Category Archives: Stock market

by | March 21, 2014 · 2:37 pm

Twitter 8 year

A big jump for Copper today which is up +1,33% to 296,75. Gold, Silver and Oil is also up today. A great jump for the U.S stocks yesterday too. S&P 500 is now trading at 1,872,01. Up +0,60%. Nasdaq traded up +0,27% yesterday but not all the tech companies went up yesterday.

twitter_newbird_boxed_blueonwhite-11

First of all: congratulations to Twitter which is 8 years old today. Can you belive that? I hope it will be a great day for Twitter on the stock exchange today. That will be a great gift, because yesterday was a bad day for Twitter. Down -2,19%.

Twitter is not alone: Facebook went down -1,86% and Apple went down -0,48%. What is that suppose to mean? It is a sale signal for Facebook. Is this the time for investors to get out of Facebook and other tech stocks? Time will show.

Twitter is an online social networking and microblogging service company that enables users to send and read «tweets». According to Yahoo.com, the microblogger went dark in Turkey just hours after Prime Minister Recep Tayyip Erdogan threatened to «wipe out» Twitter which (along with others) was highlighting corruptions against his inner circle.

The EU commissioner for digital agenda, Neelie Kroes, tweeted that the block «is groundless, pointless, cowardly». Erdogan`s office said in a statement that Twitter had remained «indifferent» to Turkish court rulings demanding «some links» be removed.

Erdogan will wipe out Twitter and say he don`t care about the international community. Turkey`s leader since 2003 is under pressure since audio recording spread across social media that appeared to put him at the heart of a major corruption scandal.

Some of the most damaging information has come from a Twitter account under the name Haramzadeler («Sons of Thieves») which have access to a huge trove of secrets documents and policy wiretaps linked to the investigation. Erdogan say the recordings are fake and threatened to ban YouTube and Facebook after crucial elections on March 30.

Erdogan say this social media companies like Twitter «menace» for helping organise mass anti-government protests.

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 | March 20, 2014 · 1:51 pm

FED raise rates

Silver dropped -2,60%, while gold is down -1,01% after the news from Fed Chair Janet Yellen. Oil and Copper is also down today. Janpan`s Nikkei 225 is down -1,65% to 14,224 points. Hang Seng is also down together with the rest of Asia.

Janet Yellen

(Picture: Fed Chair Janet Yellen)

The U.S indices traded down yesterday too and Europe is also in a red territory. Most investors don`t know what to do right now. It seems to be a red opening in the U.S later today. This is all reactions on the FOMC meeting yesterday.

The Fed will probably end its massive bond-buying program this fall and probably start raising interest rates around 6 months later. This comment sent stocks and bonds tumbling. We will see a more aggressive path toward higher interest rates than anticipated she said yesterday.

The Federal Reserve has held the interest rate near zero since late 2008. They have pumped trillions into the markets with its bond purchases. All this because they tried to foster a stronger recovery. Despite the QE program, the growth has been very slow.

The change in its rate hike guidance did not mark a shift in its intentions and they will wait a «considerable time» after shuttering its asset purchase program before pushing borrowing costs higher. «Considerable time» means about 6 months.

But, as Janet Yellen said: «It depends – what the statement is saying is it depends what conditions are like».

Most people don`t know it, but the best period of economic growth in all U.S history was without a central bank. Do U.S really need Federal Reserve? They created the markets crash in 1929, and so far the FED has been a disastrous.

The FED started about 100 years ago, and since then the dollar has lost more than 96% of its value. The size of the U.S national debt is more than 5000 times larger. The Fed`s «debt-based» financial system has trapped the U.S, and are on the verge of the greatest financial crises in history.

Congress could have shut down the FED long time ago. I HATE DEBT!

Reports today:

08:30 AM ET Unemployment Claims
10:00 AM ET Existing Home Sales
10:00 AM ET Philly Fed Manufacturing Index
10:00 AM ET CB Leading Index m/m
04:00 PM ET Bank Stress Test Results

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 | March 19, 2014 · 1:09 pm

FOMC Press Conference

Asian stocks fell today as investors are waiting for the Federal Reserve`s policy statement. The FOMC (Federal Open Market Committee) will end a two-day policy meeting today, after data yesterday indicated the U.S home-building industry is stabilizing.

Investors are still very cautious and The Fed will probably water down their forward guidance and keep U.S interest rate low for at least another 18 months. The FOMC will further scale back its bond-buying at the meeting.

They will probably reduce purchases for the third time by $10 billion to a $55 billion monthly rate. Gold had the longest slump since mid December 2013. What is going on with the precious metal? Are the first stage in the gold bull over?

Gold has declined before the meeting and are now trading at $ 1345,10. Nobody knows what Janet Yellen will say today, but it is expected that the gold will bottom out today before the meeting and then go up again.

Traders will probably sell on rumors of Fed tapering and will cover shorts and buy after the announcement. Gold broke out of its first stage, and now have a sharp pullback to previous resistance. Gold is volatile so it is expected.

Now, it will be interesting to follow the bond market. It seems like it is on the way to break out to the upside. If TLT ETF who tracks the value of the 20-year treasury bond breaks out, the rates will drop. So, how will that be if the Fed buy fewer bonds?

Right after the Fed meeting, I will follow the gold price, stock market, bond market and the interest rate. Janet Yellen can move the market, but it depends on what the news is? I look forward to the FOMC meeting today.

Reports today:

02:00 AM ET FOMC Economic Projections
002:00 AM ET FOMC Statement
02:00 AM ET Federal Funds Rate
02:30 AM ET FOMC Press Conference

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 | March 18, 2014 · 2:02 pm

Gold strategy

Gold is a safe heaven in times of inflation because it retains its value much better than currency-backed assets, which may climb in price, but drop in value. Gold has been a popular investment for investors for centuries. The experts say you should spend 10% of your assets in gold.

Gold

It`s easy to buy stocks, but investing in gold is something different. There are a number of different ways to invest in the underlying movements of the precious metal. If you invest in the wrong type of gold investment you can end up with an underperforming asset, even if the price of gold is moving fast in your favor.

 

Some people will try to tell you the story that empires were built on gold and how the fiat currency of the U.S will plunge and be worthless. The fact is that gold need to be treated in the same way. So, be careful and try to invest in the right option available for investing in gold.

 

You can buy physical gold, derivates contracts, gold mining stocks or exchange traded funds. Which one is the best to put the money in? Don`t invest in gold with the idea it always go up. It doesn`t. It goes up and down like any other investment products.

 

You can buy physical gold and safe-keep it in you own house. This is the most traditionally way of investing in gold. But it is also the most inefficient way to own gold. You can buy coins or bars from an online dealer.

 

Unfortunately, you have to pay sales tax on their purchase and more inefficiencies come up when you go to sell the gold you have since the IRS consider gold bullion and coins «collectables» which are subject to a higher maximum tax rate of 28%.

 

If you plan to store all your gold in your own home there may ba another problem. The risk is high when it comes to theft, fire and natural disasters. Another plan is to put the bold in a box at the bank, but that will cost a fee and you will not be able to access your gold if you want to sell it short.

 

Investing in gold futures or options makes you leverage a lager amount of the precious metal. You can profit on the price move depending on whether you are bullish og bearish in the market. The downside is that this strategy is very volatile. It`s up to you: you can turn a small amount of money into big profit or you can lose everything you have very quickly.

 

Another risky business is investing in mining gold stocks. Pick the right junior or major stock. Junior companies are small companies which is very speculative hoping to find a big score. Major miners are more established.

 

As the price of gold goes up, the margins of the companies go up as well. This can be reflected in their stock prices, but like other stocks, if the mining company have a poor management tbe price of shares will suffer even if the gold price moves higher.

 

ETF (Exchange Traded Funds) is probably the smartest way of investing in gold. The most popular gold ETF is SPDR Gold trust (GLD). One share is about 1/10 of an ounce of the spot price of gold.

 

Another ETF is the Market Vectors Gold Miners ETF (GDX) which tracks the major miners and the other one with the symbol GDXJ which tracks the junior miners. GLD tracks the movement of gold and have low expenses.

 

It is liquid and you can sell it whenever the stock market is open. Investing in GLD eliminates the storage issues and lower your risk. This investment is better than putting all your eggs in one basket. GDX and GDXJ will not always track the price of gold as GLD by being proxy for the mining industry as a whole. GDX and GDXJ spread the risk across multiple companies in the gold mining industry.

 

Reports today:

 

08:30 AM ET Building Permits
08:30 AM ET Core CPI m/m
08:30 AM ET CPI m/m
08:30 AM ET Housing Starts
09:00 AM ET TIC Long-Term Purchases

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 | March 17, 2014 · 2:13 pm

Crimea vote

It`s all up and green in Europe today. We see a cautious rally after Crimea vote. The opening in U.S today will be mixed, but it can change later on today. Obama spoke to Putin after the vote, and Putin pointed that the vote is legal.

Moscow city

(picture: Mosow city)

The U.S and EU warn Russia against moving to annex Crimea, and today mull sanctions. Gold is declining to $1378,60. I think this is some profit-taking pressure from recent gains that saw prices hit a six-month high overnight.

 

The vote in Crimea should not be a big surprise. The Russian parliament said it would move fast to annex the Crimean region. Any escalation of tensions in Ukraine would quickly put risk-aversion back into the markets.

 

Now, we should look for the possible sanctions against Russia. If the U.S and EU slap Russia`s hands with diplomatic and economic sanctions, we will see the Russian stock market in a big drop. We saw the stock market in Russia plummeted earlier with a drop of -20% in on single day.

 

That was more expensive than the Olympic Games in Sotsji. Not good for a company that went bankrupt in 1998. The economy is the eight largest economy in the world. They have an abundance of natural resources, including timber, precious metals, and particularly fossil fuels (oil, natural gas and coal) that can be developed without the constraint of OPEC production quotas and other rules.

 

Russia in not a OPEC member. Russia`s oil and gas production have been not only a primary source of Russia`s economic growth but also a geostrategic lever in the country`s relationship with Europe and Asia.

 

Russia has undergone significant changes since their collapse in 1998. They have moved from a centrally planned economy to a more market-based and globally integrated economy. The economy is more privatized in many sectors now.

 

Russia`s capital, Moscow, had the highest number of billionaires of any city in the world, and the Russian government predicts growth rates for future years at 2,5% of GDP. Putin and his friends are often criticized for their «loan-for-shares» scheme that turned over major state-owned firms to politically connected «oligarchs» has left equity ownership highly concentrated.

 

It`s a big country and it all collapsed and went bankrupt in 1998. As we all know, U.S is also a big country, with a lot of problems. Do people around the world really know how serious the problems in the U.S is? I hope so, because everyone should be prepared and protect themselves.

 

Reports today:

 

08:30 AM ET Empire State Manufacturing Index
09:15 AM ET Capacity Utilization Rate
09:15 AM ET Industrial Production m/m
10:00 AM ET NAHB Housing Market Index

 

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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