I was going to write an article on the rather mundane "buy" signals that have gone in for a number of ETFs such as Biotechnology ETF XBI, Emerging Markets EEM, and Europe VGK however on waking up this morning credit issues in China have reared their ugly head again. European markets have not reacted well to the efforts of Chinese authorities to reign in loose cash. I show the charts below because normally they would represent great buying opportunities, but the further we move from a period of significant correction the more likely it becomes, and we are now going on two years.
Thursday, November 23, 2017
Wednesday, November 22, 2017
Alibaba takes $2.9 billion stake in food retailerAlibaba said on Monday it would take a major stake in one of China's top food sellers for $2.9 billion as the e-commerce giant expands further into the retail world. China's largest e-commerce platform has invested heavily in recent years to connect its online and offline portfolio of businesses, taking stakes in several Chinese grocers, shopping malls and department stores.
Chipmaker Marvell to buy rival Cavium for $6 billionMarvell Technology Group said Monday that it would acquire Cavium for $6 billion in a deal that will bring together two rivals in the market for high-end chips used in data centers, wireless communications and self-driving cars.
Whether You Love Or Hate Natural Gas, Stopping Methane Emissions Now Is CrucialThe International Energy Agency’s new 2017 World Energy Outlook contains the agency’s strongest language yet about the urgent need to reduce methane emissions from the oil and gas sector, and the huge opportunities that exist to do so.
Jet fuel from sugarcane? It's not a flight of fancyBy Stephen P. Long, Professor of Crop Sciences and Plant Biology, University of Illinois at Urbana-Champaign, Vijay Singh, Professor of Agricultural and Biological Engineering and Director of Integrated Bioprocessing Research Laboratory, University of Illinois at Urbana-Champaign, and Deepak Kumar, Postdoctoral Researcher, University of Illinois at Urbana-Champaign.
Tuesday, November 21, 2017
Guest Post: SPX Hits 2600 As Social Chaos Churns
Written By: Strawberry Blonde (slopeofhope.com)
I last wrote about the SPX:VIX ratio in my post of October 25. I mentioned that if price dropped and held below the 200 level, expect volatility to increase and weakness to set in on the SPX…and, that if it failed to do so, we could see the SPX reach 2600 before such a scenario may ensue.
Since that date, we’ve seen the SPX stabilize somewhat, bounce around above 2560, and, finally, reach 2600 today (Tuesday), as shown on the Daily chart below.
After a brief dip below 200, a new “BUY” signal is about to form on the SPX:VIX ratio, as shown on the Daily ratio chart below.
However, it will be important for price on this ratio to reach and hold above the 280 major resistance level, and for the SPX to hold above 2600, in support of a convincing argument that favours the sustained entry of the SPX into a new bull-market phase.
This bird’s eye view of the SPX (Monthly chart) shows that it has not faced a major challenge in almost two years.
Price is, however, mashed up against major resistance in the form of a +2 standard deviation of a regression channel. If price does manage to spike through this, the next hurdle is an external Fibonacci retracement level at 2678.
With the VIX down near historical lows (as shown on the Monthly chart below), the current battle unfolding within the Republican party to reform and cut taxes before the end of the year (with zero support from Democrats), and social chaos (sexual assault allegations) exploding across the U.S., we may see volatility increase, correspondingly, in equity markets in the weeks/months ahead…particularly in 2018, with the impending mid-term Congressional elections in November, with possible interest rate hikes by the Fed, and, especially, if tax reform/cuts fail.
Monday, November 20, 2017
UK to have driverless cars by 2021: govtBritish finance minister Philip Hammond is to announce £75 million ($99 million, 84 million euros) funding for Artificial Intelligence and plans to put driverless cars on UK roads by 2021, in his budget speech on Wednesday.
EU cuts funding to Turkey in 2018 budgetAn EU 2018 budget deal was announced Saturday that cuts funds destined to Turkey, citing doubts about Ankara's commitment to democracy and human rights. German Chancellor Angela Merkel had led calls for a cut to the funds, which are linked to Turkey's stalled bid to join the bloc, following mass-scale arrests in the country since the failed July 2016 coup.
Europe turns on Facebook, Google for digital tax revampThey have revolutionised the way we live, but are US tech giants the new robber barons of the 21st century, banking billions in profit while short-changing the public by paying only a pittance in tax?
China ready to develop logistics network with Panama: Premier LiChina, as the world's major cargo trade country, is ready to develop a logistics network cooperation with Panama based on its regional advantages, Premier Li Keqiang said on Friday. Li made the remarks when meeting with Panama's President Juan Carlos Varela in Beijing.
Trump Inflated His Company's Revenue, Reports SuggestThe Trump Organization has tumbled 37 spots on the list of the largest privately held companies in New York after federal filings showed the real estate company makes 10 times less than previously reported.
Sunday, November 19, 2017
Trump: I should have left UCLA players in jailDonald Trump on Sunday said he was sorry for helping secure the release of three college basketball players caught shoplifting in China, after one of their fathers downplayed the president's role. The UCLA trio of LiAngelo Ball, Cody Riley and Jalen Hill were briefly detained for stealing from a Louis Vuitton store in the city of Hangzhou earlier this month in what became a minor diplomatic incident.
Friday, November 17, 2017
Commodities Ready To Strengthen?
By: Tim Knight at Slopeofhope.com
By: Tim Knight at Slopeofhope.com
The commodity ETF symbol DBC had been trapped beneath resistance for over two years, but it broke out recently. The weakness we saw in crude oil earlier this week dragged it down some, but it’s push up off support at this point (see arrow). If this level holds (16.05) we could be entering a new upswing in commodities.
As for my own trading day – – MEH – – down half a percent at the moment, but holding tough.
Thursday, November 16, 2017
Eye On IWM Versus SPY: Is The Bull Market Losing Steam
By: MPTrader at SlopeOfHope.com
By: MPTrader at SlopeOfHope.com
On November 6, we noted in our Mid-Day Markets update that a comparison of the SPY and IWM showed a deterioration in the Russell 2000 small-cap ETF relative to the big-cap SPY. We said that as long as IWM was trading below its 20 DMA at 149.11, we would view it as vulnerable to downside continuation off of its Oct 9 all-time high at 150.58.
We were watching and continue to watch this SPY-IWM relationship closely, as, historically, in the later stages of a bull market, a divergence is very likely. In other words, as a bull market loses steam, small companies lose upside momentum relative to the “go to” mega-capitalized companies.
Right now, all eyes are on IWM juxtaposition with its sharply declining 5 DMA, now at 146.41, which has served as a tight-fitting down-sloping resistance line. As long as IWM is trading beneath its 20 DMA, we should consider the dominant near-term downtrend as intact and the dominant near-term influence on price action, which is a negative sign for the SPY and S&P 500 bulls.