Goldman's profit doubles, but questions loom

Posted on by The INO.com Team

Goldman Sachs (NYSE:GS) said Tuesday that its second-quarter profit doubled and revenue jumped 30 percent, helped by gains in stock and bond underwriting and the bank's own investments. But the hot topic for analysts who follow the bank was a set of impending capital rules and how they might affect the powerful New York investment bank.

Goldman's stock rose in pre-market trading after the bank released its earnings results with rosy headline numbers. But the stock dipped moments after the market opened, just as Chief Financial Officer Harvey Schwartz faced a barrage of questions about the capital rules and other hard-to-predict factors that could affect the bank's future earnings, including how clients might react to rising interest rates. Continue reading "Goldman's profit doubles, but questions loom" →

Rates of Interest

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As the 10-year to T-bill yield curve chart makes clear, we are not in Kansas anymore.  We are in Wonderland and as you can see, in Wonderland interest rates and their interrelationships are at the center of events.

tnx.irx

Last week the bullish case reasserted itself across financial markets, but to argue that policy makers are doing anything better than pumping future distortions into the system is crazy talk along the lines of 'the world is flat' or… ‘the above chart is flat’.

Last week Ben Bernanke clarified for people that yes indeed the Fed will eventually taper its QE bond buying operation while making clear that Zero Interest Rate Policy (ZIRP) will remain as is.  I think that the average market participant is starting to settle in and get comfortable with the terms of our 'Taper to Carry'(T2C) plan, which sees the banks benefiting from borrowing short and lending longer. Continue reading "Rates of Interest" →

Think It's Time To Get Back Into Gold? Think Again

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By: Adam Fischbaum of Street Authority

I love James Bond flicks, preferably from the Sean Connery era. "Goldfinger" is one of my favorites. I am often reminded by the classic scene in which a captive James Bond is seconds away from being charred by a laser.

James Bond: "Do you expect me to talk?"

Goldfinger: "No, Mr. Bond -- I expect you to die!"

Quintessential 007: Ridiculous stunts and jams, sports cars, beautiful women and a dastardly, almost clownish villain -- in this case, one whose plan was to poison the U.S. gold supply at Fort Knox to create global financial chaos. His endgame? Simply to drive up the value of his own gold holdings. Continue reading "Think It's Time To Get Back Into Gold? Think Again" →

Today's Video Update: Apple Is Officially Moving Sideways

Posted on by The INO.com Team

Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Monday, the 15th of July.

Every July, it gets very hot and humid here in Maryland and the markets seem to be following suit. The energy markets and the equity markets are hot right now and all in strong upward trends.

One thing to note today is that Apple (NASDAQ:AAPL) is now officially moving sideways according to the new weekly Trade Triangle. This is in contrast to the strong downward trend we have seen in this stock from the $700 level. What does this mean? Well, it could mean that we are in the early stages of a double bottom base being put in place in this once-high-flying stock that institutional investors love. If that is true and we see a new piece of technology coming out of Apple (like a smart watch?), Apple could easily rally back to the $550 level. The key level to watch here is the $466 level. If that level is taken out, then it could be off to the races for Apple.

Don't Miss My Appearance On CNBC Closing Bell Today
Yours truly will be appearing on CNBC's "Closing Bell" with Maria Bartiromo today at 4:50 Eastern time. I hope you have a chance to tune in and see my latest thoughts on what's going on for tomorrow's markets.

Watch Today's Video Update Here Continue reading "Today's Video Update: Apple Is Officially Moving Sideways" →

The 3 Essential Parts of an Elliott Wave Trade - Part 1

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By Elliott Wave International

When it comes to improving your wave-based analysis and technical trades, three steps may sound simple enough. Yet if you have any experience trading, you know that nothing about trading is easy.

Senior Analyst Jeffrey Kennedy knows that it takes skill, discipline and courage to execute a successful trade. In the new book he has coauthored with EWI's Wayne Gorman  Visual Guide to Elliott Wave Trading, he picks up where Frost and Prechter's classic textbook Elliott Wave Principle leaves off to give you the perfect blend of traditional textbook analysis and real-world application.

According to Kennedy, there are three key components of a successful trade:

  • Analyze the price charts.
  • Formulate a trading plan.
  • Manage the trade.

In this excerpt (Part 1 of 3), Kennedy examines a high-confidence trade setup in Caterpillar (CAT).

Part One: Analyze the Price Charts Continue reading "The 3 Essential Parts of an Elliott Wave Trade - Part 1" →