Gold and Silver: Short "Short" Play

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


Gold

4H Gold Chart
Chart courtesy of Tradingview.com

As seen in the above 4-hour chart, Gold has finished shaping a short term reversal pattern we've seen before, called a Head And Shoulders pattern. This pattern was confirmed on the RSI where the model is even more bearish as consequent lower highs were shaped.

The vertical neckline, highlighted in black, has been broken today below $1197 and this is a good sell signal. The target is the distance from the top of the head to the neckline, subtracted below the neckline. So the market aims for $1159 (highlighted in the red dashed horizontal line), which is $35 down from the current price at $1194. Continue reading "Gold and Silver: Short "Short" Play" →

Okay, I Was Wrong About Apple

Posted on by The INO.com Team

I've always believed that when you're wrong, you should admit it and then move on. I have to admit that I was wrong about the new Apple watch and here's the reason why.

When Apple Inc. (NASDAQ:AAPL) originally announced several months ago it was going to introduce a smart watch, I was pretty excited. It was then that I said to myself "there's so many smart watches on the market, what's going to differentiate their smart watch from a slew of other smart watches?"

In fact, when Tim Cook, the head of Apple, introduced the smart watch several months ago, I found little to get excited about. Up until that time I had been wearing another smart watch from a small startup company named Pebble, that was funded by Kickstarter, the popular crowdfunding website.

At first glance my Pebble watch did everything the Apple watch could do and was less expensive so why should I get an Apple?

So why was I wrong? Continue reading "Okay, I Was Wrong About Apple" →

Insure Against The Upcoming Fed Rate Hike

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


Nothing makes financial markets more skittish than the threat of a rising rate environment. The Fed removed the word “patient” from its statements and though the exact timing of the increase is still up for speculation, an interest rate increase of 0.10% to 0.25% is a certainty this year.

Higher interest rates might not seem like a positive thing for stocks – higher rates mean less money available for investment growth by businesses – but that's not true across all sectors. For life insurers, rising rates mean more profitability.

Life insurance companies must hold a large amount of its assets in liquid form and are subject to strict regulations as to how that money can be invested. Conservative asset classes like bonds, treasuries, and money-market securities are the only types a life insurance company can invest in. Liquidity is a key component of this industry as the company must be able to meet its policyholder obligations when a claim is made. Continue reading "Insure Against The Upcoming Fed Rate Hike" →

Apple Flashes A Buy Signal And Is On Track To Move Higher

Posted on by The INO.com Team

11 days ago I published a special report on Apple which you can read here. In that report, I stated that a low period should occur either on Friday or today. The fact that a buy signal triggered for Apple today indicates that the low period has passed and we should see Apple move in a positive mode for the next 23 to 28 days. Apple is expected to announce earnings of $2.13 (consensus) after the close of business on the 27th; that's approximately 14 days from now. Let's go with the flow and see if this pattern works out.

The news out of China was disappointing for some China bulls, but the reality is China is still going to have a 7% growth rate which is very positive in any country. Asian and European stocks continue to move upward with Europe just beginning to begin a quantitative easing program whereas the United States is hopefully winding down its quantitative easing program. Continue reading "Apple Flashes A Buy Signal And Is On Track To Move Higher" →

The Dollar Breaking Point

Posted on by Lior Alkalay

Lior Alkalay - INO.com Contributor - Forex


Last week, the Fed released its FOMC minutes, the protocol of the Fed's decision makers, and already it seems to have backfired. While the minutes thoroughly described how FOMC committee members have gradually shifted their projections on inflation and a lower Fed Funds Rate, comments that were supposed to gently assist in tilting the dollar lower have done the exact opposite.

FOMC Minutes Backfire

The Fed's statement contained two comments that were combined or written in such a way that investors immediately became wary of shorting the dollar. The first, was the remark on the fact that excess capacity and downward pressure in commodities was seen as winding down gradually thus keeping the Fed's long-term inflation target of 2% (or close to it) still intact. So far so good, yet the Fed also added a statement on what is holding back the possible rate hike and that is low energy prices and a strong dollar. In other words, the Fed outlined that a lower dollar would increase the chances of a rate Continue reading "The Dollar Breaking Point" →