INO.com Contributors Archives - Page 319 of 393

The Bond Market Gets Curiouser and Curioser

Posted on August 15, 2016August 15, 2016 by George Yacik

George Yacik - INO.com Contributor - Fed & Interest Rates

Sometimes the smartest thing is to do nothing.

This column has been pretty harsh on the Federal Reserve for its failure to start tightening monetary policy, as it sort of promised it would back in December. Since then, there’s been a steady stream of “yes we will, no we won’t” pronouncements from the Fed – both from the Fed itself and its individual members – that have left investors confused about the direction of U.S. monetary policy. Now, nine months later, the Fed has still not made the next move in “normalizing” interest rates.

A Reuters survey released last week found that 69 of 95 – that’s nearly three out of four – economists don’t expect the Fed to raise rates until December, after the presidential election, followed by two more hikes next year. We’ll see. Continue reading "The Bond Market Gets Curiouser and Curioser" →

Top Metals Smashed The Euro! Will It Hit Back?

Posted on August 13, 2016August 13, 2016 by Aibek Burabayev

I started to cover European gold at the beginning of this year when it was at the 1000 EUR level. In spring I added silver to the pack as it had an interesting setup on the chart. Today I would like to share with you an update of the charts and to show you the outcomes.

Let us start with a single currency chart and see if we can find some clues which could help us with the metal crosses charts.

Chart 1. EURUSD Monthly: RSI Calls For Higher High

Chart courtesy of tradingview.com

Now, after almost two months, the dust of BREXIT hysteria has settled. The euro has managed not just to survive, but to score more than 2 cents after it touched the $1.09 mark on the referendum selloff in June. Friedrich Nietzsche once said - "That which does not kill us makes us stronger." The light version of the chart above had been shown to you in May.

The euro is still sitting on the very important trendline (dark gray) and the similar price action was earlier when the price approached this trendline. I mean the same combination of lower highs amid higher lows. The RSI has the same divergence as in 2001. This time, we have a flatter downtrend (orange) and the RSI is still below its trendline unlike in the previous case.

There are three triggers which could help the euro to have a big against US dollar once they are broken: Continue reading "Top Metals Smashed The Euro! Will It Hit Back?" →

CVS Delivers Strong Second Quarter

Posted on August 11, 2016 by Noah Kiedrowski

Introduction

CVS Health Corporation (NYSE:CVS) recently announced fantastic Q2 2016 numbers across the board. Increased EPS growth, revenue and free cash flow coupled with dividends and share buybacks bode well for CVS investors. CVS’s acquisitions of Target pharmacies and Omnicare are becoming fully integrated under the CVS umbrella. Collectively, these are great attributes that drive shareholder value over the long-term. I’ve written several articles presenting a compelling investment opportunity in the growing healthcare space via CVS. My investment thesis is based on the fact that CVS has been highly acquisitive, continues to deliver robust earnings growth, revenue growth, growing dividends and has an aggressive share buyback program in place. CVS recently reported fantastic quarterly results for Q2 2016 in 2016, positioning itself for long-term success. With its recent acquisitions of Target’s pharmacies and Omnicare, these proactive measures will significantly expand its presence and ability to dispense prescriptions to the general public and in long-term care facilities. As healthcare costs continue to rise (specifically prescription drug costs) and the population continues to age with the elderly comprising a larger segment of the overall population, CVS looks poised to benefit. The release of its Q2 2016 earnings reiterates this premise while the company is maintaining its growth narrative. I content that CVS will continue to deliver sustained growth and position itself for long-term success to drive shareholder value. Continue reading "CVS Delivers Strong Second Quarter" →

Natural Gas Producers Pressuring Futures Prices Lower

Posted on August 9, 2016August 9, 2016 by Robert Boslego

Robert Boslego - INO.com Contributor - Energies

Natural gas futures prices rose by 2.0% last week (ending August 2nd to correspond to the data below) then dropped back to close the week 10 cents lower at $2.77.

NYMEX Nat Gas Futures Nearby Month

Prices rose in advance of the Energy Information Administration’s (EIA) Thursday storage report in anticipation of a draw in inventory, which was confirmed in the data release. As a result, the year-over-year storage glut was cut to 13.4%. Continue reading "Natural Gas Producers Pressuring Futures Prices Lower" →

Gold Is At The Crossroads! Which Stock Is The Most Vulnerable?

Posted on August 6, 2016August 5, 2016 by Aibek Burabayev

Back in March in my major gold update I warned you that what was being billed as a New Bull Run could easily turn out to be a complex correction. In that post’s chart, I didn’t put the small Fibonacci retracement level at 38.2% as I was impressed with the strong move to the upside from the bottom and I thought it would be useless. These days the situation has changed and I put an updated chart below.

Chart 1. Gold Monthly: First Serious Resistance