Category Archives: Stock market

by | April 22, 2014 · 2:23 pm

Gold slid

European stocks are all up today. FTSE 100 is up +0,90%. CAC 40 is up +0,66%. DAX jumps +1,06%. Commodities are going in the opposite direction. They`re all in a red territory. Copper down -0,58%. Silver -0,64%. Crude Oil (brent) -0,31% and gold is down -0,17%.

Gold

Many hedge funds are lowering their bullish bets on gold. As things are looking better in the U.S and Europe, the demand for the precious metal remain non-enthusiastic. The reason is that both economies are gradually improving.

Most hedge funds are fund of funds. Those hedge funds are massive money pools and they move the money from fund to fund. It depend on the best hedge funds the last few months. If one of the funds are doing it bad, they simply dump it and move on to another one.

All the hedge funds must make money every month and many of them have a short-term strategy. Those hedge funds do not pay much attention to fundamentals and this is a big reason why program trading became a dominant force over the past decade.

Many of those funds are massive money funds and a few of them can move the market. Most of the moves is short-term moves, but they will all jump on the wagon once the god prices are going up again.

Many Asian and European markets were closed yesterday due to the Easter holiday and the Russia-Ukraina crises has de-escalated right now. That`s why the markets have been so light now. Lack of fresh bullish news makes the gold go down. This is technical selling and some investors say you have to be bold to own some gold now.

The fear is down as the VIX slid yesterday -0,82% to 13,25. The last top of the VIX was in September 2011 as it reached 47. This is good for the stock market and the U.S markets seems to open up today.

Take a look at Netflix today. It will skyrocket! What about the home sale recovery. Is it strong or weak? Look for the reports at 10:00 a.m today. It`s even more interesting tomorrow: earning reports from Apple, Zynga and Facebook.

Reports today:
10:00 am EST Existing Home Sales

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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by | April 10, 2014 · 1:52 pm

Go Daddy IPO

What a jump for tech stocks yesterday! Facebook up +7,25%. LinkedIn +4,19%. Yelp +5,95%. Yahoo +3,07%. Even Twitter was up yesterday; +1,70%. That`s just a few of them. Many investors saw a huge opportunity and jumped into the market yesterday.

The market was very quiet yesterday, but that was before the release of the Fed Meeting Minutes. Right after the release, we saw a nice move in the markets. This time investors was bullish and most of the tech stocks skyrocketed.

With the rally yesterday, we can see a new bullish trend in the chart, but it is a little bit too early to say that 100% right now. It’s just early in the stage of the new bullish trend. Equities rallied, but Treasuries declined after the minutes eased concern about the timing of future interest-rate increases.

They probably might have to keep the rates at levels below normal for longer because of tighter credit and a slow growth. In addition there will be higher savings. Fed have always said that they will keep the rate low as long as the unemployment rate exceeds 6,5%.

Fed also said that the benchmark interest rate would rise faster than previously forecast. Only the new data that comes in will tell them what to consider when to increase borrowing costs. Bad data coming in later will destroy their plans and vica verse.

Go Daddy

The leading domain name registrar Go Daddy has hired JPMorgan and Morgan Stanley to handle an IPO that could occur later in 2014. They provide individuals and businesses with internet services, such as domain name registration and website hosting.

They also have software for functions that include e-mail, e-commerce, podcasting and website creation. Go Daddy boosts some 57 million domain names under management. They targets niche markets the likes of priate domains and reseller programs through affiliates Domains By Proxy and Wild West Domains.

Founder Bob Parsons remains its majority shareholder, while both KKR and Silver Lake have been partners in Go Daddy since 2011. Go Daddy was acquired by KKR, Silver Lake, and VC firm TCV for $2,25B.

Their rival Wix went public last year and soared +7,82% yesterday. Verisign jumped only +1,2%. Wix has a 52 week low of $16,19 and a 52 week high of $32,69. The stock`s 50-day moving average is $26,28. 200-day MA is $25,12. Market cap is $831,7 million.

I personally use Go Daddy and I like their competitive prices and their service. I will look for the IPO and I will wait for Alibaba to come to the exchange later on this year too. That`s gonna be two new stocks for the tech sector in the future.

Reports today:

08:30 a.m EST Unemployment Claims
08:30 a.m EST Import prices m/m
08:30 a.m EST G20 Meetings
08:30 a.m EST G7 Meetings
02:00 p.m EST Federal Budget Balance (Previous: -193,5B Forecast: -76,5B)

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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by | April 9, 2014 · 2:12 pm

IMF – Economic Growth

 

In a report yesterday, IMF (International Monetary Fund) said the GDP (gross domestic product) in U.S increased 1,9% last year. The U.S will accelerate to 2,8% expansion in 2014, and 3% nest year. Stronger growth in U.S in 2014 and 2015 will help the world economy withstand weaker recoveries in Emerging markets.

Nadag 08.04.2014

(Chart: Nasdag Index, April 8, 2014)

JPMorgan Chase & Co and Wells Fargo & Co are reporting earnings this week. The largest aluminium producer Alcoa posted first quarter earnings yesterday. They started the earnings season kick off after the close yesterday.

 

Alcoa have historically been the unofficial kickoff to quarterly earning season. Revenue of $5,45B (-6,5% Y/Y), misses by $100M. EPS of $0,09 beats by $0,04. Alcoa shares is up +2,39% AH. CNBC`s Jim Cramer is bullish on First Solar, and the stock soared 6,7% yesterday.

 

After its worst three-day drop since 2011, Nasdaq rose yesterday +0,81%. It`s interesting to see that most of the tech stock jumped yesterday. LinkedIn jumped +5,92%. Google +3,12%. Facebook +2,18%. Tesla +3,83% and Netflix +3,22% to name a few.

 

But there is one stock that slid yesterday; Twitter. Down -1,58%. The stock is trading at $41,78. Let me put it this way: I am not surprised! They have changed the profile page and look like their rivals Facebook and Google+, but that is not enough to boost its shares I think.

 

Yen rose yesterday as the Japanese equities fell. Yen rose the most since August 2013. European stocks advanced today and its all in a green territory. The pan-European FTSEurofirst 300 was up 0,2%, retracing all of Tuesday`s fall.

 

The appetite for stocks was boosted by a recovery yesterday, but I think it is time to be cautious. I`m not buying stocks with both hands right now. The crisis in Ukraine has flared up again, and the earning season has started again. I will follow the report earnings that is coming the next weeks.

 

Reports today:

 

10:00 a.m EST Wholesale Inventories m/m

10:30 a.m EST Crude Oil Inventories

1:01 p.m EST 10-y Bond Auction

2:00 p.m EST FOMC Meeting Minutes

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

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by | April 8, 2014 · 2:02 pm

Is this the end of the bull market?

Gold is up +0,61% to $1,311,40, and Silver is up +1,02% to $20,11. Crude oil (brent) is up +0,52% to $106,37. Copper is down -0,03% to $303,85. It`s all red in the Euro Zone today, while the indices are little changed.

Spx

(Chart: S&P 500 Index)

Nikkei slid to a two-week low today. The Japanese shares fell 1,4%. The BOJ (Bank of Japan) stood pat on policy after a 2-day meeting, and gains in the yen also hurt the sentiment. It was mixed in the Asian markets today.

Dow seems to open up today, while S&P 500 open in a red territory. EUR/USD is trading at 1,3762. Up + 0,17%. Sectors: Telecoms is down -0,78%. Financials is down -0,43%, while the Energy sector is up +0,02%.

Some investors are scared and want to take some profits now. Other investors see opportunities like some talking heads at CNBC. They belive a «bear case» is almost impossible based on the job data and other economic numbers.

It`s difficult to predict the next move in the market. Other investors say that the stock exchange is more like a casino right now. All driven by robots. Nobody knows where the Easter Bunny will jump!

Reports today:

10:00 a.m EST JOLTS Job Openings
01:30 a.m EST FOMC Member Kocherlakota Speaks
02:45 a.m EST FOMC Member Plosser Speaks

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

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by | April 7, 2014 · 2:01 pm

Sell off on friday

A big drop for U.S tech stocks on friday. Nasdaq was down -2,60% on friday. S&P 500 -1,25% and the Dow -0,96%. Nikkei is also down today, together with the other Asian markets. Nikkei is down -1,69%.

Europe is also down today. Stoxx 50 is down -0,89%. FTSE 100 -0,71%. CAC 40 -0,72% and DAX -1,24%. At the same time, you can see the commodities trading down too. Gold is down -0,16%. Silver is down -0,33%. Crude oil (Brent) -0,95%, and Copper -0,13%.

Nadaq

(Nasdaq: Apris 4, 2014)

Many investors have talked about the valuations in the tech stocks for a while now, and many predicted a tech bubble was on the way. I wrote about it for some weeks ago, and I said Twitter was the most expensive stock in this universe.

52 Week high for Twitter is 74,73, and the stock traded down -2,07% on friday. Twitter is down about 50% from the top very soon. Marketers are embracing Facebook over Twitter, and they will rather go for Youtube and LinkedIn before Twitter.

Sometimes investors need to take some profit and friday was a great day for that. It seems like the U.S markets will open down today. I`m excited about the trading sessions, not only today, but for the rest of this week. Take a look at the dollar. It`s up!

Tech and biotech is so far the most popular sectors in 2014, but both of them slide now. Many tech stocks are trading down in Europe too. This is a great time for daytraders. I will follow the charts this week before I start my vacation on friday. Easter bunny is waiting.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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