Author Archive for Zero Hedge

This Is The Biggest Paradox Facing The Fed Ahead Of Its Rate Hike Decision

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Ahead of today’s FOMC announcement, which comes without a press conference and has thus been dismissed as a possible start to a Fed hiking cycle, the Fed has a big problem. It’s not jobs, which are running at a pace that many suggest is strong enough to sustain at least a 25 bps hike to nearly a decade of ZIRP, assuming of course one completely ignores the “quality” component as virtually all recent job growth has been in the low-paying job category especially waiters and bartenders…

… but inflation, and specifically the bifurcation between core inflation and headline inflation.

Here is the paradox as succinctly summarized by Deutsche Bank, which notes that the current -29% year-over-year drop in the CRB index implies YoY headline CPI inflation falling from 0.1% to -0.9% over the next couple of months, or just in time for the September or December FOMC meetings both proposed as the “lift off” date. This would be the largest year-over-year drop since September 2009 (-1.3%) and one of the lowest prints in modern history.

However core YoY CPI inflation is likely to edge above 2% in the months ahead which complicates matters.

In other words, Fed will have to pound the table on the commodity crunch being a transitory event, just like every other “transitory event” that forced the Fed to postpone hiking rates since 2011. The problem, however, is that unlike “snow in the winter”, plunging oil and commodity prices are proving to be anything but “transitory”, and are mostly a function of China’s economy whose ongoing decline is also anything but a one-time event. In fact, if anything, China’s contraction is accelerating, with the recent bursting of its stock market bubble only likely to add to its headaches and to commodity price downside as Chinese Commodity Financing Deals are unwound.

Which brings us to the WSJ’s Fed mouthpiece, Jon Hilsenrath, who largely summarized the above in his preview of what the Fed will today as follows:

The Federal Reserve has framed its decision about raising interest rates around the progress it sees in achieving its dual mandate goals of maximum employment and 2% inflation. Officials could emerge from their policy meeting today with a split decision – progress on the employment side of their mandate and


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Pending Home Sales Plunge Most Since 2013, Holdout Buyers Blamed

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Following new home sales disappointment, pending home sales dropped 1.8% in June (missing expectations of a 0.9% rise) for the biggest drop sicne Dec 2013. After 5 months of gains, and with median prices at record highs, it appears affordability is crushing hopes of any sustained ‘recovery’ once again. Modest gains in the Northeast and West were offset by larger declines in the Midwest and South, but Larry Yun has an explanation, hold-out buyers are waiting for a better entry point (in other words – pent up demand is there).

Lawrence Yun, NAR chief economist, says although pending sales decreased in June, the overall trend in recent months supports a solid pace of home sales this summer.

“Competition for existing houses on the market remained stiff last month, as low inventories in many markets reduced choices and pushed prices above some buyers’ comfort level,” he said.

“The demand is there for more sales, but the determining factor will be whether or not some of these buyers decide to hold off even longer until supply improves and price growth slows.”

“Strong price appreciation and an improving economy is finally giving some homeowners the incentive and financial capability to sell and trade up or down,” adds Yun.

“Unfortunately, because nearly all of these sellers are likely buying another home, there isn’t a net increase in inventory. A combination of homebuilders ramping up construction and even more homeowners listing their properties on the market is needed to tame price growth and give all buyers more options.”

*  *  *

but it’s not the dismal reality of the underlying economy and the sudden disappearance of the manic Chinese buyer…





Greek Bonds Tumble As Tsipras Threatens Snap Election

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

10 year Greek bond yields are spiking this morning (and prices therefore plunging) as trading actvity picks up in the dormant peripheral capital markets. The 2025s are downover 5pts from their last traded price back in late June with yields spiking back up toward 12.5%. This derisking comes after, as we detailed earlier, not only is the Greek economy collapsing but while Brussels is "satisfied with the smooth and constructive cooperation with the Greek authorities and that should allow us to progress as swiftly as possible," Greek PM Tsipras is threatening snap election as rebellion within 'his' party grows.

Volume and actvity picks up in GGBs and the price plunges…

*  *  *

Put simply, there seems to be a very real possibility that the Syriza rebellion will gather enough steam in the coming weeks to materially derail discussions. This is then a race – Tsipras needs to formalize the new program before Lafazanis (and perhaps Varoufakis) foment enough discontent to make a meaningful push to head off implementation.

And with that, we’ll close with the following sound bites from Kathimerini which sum up the situation quite nicely.





ISIS “Ally” Turkey Seeks NATO Support As Two-Front “War” Escalates

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

NATO representatives met in Brussels on Tuesday after Turkey made a rare Article 4 request which compels treaty parties to convene in the event a member state is of the opinion that its “territorial integrity, political independence or security” is being threatened. 

That’s the case in Turkey, where the security situation has rapidly deteriorated over the past two weeks following a suicide bombing in Suruc (claimed by Islamic State) and the murder of two Turkish policemen in the town of Ceylanpinar (at the hands of the PKK, which claims the officers were cooperating with ISIS). Ankara responded by launching airstrikes against both Islamic State and PKK. 

In many ways, the suicide bombing and retaliatory action by the Kurdistan Workers’ Party – which both Ankara and the West have designated as a terrorist group – is representative of the complex web of alliances that makes understanding the conflict in Syria so difficult. As The Economist notes, the PKK “have been fighting an on-and-off guerrilla war against the Turkish government for decades,” but the group’s Syrian Kurdish militia arm (YPG) has helped the US coordinate airstrikes against ISIS targets near the border town of Kobani. 

Complicating the issue further are long standing accusations that Turkey actively cooperates with ISIS. “ISIS commanders told us to fear nothing at all because there was full cooperation with the Turks,” one former ISIS commander said late last year, in an interview with Newsweek, which also noted that “Turkey had blocked Kurdish fighters from crossing the border into Syria to aid their Syrian counterparts in defending the border town of Kobani.” 

More recently, The Guardian reported that information obtained when a raid by US commandos killed ISIS’ purported “oil minister” in May provided “undeniable” evidence of “direct dealings between Turkish officials and ranking Isis members.” And let’s not forget that US Vice President Joe Biden admitted last year that Saudi Arabia, the UAE, Qatar and Turkey had funneled hundreds of millions of dollars to Islamist rebels in Syria that metamorphosed into ISIS.


Note that all of this comes from mainstream media sources, so there’s really no way to decipher the truth about Turkey’s alleged cooperation with Islamic State militants and of course there are very real questions as to what role the US played in…
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A Veteran Trader Slams The Fed: “Savers Are The Patsies For Share Buybacks”

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Via Bloomberg’s Richard Breslow,

As markets coil around themselves waiting for the next installment of Fed communication strategy it is amazing how with all the speeches and promises of clarity, speculation on what they may or may not say, runs the gamut of possibilities. This fact makes it all the more clear that they should not back off at all from being resolute in signaling a sooner rather than later, very gradual rate path lift-off.

There will always be some “crisis” or excuse to do nothing. But the fact remains that the U.S. economy is not at zero interest rate health.

Monetary policy is broken with the status quo. Unlimited and constant central bank participation in the markets is ultimately destructive, encourages dangerous risk taking (just buy every dip, nothing can go wrong,) and has become too much of an aphrodisiac for policy makers.

Savers are being told you are the patsies for share buybacks.

The Fed also needs to stop mentally infantilizing the rest of the world.

Europe’s ECB has the wherewithal to continue QE and to increase it. Fed policies did not cause the recession in Finland nor the Greece debacle. Japan should not be encouraged to repeat past mistakes by being given the chance to taper too early, relying on other central banks to keep buying. China is in the big leagues now and if their equity markets are wobbling, they should handle it. Each one of these central banks views their currencies as reserve worthy. They need to act that way.

As far as emerging markets go, reserves are strong. The warning to not borrow in USDs has been given over and over. The RBI’s Rajan called it playing Russian roulette. It won’t get easier if markets get further proof that they can call the Fed’s bluff. If yield hunters get a bloody nose it will be because they don’t heed the super gradual message and replace stubbornness and greed with panic. Cries of lack of liquidity should be ignored.

Analysts may be right that the precise timing of the tiny rate rise doesn’t matter. That is because they are looking only at the economy and realize 25 bps is not dispositive. What they are missing is that there are much more important systemic imperatives involved.

The argument that a
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The Fate Of China’s Monetary Policy Is In The Hoofs Of Pigs

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

It seems China's efforts to stabilize their economy stock market knows no bounds – nowhere better exemplified than the 5% spike in an hour last night after injecting $100bn into the sovereign (rescue) fund – and western observers applaud the efforts as if they are costlessly saving the world. However, there are costs to all this leveraged asset bubble creation (and maintenance) and, as China People's Daily reports, nowhere is that more evident than the surging price of pork (on if China's main CPI components). As Deutsche Bank warns, in the past 15 years, the PBoC has never cut interest rates when inflation was picking up (whether driven by food or more broad-based); so the fate of an 'easy money' inspired stock market bubble remains in the hands hoofs of pigs as the policy stance will be forced to turn from loosening to neutral in Q4 as inflation rises.

Just keep pumping money in right?

Well there are consequences… (via China People's Daily)

The price of pork in China has been rising for a couple of months now, with a new uplift record in 3 years. According to the National Bureau of Statistics (NBS), starting in March, the price of pork has been rising for 4 months with a total of a 5.7 yuan rise. In China, the price on pork is closely related to the CPI (Consumer Price Index). Experts interpret that the price of pork will keep on rising and drive the rise of CPI at the same time. Consequently, the CPI of the latter half of the year is expected to be a little higher than the first half of the year, but there is no strong sign of inflation.

Statistics of NBS show that from March 18 to July 20, the price of pork has risen almost 50 percent. The current price on pork ranks the highest since the year of 2012. Based on previous experience, the price on pork usually would have an "outburst" every 2 to 3 years. The last "pork cycle" happened during June 2010 to June 2011. It seems like a new round of the “pork cycle” is around the corner. Because of being under the oversupply for a long period of time, many small and medium-sized farmers' quit their


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It’s Bounce Or Else For This Key Stock Market Gauge

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Via Dana Lyons' Tumblr,

We’ve used much of the space here in the past several weeks pointing out the deteriorating breadth conditions in the U.S. equity market. The trend has been so profound it has now reached the point where it could potentially shift from one of short or intermediate-term relevance to something that might impact the longer-term cyclical bull market. One example of this dynamic can be seen in the differential between the NYSE New Highs and New Lows.

This series reached an extremely skewed -462 yesterday (18 New Highs minus 480 New Lows). If this reading gets any worse, it will be one indication that the uptrend since 2009 is in jeopardy. Here’s why:

image

Note how since bottoming in October 2008 at -1,751 (an all-time low, btw), NYSE New Highs-New Lows has made a series of higher lows. Those higher lows, in October 2011 at -1,175 and October 2014 at -584 line up almost precisely with one another, forming a very distinct UP trendline. That trendline is currently right in the vicinity of the -462 level reached yesterday. Is this just random? We don’t think so.

Note how in the previous two cyclical market cycles, this New High-Low series formed similar trendlines.

image

In September 2001 and July 2007, cyclical UP trendlines were broken. Of course, these breaks ushered in much more weakness in the stock market over the subsequent 18-20 months.

This is not to say that the long-term bull market would succumb to a straight-line decline when this UP trendline breaks. In fact, when the New High-Low uptrend is broken, it will likely be accompanied by washed-out conditions in the short-term. Therefore, a bounce of some substance may follow that reading before the meat of a cyclical bear market unfolds. This is precisely what transpired the last time we discussed this topic, in October.

In the midst of the October 2014 decline, the New High-Low series broke the shorter-term post-2011 UP trendline. This is what we had to say at the time in anticipation of the event:

It has paid and will likely continue to pay to avoid becoming too bearish from a longer, cyclical-term perspective until this uptrend line breaks. It will likely do so into a “warning shot” sell off as in 2001 and 2007. That is, it


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Russell Napier: What Happens When Markets Realize China Is A Forced Seller Of Treasuries

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

One week ago, our post “China’s Record Dumping Of US Treasuries Leaves Goldman Speechless” which revealed an unexpected plunge in China’s foreign exchange reserves or, said otherwise, a historic sale of US Treasurys held by official and unofficial Chinese accounts, was met with unprecedented public interest, having been read over 400,000 times (a record for coverage of a nuanced, technical subject) and even forced Goldman to follow up admitting its “estimation” of Chinese reserve outflows may have been too high.

By then the cat was out of the bag, and now what is surely the biggest Chinese wildcard, not what happens to itts manipulated stock market, just how much more capital outflows will Beijing suffer before it is forced to finally end the Renminbi’s peg with the dollar, is finally being appreciated by the general public.

Which leads us to today’s most recent article by ERI-C’s Russell Napier titled “The Great Reset – Act II“, in which the former CLSA strategist, asks a simple question:

how US Treasury bulls in the private sector would react if they knew in advance that the second largest owner of Treasuries, the PBOC, was a forced seller of Treasuries. Such compelled selling would be obvious before US markets opened each morning as downward pressure on the RMB exchange rate in Asia forced the PBOC to liquidate foreign currency assets to defend the fixed exchange rate. Would even Treasury bulls stand in the way of such a large and predictable liquidation? If they didn’t then the second phase of The Great Reset would come to pass and the decline of EM external deficits would force tighter monetary policy in both EM and DM.”

For his answer, read on. Courtesy of The Electronic Research Interchange

* * *

The Great Reset – Act II

Do you love me, or are you just extending goodwill?
Do you need me half as bad as you say, or are you just feeling guilt?
I’ve been burned before and I know the score
So you won’t hear me complain
Will I be able to count on you
Or is your love in vain?

      – Bob Dylan – Is Your Love in Vain? (1978)

In May 2011 this analyst changed his mind about the impact of…
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Tsipras Threatens Snap Elections As Syriza Rebellion Threatens To Derail Bailout

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

On Tuesday we documented the rapid collapse of the Greek economy. According to data presented at an extraordinary meeting of the Hellenic Confederation of Commerce and Entrepreneurship, retail sales have fallen 70%, while the The Athens Medical Association recently warned that 7,500 doctors have left Greece since 2010. 

To be sure, assigning blame for the economic malaise is difficult as it’s still largely unclear whether internal structural problems or externally imposed belt tightening deserve the lion’s share of the blame, but there certainly does seem to be a growing consensus among impartial observers that creditors’ insistence on the implementation of still more austerity in the middle of what amounts to a depression may be a fool’s errand – especially with capital controls serving to constrain economic activity. 

It is against this backdrop that Greek PM Alexis Tsipras will attempt to pass a third set of prior actions through parliament – this will be the first such vote to take place with representatives of the “Quadriga” on the ground in Athens. As we noted on Tuesday, “if creditors aren’t satisfied with the progress by August 18 (i.e. if for any reason Tsipras doesn’t manage to get the third set of bailout prerequisites by lawmakers), then paying the ECB on August 20 won’t be possible and then it’s either tap the remainder of the funds in the EFSM (which would require still more discussions with the UK and other decidedly unwilling non-euro states) or risk losing ELA which would trigger the complete collapse of not only the economy but the banking sector and then, in short order, the government. And through it all, the PM is attempting to beat back a Syriza rebellion (which will only be exacerbated by the upcoming vote on the third set of measures) while convincing the opposition that he’s not secretly backing the very same Syriza rebels in their attempts to forcibly take the country back to the drachma.” 

On Wednesday, Tsipras spoke out about the new bailout “deal”, debt re-profiling, the referendum, and party politics in an interview with Sto Kokkino radio station. 

As Bloomberg reports, the Prime Minister “says that his mandate was to stop destruction of Greece [and that] things have changed” for the country and for Syriza. “The Greek people voted ‘no’ to a bad deal, they…
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Frontrunning: July 29

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

  • Fed expected to push ahead with rate hike plan (Reuters)
  • Upbeat earnings lift European stocks ahead of Fed (Reuters)
  • Chevron to Cut 1,500 Jobs (Rigzone)
  • Can Windows 10 Revive PC Sales? (WSJ)
  • U.S. Junk-Bond Buyers Left in Dark as Private Deals Become Norm (BBG)
  • Jeb Bush Drawing Big Bucks From GOP Establishment (WSJ)
  • Myriad of Greek Risks Means Money Managers in No Hurry to Return (BBG)
  • Gas production at Gazprom set to hit post-Soviet low (FT)
  • China-Tied Hackers That Hit U.S. Said to Breach United Airlines (BBG)
  • China Pushes to Rewrite Rules of Global Internet (WSJ)
  • In Hideaway for Brazil’s Rich and Famous, a New Scandal Emerges (BBG)
  • Uncertain times fuel occult beliefs in China’s Party hierarchy (Reuters)
  • Doctor Whose Drug Killed Teen Returns as Gene Tech Booms Again (BBG)
  • Wal-Mart Warns Its Suppliers Over Labeling Laws (WSJ)
  • Tepco’s Quarterly Profit Triples as Fuel Prices Plunge (BBG)
  • U.S. Health-Spending Growth Jumped to 5.5% in 2014 (WSJ)
  • Ukraine struggles to control maverick battalions (Reuters)

Overnight Media Digest

WSJ

* A Texas oil man, a Wall Street financier and several former U.S. ambassadors are among the top donors to Jeb Bush’s super PAC, providing hard evidence the Republican establishment is rallying to his presidential candidacy as he girds for a long primary battle. (http://on.wsj.com/1JtJ9NT)

* Turkey drew NATO deeper into the Middle East conflict on Tuesday, while threatening to further inflame regional turmoil by signaling an end to three years of peace talks with Kurdish separatists. (http://on.wsj.com/1MsSFln)

* A sharp earnings acceleration by the top U.S. auto makers through June is overshadowing Volkswagen AG’s sweet success in finally capturing the global sales crown from Toyota Motor Corp. Rising U.S. demand for pickup trucks and sport-utility vehicles, spurred by lower gasoline prices, is propelling domestic margins at General Motors Co and Ford Motor Co to levels more typical of German luxury car makers. (http://on.wsj.com/1Da58rU)

* China is trying to rewrite the rules of the global Internet, aiming to control online discourse and reduce U.S. influence. (http://on.wsj.com/1D7nqug)

* Growth in national health spending, which had dropped to historic lows in recent years, has snapped back and is set to continue at a…
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ValueWalk

Hedge Funds Q2 Inflows Surpass Q2 2014 Levels, AUM At $3.118 Trillion

By VW Staff. Originally published at ValueWalk.

Hedge Funds Q2 Inflows Surpass Q2 2014 Levels, AUM At $3.118 Trillion by eVestment

Investment in equity exposure continued into June, H1 multi-strategy inflows highest since H1 2007.

Total hedge fund assets decreased 1.57% in June 2015, bringing the industry’s total assets under management to $3.118 trillion. Investors added $12.1 billion of new capital to the industry in June, while performance decreased AUM by an estimated $61.9 billion.

Hedge funds witness the second largest quarterly inflow

With June’s $12.1 billion inflow, investors added an estimated $48.6 billion into Hedge Funds...



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Zero Hedge

This Is The Biggest Paradox Facing The Fed Ahead Of Its Rate Hike Decision

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Ahead of today's FOMC announcement, which comes without a press conference and has thus been dismissed as a possible start to a Fed hiking cycle, the Fed has a big problem. It's not jobs, which are running at a pace that many suggest is strong enough to sustain at least a 25 bps hike to nearly a decade of ZIRP, assuming of course one completely ignores the "quality" component as virtually all recent job growth has been in the low-paying job category especially waiters and bartenders...

... but inflation, and specifically the bifurcation between core inflation and headline inflation.

Here is the paradox as succinctly summarized by Deutsche Bank, which notes that the curr...



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Phil's Favorites

Sentiment Measures vs. Retail Spending: Clueless Clues and Random Noise

Courtesy of Mish.

Economists Shocked

Economists were shocked by the plunge in the Conference Board Consumer Confidence Index this morning, well below the any economist's guess in Bloomberg's Econoday Forecast.
The consensus estimate was 99.6. The consensus range was 97.0 to 102.0. And the actual result ... 90.9.

Consumer confidence has weakened substantially this month, to 90.9 which is more than 6 points below Econoday's low estimate. Weakness is centered in the expectations component which is down nearly 13 points to 79.9 and reflects sudden pessimism in the jobs outlook where an unusually large percentage, at 20 percent even, see fewer jobs opening up six months from now.

A striking negative in the report is a drop in buying plans for autos which conf...



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Chart School

Relief Rally?

Courtesy of Declan.

Big gains and a strong reversal in the Russell 2000 puts a potential bottom in play.  The Russell 2000 started the day below the 200-day MA, but then rallied to claim a spike low and a close above this key moving average. Small Caps are a key driver in trend cycles. The 'bull trap' from June is still dominant. and a push above 1,280 looks a tall order. but reversing the breakdown of the rising trendline at 1,240 is a different proposition. If it fails at this, then a swift return below the 200-day MA, and then some, opens up. And the long awaited intermediate term decline begins.


The S&P gained over 1% with a second bounce off the 200-d...

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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

Dollar gains against yen, but weakens vs. pound (Market Watch)

The dollar advanced against the yen on Tuesday as worries about China’s stock selloff abated somewhat, but the buck fell against the pound after the latest reading on U.K. economic growth matched expectations.

Some stabilization by Asian stocks prompted nervous investors to loosen their grip on the perceived safety of the Japanese currency.

The dollar USDJPY, -0.01%  was up at ¥123.73, compared with ¥123.24 late Monday in New York. ...



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All About Trends

Mid-Day Update

Reminder: David is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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Kimble Charting Solutions

Travel indicator being put to critical tests

Courtesy of Chris Kimble.

The American Economy is driven a good deal by the consumer.

The table below reflects that nearly 70% of GDP is based consumption.

CLICK ON CHART TO ENLARGE

The 4-pack below looks at consumption with a focus on the travel and leisure sector, by looking at Avis (CAR), Hertz (HTZ), Expedia (EXPE) and Priceline (PCLN).

CLICK ON CHART ABOVE TO ENLARGE

While many seem to be occupied by the news abou...



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Sabrient

Sector Detector: Lackluster earnings reports put eager bulls back into waiting mode

Reminder: Sabrient is available to chat with Members, comments are found below each post.

Courtesy of Sabrient Systems and Gradient Analytics

In this weekly update, I give my view of the current market environment, offer a technical analysis of the S&P 500 chart, review our weekly fundamentals-based SectorCast rankings of the ten U.S. business sectors, and then offer up some actionable trading ideas, including a sector rotation strategy using ETFs and an enhanced version using top-ranked stocks from the top-ranked sectors.

Corporate earnings reports have been mixed at best, interspersed with the occasional spectacular report -- primarily from mega-caps like Google (GOOGL), Facebook (FB), or Amazon (AMZN). Some of the bul...



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OpTrader

Swing trading portfolio

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Digital Currencies

Gold Spikes Back Above $1100, Bitcoin Jumps

Courtesy of ZeroHedge. View original post here.

Gold is jumping after the overnight double flash-crash...testing back towards $1100...

Bitcoin is back up to pre-"Greece is Fixed" levels...

Charts: Bloomberg and Bitcoinwisdom

...

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Pharmboy

Baxter's Spinoff

Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.

Baxter Int. (BAX) is splitting off its BioSciences division into a new company called Baxalta. Shares of Baxalta will be given as a tax-free dividend, in the ratio of one to one, to BAX holders on record on June 17, 2015. That means, if you want to receive the Baxalta dividend, you need to buy the stock this week (on or before June 12).

The Baxalta Spinoff

By Ilene with Trevor of Lowenthal Capital Partners and Paul Price

In its recent filing with the SEC, Baxter provides:

“This information statement is being ...



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Mapping The Market

An update on oil proxies

Courtesy of Jean-Luc Saillard

Back in December, I wrote a post on my blog where I compared the performances of various ETFs related to the oil industry. I was looking for the best possible proxy to match the moves of oil prices if you didn't want to play with futures. At the time, I concluded that for medium term trades, USO and the leveraged ETFs UCO and SCO were the most promising. Longer term, broader ETFs like OIH and XLE might make better investment if oil prices do recover to more profitable prices since ETF linked to futures like USO, UCO and SCO do suffer from decay. It also seemed that DIG and DUG could be promising if OIH could recover as it should with the price of oil, but that they don't make a good proxy for the price of oil itself. 

Since...



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Promotions

Watch the Phil Davis Special on Money Talk on BNN TV!

Kim Parlee interviews Phil on Money Talk. Be sure to watch the replays if you missed the show live on Wednesday night (it was recorded on Monday). As usual, Phil provides an excellent program packed with macro analysis, important lessons and trading ideas. ~ Ilene

 

The replay is now available on BNN's website. For the three part series, click on the links below. 

Part 1 is here (discussing the macro outlook for the markets) Part 2 is here. (discussing our main trading strategies) Part 3 is here. (reviewing our pick of th...

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Help One Of Our Own PSW Members

"Hello PSW Members –

This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible.  Feel free to contact me directly at jennifersurovy@yahoo.com with any questions.

Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts.  After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.)  Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.

http://www.youcaring.com/medical-fundraiser/help-get-shadowfax-out-from-the-darkness-of-medical-bills-/126743

Thank you for you time!




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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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