Category: General

Warning: Uncle Sam Can't Afford A Strong Economy

Posted on by admin

By the time the U.S. budget deficit reached $1.4 trillion in fiscal (October) 2009, alarm bells were sounding everywhere. Unless the government could get its fiscal house in order, the future promised years of misery as the U.S. kowtowed to its bondholders in China, Japan and elsewhere.

But this crisis simply never came to pass. Thanks to a range of factors for which both political parties can take some credit, the budget gap has already narrowed sharply. According to the Congressional Budget Office (CBO), the budget deficit will fall even further in fiscal 2014 and 2015. Continue reading "Warning: Uncle Sam Can't Afford A Strong Economy" →

Chart to Watch - NASDAQ:FEYE

Posted on by The INO.com Team

We've asked our friend Jim Robinson of profittrading.com to provide his expert analysis of charts to our readers. Each week he'll be analyzing a different chart using the Trade Triangles and his experience.

Today he is going to take a look at the technical picture of FireEye Inc. (NASDAQ:FEYE).

With stocks you use the monthly MarketClub Trade Triangle to tell the trend and the weekly MarketClub Trade Triangles for the entry and exit points.

FireEye Inc.(NASDAQ:FEYE) just broke out Friday, so the analysis if good if the breakout holds, which it looks like it will do.

FEYE is put in a new monthly green Trade Triangle on Friday's (1/3/14) breakout. Continue reading "Chart to Watch - NASDAQ:FEYE" →

Historic Optimism in the Stock Market - What Does it Mean?

Posted on by The INO.com Team

By: Elliott Wave International

How do you know when the market is getting ready for a change? This quote from Bob Prechter's best-selling book, Conquer the Crash, looks at investor psychology at extremes in the markets:

The engine of high stock market valuation is widely shared optimism. The greater the degree of the advance that is ending, the greater the optimism at its peak. Optimism also tends to remain strong in the early stages of a bear market.

Today, how optimistic are market participants? Bob dedicated an entire issue of his Elliott Wave Theorist market letter to looking at the level of optimism in the markets today. These two charts, excerpted from that letter, show just a piece of the story. Learn how you can get the entire issue, with 15 eye-opening charts, for free. Continue reading "Historic Optimism in the Stock Market - What Does it Mean?" →

Miners Must Mind Their Margins

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The Gold Report: Since you last spoke to The Gold Report in March, the price of gold has collapsed. What happened?

Rob Cohen: Gold has collapsed when compared to the U.S. dollar, but not when compared to other hard assets. For instance, since gold was allowed to float in 1971, its average price ratio per ounce to the price of a barrel of oil has been 15:1. Right now, it's about 13:1, so it's not that far from the mean. We remain a little puzzled by what has happened. Going back to 2008, there's been a strong correlation between the expanding balance sheet of the Federal Reserve and the rising price of gold, but that link has been cut, at least for now.

We have also had some positive economic data out of the U.S.

TGR: Is this positive data really all that positive? Continue reading "Miners Must Mind Their Margins" →