Global Markets

US Dollar: Long Term Prospects Look Good

For six and a half years the US Dollar Index (DX) has trended sideways. The technical signs on the wall favor this trend resolving higher. If that panned out and the next cyclical bull trend were akin to the last one when the 20th century was coming to a close, we’d be looking at upside potential to 121.6. This outlook has implications for foreign exchange traders – there could be

US Dollar Index And Select USD Pairs Trade Setups

The week is starting off with some modest US Dollar Index (DXC) weakness, but nothing that was unexpected. However, I have adjusted the wave count to account for this. I am comfortable remaining long in USD/SGD as it is performing better while the US Dollar Index has been selling off. The same goes for USD/JPY and USD/CHF – pairs we will need to keep an eye on for possible longs when DXC

3 Reasons Ford’s Stock (F) Is Worth Watching Right Now

When stocks were peaking into mid September, Ford (F) was already turning lower. And as the equity markets corrected into October, Ford got hammered. Now stocks are bouncing and Ford is having trouble getting its footing. Could a stronger US Dollar be at the heart of Ford’s woes? Perhaps, but more importantly, the stock is nearing a technical crossroads. Below is a weekly chart dating back to 2009. As you can

U.S. Financial Markets Review: Precursor To October

September was an uneventful month on the economic front, as the dollar continued to strengthen, and many ‘risk assets’ drifted lower with concerns about slowing global growth. In hindsight this action was a precursor to the wild ride in equities we’ve seen thus far in October. Here’s what happened in the financial markets in September, by the numbers: Stocks & Bonds After a rally in August, September saw minor declines

Why The Oil And Gas ETF (XOP) Is Rallying

The Oil and Gas ETF (XOP) suffered a tremendous decline from the 2014 all-time high at $84. In sum, XOP retraced 50% of the move from $23 to $84 from the bear market low in 2009 to its peak in 2014. The precise 50% retracement level is $53.53. Technicians like to find a confluence of technical significance when identifying support and resistance. And with this in mind, we can see

Grain Sector Rebounds: Corn, Wheat Prices Surge

Several headwinds, including a stronger US Dollar and a bumper global crop have hit the grain sector over the past several months. Take Corn for example. Corn for December delivery fell almost $2.00/bushel from May to October, seeing prices hit a low of $3.20/bushel last week. And similar downdrafts hit Wheat and Soybeans as well. In fact, Cargill, Inc. said that profits dropped 26% in the latest quarter as their grains

Emerging Markets Fall Sharply In September to Un-Remember

September wasn’t kind to the Emerging Markets (EEM). After ripping higher throughout much of the summer, EEM has been punished by what appears to be a shift in capital flows, as the US Dollar has risen smartly while US Equities have held up pretty well. All told, investors watched the Emerging Markets fall 7.77 percent in September. That’s pretty unreal considering that was the performance for a single month. And although

Will Palladium’s Price Drop Pull The NASDAQ Down?

There is something very broken with Palladium. The drop in price has accelerated into September and created one scary chart for traders. This shouldn’t be entirely shocking, though… at least, if you have been following my thoughts and analysis on this subject. The continuous liquidation comes on the heels of my late August post on BartsCharts.com, wherein I highlighted the completion of Palladium’s pattern higher. Since that time, it’s been

Why Apple (AAPL) Flatlined After iPhone 6 Announcement

If you’re an active investor, you likely understand that participants are constantly attempting to price in what they know or believe they know about the market or a given security. The latter often leads to speculation – see Yahoo (YHOO) or Alibaba (BABA) – but the larger point here is that markets are forward looking. This logic was on display with the recent Apple (AAPL) product launch. Please note that this example has more to do