Gold Falls on Rate-Hike Fears

Posted on by The INO.com Team

Gold fell below $1,300 yesterday for the first time since the Brexit vote in June, as the dollar index rose to a two-month high.

The dollar rose amid increasing speculation that the Federal Reserve will raise interest rates by December. Both Federal Reserve Bank of Cleveland President Loretta Mester and Federal Reserve Bank of Richmond President Jeffrey Lacker have come out in favor of higher interest rates. Manufacturing data released Monday was stronger than expected.

Also pushing down gold is the U.S. dollar's rise against the British pound, which fell to a 31-year low against the dollar after the release of a timeline for Britain's exit from the European Union. Aiding gold's woes is a rise in Deutsche Bank shares today, signaling at least a temporary easing of worries over the bank's liquidity, and lessening gold's role as a safe haven. Continue reading "Gold Falls on Rate-Hike Fears" →

Assessing The Short-Term Outlook For The Precious Metals And The Miners

Posted on by The INO.com Team

Precious metals expert Michael Ballanger assesses the gold-silver ratio and its ramifications for the market.

Gold-Silver Ratio Chart

I want to go on the record and state categorically that, in my opinion, technical analysis is of limited value when trying to predict the short-term movements of precious metals. However, there are millions of traders and investors out there who believe that it does work despite interventions, manipulations, and the ability of the bullion banks to fabricate a surrogate for actual physical gold by way of paper futures. In light of that, the short-term technical set-ups for gold and silver and the miners are all different in that after Friday's month-end bombardment, which originated in the London options market, that formidable uptrend line that began in December 2015 has finally been vanquished. The ramifications could be nasty next week because for the second year in a row, the seasonally strong month of September failed to shine (at least for gold). The big question is now whether or not we get a follow-through to the 200-dma at $1,252 before resuming the uptrend or will that large Commercial short position serve as a demand catalyst and limit any meaningful downside? Continue reading "Assessing The Short-Term Outlook For The Precious Metals And The Miners" →

Netflix Losses Mitigated By 86% - A Covered Call/Secured Put Strategy

Posted on by The INO.com Team

Introduction

I’ve written a series of articles highlighting ways to leverage options trading to augment a long position or potentially entering into a position in Netflix Inc. (NASDAQ:NFLX). I’ve highlighted ways in which one can layer in covered calls to mitigate risk in a long position as well as utilizing secured puts to enter into a position at a lower price or avoid owning the stock altogether while making money. Whether you’re investing or trading in Netflix, it’s difficult to own the stock without an options strategy to augment the long position or prospective position. I’ll discuss a covered call/secured put combination strategy to unlock additional value, mitigate risk and generate income. I’ll break this strategy out into legs to exemplify the power of options when dealing with an intrinsically volatile stock with significant upside potential such as Netflix. Continue reading "Netflix Losses Mitigated By 86% - A Covered Call/Secured Put Strategy" →

Deutsche Bank Woes To Hit Euro

Posted on by Lior Alkalay

Lior Alkalay - INO.com Contributor - Forex


Peril is on the horizon for the Eurozone and its currency, the Euro. The survival of Deutsche Bank, the largest lender in the Eurozone, is at risk. And even more worryingly, the trouble brewing at the bank is not isolated but is rather part of a wider systemic risk across the Eurozone banking system. As the conundrum unfolds and radiates across the region, the Euro will not be spared.

Eurozone Banks On The Balance

The Deutsche Bank crisis was seemingly ignited in mid-September when the US Department of Justice announced its intention to fine Deutsche Bank $14 billion to settle claims of wrongdoing during the mortgage crisis of 2008. Last week, it was reported that Deutsche Bank was on the verge of reaching a settlement with the Justice Department which would reduce the fine to $5.4 billion. Nevertheless, and regardless of the amount, with Deutsche Bank’s total capitalization at $18 billion, it’s clear the bank does not have sufficient capital to pay such a hefty fine. The fact is that troubles within the Eurozone banks, and specifically in Deutsche Bank, have been brewing for a while. Continue reading "Deutsche Bank Woes To Hit Euro" →

Mining Leaders Have More Room To The Downside

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


Back in August of this year, I shared with you the comparison charts of gold and silver stocks. The precious metals hit the new highs before that, and so did the mining stocks. After that, the prolonged correction of underlying assets (gold and silver) put pressure on the mining stocks. Below is the chart showing you the 6 stocks’ behavior.

Chart 1: Top Mining Stocks: The Leaders Lost The Most

Chart 1: Top Mining Stocks
Chart courtesy of tradingview.com

The 3 top gold stocks by past performance: Continue reading "Mining Leaders Have More Room To The Downside" →