Category Archives: Stock Market

Oil Prices and Production: Danger vs. Opportunity

The Chinese word for crisis has two characters – Danger and Opportunity. When we see the collapse of oil prices from more than $100.00 per barrel down to $45.00, clearly we have a crisis in the energy sector. The US oil industry has been hit hardest. A year ago the shale oil fracking industry was the darling of investors. Now, share prices have plummeted, companies are cutting back expenses, budgets are getting slashed, oil rigs are being taken out of service and the stage is set for some shale companies to go belly up. Shale oil is highly capital intensive and these companies are highly leveraged with huge debt.Continue Reading

NASDAQ in the Spotlight

Have you wondered why the NASDAQ has become so popular? It is now the driving force leading markets higher. Here are some highlights from the pages of the NASDAQ:Continue Reading

The Two Faces of Oil

Oil is a mysterious commodity. It trades with supply and demand numbers, yet it also trades with geopolitical events. It is an international commodity with each country buying or selling depending on their needs and domestic supply.Continue Reading

January 2015 – Turbulence Rules the Markets

Some market watchers hold that January sets the tone for the rest of the year. If this January is any indication we are in for a bumpy ride. The markets have reacted to cross winds both international and domestic.Continue Reading

The Election in Greece: Syriza Party’s Stunning Win

It was to be a grand thing, this Euro. It was the water that would raise all the boats of each European country and for 10 years it did just that. The headquarters was set up in Brussels. A troika would rule. It was the European Commission, The European Central Bank (ECB) and the International Monetary Fund (IMF). Each country could issue its own bonds. Interest rates fluctuated based on the relative economic strength of each country. Germany with its strong industrial capacity and exports rose to the top. The Southern countries of Greece, Spain, Portugal and Italy lacked the exports. Instead they relied on the money from their bonds to put people to work in the public sector. What no one realized at the time was that all the new debt being issued would eventually need to be repaid in Euros, not their old currency. This inflated the debt.Continue Reading

Trading Woes on Black Thursday: January 15, 2015

Picture this. You are a very good trader, trading mainly with technical indicators. You use such tools as charts, Bollinger Bands, support and resistance, slow stochastic, money flow and several other indicators. These skills have served you well and you have a successful 10 year track record. You like the leverage of trading commodities and currencies. Currencies offer the greatest leverage, requiring only a 2% margin. That means that you put only $2.00 down for every $100 you trade. You are rather conservative and even though you have a $10,000 account you trade only $2,000. With a $2,000 margin at 2% you are controlling $100,000 of currencies. You are trading $2000 of EUR/CHF. Currencies are always spread trades. In this case you are buying the Euro (EUR and selling the Swiss Franc (CHF).Continue Reading

2015 – How is the World Doing?

It might be helpful to take a reading on various countries at the beginning of 2015 to help investors decide where to place their bets in the coming year. Some trends are affecting all major world economies while others are country specific.Continue Reading

Big Banks Win – Derivatives are Back

Once upon a time in the long ago we had banks that lent money to individuals and companies to expand and grow the economy. During the Great Depression lawmakers saw the need to rein in and regulate banks’ activities. The Glass Steagall Act of 1933 ruled that banks could not become involved in selling or trading securities. Separate Investment banks were organized that could underwrite and sell securities but they could not use depositor money.Continue Reading

URGENT-Check Your Energy Portfolio Now!

The OPEC decision not to cut oil production is a watershed event that will change the energy industry for years to come. OPEC Secretary General, Abdalla El Badri stated: “We will produce 30 million barrels a day for the next 6 months and we will watch to see how the market behaves.” Energy Minister, Suhail Al Mazrovei said: “Newcomers to the market who have the highest costs and created the glut should be the ones to determine prices.”Continue Reading

Gold – The Long and Short of it.

It’s an understatement to say that gold is a mysterious commodity. There are wars in the Mid East and we have Russia and the United States verbally battling each other over Russia’s invasion of the Ukraine. The natural resource boom of 2011-12 is taking a breather, affecting the economies of Australia, Canada, South America and Africa. International conflicts usually drive investors to seek haven in precious metals. This time, however, they are running away from them with gold making new lows in the month of November. It is extremely difficult to make sense of these cross currents and come up with a rational sense of where gold is headed. A look at the fundamental and technical factors affecting gold trading will give us some insight about the market.Continue Reading