Category: INO.com Contributors

Copper Update: Crashing Crude Oil Lures Down Melting Copper

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


In my previous Copper update in September, I proposed readers to cover shorts in Copper ($2.32 level) and to watch Crude Oil for further clues as the “black gold” rocketed for a worrisome $10 in 3 days while Copper was quietly sleeping, unaware in its sideways “bed”. Indeed, the metal started to elevate with a two-day gap following Crude Oil, confirming that the signal was valid, and Copper reached $2.5.

Crude Oil Daily Chart: Bears Have Attacked and Bulls At Halfway

Crude Oil Daily Chart
Chart courtesy of TradingView.com

Let’s start from the leading instrument’s chart above. Last time, I assumed that Crude oil should have reverse down ahead of the downtrend touching a point at $53 and it reversed earlier than I expected – just below $51. This was due to huge selling pressure in the market. Continue reading "Copper Update: Crashing Crude Oil Lures Down Melting Copper" →

Bank Earnings To Impact Dollar Sentiment

Posted on by Lior Alkalay

Lior Alkalay - INO.com Contributor - Forex


Generally, Wall Street earnings have no direct impact on how we view the dollar outlook. Yet, there are exceptions and this week is one such notable example. What types of earnings are significant enough to shed light on the dollar’s future; you might wonder. The simple answer is this: Bank earnings, which are abundant this week.

Why do Bank Earnings Matter?

As we all know, the Federal Reserve has the greatest impact on the dollar. Outside of the Fed, bank earnings impact the dollar’s outlook because they reveal the credit supply. Of course, the supply of credit in the US economy affects the American consumer. In turn, the American consumer impacts inflation. And that brings us full circle since the inflation outlook typically helps shape Fed policy. Continue reading "Bank Earnings To Impact Dollar Sentiment" →

Palladium Has Justified Expectations

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


In my previous post about Palladium, I had used a different look for the technicals by implementing the ab/cd concept and Fibonacci ratios together. In that post, on the monthly chart I had assumed that the 50% Fibonacci retracement level ($528) could hardly be cracked by sellers and had confirmed it by using the weekly chart where the cd=1.618 of ab ends almost at the same level ($539).

Below is the weekly chart with details to show how the reversal has happened.

Weekly Chart (second month): Reversal Assumptions Has Proved To Be Right

Weekly Chart of Palladium (NYMEX:PA)
Chart courtesy of TradingView.com

The price of Palladium has slightly overshot the 50% Fibonacci level ($528) down to $520. It’s amazing, but these ratios work like Swiss watches: precise and reliable and, of course, there are a lot of market players who use them every day. Continue reading "Palladium Has Justified Expectations" →

Mario Draghi Must Act Now

Posted on by Lior Alkalay

Lior Alkalay - INO.com Contributor - Forex


The coming weeks could be pivotal ones for the Euro. This time, it isn’t because of a threat to its existence or a member state’s bankruptcy. No, this time, it will be because of the actions of Mario Draghi and the European Central Bank. The ECB chief has the power to ignite the momentum desperately needed to awaken the Eurozone from its economic stupor. Simply put, Mario Draghi must push the Euro below 1 Dollar.

The Eurozone Lately

When we examine the latest trends in the Eurozone, we do see some positive signs. Exports have recovered, and industrial production has increased, as well. On the consumer front, retail sales have also been accelerating nicely. On top of that, the Eurozone’s GDP growth rate has been inching up, albeit at a very moderate pace. Continue reading "Mario Draghi Must Act Now" →

Ride The Oil Recovery With This Driller

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


Contrarian plays can often pay off for investors that are willing to weather some short-term volatility. The oil industry has experienced pain for over a year now which began late in the summer of last year as oil prices fell to lows that hadn't been seen in a decade. This weakness has created some value opportunities, though, with oil stocks now trading at discounted prices.

Global growth concerns have weighed heavily on energy demands while a supply glut has kept oil low. However, oil may be facing a bullish cycle over the next quarter with more upside to come for 2016. Demand is growing again and oil supply for next year is estimated to be tighter than previously expected. Since August, oil prices have traded in the $45 to $50 range indicating that it has finally settled and reached a bottom. Continue reading "Ride The Oil Recovery With This Driller" →