Category: General

Should Janet Yellen Be The Next Federal Reserve Chief?

Posted on by The INO.com Team

The challenges for Janet Yellen if she becomes the next Federal Reserve chair will require both the steely intellect and the personable style that many attribute to her.

Deciding when to slow the Fed's economic stimulus. Forging consensus from a fractious policy committee. Calculating the effects of any economic slowdown from Washington's budget fight. Facing volatile financial markets. Absorbing new members at the Fed.

First, though, Yellen will have to get there: She'll need to overcome Washington's toxic political environment and win confirmation from the Senate.

It's almost enough to make you wonder why she'd want the job, but a better question is....

Should Janet Yellen be the next Federal Reserve chief?

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Yellen is widely seen as a "dove" on Fed policy: She stresses the need to use the Fed's tools to boost growth and reduce unemployment in the sluggish aftermath of the Great Recession, rather than worry about igniting future inflation. Continue reading "Should Janet Yellen Be The Next Federal Reserve Chief?" →

Technical Analysis Toolkit for Energy Investors

Posted on by admin

The Energy Report: Energy prices are very sensitive to international events, especially conflicts in the Middle East. Do your charts factor in the periodic crises that impact oil and gas prices as buy and sell moments? How do you factor in inflation and interest rate movements into your calculations about which energy juniors look like good buys at any given time?

Clive Maund: The charts do factor in periodic crises that impact oil and gas prices as buy and sell moments, but often in a contrary way. The trick is to gauge when a crisis is at its moment of greatest tension, and while this is not at all easy, the charts can often be a great help in defining such a moment. I will give you an example using a recent call on CliveMaund.com, where the top in oil was pinpointed a day after its occurrence. Some readers may remember an old saying used on the London market many years ago, "Buy on a strike." This refers to a strike by labor, not an oil strike. The underlying psychology of this was that the time of maximum tension and uncertainty, which was when labor unions called the workers out on strike, was the best time to buy stocks, because they would have been falling in anticipation of this, and as tensions later eased as the situation headed to resolution, they would rise again. So it is with conflict and tension situations in the Middle East and their impact on the oil markets. Continue reading "Technical Analysis Toolkit for Energy Investors" →

How Volatility Affects The Options and Binary Options Markets

Posted on by The INO.com Team

Market volatility comes in two forms, implied volatility and historical volatility, both which can affect an investor’s ability to be successful in trading Binary Options. Implied volatility is similar to a financial security as it fluctuates with market sentiment and is an estimate of how much options trader perceives a financial security or index will move over a specific period of time on an annualized basis. Historical volatility is the actual past movement of a security and can be defined as the standard deviation of a time series, reflected in percentage format.

Implied volatility affects the price of a Binary Option, but it influences standard vanilla options much more than it effects Binary Options. Implied volatility changes as market sentiment changes. Generally as fear and trepidation increase, implied volatility increases, while increases in complacency are generally highly correlated to declines in implied volatility.  Continue reading "How Volatility Affects The Options and Binary Options Markets" →

Will the U.S. breach the debt ceiling on October 17?

Posted on by The INO.com Team

Democrats controlling the Senate are planning to try to pass a stand-alone measure to increase the government's borrowing cap, challenging Republicans to a showdown that could unnerve financial markets as the deadline to a first-ever default on U.S. obligations draws closer.

Will the U.S. breach the debt ceiling on October 17?

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Every Success,
The INO.com team

U.S. Stock Market, Profits & Policy

Posted on by The INO.com Team

U.S. stocks generally remain on bullish trends in all time frames.  Further, the Debt Ceiling (and Government shutdown) theater seems to be playing out in the usual way that these events play out; the stock market has been correcting in an orderly way and seems to be waiting for an inevitable compromise between the White House and Republican leaders.  This of course would spur a next leg up if the usual script plays out.  That is how it looks, with a traditional bull catalyst (heavy media rotation of an Armageddon-like political event) in play.

Yet there is a negative in play that actually matters, as corporate forward profit guidance is degenerating.  Or is it really a negative?  Graph from Sentimentrader.com: Continue reading "U.S. Stock Market, Profits & Policy" →