Monday, May 09, 2016
Trump Puts The Idea of a US Government Debt Default On The Table / ElectionOracle / US Debt
On Thursday, Donald Trump told CNBC that his solution to dealing with the $19 trillion-plus national debt involves a form of default such as repurchasing existing bonds at a discount.
The media jumped all over him calling his idea "insane” and warning that it would tank the economy or set off an “unprecedented financial crisis.”
They are right that it would set off an unprecedented financial crisis... but, believe it or not, that is the best-case scenario at this point. Not defaulting would lead to hyperinflation which would be even worse.
Monday, May 09, 2016
Commodities Overtake Stocks and Bonds with Best Rally Since 2010! / Commodities / Commodities Trading
Traders who follow the price of gold and silver, should keep an eye out on the U.S. dollar index. The dollar has been within a trading range for more than a year. During December of 2015, the dollar rose to test the highs at 100, however, since February of 2016, the dollar has been in a downtrend, as shown in the chart below.
The FED has reduced the expectations of a rate hike in 2016 from one full percentage point, in the beginning of the year, to a half percent and perhaps to none at all. However, my expectation is that the FED may have to start rolling back this increase before the end of 2016.
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Monday, May 09, 2016
Stock Market Next Leg Down / Stock-Markets / Stock Markets 2016
SPX turned down minutes after 10:00 am, completing exactly 86 hours in its reversal pattern (waves 1-2) off the April 20 high. This is encouraging, since it implies an order in the timing of the waves.
The next segment (Waves 3-4) may take 30.1 hours, suggesting the next retracement high may be near noon on Friday. The final decline (wave 5) may take 12.9 hours, taking a total of 43 hours from this morning’s high and likely to end near 11:00 am on Tuesday. The total decline from top to bottom may take 129 hours, or near 18.5 days (4.3 squared).
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Monday, May 09, 2016
Japan: An Economy of Zeros / Economics / Japan Economy
The red sun on the flag of Japan symbolizes its position as the land of the rising sun. However, during WWII that round shape was pejoratively referred to as a zero. And now, since Japans economy is emitting so many zeros it can, unfortunately, once again be referred to as the land of zeros.
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Monday, May 09, 2016
Is The Most Hated Stocks Bull Market Ready to Crumble? / Stock-Markets / Stock Markets 2016
"A young man is a theory; an old man is a fact." ~ Edgar Watson Howe
The first answer that comes to one's mind is yes, as this economic recovery has been nothing but an illusion. The unemployment rate might have dropped, but the way the BLS (Bureau of Labour Statistics) calculates this figure is questionable at best. They conveniently do not include individuals who have stopped looking for a job in their calculation. Mind you, many of these people stopped looking for a job; not because they no longer want to work, but after trying a countless number of times without success, they simply gave up and assumed they would never land a job. The majority of the new jobs created are low paying jobs and in many cases, they are only part time jobs.
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Monday, May 09, 2016
Analysts Split over Yahoo's Stock Potential / Companies / Tech Stocks
Yahoo’s search engine may have lost its online dominance to Google, but many analysts say that shares of Yahoo are undervalued and contain potential for significant gains despite the current volatility.
The main drivers of this potential value come not so much from Yahoo’s search engine, but from divisions like Yahoo Finance, as well as its foreign subsidiaries and stakes in other large companies, mainly online marketplace Alibaba.
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Monday, May 09, 2016
UK Fixed Rate Mortgage Fees Hit Two-year High / Housing-Market / Mortgages
Mortgages have become increasingly competitive over the years, and thanks to low interest rates and Government initiatives, there are many deals on offer that will save borrowers thousands of pounds on their mortgage.
However, despite the long-running price war, the latest research by Moneyfacts.co.uk reveals that mortgage fees are now on the rise, which means borrowers should be even more diligent when working out the cost-effectiveness of a deal.
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Monday, May 09, 2016
Stock Market Crash! This Is How Bad It Really Is! / Stock-Markets / Financial Crash
The 1929 Dow crash marked the start of the infamous Great Depression. We currently have a repeat of the pattern that led to that great crash in 1929. This pattern is basically a huge stock market rally (after a period of stagnation) that is driven by a huge expansion of the money supply (or credit expansion). See the chart below (Dow chart from stockcharts.com):
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Monday, May 09, 2016
What Happened to the Bernie Revolution? / ElectionOracle / US Presidential Election 2016
In a recent interview I was asked why Bernie Sanders, a self-described "democratic socialist" had seemingly attracted so much support among young people. In fact polls suggest Sanders is the most popular candidate among people aged 18-29, and 51 percent of that same age group appears fed up with "capitalism in its current form," according to a recent Harvard study.
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Monday, May 09, 2016
Stocks Extended Their Short-Term Downtrend But Will They Continue Lower? / Stock-Markets / Stock Markets 2016
Briefly: In our opinion, no speculative positions are justified.
Our intraday outlook is neutral, and our short-term outlook is neutral. Our medium-term outlook remains bearish, as the S&P 500 index extends its lower highs, lower lows sequence:
Intraday outlook (next 24 hours): neutral
Short-term outlook (next 1-2 weeks): neutral
Medium-term outlook (next 1-3 months): bearish
Long-term outlook (next year): neutral
Monday, May 09, 2016
Price Of Gold Is Breaking Out But “Commercial Traders” On The Wrong Side? / Commodities / Gold and Silver 2016
Price of Gold: The activities of the ‘commercial traders’ in the COT data is closely watched by the market participants, as they are believed to be the smartest of the lot. They take deliveries on their bets, unlike the speculators, who have no interest in taking a delivery.
If you have followed the ‘commercial traders’, without paying attention to my proprietary predictive trend and cycle analysis for the price of gold and silver, you would be sitting on large losses, due to their ‘short positions’ which mean they expect price to move lower.
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Monday, May 09, 2016
Top Tips for Winning Walkers Crisps 'Spell & Go' Holidays / Personal_Finance / Freebies and Comps
Here are our top tips for winning one of 20,000 holidays in the Walkers Crisps 'Spell and Go' promotion. Firstly, you need to be aware that the letters K,C and D are being with-held or only released in very few numbers so that Walkers crisps can regulate the number of holidays it awards....
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Sunday, May 08, 2016
Stock Market First Support Level Tested / Stock-Markets / Stock Markets 2016
Current Position of the Market
SPX Long-term trend: The beginning of a lengthy correction is most likely underway!
SPX Intermediate trend: Correcting.
Analysis of the short-term trend is done on a daily basis with the help of hourly charts. It is an important adjunct to the analysis of daily and weekly charts which discuss longer market trends.
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Sunday, May 08, 2016
Euro Technical Analysis and the BrExit Vote / Stock-Markets / Euro
The Euro remains locked in a big consolidation phase and with the Brexit vote coming up I thought I’d take another look. Let’s look at one scenario on the daily chart that I think has some good potential going forward.Read full article... Read full article...
Sunday, May 08, 2016
Medical Mousetraps / Companies / Healthcare Sector
In 1882, Ralph Waldo Emerson stated; “If a man has good corn or wood, or boards, or pigs, to sell, or can make better chairs or knives, crucibles or church organs, than anybody else, you will find a broad hard-beaten road to his house, though it be in the woods.”
In 1889, Emerson was credited with having said; “If a man can write a better book, preach a better sermon, or make a better mousetrap than his neighbor ...”
Today the common phrasing is of course a metaphor about the power of innovation -‘Build a better mousetrap, and the world will beat a path to your door.’
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Sunday, May 08, 2016
A Rare Congress and Mixed Signals in North Korea / Politics / North Korea
For the first time in more than 35 years, North Korea is preparing to hold a full Congress of the Workers' Party of Korea (WPK). Originally intended to be a regular occurrence for the WPK, party congresses convened only sporadically until 1980, when Kim Jong Il was named as Kim Il Sung's successor, and juche (loosely translated as self-reliance) was formalized as the government's official guiding philosophy. In the years since, though the WPK has officially remained at the center of the North Korean political system, party congresses have lost their central role in the political cycle. Scheduled to begin May 6, the 2016 congress marks the revival of a more public political style in the country, playing on the formalism of party structure and events.
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Sunday, May 08, 2016
American Billionaire Warns To Get Out of the Stock Markets and Run To Gold / Stock-Markets / Stock Markets 2016
Billionaire trader, Stanley Druckenmiller, recently stated that the current situation in the global economy is similar to the situation on the eve of the crisis of 2008.
At the Ira Sohn Investment Conference in New York, he said, “The bull market is exhausting itself… The Fed has borrowed from future consumption more than ever before. It is the least data dependent Fed in history. This is the longest deviation from historical norms in terms of Fed dovishness than I have ever seen in my career.”
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Sunday, May 08, 2016
Mining Share, Gold, Stock Market Forecast / Stock-Markets / Financial Markets 2016
The stock market, as measured by the S&P 500, reached its 115 trading cycle top the third week of April. The next important cycle low is due on July 5th. The SPX is in process of making a head and shoulders top, and should continue higher into the mid-point of the Mercury Retrograde Cycle around May 11th. My target price is 2080. Friday was the new moon low, but also a top for the precious metals complex.
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Sunday, May 08, 2016
Five Bull Market Rules (in Gold & Precious Metal Stocks as well) / Commodities / Gold and Silver 2016
Sunday, May 08, 2016
Demographics and the Protein Ladder / Economics / Demographics
In 1800, three percent of the world's population lived in urban areas. By 1900, roughly 14 percent of the world's population were urbanites and 12 cities had 1 million or more inhabitants.
In 1950, 30 percent - 746 million people - resided in urban centers and the number of cities with over 1 million people had grown to 83.
In 1975 three cities had populations of 10 million or more. In 1990, there were ten “mega-cities” with 10 million inhabitants or more, which were home to 153 million people or slightly less than seven per cent of the global urban population at that time. Megacities (minimum population of 10 mil to qualify) numbered 16 in 2000.
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