By now, most market participants have taken note of the US Dollar rally. In the early stages of the rally, it was simply a slow rise. However, that has given way to a rapid accent, seeing the US Dollar Index jump from below 80 to 84.75 in just over two months. And the recent surge higher in the Dollar seems to be adding some volatility to the Emerging Markets complex. In the
Stocks & ETFs
Despite – or rather, because of – Tuesday’s pop, a widely followed measure of volatility on the S&P 500 just printed it’s lowest value since January 4, 2007. The SPDR S&P 500 ETF (SPY) Daily Bollinger Bands - a gauge of the standard deviation of the index’s closing value from a given (usually 20-period) moving average - closed today with a bandwidth of only .0143. This 7 year low – surprisingly lower than even Q2
Over the past few months, I’ve written several pieces on the Nasdaq 100′s outperformance and leadership position. And just last month, I wrote about the Nasdaq 100 breakout above 4000. That breakout helped lead the Dow Jones Industrial Average and S&P 500 to new highs. But lost in all the excitement is the technical understanding that most breakouts get tested… whether it be sooner or later (from my post on 8/19): Now before
The Emerging Markets sector has been a tricky play for active investors. 3 failed rallies in 3 years has left many with a poor taste in their mouths. And once again, the rally is on. Is it for real this time? The Emerging Markets ETF (EEM) has put together a strong rally out of the February bottom and is currently attempting to breakout above key resistance. But EEM has a few issues to
Last week, Twitter (TWTR) announced that it had raised $1.8 Billion in a convertible note offering. This sent the stock higher and gave it some support throughout the week. Twitter closed the week up 2.8%, a very strong performance considering the equity markets were down for the week. By all accounts, Twitter is striking while rates are still low. But regardless of the merits of the deal, I found one technical nugget
There have been a couple of developments in the Japanese markets that traders are (or should be) monitoring. In the equity markets, there is a bullish consolidation pattern developing that active investors with an intermediate-term horizon may benefit from. Yet, at the same time, Japanese equities investors will need to keep an eye on the currency market with a focus on the impact of a weakening trend in the Japanese Yen’s value to the US Dollar.
While Canadian stocks have been setting new highs, it appears some headwinds may be approaching for our northern neighbor. If we were to look at just the pure price action then things would look pretty good for the iShares Canada ETF (EWC). Price has broken above the previous high set in 2011. However, it’s when we look under the surface that we can see some problems. The chart below shows
Here’s what I know … Yahoo (YHOO) is going to make billions on the Alibaba (BABA) IPO. I also know Price Patterns. The following charts show the $48-$50 area to be the completion of a sell pattern for YHOO. I know two things for sure about the pattern: It’s either going to 1) WORK or 2) FAIL. One thing is for sure, though… it’s going to be an interesting ride!
Crude Oil prices have broken lower this morning and it appears that even lower prices are in the cards over the coming days. If this development continues, it will mean two things: 1) less pain at the pump and 2) an opportunity to get short with well defined risk-reward. One vehicle that I’ve been tracking is the United States Oil Fund (USO), which is an ETF that follows Oil price movements.
The speed of the recovery from the decline in U.S. equities from late July to early August affirms it’s still a dip-buying environment. The market is telling you to stay long with discipline. As is often the case, the market-unsavvy did well this time by holding their holdings and going on vacation. And as I look across the universe of exchange traded products, iShares Emerging Markets ETF (EEM) jumps out