S&P 500 Hovers Near Five Month High

Hello traders everywhere. As we hit the middle of July and the doldrums of summer the S&P 500 is hovering near a new five-month of 2,835.96, presently trading at the 2,815.00 level and up roughly 3.5% on the month. The move higher has been propelled by a positive earnings season, for the most part, led by the big banks. Morgan Stanley (MS) rounded off earnings from big banks, gaining 3% after its profit topped analysts' estimates on gains in fixed income and equities trading businesses.

The DOW remains to trail the S&P needing to get to above 26,306.70 to hit a new five-month high. However, it does lead the S&P 500 with a monthly gain of 3.78% on the month so far. But the real leader of the bunch remains to be the NASDAQ, which is trading near all-time highs at the 7,800 level and looking to head higher with a monthly gain over 4.4% at the moment.

Can the S&P 500 catch the NASDAQ this month as the tech sector stumbles?

Key Levels To Watch This Week:

Continue reading "S&P 500 Hovers Near Five Month High"

Bitcoin Helped ARK Win 'Top ETF' in 2017

ETF.com’s “ETF of The Year” award went to the ARK Innovation ETF (ARKK) for 2017. The award was given to ARKK for a number of reasons, but the top two were due to its exposure to disruptive technology in 2017 and its strong performance. Both of those key metrics for winning the award were partly due to the fund's exposure to Bitcoin.

ARKK owned Bitcoin through buying shares of the Bitcoin Investment Trust (GBTC). ARKK had anywhere between 6% and 10% of its assets in GBTC during 2017 while the cryptocurrency rose higher during the end of last year. During that time Bitcoin was often ARKK’s top holding. This helped the fund produce an 85% return for investors in 2017. Just for comparison, GBTC was up roughly 1,550% in 2017.

What’s more interesting though is that while GBTC is now down more than 65% year-to-date in 2018, ARKK is up more than 21% this year. The main reason for this reversal is because sometime in January of 2018 ARKK’s management team started selling their position in GBTC. As of today, ARKK still has a small position in GBTC, but it represents just 0.26% of the fund's assets.

ARK, the issuer of the ARKK ETF recently told ETF.com that it was a “complicated decision” to cut its Bitcoin investments, but that it was driven largely by regulatory and tax concerns, more so than the true “merits” of Bitcoin. Continue reading "Bitcoin Helped ARK Win 'Top ETF' in 2017"

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 appears on multiple business networks including Bloomberg news, Fox Business, CNBC Worldwide, CNN Business, and Bloomberg TV. He is also a guest on First Business, which is a national and internationally syndicated business show.

Gold Futures

Gold futures in the August contract is currently trading at 1,242 an ounce after settling last Friday in New York at 1,255 down about $13 for the trading week hitting a fresh contract low as I remain bearish gold and as I have talked about in many previous blogs I think we're headed towards the 1,200 area relatively soon. The precious metals across the board continue their bearish momentum on a daily, and weekly basis as the U.S dollar remains strong, and the U.S equity market also is in a significant bullish trend as the NASDAQ 100, and the Russell 2000 hit all-time highs in yesterday's trade. Money flows continue to come out of the precious metal sector and into the equity market, and I don't see that ending anytime soon. I see no reason to own gold at this time and if you are short, stay short and place the stop loss above the 10-day high standing at 1,267 as the chart structure will also improve in next week's trade, therefore, the risk will also be lowered. Gold prices are trading far under their 20 and 100-day moving average as the trend is to the downside as volatility is average at the current time, but investors presently don't want to own anything except for stocks and possibly the crude oil market. I'm not recommending any bullish position in gold as a bottoming pattern has not been formed yet in my opinion as prices still look expensive.
TREND: LOWER
CHART STRUCTURE: IMPROVING
VOLATILITY: SOLID

Continue reading "Weekly Futures Recap With Mike Seery"

Who's Winning The 'Trade War'?

Just how crazy is Donald Trump?

Back at the beginning of March, the president famously tweeted:

“When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win. Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy!”
- President Donald Trump

You probably don’t remember what the exact reaction to that was, but you can probably guess it involved hoots of derisive laughter. After all, the idea of the president of the United States upsetting the world apple cart by supposedly starting a trade war with China and our biggest trade partners and closest allies was the height of lunacy.

But who’s laughing now? Continue reading "Who's Winning The 'Trade War'?"

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