Posts Tagged ‘Foxconn’

Thrill-Ride Thursday – Can the Dollar Drop Fast Enough to Keep the Markets Up?

Wheeee – this is fun!

The dollar dropped to 76.5 this morning and that gave us a nice pop in the futures which is fading now (8am) as we move towards our 8:30 Trade Report along with the PPI and, of course, the usual 450,000 weekly pink slips handed out to the few remaining US workers (135M and dropping almost as fast as the value of the dollar).  

As you can see from Pharmboy’s excellent chart, our market "rally" is ALL about the declining dollar.  We are not used to inflation in this country – it hasn’t been much of an issue for the past generation but that’s what we’re seeing here as we are experiencing lower wages, lower demand and flat prices – THAT IS INFLATION or, as we used to say in the 70s – STAGFLATION.  A stagnant (or declining) economy plus inflation is a disaster for the people, even while it may be a boon for Big Business as they squeeze whatever dollars are left from the pockets of the consumers while paying their workforce less and, through the benefit of worthless currency, cleaning up on foreign sales as it’s much easier to sell an IPhone at $199 when $199 was 167 Euros in May and is 142 Euros in October – a nice 15% discount (for foreign buyers) heading into the holidays!  

Since AAPL makes their IPhones in China – using the remaining FoxConn employees who haven’t killed themselves to escape their torturous working conditions (one improvement that’s been made is they now have bars on the windows to stop the workers from escaping by leaping to their deaths) and, since China’s currency is pegged to ours, their production costs stay flat and net profits (when priced in dollars) look pretty good.  

In fact, I had been getting bearish because I thought corporate profits weren’t going to be so good this quarter, what with the lack of sales and all, but I was wrong.  I was wrong because corporate profits are priced in dollars and dollars are worth 10% less than they were the last time corporations reported.  

So silly me – all profits are inflated by 10% and that 10% is the E that gets divided from the P and gives us a much better price/multiple to hang our hats on and that gets investors to BUYBUYBUY…
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Zero Hedge

Plunge Protection Team Arrives: Lifts Stocks & Currencies, Slams Gold

Courtesy of ZeroHedge View original post here.

Update (2245ET): China's Vice Premier Liu told online news provider Cailian that China has enough macro-economic policy tools to ensure sound economic fundamentals and suddenly Yuan and USDJPY spikes, US equity futures surge, and gold slides...

Right on cue...US equity futures have almost erased their losses...

Yuan spikes and USDJPY has erased all of its...



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Phil's Favorites

S&P 500 Index Must Bounce Here Or Hold On Tight!

Courtesy of Technical Traders

The fragility of the markets can not be underestimated at this time. Our July predictions regarding a market top and an August 19...



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The Technical Traders

S&P 500 Index Must Bounce Here Or Hold On Tight!

Courtesy of Technical Traders

The fragility of the markets can not be underestimated at this time. Our July predictions regarding a market top and an August 19...



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Biotech

The Big Pharma Takeover of Medical Cannabis

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

 

The Big Pharma Takeover of Medical Cannabis

Courtesy of  , Visual Capitalist

The Big Pharma Takeover of Medical Cannabis

As evidence of cannabis’ many benefits mounts, so does the interest from the global pharmaceutical industry, known as Big Pharma. The entrance of such behemoths will radically transform the cannabis industry—once heavily stigmatized, it is now a potentially game-changing source of growth for countless co...



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Kimble Charting Solutions

Bearish Divergences Similar To 2000 & 2007 In Play Again!

Courtesy of Chris Kimble

Does history at important junctures ever repeat itself exactly? Nope

Do look-alike patterns take place at important price points? Yup

This chart looks at the S&P 500 over the past 20-years.

In 2000 and 2007 bearish momentum divergences took place months ahead of the actual peak in stocks.

Currently, momentum has created a bearish divergence to the S&P 500 for the past 20-months, as the seems to have stopped on a dime at its 261% Fibonacci extension level of the 2007 highs/2009 lows.

Joe Friday Just The Fact Ma’am; A negative sign for the S&P 500 with the divergence in play, would take place if support b...



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Insider Scoop

Earnings Scheduled For August 22, 2019

Courtesy of Benzinga

Companies Reporting Before The Bell
  • Hormel Foods Corporation (NYSE: HRL) is estimated to report quarterly earnings at $0.36 per share on revenue of $2.29 billion.
  • BJ's Wholesale Club Holdings, Inc. (NYSE: BJ) is projected to report quarterly earnings at $0.37 per share on revenue of $3.38 billion.
  • DICK'S Sporting Good...


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Chart School

Gold Gann Angle Update

Courtesy of Read the Ticker

Everything awesome? Gold over $1500. Central banks are printing money to generate fake demand. Germany issues first ever 30 year bond with negative interest rate. Crazy times!

Even Australia and New Zealand and considering negative interest rates and printing money, you know a bunch of lowly populated islands in the South Pacific with no aircraft carriers or nuclear weapons. They will need to do this to suppress their currency as they are export nations, as they need foreign currency to pay for foreign loans. But what is next, maybe Fiji will start printing their dollar. 

Now for a laugh, this Jason Pollock sold for more than $32M in 2012. 
 


 

Ok, now call ...



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Lee's Free Thinking

Watch Out Bears! Fed POMO Is Back!

Courtesy of Lee Adler

That’s right. The Fed is doing POMO again.  POMO means Permanent Open Market Operations. It’s a fancy way of saying that the Fed is buying Treasuries, pumping money into the financial markets.

Over the past 6 days, the Fed has bought $8.6 billion in T-bills and coupons. These are the first regular Fed POMO Treasury operations since the Fed ended outright QE in 2014.

Who is the Fed buying those Treasuries from?

The Primary Dealers. Who are the Primary Dealers?  I’ll let the New York Fed tell you:

Primary dealers are trading counterparties of the New York Fed in its implementation of monetary policy. They are also expected to make markets for the New York Fed on behalf of its official accountholders as needed, and to bid on a ...



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Digital Currencies

New Zealand Becomes 1st Country To Legalize Payment Of Salaries In Crypto

Courtesy of ZeroHedge View original post here.

Bitcoin and other cryptocurrencies have been on a persistent upswing this year, but they're still pretty volatile. But during a time when even some of the most developed economies in the word are watching their currencies bounce around like the Argentine peso (just take a look at a six-month chart for GBPUSD), New Zealand has decided to take the plunge and become the first country to legalize payment in bitcoin, the FT reports.

The ruling by New Zealand’s tax authority allows salaries and wages to b...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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Promotions

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Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

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