August was an eventful month on the political and economic front, as concerns about the European economy joined the headlines along with the continued expansion of U.S. involvement in Syria and Iraq. The financial markets continued to revolve around the Federal Reserve and any indications that they might behave differently than planned. At the same time, stocks drifted slightly lower along with bonds, while the US Dollar continued to rise. Here is
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
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
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
The US Dollar has the attention of the global financial markets, especially the commodities sector. Just check out the action in Grains, Oil, and Precious Metals. Earlier this week, I highlighted the weakness in Gold and Silver. Surely a function of a stronger US Dollar. So, is the US Dollar setting up for another move higher? Let’s see what the chart is telling us and check in on some key Fibonacci
As with all Apple (AAPL) announcements and new product launches, the hype and speculation was at fever pitch heading into the September 9 unveiling of the new iPhone 6 and Apple Watch. This can be seen best through the eyes of investors. In the hours leading up to the AAPL announcement, the stock was wound as tight as a drum, trading in a one dollar range for most of Friday
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!
Think about this for a second: The U.S. has created jobs every month since September 2010. That comes out to an incredible 47 straight months of job growth, creating 8.853 million jobs. Now those might not really be ‘new’ jobs, as we lost nearly nine million jobs at the depths of the recent recession. Below is a great chart which shows the whole picture. It might be a big smile,
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.