30 year / 2 year yield curve forecasting deflation event directly ahead?

By Gary Tanashian

The 30 year / 2 year Treasury yield curve has been on a steady march higher since 2007.  This makes sense since that was the year things started falling apart in inflated, debt saturated developed global economies, led by the nation that showed 'em how it's done when it comes to economic management by inflation; the US.

When long term yields are rising faster than short term yields, it is a sign of stress building toward either a breakout in inflation expectations or, as has been the case thus far since 2007 (and really, since the age of Inflation onDemand began in 2001), impending reversal of the excesses.  Unfortunately, in an age where economies are managed by inflation (by monetization of Treasury/Sovereign debt in service to increasing money supplies) these reversals tend to be shall we say, violent. Continue reading "30 year / 2 year yield curve forecasting deflation event directly ahead?"

Does Everyone Know Their ABCs?

We asked All About Trends to share another one of their member articles with our Trader's Blog readers after the positive response we received from last weeks article.  Here's the article as outlined by All About Trends in their newsletter dated 4/22/12

In the newsletter for our paying subscribers on Friday we said:

"What we will also want to talk about is what happens if a C wave down of an ABC wave 4 down takes place."

Before we get into the indexes let's take a look at a few blasts from the past as well as a current example of AB Cya's . Continue reading "Does Everyone Know Their ABCs?"

You can observe a lot by watchin!

By: Chris Irvin, Veteran Instructor & Trader at The Wizard

I have been trading, and mentoring others how to make high probability, low risk stock and option trades for the past decade.  I have worked with over 20,000 students from Sidney Australia to Albany New York.  In that time I have worked with every system, indicator, and study you can think of and come to one conclusion – If you draw enough lines on a chart, your stock is bound to hit one of them eventually.  For me, trading is not about impressing others with fancy algorithms.  It is about Yogi-isms.

Yogi Berra was one of the most colorful figures in all of Baseball.  An amazing player, starting his carrier in 1946, he eventually was named the Manager of the Yankees, the Mets, the Yankees again, and then finished out his carrier with the Astros in 1992.  Yogi’s contribution to Americana actually goes far beyond the sports world.  He was also known for creatively phrasing some of the most obvious thoughts ever! Continue reading "You can observe a lot by watchin!"

Why investors aren't impressed with profits

By BERNARD CONDON and PAUL WISEMAN
AP Business Writers

(AP:NEW YORK) When it comes to happy surprises on Wall Street, it's hard to get better than this.

U.S. companies made more money in the first three months this year than almost anyone expected. As earnings reports roll in, they're beating the estimates of stock analysts at a rate not seen in more than a decade.

Yet stocks have languished. The Standard & Poor's 500 index has fallen about 2 percent in April. So why aren't investors impressed?

For starters, earnings season has just begun. The real test is the next two weeks, when more than 300 companies in the S&P 500 report. Apple, the most valuable company in the world, reports Tuesday.

Topping estimates is no great feat. Publicly traded companies do it almost every quarter. They tell analysts to expect a number the companies know will be low. Then they can enjoy a "pop" in their stock price when _ surprise! _ they clear the hurdle.

And this quarter, it's not much of a hurdle. Just a month ago, companies got analysts to expect first-quarter earnings to grow so little you'd need an electron microscope to spot the rise _ just 0.5 percent. Continue reading "Why investors aren't impressed with profits"

Poll: Speculation to blame?

This week Obama proposed new measures to limit speculation in the oil markets. The new proposals would require oil traders to put up more of their own money for transactions, ask for more money for market enforcement and monitoring activities, and call for higher penalties for market manipulation. The impact that speculation, or investment money, is having on oil prices is a subject of much debate. So we wanted to ask.....

Do you think speculation is to blame for high oil prices?

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As always we would love to hear your thoughts on this topic.

Every Success,

The INO Team