NASDAQ Hits Record High On Judges Ruling

Hello traders everywhere. The likes of Netflix Inc. (NFLX) and Time Warner Inc. (TWX) have propelled the NASDAQ (COMP) to record highs today hitting $7,748.96 in morning trading. Move higher comes after a federal judge approved the blockbuster merger between AT&T and Time Warner on Tuesday, blocking the government's effort to stop the $85.4 billion deal. This decision could unleash a wave of corporate takeovers.

The judge, Richard J. Leon of United States District Court in Washington, said the Justice Department had not proved that the telecom company's acquisition of Time Warner would lead to fewer choices for consumers and higher prices for television and internet services.

The merger would create a media and telecommunications powerhouse, reshaping the landscape of those industries. The combined company would have a library that includes HBO's hit "Game of Thrones" and channels like CNN, along with vast distribution reach through wireless and satellite television services across the country.

NASDAQ Hits Record High

On the other side, the S&P 500 and DOW are relatively unchanged on the day awaiting the announcement of the Federal Reserves interest rate hike decision at 2 pm EDT today. It's expected that Fed Chair Jerome Powell and his colleagues will announce a quarter-point increase in interest rates as the central bank seeks to normalize monetary policy with the economy showing signs of health. Continue reading "NASDAQ Hits Record High On Judges Ruling"

Don't Bet On Crises To Keep Bond Rates Lower

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


Despite the recent dip in the 10-year Treasury note yield back below 3%, don’t count on it staying there. Lately, it seems, the only thing keeping the rate below that level is some sort of international crisis – Italy, North Korea, trade wars, etc. But the basic fundamentals determining that rate – economic growth and supply and demand, in other words – are calling for even higher rates, well above 3%.

On the supply side, more Treasury debt is coming to market all the time, like an incoming tide in the Pacific Ocean. On the demand side, there are fewer buyers – and I mean big buyers. More about that in a minute. At the same time, the economy is growing stronger, which by itself is going to put upward pressure on rates.

In other words, if you’re betting that the 10-year yield is going lower, or will stay around or below 3%, you’re really only holding it as a safe haven. Nothing wrong with that, lots of investors do that. But if you’re hoping to profit when something in the world goes wrong, you may be playing a losing game.

First the economy. Last week on CNBC’s Squawk Box, the gold dust twins, Warren Buffett and Jamie Dimon, tried to outdo themselves in how great the U.S. economy is performing. Continue reading "Don't Bet On Crises To Keep Bond Rates Lower"

Commodities: Sell In May And Go Away?

Aibek Burabayev - INO.com Contributor - Metals - Sell In May And Go Away


Last August I posted a chart analysis of one particular commodity market index as I spotted an interesting pattern. As time goes by, we can see how my outlook emerged and after almost a year the market reached another crucial milestone or better yet a decision point.

This index is called The Thomson Reuters/CoreCommodity CRB Index (CRB). It is the gauge of the commodities market, which is comprised of 19 commodities: Aluminum, Cocoa, Coffee, Copper, Corn, Cotton, Crude Oil, Gold, Heating Oil, Lean Hogs, Live Cattle, Natural Gas, Nickel, Orange Juice, Silver, Soybeans, Sugar, Unleaded Gas, and Wheat.

So, if you watch commodities market, then the two charts below could be of strong interest to you.

Chart 1. Thomson Reuters/Jefferies CRB Index Monthly: Failed At Resistance

Sell In May And Go Away
Chart courtesy of tradingview.com

Above is an update of the earlier chart. The risk/reward that time ($182) favored a long position as the upside target at the major top ($474) promised to cover risk extensively amid oversold market conditions. Continue reading "Commodities: Sell In May And Go Away?"

Bitcoin Delivers Sunday Surprise

Hello traders everywhere. The CME Bitcoin real-time index dropped over 10% on Sunday giving many cryptocurrency traders a Sunday surprise. The index traded as low as $6,643.58 before finally closing the day at $6,781.18. It's the first time since early April that Bitcoin has traded below the $7,000 level. However, it shouldn't come as a surprise after it's been trapped in a tight trading range between $7,000 and $7,800 since about mid-May.

Media reports will have you believe that the price drop is due to a hack on the South Korean exchange Coinrail, which was revealed Sunday, and renewed concerns regarding security at cryptocurrency exchanges. However, a significant move was expected anyway, as an extended period of consolidation or low volatility is often followed by a sharp move on either side and prices started falling Saturday, so the theft of ERC-20 tokens at a minor exchange seems an unlikely cause.

Bitcoin Delivers Sunday Surprise

Events To Keep In Mind This Week

Continue reading "Bitcoin Delivers Sunday Surprise"

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 future prices in the August contract is currently trading at 1,303 an ounce still stuck in a 3-week tight consolidation pattern. I am not involved in this market, but I do have a bullish bias toward silver and the copper market which is higher once again today. Volatility in gold is extremely low as we are right near major support on the daily chart. However, one thing that does concern me is that there is a price gap around 1,280 which was hit in late December 2017. I don't like gaps as they are generally filled so be patient and let's see if that situation occurs. Gold prices are still trading under their 20 and 100-day moving average as the short-term trend is to the downside. The U.S. dollar is still hovering right near a 5-month high and has been the main culprit for depressed gold prices as all of the interest remains in the U.S. equity market which is right near another all-time high today as money flows continue to go into that sector and out of gold. The highly anticipated summit between North Korea and the United States is next week and tensions have eased as there is a possibility that North Korea could end their nuclear program. If that is the case, you would probably have to think that gold prices would head lower in the short term, however, avoid this commodity and look at other markets that are beginning to trend.
TREND: MIXED
CHART STRUCTURE: IMPROVING
VOLATILITY: LOW

Continue reading "Weekly Futures Recap With Mike Seery"