A 'Carry Trade' Returns?

As I was charting long-term Treasury yields in NFTRH 241, I ran a chart of the ratio between the banks and the S&P 500 and what do you know?  The ratio had broken out to the upside right along with long-term interest rates.  'Hmmm…'said I, 'maybe this is relevant to the analysis.' ;-)

Excerpted from NFTRH 241:

bkx.spx.tnx

BKX-SPX ratio w/ 10 year yield, weekly

"The Bank Index ratio to the S&P 500 (BKX-SPX) is breaking out to the upside in defiance of a bear case in stocks.  The BKX has modestly led the SPX since 2011.  We have noted that this is a necessary bullish factor for the financialized economy, which is quite different from a real or organic economy. Continue reading "A 'Carry Trade' Returns?"

Gold Chart of The Week

Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

We are on the heels of a week full of important economic reports from the United States, Europe and England. The overnight session was kick-started with news from China that while mixed, was read as bullish for the board. As I write this, US stock indexes are trying to recover from the late week selloff, which was driven by a string of misses in the last few days of the week.

The lineup includes today’s ISM report, Wednesdays Beige Book, and Non Farm Payrolls to finish the week. Additionally, we expect several FED Members to stir the QE pot in interviews throughout the week.

Europe and England both will report Interest Rate decisions this week, which will impact global Currencies and global markets overall. Weeks like these give very good opportunities for day and swing trades, which we plan to take part in. As each day and overnight bring important economic numbers to the trade, it will be important to make adjustments to mitigate risk and capture profit. Continue reading "Gold Chart of The Week"

A Glimpse of Life from the Other Side of the Wall

By David Galland, Managing Director

Argentines have a phrase, "mi lugar," for when you find your special place in this world – the perfect combination of place and people that entirely suits your nature. The phrase translates simply as "my place."

I was very fortunate in my early thirties to be able to spend three years on a quest for paradise on earth, visiting pretty much every country I thought might be a suitable candidate. It turns out, in hindsight, what I was really looking for was not paradise, but mi lugar.

Much like "love at first sight," mi lugar has almost mystical connotations – it is the place in this world where, should you be fortunate enough to find it, you belong more than anywhere else.

When we arrived in Cafayate, it was with some entirely natural trepidation. After all, not only were we going to be living in a remote corner of Argentina, we were bringing along our teenage kids with all that that implies. Continue reading "A Glimpse of Life from the Other Side of the Wall"

Weekly Futures Recap W/Mike Seery

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.

Precious Metal Futures--- The precious metals sold off this Friday afternoon with gold in the August contract continuing its choppy trade down $20 an ounce at 1,392 still stuck in a two-week sideways channel and as I’ve stated in previous blogs even after yesterday’s $20 up move I still remain bearish gold & I don’t understand any reason to be owning gold at this point in time and I do think a possible retest of 1,320 is in the cards in the next couple of weeks. Silver futures have been in a tight sideways channel down about $.50 at 22.21 still looking bearish in my opinion as the commodity markets as a whole are turning negative once again. The U.S dollar today was up about 45 points putting pressure on many commodities, however the dollar had 2 straight down days so today was considered profit taking but I still believe the U.S dollar is headed higher against the foreign currencies which will put pressure on the commodity markets in short term. Continue reading "Weekly Futures Recap W/Mike Seery"

Chart to Watch - CSCO

We've asked our friend Jim Robinson of profittrading.com to provide his expert analysis of charts to our readers. Each week he'll be be analyzing a different chart using the Trade Triangles and his experience.

Today he is going to take a look at the technical picture of the Cisco Systems, Inc. (CSCO).

I hope you are having a GREAT week !!!

This week I have, what looks to be, a Hot Stock Chart for you !!

CSCO was in a strong up trend, started consolidating, and then made a big gap up, which means supply over took demand in a big way which is bullish.

CSCO was on a daily and weekly green Trade Triangle before the gap up (daily and weekly Trade Triangles not shown on chart) and put in a monthly MarketClub Trade Triangle on the gap up which is more bullish action. Continue reading "Chart to Watch - CSCO"