Where We Stand After The Tax Reform Vote

Posted on by The INO.com Team

Hello traders everywhere. The Republican-controlled U.S. House of Representatives passed a sweeping tax bill which will be the most significant overhaul of the U.S. tax code in over 30 years. The Senate had already voted in favor of the bill, and now we wait for President Trump to sign the bill into effect.

The proposed changes include cutting the corporate tax rate to 21% from 35% from Jan. 1, which could boost company earnings and pave the way for higher dividends and stock buybacks.

MarketClub's Mid-day Market Report

The three major stock indexes are holding steady near record highs, but relatively unchanged on the day after the bill was passed. Stock futures had risen sharply before the open, with Dow futures climbing more than 100 points only to sharply fall from those highs as the market opened for regular trading. The cause for the drop was a rapid rise in interest rates that saw the 10-year U.S. yield hit 2.497%, its highest level since March 21, while the two-year yield rose to its highest level since October of 2008.

Key levels to watch this week: Continue reading "Where We Stand After The Tax Reform Vote" →

S&P 500 Vs. Gold: Someone's Gain, Someone's Pain

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


In May I recommended that gold bugs think about buying stocks for gold to enjoy the bullish momentum on the market. This call paid well as S&P 500 index almost gained 6 grams of gold (10%) since then.

In terms of dollars, the index did even better by hitting the projected target of $2650 set in the May chart. Back in those days the S&P 500 was flirting with the $2400 mark, and the target level looked so distant then.

In this post, I will update the S&P 500/Gold ratio chart and see if there is more room to the upside.

Chart 1. S&P 500 Monthly In Grams Of Gold

S&P 500 Monthly In Grams Of Gold
Chart courtesy of tradingview.com
Continue reading "S&P 500 Vs. Gold: Someone's Gain, Someone's Pain" →

Don't Miss This Week's Political Play

Posted on by admin

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. Our analyst, Noah Kiedrowski, will bridge the gap between Washington and Wall Street, finding you the best stock plays being driven by politics.

See all of Noah's Traders Blog posts.

Sneak Peek - In the Current Issue:

Companies are aiming to strike transformative acquisitions in light of one of the most pro-business administrations in recent history.

Noah Kiedrowski reviews three potential billion-dollar acquisitions that could set off a chain reaction of consolidation for industry giants and drive up the share price of a handful of stocks.

Why Oil Prices May Have Peaked

Posted on by Robert Boslego

Robert Boslego - INO.com Contributor - Energies


Why Oil Prices May Have Peaked

Crude oil futures peaked about a week before the OPEC meeting just below $59/bbl. Prices had been in an uptrend since October 6th, just before Hurricane Nate disrupted production in the Gulf of Mexico. There had also been indications by the White House that President Trump would soon deliver a speech explaining why he would not certify Iran’s compliance with the terms of the nuclear sanctions agreement. As a result, oil prices first rose as a result of the hurricane, followed by a risk premium due to the stand-off with Iran and expected extension for of the OPEC/non-OPEC deals through 2018.

NYMEX Crude Oil Prices

Given the OPEC announcement on November 30th, which means that the deals are baked-into crude futures for 2018, the question is, where should prices go? Based on the factors below, I expect prices to trade lower. Continue reading "Why Oil Prices May Have Peaked" →

Weekly Futures Recap With Mike Seery

Posted on by The INO.com Team

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.

Crude Oil Futures

Crude oil futures in the January contract settled last Friday in New York at 57.36 a barrel while currently trading at 57.16 unchanged for the trading week as we enter the holiday markets which experience low volatility. I'm not involved in this market, and I had a bullish recommendation over the last couple months getting stopped out when prices hit the 2-week low. I am now sitting on the sidelines waiting for another trend to develop, but for the bullish momentum to continue we have to break the November 24th high of 59.05 and for the bearish momentum to continue we have to break the December 7th low of 55.82. Crude oil prices are trading right at their 20-day but far above their 100-day moving average as we still are in a longer-term bullish trend with strong worldwide demand for crude oil and the energy sector as a whole continues to keep prices near contract highs. Volatility in crude oil will certainly expand once 2018 comes about and I see sideways action for the rest of 2017. However, with worldwide economies improving, especially in the United States as the tax cuts certainly could spur demand next year, I think we could be probably trade in the $70 range at this time in 2018.
TREND: HIGHER - MIXED
CHART STRUCTURE: SOLID
VOLATILITY:LOW
Continue reading "Weekly Futures Recap With Mike Seery" →