Japanese Yen Faces Summer Sale

Posted on by Lior Alkalay

Lior Alkalay - INO.com Contributor - Forex


The Yen is vulnerable. Yields on Japanese 2-year sovereign bonds are as low as -0.26%, inflation is persistently low (and seems likely to stay that way for a while) and GDP tilts from contraction to expansion and, in aggregate, barely grows. Currencies such as the US Dollar, the Pound Sterling, and even the Mexican Peso provide plenty of reasons to buy them over the Yen, and yet, the Japanese Yen holds sway. The reason? Global Stocks are underperforming.

Japanese corporations are basically cash machines, hoarding vast amounts of cash that they need to invest. The problem is that Japanese corporations’ default choice has always been buying the highly liquid Japanese sovereign bonds, despite their ridiculously low yields. If market sentiment is upbeat, if stocks perform well, and the global economy seems stable, Japanese corporations are willing to take the risk and store their cash in foreign assets, thus pushing the Yen lower. Continue reading "Japanese Yen Faces Summer Sale" →

Bonds About To Break Resistance?

Posted on by The INO.com Team

Bonds have been wrapped up in a low-volatility Elliott triangle, but they look set to lift off. Here's how we're setting up the options trade using Fibonacci.

Learn more about TradingAnalysis.com here.

Plan Your Trade, and Trade Your Plan,
Todd Gordon

OPEC and Crude Futures Price Prospects

Posted on by Robert Boslego

Robert Boslego - INO.com Contributor - Energies


OPEC will hold its 169th Meeting in Vienna on June 2nd. Its tentative program calls for a press conference to be held at 1600 hours. Don’t expect the fireworks that followed its conference 18 months ago when Saudi oil minister al-Naimi declared a market share battle against North American shale producers. In fact, don’t expect much of anything.

A lot has happened since the last OPEC meeting in December. A strong El Niño resulted in record high temperatures in North America during the first half of the winter, undercutting prices. Poorer members, such as Venezuela and Nigeria, implored the group’s richer Gulf state producers to cut back to stop the hemorrhaging. Saudi Arabia refused to budge.

The sanctions against Iran were lifted in early January. Iran proclaimed it would restore lost production of 500,000 to one million barrels per day. Crude prices tumbled further and by mid-January had dropped to the mid-$20s. The market panic was in full-force. Continue reading "OPEC and Crude Futures Price Prospects" →

Are Stocks Going To Sizzle Or Wilt This Summer?

Posted on by The INO.com Team

Hello MarketClub members everywhere. We are all back from a long holiday weekend and traders are wondering what's in store for the summer – are stocks going to sizzle and go higher or are they going to wilt under the threat of higher interest rates?

MarketClub's Mid-day Market Report

Predicting the future is a hazardous profession at best. So often I have seen respected economists and gurus fall flat on their faces with future predictions. The best way to look at the future, in my opinion, is that it will arrive and there will be many opportunities. That is why I let the market predict what it wants to do. Remember, the market is made up of millions of people whose collective judgment is often wrong at the top and bottom of the market. What is always be right, in the long run, is the market itself.

In today's video, I will be looking at the usual suspects – indices, gold, crude oil and one or two stocks that look interesting.

Stay focused and disciplined.

Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub