Posts by The Trend Letter

Headlines – September 6/17

  • Wall St opens higher even as North Korea, Irma weigh. Read story
  • Canadian dollar jumps as Bank of Canada raises benchmark rate to 1%. Read story
  • US trade gap edges up; deficit with China at 11-month high. Read story
  • Irma makes landfall in Caribbean, heads toward Puerto Rico. Read story
  • How to track Hurricane Irma in real time as it hits land. Read story
  • Oil job losses in UK ‘worse than expected.’ Read story
  • “We’re now seeing bubbles everywhere”- Deutche Bank boss urges end to “era of cheap money.” Read story
  • Stock market investor who sank Valeant thinks Bitcoin fund is ‘most dangerous’. Read story
  • Kentucky public employee retirements surge on fears of pension fund collapse. Read story
  • China fears radioactive fallout from North Korea blast. Read story
  • White Christians now a minority in the US. Read story
  • Kohls to sell Amazon devices in 10 LA, Chicago stores. Read story
  • On the lighter side. Check it out!

Stay tuned!

Headlines – September 5/17

  • Stock market set for lower open as North Korea standoff intensifies. Read story
  • North Korea threat prompts Japan evacuation preparations. Read story
  • What heavier US military activity in the Pacific means for North Korea. Read story
  • Putin warns of ‘planetary catastrophe’. Read story
  • Euro area poised for fastest economic growth in a decade. Read story
  • China bans initial coin offerings calling them ‘illegal fundraising’. Read story
  • Robert Schiller wrote the book on bubbles, and says ‘the best example right now is Bitcoin’. Read story
  • Hurricane Irma to track toward US east and gulf coast. Read story
  • Trump: We must fix our self-destructive tax code. Read story
  • Trump to end ‘Dreamer’ program. Read story
  • How debt ceiling could put government pending on diet. Read story
  • Does your job pay less than it did five years ago? Read story
  • Wary of robots taking jobs, Hawaii toys with guaranteed pay. Read story
  • More than half in UK have no religion. Read story
  • On the lighter side. Check it out!

Stay tuned!

Headlines – September 1/17

 

  • US job growth slows in August; wage growth retreats. Read story
  • Dollar falls as weak job number cuts Fed outlook. Read story
  • Retail US gas prices surge as Harvey keeps refiners shut down. Read story
  • Putin warns North Korea situation on verge of ‘large scale conflict’. Read story
  • Canadian economy smashes expectations with 4.5% growth. Read story
  • Kenya presidential election cancelled by Supreme Court. Read story
  • Tesla Model 3 killer? Nissan to launch redesigned Leaf. Read story
  • Wells Fargo reveals even more fake accounts. Read story
  • Battle over Robert E, Lee statue enters Charlottesville courthouse Friday. Read story
  • Stock-market investor who sank Valeant thinks a bitcoin fund is the ‘most dangerous’. Read story
  • China, India rivalry looms over BRICS summit. Read story
  • This grim map shows all the places working-class Americans can’t afford to live. Read story
  • Only 13% of Americans worry about tech making their jobs obsolete. Read story
  • On the lighter side. Check it out!

Headlines – August 31/17

  • Stocks gain on growth, US dollar extends run. Read story
  • Texas Chemical plant explodes after Hurricane Harvey flooding. Read story
  • Harvey shuts key US fuel pipeline. Read story
  • China says it will never allow war or chaos at its doorstep as tensions escalate on Korean peninsula. Read story
  • US oil set for biggest monthly loss in over year as flood hits demand. Read story
  • Bitcoin rises again, sets another record. Read story
  • UBS and other big banks are showing governments how to put cash on a blockchain. Read story
  • Small business owners angry over proposed Liberal tax changes. Read story
  • US housing prices keep rising on supply constraints. Read story
  • Markets about to find out what China’s leadership reshuffle means. Read story
  • Spanish tycoon outs Gates as world’s richest. Read story
  • A new t-shirt robot can make as many shirts as 17  factory workers. Read story
  • 12 places that aren’t keeping your data safe. Read story
  • On the brighter side. Check it out!

U.S. stocks rose on Wednesday after stronger-than-expected U.S. economic growth outweighed concerns about escalating tensions between the United States and North Korea, and uncertainty in the aftermath of Hurricane Harvey.

The S&P 500 closed the day up .46% moving out of its short-term downtrend channel.

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Technology stocks lead the way higher, with the NASDAQ closing up 1.05%. It has now broken out of its near-term downtrend channel.

NASDAQ0830

The Canadian TSX Index was up .33%, but remains in the downtrend channel it has been in since late April.

TSX0830

In Asia we saw the Shanghai Index takes a small breather after rocketing higher on Monday and Tuesday.

SSEC0830

The Japanese Nikkei was up .74%, regaining most of yesterday’s loss, as the Yen retreated.

Yield0830

In Europe, the German DAX, was with up .47%, but like most Euro stocks, remains in the downtrend that it has been in since mid June. The Euro’s strength hurts exports.

dax0830

The London FTSE gained .38%, but still remains in its downtrend channel.

FTSE0810

Gold was able to break through powerful resistance on Monday at the 1280-1307 level. Gold closed today down 4.80 at 1314.10, and we will watch tomorrow to see how gold closes the month. Near-term we have resistance at 1325, 1340, and the the previous high of 1367.

Gold0830

With currencies, the $US is trying to climb back into its downtrend channel after dropping almost 10% since the start of the year.

USD

The $CAN fails to penetrate strong resistance at .80. Longer-term we are looking for the $US to regain strength, so last week we suggested that Canadians would want to look to convert to $US at these levels.

CAD0830

The Euro was up slightly today. Longer-term, we are very bearish on the Euro, and expect that 2018 will be a tough year for the Euro. Last week we said that Europeans will want to start to convert to $US on this strength, as we identified strong resistance at 1.18-1.20.

Euro0830

After gaining on safe-haven capital flow, the Yen has now broken down out of its near-term uptrend channel. Longer-term, we are bearish on the Yen.

 Yen0830

The British Pound bounces after recent weakness. A break below 1.28 opens the door to further weakness at 1.27 and 1.262.

BP0830

With bonds we saw the US 10-year bond decline slightly, resulting in a .94% gain in yield, now at  2.15%.

Yield0830

Stay tuned!

Headline – August 29/17

  • Gold climbs as N. Korea missile test sees price at 2017 high. Read story
  • Trump vows “all options open” after N. Korea launch over Japan. Read story
  • S. Korea drops eight heavy bombs near N. Korea to show ‘overwhelming force’. Read story
  • Oil prices dip as market assesses hurricane damage. Read story
  • US dollar dives to lowest level since 2015 after N. Korea missile launch. Read story
  • Euro rises to 18-month high against dollar. Read story
  • Harvey set to pummel flooded Houston again. Read story
  • US home prices surge in June. led by Seattle. Read story
  • Burger King launches Whopper Coin crypto-cash in Russia. Read story
  • Generals bring battlefield expertise to business world. Read story
  • Weight-loss and fitness goals often backfire. Here’s what to do instead. Read story
  • Mark Zuckerberg tells new daughter to play outside. Read story
  • Hilary to let her guard down for $1200 a ticket. Read story
  • On the lighter side. Check it out!

Stay tuned!

Headlines – August 25/17

  • Stocks heading for best weeks in six ahead of Draghi,Yellen speeches. Read story
  • Samsung heir jailed 5-years for corruption and bribery. Read story
  • Oil trims weekly drop as storm heads for Texas;gasoline surges. Read story
  • Draghi has reason to tone down the drama at Jackson Hole. Read story
  • Trump to start push for tax reform in speech next week. Read story
  • Gary Cohn says he’ll stay because neo-nazis won’t drive him out. Read story
  • Clashes over Indian guru rape verdict kill 12. Read story
  • Ex-PM Yingluck “flees Thailand” ahead of trial verdict. Read story
  • Bitcoin. Ether extend gains, even as digital currencies take a regulatory hit. Read story
  • US, Mexico, Canada ink non-disclosure agreements for NAFTA talks. Read story
  • Without insurance, some vendors balk at stalking shelves at Sears. Read story
  • California’s legislature is being asked to consider taxing robots. Read story
  • French president Macron under fire for spending $30,000 on makeup. Read story
  • If you are super indecisive, psychology says technology is to blame. Read story
  • On the lighter side. Check it out!

Stay tuned!

Market Recap – August 23/17

After its strong rally Tuesday, the  S&P 500 pulled back slightly today, based on Trump’s comments about shutting government down and abandoning NAFTA. It remains in its near-term downtrend channel.

Looking at what sectors have been the market leaders, we can see that while S&P 500 is up about 12% in the past year, it has been the technical stocks that outperformed at over 24%, while energy and agriculture were down 8.4% and almost 12% respectively.

 Sectorperformance

Our models call for the S&P 500 to bounce off the 2400-2415 support level, but should that level be breached, and we get a more substantial correction, then we would look for those high performance tech stocks to get hit harder.

The Canadian TSX Index was able to eke out a gain of .52%, but remains in the downtrend channel it has been in since late April.

TSX0823

In Asia we saw the Shanghai Index was basically flat, and continues its bullish trend.

SSEC

The Japanese Nikkei gets a slight bid, but continues to suffer as the Yen appreciates, making Japanese exports more expensive for foreign buyers.

 Nikk0823

In Europe, the German DAX, as with most Euro stocks, remains in the downtrend that it has been in since mid June. The Euro’s strength hurts exports.

 Dax0823

The London FTSE is trying to take advantage of the Pound weakness, but still remains in its downtrend channel.

FTSE

Gold is making another attempt to break through powerful resistance at the 1280-1307 level. Gold has made 5 runs at this resistance since last July, when it set its recent high at 1367.  Gold closed today at 1294.70, so we will soon see if this time it will be successful.

Gold0823

With currencies, the $US looking to form a base after dropping almost 10% since the start of the year. We are buyers above .94.

USD0823

The $CAN keeps pushing to the strong resistance level at .80 after being technically very overbought at the start of August. Longer-term we are looking for the $US to regain strength, so Canadians would want to look to convert to $US anytime we see the $CAN over .80. Potential upside to .85.

 $CAN0823

The Euro was up slightly today. Longer-term, we are very bearish on the Euro, and expect that 2018 will be a much different picture for the Euro. Europeans will want to start to convert to $US on this strength. Strong resistance at 1.18-1.20.

Euro0823

The Yen has temporarily replaced the $US as the safe-haven currency play for investors. It is coming up to strong resistance at .92. Longer-term, we are bearish on the Yen.

Yen0823

 The British Pound continues to struggle, having fallen through recent support at 1.285.  It remains vulnerable to further weakness at 1.27 and 1.262.

Stay tuned!

Market Recap – August 21/17

It was a fairly quiet day in geopolitical terms, with no Trump or Kim Jong-un rhetoric.

The S&P 500 managed to stop the slide from last week, closing up slightly.

spx0821

The weakest sector was once again the banks, with the SPDR S&P Bank ETF down 6.28% for the year.

Banketfr

While the S&P 500 is up 8.46% so far in 2017, the Russell 2000 Small Cap Index is down 2.4%. Trump’s promise of large corporate tax cuts had boosted small cap stocks since such cuts benefit smaller, US-focused companies. But with all of the turmoil in Washington, investors are becoming much less confident that the Trump administration is going to come through with these promises, so they have been lightening their exposure to small caps, and are focusing more on the larger cap stocks with international exposure.

 Rut

The Canadian TSX Index continues to suffer due to a stronger $CAN.

tsx0821

In Asia we saw the Shanghai Index open higher, continuing its recovery after the North Korea concerns had pushed those stocks lower.

SSEC0821

The Japanese Nikkei continues to suffer as the Yen appreciates, making Japanese exports more expensive for foreign buyers.

Nikk0821

In Europe, the German DAX reflects the general struggles of Euro stocks since mid June, which coincides with the Euro’s strong rally.

Dax0821

Gold is making another attempt to break through powerful resistance at the 1280-1307 level. Gold has made a number of runs at this resistance since last July, when it set its recent high at 1367.  Gold closed today at 1296.70, so we will soon see if this time it will be successful.

Gold0821

Looking at currencies, the $US continues its struggle, and is now down 9.95% since the start of the year.

USD0821

The $CAN is rallying again after being technically very overbought at the start of August. Longer-term we are looking for the $US to regain strength, so Canadians would want to look to convert to $US anytime we see the $CAN over .80.

$CAN

The Euro continues to be bid higher. Longer-term, we are very bearish on the Euro, and expect that 2018 will see the Euro hit hard.

 Euro0821

With all the turmoil in Washington, the Yen has temporarily replaced the $US as the safe-haven currency play for investors. Longer-term, we are bearish on the Yen.

Yen0821

The British Pound caught a bid today, but it remains vulnerable to further weakness.

XBP

Stay tuned!

Headlines – August 21/17

  • Wall St opens flat as North Korea, White House worries ebb. Read story
  • N.Korea warns of ‘merciless strike’ ahead of US-S.Korea drills. Read story
  • Moon warns North Korea against provocation during drills. Read story
  • China’s Great Wall eyes Chrysler Fiat bid. Read story
  • Speculators haven’t been this bullish on gold since October. Read story
  • Eclipse spectacle set to grip US public. Read story
  • How to DIY a simple eclipse viewer out of a cereal box if you don’t have proper glasses. Read story
  • Bitcoin analysts compete for highest price forecast. Read story
  • Ron Paul sees stocks chopped in half within a year, but he won’t blame Trump. Read story
  • Elon Musk leads 116 experts calling for outright ban on killer robots. Read story
  • Don’t like our rules? Then leave, China newspaper says after journal censored. Read story
  • 10 missing as US destroyer collides with oil tanker. Reads story
  • Jerry Lewis dead at 91. Read story
  • On the lighter side. Check it out!

Stay tuned!