.4% gain. Send me this week's stock. This week's pick is a semiconductor company that has put up better than expected quarterly … [Continue reading]

This Stock Could Feed Profits Into Your Portfolio

Long-term value investors understand that truly profitable trends can take time to build up. Stock market sectors wax and wane with the economy and flow along the curvature of the business cycle, but others don't necessarily obey the same rules. … [Continue reading]

Are We or Are We Not in a New Gold Bull Market?

Technical analyst Jack Chan has examined the charts and says that if we are in a new bull market, prices in both gold and gold equities should begin to pull back and consolidate soon. As suggested in our previous analysis, we need to see a couple … [Continue reading]

One Thing You May Have Missed About Apple

Hello MarketClub members everywhere, Adam Hewison here coming here from the digital studios of MarketClub. I just got back from a short vacation break in Maui to see Apple once again slumped below $100 a share. Apple Inc. (NASDAQ:AAPL): One … [Continue reading]

Israeli Shekel Turning Japanese?

The Israeli Shekel has gained roughly 6% since mid-January. The Shekel has also been more resilient than other currencies when the dollar was gaining, and it has been performing well even when the dollar was weakening. All the while, Israel has been … [Continue reading]

This Fibonacci Timing Zone Is To Blame For The Market Volatility?

I was on CNBC's Squawk Box today and host Brian Sullivan asked where I thought the market was going. The truth is, we are in a pocket of high volatility with little net price change from 1 year ago. Why? We are caught in a Fibonacci Timing Zone that … [Continue reading]

Fill In The Caption

As promised here is today's caption for the "Amtrak Primary." What do you think would be the "perfect caption" for this photograph of Senator Ted Cruz? Here's mine: "Your world is on fire"! Feel free to leave your caption, but please keep … [Continue reading]

Waiting On The Fed, GDP Results And Apple Earnings

The markets will be watching the Fed closely, looking for the central bank's latest decision on interest rates (although no one expects a change), there's also new GDP estimates for the markets to chew on. Meanwhile, there are corporate earnings … [Continue reading]

What To Expect In The Oil Market

By: Sara Nunnally of Street Authority The latest rumor around the global water cooler that Russia and OPEC-leader Saudi Arabia have agreed to freeze oil production at January or February levels has been dispelled... for now. The OPEC leaders … [Continue reading]

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