S&P 500 Has Best Week Since 2011

Hello traders everywhere. After a tumultuous few weeks, the S&P and the NASDAQ are set for their best week since December 2011, while the DOW is on track for its best week since November 2016. This is quite the turnaround after we saw record-breaking drops in the markets just last week, but it seems that most traders just shrugged off the correction and went into buy mode.

All three indexes are now trading back above the 50-day SMA and looking to continue higher as a bullish sentiment enters back into the markets. In fact, with this weeks move up the S&P 500 is only 4% lower from it's all-time of 2872.87. That a pretty incredible and quick recovery from the 11.8% drop, last week at it's lowest point.

best week

Crude Oil

Crude oil headed for its first weekly gain since last month as the rising stock market eased concern about economic growth. A weakening dollar has boosted the appeal of commodities priced in the U.S. currency. Crude oil has once again made it's way above $60 a barrel and is currently trading above $61. However, it's still below its 50-day SMA.
Continue reading "S&P 500 Has Best Week Since 2011"

Inflation - Getting Back To Normal

George Yacik - INO.com Contributor - Fed & Interest Rates -
 inflation


So now, suddenly, out of nowhere, inflation has reared its ugly head, and the financial markets are starting to believe it.

On Wednesday the Labor Department reported that the consumer price index rose a higher than expected 0.5% in January, 2.1% compared to the year-earlier period. The all-important core rate, which excludes food and energy prices, rose 0.3% for the month, 1.8% versus a year ago. While not exactly hitting the Federal Reserve’s revered 2.0% annual inflation target, it was apparently close enough to create more jitters in the bond market, with the yield on the U.S. Treasury’s benchmark 10-year note immediately climbing seven basis points to 2.91%, its highest level in more than four years.

The very next day, Labor reported that the core producer price index rose 0.4% for the month and 2.2% year-on-year, which pushed up the yield on the 10-year another basis point, to 2.92%.

I’m not exactly sure why this recent surge in inflation should come as such a big surprise to anyone, but it surely has, witness the tremendous amount of volatility in the financial markets in just the past two weeks. The tipping point seems to have been the release of the January jobs report, the highlight of which wasn’t the change in nonfarm payrolls and the unemployment rate, which they usually are, but the 0.3% (2.9% annualized) growth in wages, which was the strongest year-over-year gain since June 2009.

That seemed to finally catch everyone’s attention that yes, contrary to what the Fed has been telling us for the past four years, inflation really does exist. Now we have more verification. And it’s probably only going to exacerbate.

And who do we have to thank for this new-found inflation? Continue reading "Inflation - Getting Back To Normal"

Cannabis Automation Stock Jumps 135%

Analysis originally distributed on February 7, 2018 By: Michael Vodicka of Cannabis Stock Trades

If you think robots are about to take over the world, I've got a great cannabis stock for you.

This early industry leader is leveraging the power of robotics and automation to develop some of the most innovative cannabis manufacturing equipment I have ever seen.

The company's flagship product is a highly engineered machine that helps cannabis producers quickly and cost-effectively extract oil from the cannabis plant.

If it catches on, this young cannabis company could grow into an industry pioneer and global leader.

Let's take a closer look.

Quadron Cannatech (QCC) is a young Canadian cannabis company headquartered in Vancouver.

Shares began trading on the Canadian Stock Exchange in February of 2017 under the ticker symbol QCC. I see average daily trading volume of 784,000 so this ticker is plenty liquid for 99% of regular investors.

I also see a US OTC listing under the ticker symbol QUDCF. I see much less liquidity here with average daily trading volume of 51,000. But that volume should still be adequate for most investors.

Here's why QCC grabbed my attention. Continue reading "Cannabis Automation Stock Jumps 135%"

Declining Retail Sales Slow Down Market

Hello traders everywhere. The Commerce Department reported today that retail sales for January and December in the U.S. unexpectedly declined as receipts were revised lower, indicating that consumer demand in the first quarter may slow down.

Retail Sales

Highlights From The Report

  • Overall sales fell 0.3% (est. 0.2% gain), the most since February 2017, after little change in prior month (prev. 0.4% increase)
  • Purchases at automobile dealers dropped 1.3%, the most since August
  • So-called retail-control group sales, which are used to calculate GDP and exclude food services, auto dealers, building materials stores and gasoline stations, unchanged following a revised 0.2% decrease in December (prev. 0.3% gain)
  • 7 of 13 major retail categories showed declines in receipts
  • The Labor Department’s core Consumer Price Index, which excluded the volatile food and energy components, increased 0.3% in January. Economists polled by Reuters had forecast an increase of 0.2%. However, the year-on-year rise was unchanged at 1.8%

Continue reading "Declining Retail Sales Slow Down Market"

2018: Supply/Demand Trends Can Make Or Break Oil Prices

Robert Boslego - INO.com Contributor - Energies- Crude Oil Price


The crude oil price started the year off strong, as January posted the highest OPEC Reference Basket price ($66.85) since November 2014, the month in which the Saudis decided to wage an oil price war with American shale oil. But the market gave up its 2018 gain during the first week of January, as the Energy Information Administration (EIA) incorporated the huge November production surge into its short-term outlook and weekly time series data. To top it all off, Baker-Hughes reported the most significant one-week gain in its oil-directed drilling rig count.

Whether the market shifts back to bullish sentiment, or whether the bearish sentiment takes control this year, depends mainly on several key assumptions. The central hypothesis is how fast shale oil production will grow this year, and the second is what OPEC production will be, given the on-going risk to Venezuelan output. Based on U.S. production from August through November, the recent lagged response in drilling rigs, and the high prices experienced October through January; I expect that U.S. production will rise faster than either the DOE or OPEC assume in their forecasts.

EIA’s February Outlook

The EIA released its outlook, revising its U.S. crude production estimates much higher. For the year, it now expects crude production to average 10.59 million barrels per day (mmbd) in 2018, and to exit the year at 11.13 mmbd.

The EIA’s estimate of production for February is 10.260 mmbd. That figure is 1.07 mmbd higher than August. If anything, EIA’s 2018 prediction seems low. Continue reading "2018: Supply/Demand Trends Can Make Or Break Oil Prices"