Crude Oil Outperforms Stock Market

Posted on by The INO.com Team

Hello traders everywhere. Crude oil outperforms stock market for the week, that's not a statement that you hear very often, but it's true this week as crude is set to have it's biggest weekly gain in over two months posting a +8% gain on the week. The reason, shrinking U.S. stockpiles, supply disruptions from Canada to Libya, tensions between Iran and the U.S. and last week's decision by the Organization of Petroleum Exporting Countries (OPEC) and allied producers to relax supply limits.

As for Iran, if the recent re-imposition of U.S. sanctions succeeds in driving the Islamic Republic's oil exports close to zero, crude could surge to $100 a barrel, according to many analysts.

The Energy Information Administration (EIA) reported on Wednesday that national crude stockpiles fell by 9.89 million barrels last week, the most significant decline since September 2016. Inventories in the storage hub at Cushing, Oklahoma, also declined, while domestic crude exports surged to a record.

Crude Oil Outperforms Stock Market

The stock market is closing out the week on a high note with the DOW, S&P 500 and NASDAQ all higher on the day getting a boost from the big banks and Nike, but it's still headed for weekly losses as traders are still skittish over global trade frictions.

The NASDAQ is leading the way lower with a weekly loss of -1.8% followed by the S&P 500 -.7% and the DOW standing at -.60%. The U.S. Dollar is posting a minimal gain of +.08% rebounding from last weeks loss. Gold continues to be under pressure from the bears and is down -1.23% on the week continuing it's weekly loss streak now standing at three weeks. And last, but not least we have Bitcoin which remains to be caught in the bear trap losing another -4.0% on the week and trading below the $6,000 level as we wrap up the week.

Key Levels To Watch Nest Week:

Continue reading "Crude Oil Outperforms Stock Market" →

Tariffs Inducing Market Headwinds and Risks

Posted on by Noah Kiedrowski

For traders and investors, the political climate has been unlike anything we have ever seen in recent times!

There are plenty of opportunities if you know where to look. I will help to bridge the gap between Washington and Wall Street, finding you the best stock plays being driven by politics.

  • Trump has been in a back and forth tariff battle with the Chinese for months and now has indicated that the EU may be subject to tariffs
  • This is creating a tit for tat trade war between the world’s two largest economies, the United States and China
  • As these trade war exchanges between the U.S. and China, in particular, unfold, world markets have experienced increased volatility
  • Multinational companies are starting to voice concern that these trade fears are becoming the most significant risk to their respective businesses
  • Multinationals just as 3M (MMM), DowDuPont (DWDP), United Technologies (UTX), General Electric (GE), Boeing (BA) and Caterpillar (CAT) have been under weakness as the tough trade rhetoric continues

Trade War Rhetoric Heats Up

Reports indicated that the Trump administration planned to block many Chinese companies from investing in domestic technology and block additional technology exports to China. It was reported that the administration was drafting rules that would apply to companies with at least 25% Chinese ownership from buying companies involved in "significant industrial technology." Despite these reports, Peter Navarro, a top trade advisor, said the market was overreacting to fears the administration would restrict foreign investment as part of its trade actions against China and other countries. "There are no plans to impose investment restrictions on any countries that are interfering in any way with our country. This is not the plan," he said. He insisted that markets were taking the wrong message from the reports, stating, "I would say more broadly I think today's market reaction is a very large overreaction," Navarro said. "What we have here with Trump trade policy is a tremendous success for this country and this market. It's very bullish." Going further, Treasury Secretary Steve Mnuchin stated that all of President Trump’s advisors were unanimous on the Chinese investment restrictions and that any mixed messages were unfortunate. Hence, part of the uncertainty that corporations and foreign governments are voicing concern. Continue reading "Tariffs Inducing Market Headwinds and Risks" →

A New Entry Into Germany’s Cannabis Industry

Posted on by The INO.com Team

Analysis originally distributed on June 21, 2018 By: Michael Vodicka of Cannabis Stock Trades

Germany has quickly emerged as one of the fastest-growing medical cannabis markets in the world.

According to a study on the German health insurance market, 500 German patients requested medical cannabis in January of 2017.

In December of the same year, the number of patients requesting reimbursements for cannabis prescriptions skyrocketed to 13,000.

What was the biggest factor that drove the huge spike?

German insurance companies started covering medical cannabis subscriptions in 2017 – and the number of patients surged.

Looking forward – this bullish trend is expected to accelerate.

Tens of thousands of new patients are expected to enroll in Germany’s medical cannabis program in 2018.

Longer term – I expect the success of Germany’s medical cannabis market to usher in recreational legalization. Continue reading "A New Entry Into Germany’s Cannabis Industry" →

Hoist by Their Own Petard

Posted on by George Yacik

George Yacik - INO.com Contributor - Fed & Interest Rates - Consumer Financial Protection Bureau


I certainly don’t agree with Mick Mulvaney’s purported efforts – if true— to emasculate the Consumer Financial Protection Bureau, but I am thoroughly enjoying the consternation he’s putting his enemies through – although probably not nearly as much as he probably is. The blatant hypocrisy they’re displaying as they fall over themselves with their fake outrage has been fun to watch.

In case you haven’t been following the story, Mulvaney – who also heads the White House Office and Management and Budget – has been running the CFPB on an interim basis ever since his predecessor, Richard Cordray, resigned from the agency the Friday after Thanksgiving last year so he could run for governor of Ohio. On his way out the door, when he thought no one was looking, Cordray appointed his second-in-command, chief of staff Leandra English, to succeed him, a move that was thrown out by a federal judge. At the same time, President Trump appointed Mulvaney – a very vocal opponent of the agency – to run the CFPB until a permanent replacement is named and seated. Continue reading "Hoist by Their Own Petard" →

The Beat Goes On

Posted on by The INO.com Team

Hello traders everywhere. I'm not referring to the hit song "The Beat Goes On" by The Whispers, but the continuing "Trade War" talk that is putting extreme pressure on the stock market. The latest news out Washington D.C. has put the tech sector in the crosshairs, and that can be seen with the S&P 500 shedding -1.7% and NASDAQ -2.6% on the day so far, issuing new red weekly Trade Triangles that I highlighted last week. In fact, the move lower has pushed the DOW down over 400 pts issuing and new red weekly Trade Triangle as well indicating that the downtrend is gaining momentum and strength to the downside.

Beat Goes On

The Wall Street Journal first reported Monday that the President would use the wide-reaching International Emergency Economic Powers Act of 1977 to invoke national security concerns to limit the ability of China-owned or China-backed firms to invest in U.S. companies that are linked to "industrially significant" U.S. technology. The reports also said that the U.S. Treasury and Commerce Departments, as well as the National Security Council, was drafting plans to introduce "enhanced" export controls, that could be unveiled as early as this week, to keep American technology from finding its way to China.

Harley-Davidson is also making news today with shares falling over 4% after the company announced it would shift production of motorcycles headed for Europe to factories outside the U.S. The company sold nearly 40,000 bikes to the European Union, second only to the U.S.

Shares of chipmakers Micron Technology and AMD all fell at least -7%. Boeing, Caterpillar and General Motors, all companies with significant exposure to China, also dropped by -2.8%, -2.9% and -1.5, respectively. Boeing, Caterpillar, and GM were also on track to post substantial monthly losses.

Key Levels To Watch This Week:

Continue reading "The Beat Goes On" →