With the US economy showing decent growth while the rest of the world is showing slow or no growth, currency traders are selling Euros and buying Dollars. As a result, the Euro is trading at intermediate term lows while the Dollar is hitting new highs. In recent months, equities and the dollar have gone from a nearly perfect inverse correlation to having practically [...]
This morning, yields on Spanish bonds are at their lowest level since March (see chart below). Spain just held a strong auction, where it sold twice as much debt as it planned. The rally is spreading across Europe. Short-term yields are plunging. Very bullish action. While the Bank of England holds rates unchanged and continues with quantitative easing policy.
Good news for eco-friendly drivers. Tariffs on imported sugar-based Brazilian ethanol were allowed to expire at the end of last year. Even better news for those against wasteful government spending:. Subsidies and tax credits for US corn growers and ethanol producers were also allowed to expire. From The Economist: Import tariffs and tax credits that have long sheltered ethanol distilled [...]
Looks like we dodged the worst of it. Although on very low volume, the S&P 500 held support at the 1200-1220 level before breaking the 50 and 200-day moving averages. In the very short-term, the S&P 500 crossed and subsequently held a clearly defined trend line outlined below. Although we'll probably correct slightly back to the 200 day, the moving [...]
Welcome to 2012. While the S&P 500 was essentially flat last year, our clients enjoyed their third year of out-performance, which judging by the results of many of our peers, is saying a lot. We will shortly have our final numbers available to registered users only, so click here to register. Of the markets I track, Feeder Cattle was the [...]
A few brief comments on the market this week. Yesterday, the S&P gained 1.6% after being up 2.3% in the morning. The price spike on the open was a decisive move above the 200 day moving average we penned about last week. The move was accompanied by better global manufacturing numbers and optimism about the US housing market. I also [...]
The Fed announced yesterday afternoon that it would publish the short term interest rate forecasts of its members. The data, slated for its first release on Jan 25, 2012, will be published as a "central tendency" or range from the forecasts of the 5 Fed Governors and 12 regional presidents. They will throw out the highest and lowest three data [...]
For our clients and readers, I have linked an article by Jon Hilsenrath, Chief Economics Correspondent for the Wall Street Journal. His article presents a good summary of the macro monetary debate occurring in the country. Concerns about the Fed, the financial sector and their, allegedly, dubious relationship with our politicians are already part of the Presidential campaign rhetoric. Occupy Wall Street and [...]
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