INO.com Contributors Archives - Page 324 of 393

Pendulum Experiment Result: Success! One More?

Posted on July 5, 2016July 5, 2016 by Aibek Burabayev

Here we are! The experiment came to its final stage - the summary. Almost eight months ago we put two completely different instruments on the starting line in an exciting competition, which should have proved or refuted the assumption of the ‘pendulum effect’. The Japanese Nikkei index was a top performing instrument in November 2015 with +13% gains while Palladium was the top losing metal with -24% losses.

Chart 1. Voting results November 2015: The Majority Bet On The Success Of The Experiment!

Chart 1. INO.com Voting results November 2015

Above is the screenshot of the ballot results for the experiment. Most of you bet on Palladium winning, which means the success of the experiment, and you were absolutely right dear readers!!! Congratulations! And thank you for the support of the experiment! See the chart below for the confirmation. Continue reading "Pendulum Experiment Result: Success! One More?" →

Fed Might Still Raise Rates

Posted on July 1, 2016 by Lior Alkalay

Lior Alkalay - INO.com Contributor - Forex

Not too long ago, July was marked as THE month that the Fed would raise its benchmark rate for the second time in a year. The last time the Fed hiked rates twice in the same calendar year was a decade ago. Now, in the wake of the Brexit shocker, Bloomberg reports markets are pushing the probability of the next rate hike towards the end of 2018. Are investors overly pessimistic? Here are some factors to consider.

Brexit Impact on the US

“Kicking the can” has been a common analogy for the EU’s handling of the Greek debt crisis. In fact, until this day, from way back in 2010 when the crisis over Greece’s debt first erupted, the Greek crisis has not been resolved. Now, with EU leaders and the UK deeply divided on the timing and execution of Brexit, the UK could delay the activation of Article 50 of the Lisbon Treaty – at least until it gets an easy way out of the EU. A slow and drawn out Brexit, while negative for the UK economy in the immediate term due to uncertainty, may have only minimal impact on the US economy in the same time horizon. A slow, drawn out Brexit does not create shocks, and without the threat of an immediate shock, the US economy should weather the transition well. Continue reading "Fed Might Still Raise Rates" →

GLD vs. SLV: Investors Favor Less Successful Gold

Posted on June 30, 2016 by Aibek Burabayev

Today I would like to share with you an analysis of precious metals ETFs. The goal of the study is to identify the correlation of price moves in both gold and silver with the demand for their ETF shares, represented by an appropriate precious metals holdings change. Below the chart you will read some interesting findings.

Chart 1. Gold, Silver and ETFs (Q/Q percent change): Silver Rises Without ETF Support

Gold, Silver and ETFs (Q/Q percent change): Silver Rises Without ETF Support
Chart by Aibek Burabayev, data source: spdrgoldshares.com; ishares.com

In the first quarter of the last year, we can see that investors were betting on a bottoming gold price with a 4% rise in SPDR Gold Trust (PACF:GLD) holdings despite the 1% fall in price. It’s interesting that at the same period, investors, on the contrary, cut their silver ETF holdings despite the rising silver price; it looks like they used the ‘sell silver on spike’ approach to gain on metals correlation. It’s amazing! But they were right shorting silver as it fell in three consecutive periods exceeding gold’s losing streak. Continue reading "GLD vs. SLV: Investors Favor Less Successful Gold" →

Covered Call Strategy Produces Double-Digit Return

Posted on June 28, 2016August 9, 2021 by The INO.com Team

Introduction

I’ve written a series of articles detailing the utility of options and how an investor can leverage a long position in an underlying security to mitigate risk, augment returns and generate cash without relinquishing the security of interest. I’d like to highlight Salesforce.com Inc. (NYSE:CRM) as an example for a covered call strategy. I’ll be highlighting how I’ve successfully extracted an additional double-digit return via leveraging the underlying security while collecting option premiums over a nine-month span. Taken together, the synergy of the options income and appreciation of the underlying security has yielded 23.6% over this timeframe. Continue reading "Covered Call Strategy Produces Double-Digit Return" →

Charting The Energies Data Release

Posted on June 27, 2016June 27, 2016 by Robert Boslego

Robert Boslego - INO.com Contributor - Energies

Each week, the Energy Information Administration (EIA) reports estimates for crude oil and petroleum products. These supply, demand and inventory estimates are used by traders to assess the inventory surplus (or deficit), the supply-demand balance and whether the market is tightening or not. The best measure of the latter is to look at the crude stock change and petroleum product stock change graphs.

These stocks and trends are best understood in perspective and so comparisons are made to previous years. Interpreting the data reported by the EIA might otherwise be difficult or time-consuming.

It is important to note that these estimates are provided from surveys and EIA models and are subject to revision. The EIA crude production data, in particular, has been revised substantially in monthly data released a few months after the weeklies.

Continue reading "Charting The Energies Data Release" →

Category: INO.com Contributors