Good morning!I continued working throughout yesterday afternoon. Prompted by a reader, I had a look at software group Kainos (LON:KNOS). What a fascinating company! If you missed that section, click here to revisit yesterday’s complete SCVR.The organic growth at Kainos from 2013-2016 has been remarkable. Thank you to the reader who pointed out there were many, generally […]
OPEC Ministers assembling at the group’s biannual meeting in Vienna stated that the oil market is moving towards the correct path with the dissipation of supply excess. The market trends are improving after two and a half years of oversupply, and traders are seeing signs that the supply and demand are near to being balanced. […]
How does stock pairs trading performance interact with lagged pair correlation and volatility? In her May 2016 paper entitled “Demystifying Pairs Trading: The Role of Volatility and Correlation”, Stephanie Riedinger investigates how stock pair correlation and summed volatilities influence pair selection, pair return and portfolio return. Her baseline is a conventional pairs trading method that each month: (1) […]
China’s slowing economy may mean a lower demand for oil, further exacerbating the low prices due to high and rising export volumes from the Middle East. The concern for China’s demand stems from several factors. The second-largest economy’s factory activity gauge expanded to a limited extent only during the month of May. A private survey […]
Shares in Europe declined on Wednesday, with care company Elekta dropped the most after disappointing results. The FTSEurofirst 300 index was down 0.5 percent, prolonging a fall of 0.8 percent in the previous session. The STOXX Europe 600 index also dropped 0.5 percent. Sweden’s Elekta fell as much as 7 percent after its first quarter […]
South African central bank Governor Lesetja Kganyago on Wednesday said the economic prospects of South Africa don’t look promising, and structural reforms are needed to bolster productivity. Kganyago said the South African Reserve Bank has to maintain consistent low and stable inflation to balance growth. The bank said it is expected that the economy will […]
I last looked at bathroom fittings firm Norcros in September last year. At the time I flagged up the stock’s apparent combination of strong value and momentum. I suggested this could deliver good results. Nine months is a short timeframe, but the markets have not turned in my favour so far. Norcros shares are worth […]
Wave summary: Once again this pair has failed miserably and broken well below important short-term support at 1.6424 invalidating the short-term bullish count. However, the larger bullish count has not been invalidated yet and it will only be so if support at 1.6104 is broken too. As we look for the low of red wave […]
Wave summary: Despite an unexpected large decline yesterday, we will let the bullish view have the benefit, as long as the low at 121.46 is able to protect the downside. If our count is correct then this wave [ii] is allowed to correct 100% of wave [i] without invalidating the count. However, wave [ii] can […]
Overview: The NZD/USD pair is showing signs of strength following a breakout of the highest level of 0.6730. On the H1 chart, the level of 0.6730 coincides with a daily pivot point, which is expected to act as minor support today. Since the trend is above the daily pivot, the market is still in an […]
The currency markets provide amble liquidity to investors interested in speculating on currency exposure. Most of the dealers and brokers who participate in these markets provide clients with a two way market allowing them to enter and exit when they want. Many investors take this for granted but might be very surprised when they attempt […]
If there’s one thing that George Soros is known for, it’s for being the “Man Who Broke the Bank of England” with his infamous pound short position during the UK Black Wednesday crisis. This trade was actually a few years in the making, leading up to the creation of the European Exchange Rate mechanism (ERM). […]
Technical outlook and chart setups: The EUR/JPY pair is seen to be trading at 122.40 levels for now after pulling back from lows at 122.00 levels. The pair is still stuck in the trading range between 122.00 and 124.00/50 levels respectively. Please note that it has to break out on either direction to define further […]
Overview: The USD/CHF pair faced minor resistance at the level of 0.9954, while major resistance is seen at the level of 0.9999. Support is found at the levels of 0.9895 and 0.9866. Also, it should be noted that a daily pivot point has already set at the level of 0.9910. Equally important, the USD/CHF pair […]
EUR/USD: No matter what happens on this trading instrument, the bias is bearish. There is a bearish Confirmation Pattern in the market. It would be rational to take any rally attempts as short-selling opportunities, for bears might still target the support lines at 1.1100 and 1.1050. USD/CHF: The USD/CHF pair consolidated yesterday. Bulls are still […]
The Dollar index remains in a bullish trend and is trading near its highs. There is still no trend reversal signal yet however Dollar bulls need to be very cautious. Blue lines – bullish channel The Dollar index continues to trade inside the bullish channel and above the Kumo (cloud). Trend is bullish. Short-term support […]
The main focus today will be on US ISM for May, In the EU we have significant PMI data to be released. It has been a mixed session in Asia as markets are on standby mode ahead of Thursday’s EECB rate decision and US NFP on Friday. Currencies: Overnight, AUDUSD jumped from 0.7235 to 0.73 […]
Technical outlook and chart setups: The GBP/CHF pair is seen to be trading at at 1.4390 levels at this moment after reversing sharply from 1.4600 levels yesterday. Please note that the rally that begun from 1.3400 levels looks to be complete at 1.4600 levels using the principle of equality. But according to the channeling technique, […]
Gold price bounced as we expected above the short-term resistance of $1,215 and has reached $1,220. However the form of the rise continues to look corrective and this means that once this bounce is over, a new low towards $1,190 should follow. Black trend line – long-term resistance Blue lines – bearish channel Black lines […]
Global macro overview for 01/06/2016: Better-than-expected GDP data from Australia boosted the AUD in overnight trade. Global investors expected GDP to decrease slightly from 0.7% q/q (2.9% y/y) to 0.6% q/q (2.8% y/y), but the number revealed a strong increase to the level of 1.1% q/q (3.1% y/y). The main driver for this result was […]
Media mogul Sumner Redstone’s daughter, Shari Redstone, on Tuesday said she does not want to manage Viacom Inc., or to chair its board. This was in response to a letter in which six independent directors of Viacom said it would fight any attempt to eject them from the board. In her statement, Shari said she […]
New York regulator said Anbang Insurance Group pulled out its application for its planned acquisition of Fidelity & Guaranty Life after it failed to provide the requested information for processing the deal. The Chinese company in November last year agreed to acquire life insurer Fidelity for $1.57 billion. New York regulators had required more information […]
U.S.-based chipmaker Advanced Micro Device Inc.’s chief executive, Lisa Su, on Wednesday said the company expects to return to operating profit in this year’s second half. On the sideline of the Computex technology show in Taipei, the CEO said she expects company revenue to grow for the full year. AMD in mid-April posted a 19.2 […]
Global macro overview for 01/06/2016: As the national referendum in Great Britain approaches (23rd June 2016), various pools are being conducted, revealing the sentiment of British people towards the UK’s participation in the eurozone. Yesterday’s latest online ICM Brexit poll has revealed very confusing data as 47% of participants voted to leave the EU, while […]
General overview for 01/06/2016: As anticipated yesterday, the sudden price reversal after the market made the top for wave X at the level of 124.20 is a part of a three-wave downside wave progression that will eventually make a new low. The wave (a) of this internal cycle looks completed now, so it might be […]
General overview for 01/06/2016: The market made another marginal higher high after the bottom for wave ii had been reached. Nevertheless, the top of wave (i) at the level of 1.3190 still hasn’t been violated. This kind of price action might suggest the corrective cycle in wave ii is still not completed, and it might […]
When the European market opens, some economic news will be released such as the Final Manufacturing PMI, German Final Manufacturing PMI, French Final Manufacturing PMI, Italian Manufacturing PMI, and Spanish Manufacturing PMI. The US will release economic data too such as the Beige Book, Total Vehicle Sales, ISM Manufacturing Prices, Construction Spending m/m, ISM Manufacturing […]
In Asia, Japan will release the Final Manufacturing PMI and Capital Spending q/y, and the US will release some economic data such as the Beige Book, Total Vehicle Sales, ISM Manufacturing Prices, Construction Spending m/m, ISM Manufacturing PMI, and Final Manufacturing PMI. So there is a probability the USD/JPY will move with low to medium […]
The greenback remains strong in the mid term, as the 200 SMA is still a dynamic support on the H1 chart. The next resistance is still placed around the 96.03 level, where a breakout can happen to resume the bullish bias, but a pullback cannot be discarded, as the MACD indicator is reaching overbought conditions […]
The pair continues to trade into a bearish tone on the H1 chart, looking to extend the decline below the support level of 1.4464, which remains a solid demand zone on a short-term basis. However, after that sharp decline, a rebound is expected to test the resistance level of 1.4540, where a breakout can happen […]
