Gold Futures (/GC) are slipping near the $1280 an ounce range as upbeat equities tarnish the value of the precious metal which has remained bid amid the government shutdown. Energy prices (/CL) are up slightly with crude back above $53 a barrel after suffering a 1% defeat to start out the shorted week yesterday over demand concerns.
Forex and stock traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. All traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new stock traders will try and fight the trend.
Wednesday, January 23, 2019
Tuesday, January 22, 2019
10-year bond yield 1/22
The nominal spread between the 10-year bond yield and short-term interest rates -- the so-called "yield-curve spread" -- has been closing since 2014 and is now at a 10-year low. Many believe this signals a U.S. economy headed for recession. But other leading indicators do not point to a sharp slowdown. For example, the nominal spread fails to take inflation into account. On this measure, the real, inflation-adjusted level of bond yields remains historically low versus five-year inflation, and the real level of short-term rates is finally above zero, but only by 40 basis points. We think that Leading Economic Indicators are better predictors than the yield curve. One-year growth for the LEIs is a very robust 5%.
Friday, January 18, 2019
Atlassian Corp. (TEAM 1/18
Atlassian Corp. (TEAM) shares rallied in the extended session Thursday after the business productivity software company's results and outlook topped Wall Street estimates. Atlassian shares surged 5.1% after hours, following a 1.5% decline to close the regular session at $92.92. The company reported fiscal second-quarter net income of $45.2 million, or 18 cents a share, compared with a loss of $64.2 million, or 28 cents a share, in the year-ago period. Adjusted earnings were 25 cents a share. Revenue rose to $299 million from $214.6 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 21 cents a share on revenue of $288.3 million. For the third quarter, Atlassian expects earnings of about 18 cents a share on revenue of $303 million to $305 million, while analysts forecast 17 cents a share on revenu e of $300.7 million.
Wednesday, January 16, 2019
10 year treasury yield (TNX
The 10 year treasury yield (TNX) has ticked up to 2.72% following the implications of the Brexit defeat. Mortgage applications surged 13.5% last week thanks to the recent relief in interest rates as some buyers return to the market after painfully slow holiday inaction. Refinances primarily drove the welcomed result with a 19% increase in new applications.
Tuesday, January 15, 2019
Natural Gas futures (/NG) 1/15
Forecasts of much colder weather, sent Natural Gas futures (/NG) to their biggest one day gain in two months. Nat. gas futures for February surged 16% higher to $3.5910. The natural gas market is 22% higher in 2019. After a milder than normal December and early January, prices could continue to be volatile. The Energy Information Administration (EIA) will report on gas storage on Thursday.
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