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Yen Climbs With Global Growth Worries

Thu, 23 May 2013 08:48:40 -0400

The risk aversion seen in Asia is showing little signs of slowing this morning as we head into the North American session. There has been a rush to safety with both the CHF and yen higher across the board. The EUR bulls have found some temporary solace from the better-than-expected run of European Purchasing Managers Indexes (PMI). However, both China and U.S. Federal Reserve Chairman Ben Bernanke are being blamed for the latest market turbulence.

Market Wrap for Wednesday, May 22: Stocks Pullback As Bernanke Says Bond Buying Could Slow

Wed, 22 May 2013 16:19:04 -0400

In Congressional testimony on Wednesday, Federal Reserve Chairman Ben Bernanke said that the central bank could begin winding down its $85 billion-per-month bond-buying program at one of its "next few meetings."

Minutes from the May FOMC meeting, however, showed that there is no consensus about when to begin pulling back

Bernanke Testimony Keeps Traders Guessing

Wed, 22 May 2013 09:42:00 -0400

St. Louis Federal Reserve Bank President James Bullard, a supposed hawk, has been bullying the 'single' currency bears into temporary submission ahead of today's Federal Open Market Committee (FOMC) meeting minutes or at least he should be held responsible for getting the ball rolling. Yesterday, he suggested that the most appropriate policy for the U.S. Federal Reserve is to continue the current QE3 (quantitative easing, third round) policy. Dovish comments from the voting hawk has put the mighty dollar under pressure, while catching the market off-guard, when he mentioned adjusting the pace of purchases in view of incoming data on economic performance, employment, and inflation.

Market Wrap for Tuesday, May 21: Stocks Record Modest Gains Ahead of Bernanke Testimony

Tue, 21 May 2013 16:20:00 -0400

U.S. stocks staged a modest rally on Tuesday ahead of Congressional testimony from Federal Reserve Chairman Ben Bernanke on Wednesday.

The expectation that the central bank will continue to lend support to the markets helped sustain risk appetite on the day.

Investors were also encouraged by a client note issued

Market Wrap for Monday, May 20: Stocks Record Very Minor Losses; Greenback Falls Versus Euro

Mon, 20 May 2013 16:25:45 -0400

The U.S. stock market fell on Monday in a quiet trading session. The losses, however, were very minor and the sharp uptrend in equities continues to look intact.

Nevertheless, traders and investors will be on the lookout for any sign of a pullback as stock prices have been surging on

PowerShares DB US Dollar Index Bullish (UUP) - Trade Flow Update

Mon, 20 May 2013 03:00:00 -0400

NEW YORK (AVAFIN) -- A record number of PowerShares DB US Dollar Index Bullish ...

Markets Fluctuate on Chatter of Early QE Exit by Fed

Fri, 17 May 2013 07:46:57 -0400

Visit StreetInsider.com at http://www.streetinsider.com/news.php?st=p&id=8349802 for the full story.

Market Wrap for Thursday, May 16: A Small Pullback For U.S. Stocks as Economic Data Disappoints

Thu, 16 May 2013 16:17:39 -0400

Stocks pulled back late on Thursday as bullish sentiment could not overcome disappointing economic reports. Initial jobless claims, housing starts and a reading of the Philadelphia Fed's Business Outlook Index all surprised to the downside.

Although it is far too early to predict a correction in the market, investors who have

The Dollar - Is It The Best Of A Bad Lot?

Thu, 16 May 2013 09:00:12 -0400

Is the U.S. dollar really the best of a bad lot? Even disappointing Producer Price Index (PPI) and manufacturing data released yesterday suggests that the U.S. recovery is somewhat uneven. Regardless, it has not been able to stall the 'mighty' dollar's rally. The dollar bull continues to rely on the last few weeks' upbeat jobs prints to aid the buck in its quest to climb higher. It was lower energy prices that led American wholesale prices to its biggest decline in the PPI in more than three years last month (+0.7%). This would suggest that U.S. inflation is currently a relative non-issue, implying that the U.S. Federal Reserve has time on its side to continue with its monthly quantitative easing (QE) program, and without having to worry about any spike in prices.

Market Wrap for Wednesday, May 15: Bull Market Continues as Dow and S&P Hit New Highs

Wed, 15 May 2013 16:17:21 -0400

A late day push helped the U.S. stock market to another strong close on Wednesday. The Dow and S&P 500 finished the session at new all-time highs and all of the major averages recorded steady gains.

U.S. stocks have been on fire at the beginning of 2013 and the current

Market Wrap for Tuesday, May 14: Stocks Rally to New Highs

Tue, 14 May 2013 16:25:25 -0400

The U.S. stock market notched another rally on Tuesday as momentum pushed the major averages to new year-to-date highs. Money flowed out of bonds and into equities as risk appetite remains brisk on Wall Street.

After recording a 1 percent gain on the session, the S&P 500 is up almost

EURO Stumbles Over Fallen Aussie

Tue, 14 May 2013 08:51:54 -0400

The increase in the volume and tone of commentary emanating from Germany as to how uncomfortable it is becoming with the European Central Bank’s (ECB's) monetary policy stance is certainly noticeable – Germany is clearly opposed to further ECB stimulus. Chancellor Angela Merkel and some of her policymakers are feeling uneasy about the high level of liquidity, the 'long' period of low interest rates, and what impact this is all having on various asset classes.

Don't Bet Against a Surging U.S. Dollar

Mon, 13 May 2013 16:57:00 -0400

In the midst of a brewing currency war, Japan's out-of-control monetary policy has caused the yen to fall to an almost five-year low against the U.S. dollar.

With an economy one-third the size of that of the United States, Japan has committed itself to a fiscal program that's almost double the U.S. Federal Reserve's current $85- billion a month stimulus.

Like any other war, this battle of monetary-easing measures won't end well, but fortunately for Americans, it's looking more and more likely that the dollar will emerge victorious.

"Right now, the U.S. dollar is the 'cleanest dirty shirt in the laundry,' so I'd buy it," said Money Morning Capital Waves Strategist Shah Gilani.

The dollar now stands at 101.93 against the yen, the first time it's broken the 100 mark since 2009, and is up 26.6% in the past six months.

Many experts are now predicting the dollar's climb has just begun and some analysts see the dollar hitting 105 yen this summer and possibly 110 by the end of the year.

"The turn in yen has been dramatic and has proven the importance of momentum when a multi-year cycle turns," Nomura currency expert Jens Nordvig wrote in a note to clients. "A similar dynamic could be in store for the dollar. In the scheme of things, the USD REER [Real Effective Exchange Rates] is still trading close to multi-decade lows. Once the turn is evident, we believe momentum could be powerful."

Here's why the U.S. dollar's run is just beginning.

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Market Wrap for Monday, May 13: Major Averages Closed Mixed as Retail Sales Data Surpasses Expectations

Mon, 13 May 2013 16:18:06 -0400

The major averages closed out Monday's trading session mixed despite retail sales data that showed consumer spending trended higher than expected last month.

The Dow recorded a small loss on the day while both the S&P 500 and Nasdaq notched very modest gains. Overall, the investing atmosphere remains very attractive

Clashing Ideas Confront EURO's Survival

Mon, 13 May 2013 09:06:57 -0400

Now what? The foreign exchange (forex) market has got what it had been coveting for many months, albeit a few weeks earlier than originally planned – USD/yen trading north of the psychological 100 print. The pair, currently meandering through 'no-man’s land', is more influenced by the market’s perception of the U.S. Federal Reserve's attitude toward quantitative easing and a potential exit strategy rather than Abenomics’ reasoning. Is the market to grind out further dollar supporting gains? Or are investors to reload on pullbacks and keep the faith in the Bank of Japan (BoJ)?

Market Wrap for Friday, May 10: Stocks Gain on Late Day Rally

Fri, 10 May 2013 16:15:38 -0400

It was another quiet day on Wall Street, but an afternoon rally pushed the U.S. stock market firmly into positive territory by the closing bell.

The leader on the day was the Nasdaq Composite while the Dow Jones Industrial Average only recorded a small gain. The U.S. dollar was also

Market Wrap for Thursday, May 9: Stocks Record Small Losses as Dollar Jumps

Thu, 09 May 2013 16:31:25 -0400

The U.S. stock market recorded small losses on Thursday despite a report which showed a drop in both initial jobless claims and continuing claims.

Volatility levels rose on the session as the market fell, but the VIX remains at historically low levels. In the currency markets, the yen and euro

Choked By Options, the Euro Eases as It Awaits a Catalyst

Thu, 09 May 2013 09:11:44 -0400

In foreign exchange (forex), the Antipodeans stole the show again overnight. Their respected currency enthusiasm has not been able to spill over into the Euro session ahead of the Bank of England’s (BoE) rate announcement. On all accounts, the option corralled 17-member single currency requires a significant catalyst to break ranks – all week long the markets’ lack of conviction has kept many investors on the sidelines seeking relief in their reform fatigued currency.

ECB Rate Cut: How Did It Impact Euro ETFs? – ETF News And Commentary

Thu, 09 May 2013 08:00:12 -0400

The European Central Bank (ECB) took its first step in ten months to avoid falling into a deeper recession by cutting its benchmark interest rate. The interest rate, which was last changed in July 2012, has now been reduced by a quarter percentage point to a record low of 0.50%. Also, the marginal lending rate [...]

Market Wrap for Wednesday, May 8: Stocks Record Moderate Gains; Euro Rises

Wed, 08 May 2013 16:14:57 -0400

In a slow trading session on Wall Street, U.S. stocks recorded moderate gains after opening the day lower. The docket of economic reports is light this week and investors continue to focus on corporate earnings reports.

Among the day's leaders was Whole Foods (NASDAQ: WFM), which rose a

Aussies Play It Safe As EUR Longs For Loftier Heights

Tue, 07 May 2013 09:46:42 -0400

If we did not have the Aussies, the Reserve Bank of Australia (RBA), or Governor Glenn Stevens, this would have been another bland and boring market to be talking about. Policymakers Down Under certainly know how to surprise it seems, as very few analysts had predicted any movement by the RBA in its latest rate cutting decision: Governor Stevens is keeping the markets on its toes by cutting overnight interest rates to a record low of +2.75%.

Market Wrap for Monday, May 6: Stocks Little Changed; S&P Closes at New All-Time High

Mon, 06 May 2013 16:34:19 -0400

The U.S. stock market was little changed on Monday in a light volume, slow news day.

The Dow Jones Industrial Average recorded a small loss, while the Nasdaq and S&P 500 both rose modestly on the session. The S&P closed at a new all-time high to start the trading week.

Global Dollar Demand Keeps Inflation Tame At Least In U.S.

Mon, 06 May 2013 11:23:01 -0400

In São Paulo, Brazil, taxi drivers know a lot more about monetary crises than the typical U.S. economist. Said one: “I remember. I was just a kid. But my father would call and tell us to run to the grocery store. He had just been paid. We’d dash for the grocery story, meet him there and buy everything we could. We spent every cent in just a few minutes.” A friend was recalling what it was like in the late 1980s in Brazil. The government had caused inflation, then hyperinflation. Prices rose so fast that as soon as people got some cash they ran to the grocery store to spend it. Later, there was no point. In 1990, hyperinflation in Brazil reached 30,000%. What cost 1 real (the Brazilian currency) in 1980 cost 1 trillion in 1997. The hyperinflation wiped out the middle class and wiped the shelves clean.

The Yen's Slow And Methodical Drop

Mon, 06 May 2013 09:11:12 -0400

Historically, the first Monday following the release of the U.S. nonfarm-payrolls report (NFP) usually ends up being the quietest trading day of the month – and this Monday morning is promising to keep that tradition alive. With the various bank holidays and festivals being honored globally, it is a stretch to get overexcited on this first day of a new week despite the smattering of Eurozone data that’s been reported. The 17-member single currency continues to make some headway outright after French and German services sector data beat expectations. However, periphery spreads have tried to derail some of this momentum. Spanish yields have edged higher, with Italy in sympathy, after domestic data showed activity in the country's services shrank last month (44.4 vs. 45.3, month-over-month), the slowest pace since last December.

Market Wrap for Friday, May 3: Stocks Jump on Strong Jobs Data

Fri, 03 May 2013 16:28:54 -0400

The U.S. stock market jumped on Friday to end the trading week. The catalyst for the move higher was a strong jobs report, which briefly sent the Dow Jones Industrial Average over 15,000 for the first time in history.

Heading into next week, the markets will be sitting at new year-to-date

ETFs to Watch May 3, 2013 (DUG, EWW, UNG)

Fri, 03 May 2013 06:38:53 -0400

Here is the ETF Professor's ETF Watch List for Friday, May 3, 2013.

The SPDR Gold Shares (NYSE: GLD) should be in play.

Give the ProShares UltraShort Oil & Gas (NYSE: DUG) a look.

The United States Natural Gas Fund (NYSE: UNG) was a mess Thursday.

Keep an

Market Wrap for Thursday, May 2: Stocks Recover From Wednesday's Losses; Dow Up Triple Digits

Thu, 02 May 2013 16:19:24 -0400

Stocks jumped on Thursday as jobless claims hit a 5-year low, spurring investor enthusiasm.

The consensus had expected jobless levels to rise. The U.S. dollar also climbed on the day as the euro currency recorded a sharp loss and looks to test the $1.30 level once again.

Volatility levels on

The ECB's Draghi - Loose Lips Sink EURO

Thu, 02 May 2013 09:42:16 -0400

A sure thing is always a dangerous bet and more so when it's in reference to the European Central Bank (ECB). As expected the ECB cut its benchmark interest rate to a record low this morning, a mostly symbolic move and more in hope to lift morale in the deflated region. This move is probably not enough on the first go around to shock the Continent out of recession. Policy members meeting in Bratislava, Slovakia, cut its benchmark interest rate to +0.5% from +0.75%, which was already a record low. It was the first change in interest rates in nearly a year and the bank’s fourth cut since Mario Draghi took the helm in November 2011.

Market Wrap for Wednesday, May 1: Stocks Fall as Employment Data Weakens in April

Wed, 01 May 2013 16:16:23 -0400

The U.S. stock market was hit hard on Wednesday as investors reacted to a report which showed slowing employment conditions for the month of April.

The losses were also likely amplified by profit taking as the Dow and S&P have been hovering near record highs in recent days. Overall, all

Market Wrap for Tuesday, April 30: Stocks Shrug Off Early Losses, Close Near Session Highs

Tue, 30 Apr 2013 16:18:45 -0400

The U.S. stock market was resilient again on Tuesday. Stocks traded lower in early trade, before rising throughout the rest of the day to finish near session highs.

Gains for the Dow and S&P were muted, but the Nasdaq tacked on 0.66 percent. Investors were heartened by a sharp rise

UUP Makes Notable Cross Below Critical Moving Average

Tue, 30 Apr 2013 16:07:03 -0400

In trading on Tuesday, shares of the DB US Dollar Bullish Fund ETF (UUP) crossed below their 200 day moving average of $22.18, changing hands as low as $22.17 per share. DB US Dollar Bullish Fund shares are currently trading off about 0.5% on the day.

Silver: A 66%, 3-Day Return

Tue, 30 Apr 2013 13:08:34 -0400

The dollar is down, Euro is going to print, Silver, Gold and Copper are up... Where do we go from here and how can you find the next 66% gain in a three day trade....

Market Wrap for Monday, April 29: Stocks Start Week With a Rally

Mon, 29 Apr 2013 16:12:13 -0400

The S&P 500 traded into record high territory on Monday as the markets started the week off on a strong note.

A rally in U.S. stocks was sparked in part by better than expected consumer spending for March. Stocks closed off their best levels of the session, but all of the

Market Wrap for Friday, April 26: Major Averages Mixed to Close Out Week

Fri, 26 Apr 2013 16:29:56 -0400

Stocks closed mixed in a quiet trading session on Friday. Investors were focused on numerous earnings reports during the day and a couple of economic reports that offered a mixed view of the economy.

The final revision to the University of Michigan Consumer Sentiment Index came in well above consensus

Market Wrap for Thursday, April 25: U.S. Dollar and Bonds Down Again

Thu, 25 Apr 2013 16:39:12 -0400

Toward the end of trading Thursday, the Dow traded up 0.15 percent to 14,699.62 while the NASDAQ gained 0.63 percent to 3,290.96. The S&P also rose, surging 0.39 percent to 1,585.49.

The S&P 500 looked to be stalling under the 1,580/1,583 resistance, with 1,575 support below, and 1,590 resistance above. The Dow

Market Wrap for Wednesday, April 24: Stocks Little Changed as Investors Focus on Earnings Season

Wed, 24 Apr 2013 16:22:07 -0400

A day after a big stock market rally, the S&P 500 and the Nasdaq were unchanged on Tuesday while the Dow recorded a moderate loss as AT&T shares fell five percent on earnings news.

Durable goods orders declined more than expected for March and the most since August, suggesting that manufacturing

Market Wrap for Tuesday, April 23: Major Averges Climb Better Than 1% Despite Mini Flash-Crash

Tue, 23 Apr 2013 16:31:14 -0400

The U.S. stock market surged on Tuesday, but the session was not without drama for investors.

During afternoon trade, the major averages lost nearly all of their gains very briefly after a tweet from the AP said that there had been an explosion at the White House and that the President

Forget Diamonds -- The Greenback Is Back In Vogue

Tue, 23 Apr 2013 08:55:01 -0400

It seems that owning the dollar is again fashionable. The market is back to "buy dollars, wear diamonds" thanks largely to risk-averse signals from commodities gaining traction after weak German and Chinese Purchasing Managers Indexes (PMI) this morning. The greenback is currently the chosen one, the best of a bad bunch, as global data begins to turn south. Eurozone private sector activity has declined again, providing more support for the Group of 20 debate pushed last week -- that the Eurozone and the U.K. should consider shifting away from austerity and concentrate on policies that stimulate regional growth.

Market Wrap for April 22: Stocks Rise Moderately to Begin Week

Mon, 22 Apr 2013 16:16:39 -0400

The U.S. stock market rose on Monday to start the week.

The lone domestic economic report was existing home sales, which edged down and missed consensus estimates. Investors will primarily be focused on corporate earnings reports this week after the S&P 500 recorded its largest loss of the year last week.

The

Japan Stimulus Strategy Gets G20 Blessing

Mon, 22 Apr 2013 09:40:45 -0400

Last week's two-day Group of 20 meeting ended up running "true-to-form" – Japan was left alone, again allowing short-yen positions to dominate positioning. In fact, the member nations seemed less concerned about currency wars and sovereign debt blowouts and instead wanted to encourage economic growth initiatives. Facing another global slowdown, the tag team of the U.S. and the International Monetary Fund (IMF) have been pitched against the Eurozone and the U.K. over whether "axing budgets and debt is the recipe for recovery or recession" – to spend or not to spend?

Market Wrap for Friday, April 19: S&P 500 and Nasdaq Composite Jump; Dow Lags After IBM Earnings

Fri, 19 Apr 2013 16:30:30 -0400

The U.S. stock market closed out a volatile week of trading with solid gains for the S&P 500 and the Nasdaq Composite.

The Dow closed the session up only 10 points, however, after IBM plunged in the wake of a weak fiscal first-quarter earnings report. Investors snapped up technology names after

G20 Encourages an Intellectual Currency War

Fri, 19 Apr 2013 08:52:55 -0400

This has certainly not been a dull week in capital markets. The intraday investor has been exposed to just about everything. As of Friday, we have a commodity market that is telling the investor that global growth is slowing. A U.S. equity market, financed by cheap money, continues to signal that the American consumer is somewhat in the driving seat when it comes to stock prices. And finally, the European sovereign market appears to be convinced that domestic Japan is about to embark on a global shopping spree. All cannot be true; a couple of these markets will eventually have to back down. The only cert that investors should cling to is that any realignment of these asset classes will not be smooth.

Important Currency ETFs For The Rest of 2013

Thu, 18 Apr 2013 17:23:58 -0400

To clear up that headline, it will not be U.S. dollar or euro ETFs that are addressed here.

Even the Japanese yen will be skirted to some extend. There are plenty of other currencies that can be accessed via ETFs that could present opportunities to investors for the remainder of 2013

Market Wrap for Thursday, April 18: Market Pullback Continues; Dow Loses 81

Thu, 18 Apr 2013 16:17:37 -0400

The stock market recorded losses for the third day this week as a couple of economic reports showed that the economy may be slowing.

The Conference Board's Index of Leading Indicators missed expectations and initial jobless claims rose for the week ending April 13. The leader to the downside on the

CNBC’s Model ETF Retirement Portfolio for the 30-Year-Old Investor

Wed, 17 Apr 2013 17:30:39 -0400

In a collaboration with exchange traded fund experts, CNBC has rolled out an all-ETF diversified portfolio for the investor looking to save toward retirement. “We wanted investors to have some exposure to most asset classes, that would be stocks, bonds, cash, commodities and even real estate,...

Market Wrap for Wednesday, April 17: Stocks Plunge Again Along With Euro

Wed, 17 Apr 2013 16:27:17 -0400

The U.S. stock market fell sharply on Wednesday as volatility continues to pick up on Wall Street.

Concerns over global growth have caused the recent market gyrations that have sent the CBOE Volatility Index soaring. A large decline in the euro and a surging U.S. dollar also helped to cap risk

Yen Momentum Relaxes Ahead of G20 Meeting

Wed, 17 Apr 2013 08:50:23 -0400

At this week’s midpoint, what have we witnessed so far? On Monday, weaker data has added to the global growth slowdown scare. The soft Eurozone releases were not a surprise. The real surprise came courtesy of China where data for Q1, and for the month of March, suggested that Chinese growth slowed substantially. Add an event risk tragedy and we have had a global market seeking safety, with government bond yields falling, and the U.S. dollar rising against many currencies.

Market Wrap for Tuesday, April 16: Stock Market Rebounds Strongly From Monday's Sharp Losses

Tue, 16 Apr 2013 16:21:00 -0400

The stock market rebounded strongly on Tuesday after recording steep losses to begin the week on Monday.

A surging euro and better than expected housing data helped spur investor confidence. Gold and silver prices also stabilized on the day after recording tremendous losses over the course of the last two trading

Yen Bullies The EURO Bear Into Submission

Tue, 16 Apr 2013 08:59:05 -0400

Market losses were exacerbated in all asset classes yesterday following data showing China's economy expanded more slowly than expected. Many investors decided to jump, pull the ripcord, and seek shelter in risk-averse trading positions. The extreme market moves, especially within the commodity class, has some investors looking for bargains after the heavy market losses. Gold has managed to get itself off of the floor and bounce back into positive territory from a two-year low. Risk aversion carried the yen higher than the market had expected, but the USD/JPY rebound through Asia and Europe without fresh news suggests that this recent correction could be over.

Market Wrap for Monday, April 15: Major Sell-Off Sweeps Wall Street; Gold Plunges to 2-Year Low

Mon, 15 Apr 2013 16:33:08 -0400

The U.S. stock market plunged on Monday after a disappointing Chinese GDP report sparked fears about slowing global growth.

The fear was evident across asset classes, but the biggest story of the day was a better than 10 percent decline in gold prices -- the worst day for the precious