Markets continue to go higher and we got entry signals for four more ETFs in our Almanac Trader portfolio. One can argue that in this upward moving markets trading on the sort side is not a good idea. However, trading is all about probabilities. If for any setup or strategy the probabilities to make profit…
Economic Data Sunday: Chinese HSBC Flash Manufacturing PMI beat @ 50.8 vs. the forecast of 49.7. Shanghai Composite was almost unchanged losing 2 points. FXI, iShares China Large Cap ETF, is making an uneven inverse head-&-shoulder pattern. A break above 38.25 will bring the target near 41 in picture. Early Morning French Flash Manufacturing PMI of…
Exit of ‘Helicopter Ben’ from the Federal Reserve hasn’t affected the general trajectory of US monetary policy. One of the architects of Fed’s quantitative easing and subsequent tapering strategy is now at the helms. If any one had doubts about Chairwoman Janet Yellen’s intentions of continuing with the easy monetary policies then this week’s FOMC Statement and press conference dispelled them.…
The quarterly expiration of index futures, index options, stock futures and stock options cause big swings in the stock market. When options and futures contracts expire then traders can either “roll” the contracts to next one, buy or sell the underlying security or let contracts expire worthless. If traders decide to buy/sell underlying stocks then it…
Economic Data 2:00 AM – German May PPI m/m disappointed at -0.2% vs. 0.2% forecast, mostly due to a decline in energy prices. Inflationary pressures are tame with concerns for deflation 4:00 AM – Euro Zone Current Account was @ 21.5B better than the forecast of 19.4B 4:30 AM – UK Public Sector Net Borrowing was in…
It seems that the press conference by Chairwoman Janet Yellen on Wednesday June 18th was not that benign after all. The equity market went to bed feeling good with S&P 500 closing at all time high. The currency market went into the night whiplashed. The gold traders went to bed mostly unconcerned but woke up…
Wednesday June 18th FOMC statement and the press conference did not muddy the water much but it also did not allay all fears and concerns. The Fed has stuck to its plan tapering to wind down its bond-buying program by the year-end and then start raising interest rates some times early next year. That was good…
Economic Reports Last Night: New Zealand GDP q/q came at 1.0%, below the forecast of 1.2%. Kiwi was unaffected – still just below the resistance trying to break out. Last Night: Japan’s All Industries Activity m/m was @ -4.3% worse than expectations of -3.7%. Nikkei 225 is breaking above a horizontal channel. So is EWJ…
Our strategy of trading the days surrounding the triple (or quad) witching Friday in June from the short side continues. Three more sector/market ETFs – SPY, QQQ and XLP – have generated entry signals. For S&P 500, you can go either short SPY, SPDR S&P 500 ETF Trust, or go long SDS, ProShares UltraShort S&P 500 ETF. For NASDAQ, you can go either…
The Forex market seems to be waiting with a bated breath today’s FOMC Statement and Chairwoman Janet Yellen’s press conference. Already a press conference by ECB President Mario Draghi and a speech by BoE Governor Mark Carney have muddied the water by taking or hinting opposite policy actions. ECb instituted a negative rate policy to spur growth,…
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