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2015-05-05 14:04:06

Posted by
Heidi Richardson
Global Investment Strategist
BlackRock
Contributor
Stocks

Too Late to Invest in EM?

While emerging market stocks have had a good 2015 so far, this may still be an attractive time to for invest for investors who have been sitting on the EM sidelines.

 

For the most part, emerging market (EM) stocks have been having a good year.

Investors have flocked to developing markets lately amid continued low U.S. interest rates and hopes of further economic stimulus from emerging world central banks.

EM equities are up about 10% year to date, as measured by the MSCI Emerging Markets Index, and have outperformed stocks in the S&P 500 Index, the MSCI ACWI Index and the MSCI EAFE Index (source: MSCI, Bloomberg as of 4/24/2015). Flows have been following this outperformance. According to BlackRock fund flow data, U.S. listed EM Exchange-Traded Product (ETP) fund flows are up roughly $3 billion this year, as compared with total inflows of only $3.6 billion in all of 2014 (source: BlackRock, Bloomberg as of 4/23/15).

Given this strong performance, it’s not surprising that many market watchers are wondering whether it’s too late to invest in emerging markets. Even after the recent rally, it may still be an attractive entry point for investors who have been sitting on the EM sidelines. Here are three reasons why.

1. Compelling valuations.

Despite their outperformance year to date, EM equities remain attractively valued compared to their historical valuations and to the valuations of their developed market counterparts. For instance, as measured by price-to-earnings (P/E) and price-to-book (P/B) valuations metrics, EM stocks continue to trade at a roughly 30% discount to the broader global equity market (source: MSCI, as of 3/31/2015). In addition, unlike U.S. equities, EM stocks are still off 6% from their peak in 2007, meaning they still potentially have room to run (source: MSCI, as of 4/24/2015).

2. Signs of economic improvement ahead.

While economic data out of major EMs has certainly been disappointing lately, many EM central banks continue to conduct monetary stimulus policies geared at helping their economies grow. For example, central banks in China and India have recently implemented rate cuts. Meanwhile, a number of EM governments are implementing reforms that could help spur growth, and lower and stable oil prices may benefit oil importers in the emerging world.

3. Momentum.

Finally, according to BlackRock funds data, net flows into emerging market ETFs have turned positive recently, as more and more investors seem to be noticing the potential opportunities there (source: BlackRock, Bloomberg as of 4/23/15). Given that many U.S. investors are underweight EMs in their equity portfolios, a renewed interest in this part of the world could be a potential tailwind for the EM asset class (source: Bloomberg, as of 1/22/15).

To be sure, investing in emerging markets can be risky, not least because these markets can be volatile. Even amid the 2015 rally, we have seen some isolated volatility within the EM space, thanks partly to the surge in the U.S. dollar.

Still, the EM asset class remains an important component of a diversified portfolio. So how can you potentially gain exposure to EMs? Investors may want to consider a selective approach to EM equities given that performance results have varied widely by country.

However, we know that many investors prefer to take a broad approach, especially considering that selecting countries may be difficult. Case in point: Last year’s winners in the EM space, namely India and Indonesia, have been the losers in the current rally.

Exchange-Traded Funds (ETFs) such as the iShares Core MSCI Emerging Markets ETF (IEMG), which uses the MSCI Emerging Markets Investable Market Index as its benchmark index, can offer broad exposure to emerging markets in Asia and elsewhere.

 

Heidi Richardson is a Global Investment Strategist at BlackRock. She is also Head of Investment Strategy for U.S. iShares. You can find more of her posts here.

 

Carefully consider the Funds’ investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds’ prospectuses or, if available, the summary prospectuses which may be obtained by visiting www.iShares.com or www.blackrock.com. Read the prospectus carefully before investing.

Investing involves risk, including possible loss of principal.

International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging/developing markets and in concentrations of single countries.

The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective. The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision.

This material represents an assessment of the market environment as of the date indicated. The views expressed are subject to change, and are not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular. This material does not constitute any specific legal, tax or accounting advice. Please consult with qualified professionals for this type of advice.

This document contains general information only and does not take into account an individual’s financial circumstances. An assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decision.

The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the Funds. BlackRock is not affiliated with MSCI Inc.

©2015 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc., or its subsidiaries. All other marks are the property of their respective owners.

iS-15487

 

This article is from BlackRock and is being posted with BlackRock’s permission. The views expressed in this article are solely those of the author and/or BlackRock and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-05-05 12:25:43

Posted by
John Carter
President
Simpler Stocks
Contributor
Stocks

Simpler Stocks: Monday Movers

Stocks rose slightly Monday in the midst of earnings season. Factory orders, which were in line, helped boost the major indices, though only by about 20 basis points. The S&P 500 index closed just a few points below recent record closing levels Monday, buoyed in part by financial stocks. 

Cognizant Technology Solutions Corp. (Ticker: CTSH)

Shares in CTSH were up 7% Monday on quarterly results that surpassed expectations. The health care and financial services units pushed results higher. The company posted adjusted earnings per share of $0.72, which was three pennies better than the Street. The 43% gain in the health care segment is also leading the company to nudge its full year estimates up to “at least” $2.93 a share, while the Street is at $2.94 a share, and also above the company’s prior $2.91 guide.

First Solar, Inc. (Ticker: FSLR)

First Solar had a slight rebound Monday after the company missed estimates late last week, in part on the yieldco transition. The hit to revenues and EPS seems temporary, as the company guided to a current quarter EPS of about 45-55 pennies, better than the $0.40 a share the Street had been modeling. The $750 million to $850 million top line guidance brackets consensus.   

Madison Square Garden Co. (Ticker: MSG)

MSG shares got a lift Monday on upgrades at Macquarie and Stifel. The latter sell-side firm took the stock to a buy rating and published the price target at $100. Key to any eventual share price rally will be the RSN division and deleveraging, according to the analyst, which in turn should help free cash flow.   

Broadsoft Inc. (Ticker: BSFT)

The 16% move higher in share of BSFT may have some investors on the sidelines. But adjusted EPS at the company beat by $0.07, while in-line guidance clearly supported a relief rally. The strong leverage on $55 million in sales, versus the $53 million the Street expected, may mean that estimates will come up for the year ending in 2016. Cash-adjusted forward PE of about 19x would be palatable on a higher E. 

Cisco Systems, Inc. (Ticker: CSCO)

The company announced that CEO Chambers would be stepping down in July to be replaced by Chuck Robbins, currently the senior VP of worldwide operations. The network tech name has posted lackluster growth compared to smaller and more nimble peers.  But cash adjusted forward PE is 11x, and the stock yields 3%, indicating a wait and see attitude with incoming management.     

Covanta Holding Corp. (Ticker: CVA)

Shares in Covanta were up 3% on a positive Barron’s article over the weekend.  The small cap name hauls waste and also processes that waste via burning to produce electricity at 46 plants around the US.  The stock trades at 1.6x sales, and though not cheap on an earnings basis, offers a unique business model.  

 

About the author: John Carter has been a full time trader for 15 years, serving over 100,000 subscribers in over 100 countries.  For more analysis on high growth stocks visit www.SimplerStocks.com.

 

This article is from Simpler Stocks and is being posted with Simpler Stocks’ permission. The views expressed in this article are solely those of the author and/or Simpler Stocks and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-05-05 10:48:19

Posted by
Andrew Wilkinson
Chief Market Analyst
Interactive Brokers
Contributor
Macro

ISM non-manufacturing offers improving outlook for Friday's jobs data

Business activity in the services sector picked-up in April due to an advancing new orders component and encouraged by signs of firmer labor demand in the larger part of the world’s biggest economy. The composite index rose to 57.8 and its highest since November, beating economists’ forecasts as measured by Bloomberg News ahead of its release. The consensus actually called for a dip to 56.2. The business activity component also advanced to a six-month high of 61.6 while demand for new orders lifted that index to 59.2 and a three-month high. Order backlogs also advanced, hinting that service providers may be facing a sustained rebound in demand that they are currently unable to meet. Earlier in the week the ISM manufacturing reading revealed a slight contraction in its employment gauge. However, the services release proved otherwise, rising by a slim margin to 56.7. Assigning an 85% weighting to the services measure delivers a 55.4 aggregate level for overall employment, which should be consistent with payroll gains in excess of 200,000 when the employment report is released on Friday. 

Chart – ISM business activity jumped by the most since November

2015-05-05 10:06:40

Posted by
Waverly Advisors, LLC
Technical/Quantitative Market Research
Contributor
Technical Analysis

Waverly Advisors Summary Stats

%Chg: percent change from the previous day’s close

SigmaSpike: the day’s change expressed as a standard deviation of the last 20 trading days. Values inside +/- 1.0σ are generally insignificant, +/- 2.5σ are large (for the volatility of the particularly instrument), and +/-4.0σ are very large.

C/DayRng: the current price as the pipe “|” within the day’s range. Can easily see at a glance if trading near high or low of the day. The day’s open is “:”. You can read more about this indicator in my book.

For sectors: analysis is done using the State Street Sector SPDRs (XLE, XLF, etc.) %Chg is the day’s change for the SPDR, and Excess is the Excess Return for the day (the SPDR’s return – the S&P 500 return).

 

For more information about Waverly Advisors please click here.

2015-05-05 10:02:32

Posted by
Waverly Advisors, LLC
Technical/Quantitative Market Research
Contributor
Technical Analysis

Waverly Advisors Update: Largest Advances / Declines

The individual stock tables are simply ticker lists showing the largest values for the following criteria:

SigmaSpike: Largest volatility-adjusted moves. (Note that this measure, though we might call it a “standard deviation spike”, does not assume that anything is normally distributed. You’ll see a handful of +/-4.0σ moves on many days, and +/- 10σ do happen.)

GapOpen: The stock’s opening gap, expressed as a SigmaSpike.

FromOpen: Stocks often reveal stronger trending character by their relationship to their opening print, rather than to the previous day’s close. This screen evaluates the move off the open as a SigmaSpike.

 

For more information about Waverly Advisors please click here.

2015-05-05 09:57:54

Posted by
Waverly Advisors, LLC
Technical/Quantitative Market Research
Contributor
Technical Analysis

Waverly Advisors Morning Update

Largest Rel Volume: Stocks with the largest multiple of their 20 day average volume. Note that the “average” value for this number will change as the trading day progresses, but the relative position of a stock within this list should show some persistence. These are likely stocks in the news, or stocks experiencing a sharp flow of new information.

Largest Rel Ranges: First, we express each stock’s daily range as a % of the 20 day average range, and then choose the 10 with the largest values of that measure. These are the stocks with the largest daily ranges, relative to their own typical daily ranges.

Gap Analysis shows stocks with open gaps (today’s high < yesterday’s low or today’s low > yesterday’s high) remaining.

Stocks with Open Gaps (for the Day): AZN, BIDU, BTE, CELG, CYBR, DAL, EL, EMR, ETN, GLNG, IDTI, INTC, LRCX, MSFT, NFLX, NSM, NVO, UCO, ASML, CCL, COMM, EAT, HSBC, NOW, SBUX, SNY, YUM, ALK, AMAT, ASHR, MU, SAP, SDRL, WPZ, BAS, DB, LUV, MRO, NOV, SU, AAL, AVGO, FNF, GNC, HTZ(E), KLAC, SM, TMO, UAL, NBL, DVN, INFY, ADBE, BHI, KR, MSI, VMC, CAM, MNK, SPN, WPX, AMBA, DGX, ADI, SGY, RSPP, MXIM, PDCE, EQR

 

For more information about Waverly Advisors please click here.

2015-05-05 09:36:59

Posted by
Jamie Lissette
Trading Analyst
Hammerstone Group
Contributor
Stocks

Sector News Breakdown

Consumer 

  • Texas Roadhouse (TXRH) Q1 EPS 46c/$460.23M vs. est. 44c/$465.37M; Q1 comparable restaurant sales up 8.9% at company units and up 8.0% at franchise restaurants
  • Denny's (DENN) Q1 EPS 10c/$120.2M vs. est. 9c/$116.84M; said domestic system-wide same-store sales growth of 7.2%, comprised of a 7.6% increase at company restaurants and 7.1% increase at domestic franchised restaurants; raises year comp view
  • Carmike Cinemas (CKEC) Q1 EPS 12c/$184.33M vs. est. 8c/$180.82M; said attendance per screen 5,343 and average admissions per patron $7.20
  • Imax (IMAX) says $25.2m from ‘”Avengers” globally sets record
  • Nautilus (NLS) Q1 EPS 34c/$96.2M vs. est. 24c/$82.86M
  • Avis Budget (CAR) Q1 eps 17/$1.85b vs. est. 14c/$1.91b; reaffirms year outlook
  • Bravo Brio (BBRG) Q1 eps 16c/$108.2m vs. est. 13c/$104.8mslightly raises year eps and rev outlook citing stronger-than-expected 1Q for new 2015 views; still sees year capex $16m-$18m
  • Chuy's (CHUY) Q1 EPS 19c/$66.8M s. est. 16c/$67.15M; said comps rose 1.9%; raises FY15 EPS view to 76c-79c from 74c-77c
  • Activist investor Starboard Value last night disclosed an 8.2% stake in Brink's (BCO)
  • ClubCorp (MYCC) files to sell 11M shares for holder KSL Capital Partners
  • Pinnacle Foods (PF) files to sell 5M shares of common stock for holders
  • Good Times Restaurants (GTIM) 2.42M share Secondary priced at $8.15

Energy

  • EOG Resources (EOG) Q1 eps 3c/$2.32b vs. est. 1c/$2.86b; said on track for 40% y/y capex decrease; sees double-digit oil growth in 2016 if oil prices at $65; sees 2Q, 3Q production low point for year
  • Anadarko (APC) Q1 EPS ex-items (72c)/$2.32B vs. est. (65c)/$2.52B; boosts midpoint of year sales volume view to 300-306Mmboe, from prior 295-301Mmboe; lowers year capex to $5.4b-$5.7b, from $5.4b-$5.8b
  • Concho Resources (CXO) Q1 eps 36c/$413.5m vs. est. 22c; cuts year cap-ex to $1.8b-$2b, from prior $2b; raises year production up 18%-22%, from prior up 16%-20%
  • Stone Energy (SGY) Q1 eps loss (23c) vs. est. (19c); 1Q production 46mboe/d vs est. 45.8mboe/d
  • Petroquest Energy (PQ) Q1 eps loss ($1.89) sees 2Q production volumes 125-131mmcfe/d (76% gas, 8% oil, 16% NGL)
  • Advanced Energy (AEIS) Q1 eps 57c/$141.1m vs. est. 43c/$142.6m: sees 2Q EPS 38c-41c on revs $126m-$136m vs. est. 44c/$145.4m
  • EQT Corporation (EQT) files to sell 20M common units
  • Cimarex Energy (XEC) Q1 EPS loss (37c)/$361.0M vs. est. (37c)/$371.62M; total company production averaged 946.7MMcfe per day, up 28% YoY

Financials

  • HSBC Holdings Plc (HSBC) said Q1 profit rose 4%, topping estimates, as revenue at its securities unit rose and bad-loan provisions dwindled; said pretax profit rose to $7.1b from $6.8b a year earlier (topped $5.8b EST.)
  • UBS Group AG (UBS) trades to its highest price since Oct 2008 after profit almost doubled in the first quarter; said Q1 net income was 1.98 billion Swiss francs, above the 1.22 billion-franc average estimate
  • Genworth (GNW) downgraded to Underweight from Equal Weight at Morgan Stanley
  • RCS Capital (RCAP) announced that its wholesale broker-dealer subsidiaries, Realty Capital Securities, SC Distributors, and The Hatteras Funds raised approximately $457M of total equity capital in the month
  • Towers Watson (TW) Q3 EPS $1.63/$920.71M vs. est. $1.50/$902.15M; raises FY15 adjusted EPS to $6.03-$6.10 from $5.90-$6.00 and affirms year revs
  • On Deck Capital (ONDK) Q1 revs $56.5m up from prior view $52m-$54m; Q1 Ebitda loss $1.8m, had seen loss $2m-loss $3m
  • Aflac (AFL) files automatic mixed securities shelf
  • Dun & Bradstreet (DNB) Q1 eps $1.33/$376.2m vs. est. $1.23/$382.6m; reaffirms underlying 2015 guidance, before accounting for acquisition of Dun & Bradstreet Credibility
  • Sunstone Hotel (SHO) Q1 AFFO 22c/$284.4M vs. est. 19c/$269.59M
  • Vornado (VNO) Q1 FFO $1.16/$606.8M vs. est. $1.19/$624.59M

Healthcare

  • DaVita (DVA) Q1 EPS 86c/$3.29B vs. est. 86c/$3.25B; sees 2015 operating income $1.8b-$1.925b, from prior $1.75b-$1.9b.
  • Tenet (THC) Q1 EPS 67c/$4.43B vs. est. $4.32B; backs year eps and revenue outlook
  • NuVasive (NUVA) Q1 EPS 30c/$192.38M vs. est. 22c/$189.30M; backs outlook
  • Acadia (ACYC) files to sell 4.5M shares of common stock
  • Auris Medical (EARS) files to sell 6M shares of common stock
  • Health Care REIT (HCN) to sell life science portfolio interest for $573.5M
  • Affimed Therapeutics (AFMD) files to sell $35M in common stock

Industrials & Materials

  • FreightCar America (RAIL) Q1 EPS (17c)/$92.80M vs. est. 32c/$174.99M saying results were adversely affected by a series of production line changeovers and inefficiencies, primarily at our Shoals facility, as well as weather disruptions
  • MTS Systems (MTSC) lowers year revs to $565m-$580m from $615m-$645m; also cuts eps saying negative effect from strong dollar accounts for ~70% of reduction in rev., 40% of reduction in EPS.
  • Monthly ACT Research released preliminary truck orders for April with Class 8 net orders of 22,400 units, down 10% YoY and down 11% MoM (shares of CMI, PCAR, NAV leveraged to data)
  • Itron (ITRI) Q1 eps 20c/$448.2m vs. est. 25c/$441.7m; Q1 gross margin 30.8% and twelve-month backlog $779m
  • XPO Logistics (XPO) Q1 EPS loss (13c)/$703M vs. est. (22c)/$807.21M; acquires Bridge Terminal Transport Services
  • Forest City (FCE/A) files to sell 32.4M shares of class A stock
  • KapStone (KS) Q1 EPS 30c/$546.29M vs. est. 41c/$574.9M
  • Eastman Chemical (EMN) upgraded to Overweight from Neutral at JPMorgan
  • Genesee & Wyoming (GWR) upgraded to Buy from Neutral at Citigroup after pullback in share

Technology, Media & Telecom

  • Ingram Micro (IM) sees Q2 EPS 50c-58c vs. est. 57c and sees Q2 sales to grow high-single digits in local currency and to be relatively flat in U.S. dollars when compared to prior year second quarter, consensus $10.83B
  • Cognex (CGNX) Q1 eps 28c/$113.4m vs. est. 23c/$109.7m; reinstates dividend; sees Q2 revs $152m-$157m vs. est. $129.2m
  • Qualys (QLYS) Q1 eps 15c/$37.5m vs. est. 11c/$37.9m; lowers year revs to $165m-$166.5m, from prior $167.3m-$169.3m, and est. $168.2m
  • Sykes Enterprises (SYKE) Q1 EPS 43c/$323.7M vs. est. 35c/$317.48M; cuts year outlook due to negative FX movements and lower demand “from a handful of existing clients” within communications
  • Fabrinet (FN) Q3 eps 36c/$189.5m vs. est. 35c/$185.2m; sees Q4 revs $195m-$199m vs. est. $189m
  • Integrated Device Technology (IDTI) Q4 eps 29c/$158.4m vs. est. 26c/$157.9m; sees Q1 eps 28c-30c vs. 27c est.; says optimistic on better 2H
  • ChannelAdvisor (ECOM) Q1 EPS loss (24c)/$22.59m vs. est. loss (34c)/$21.61M; reports fixed subscription fees composed 78% of total revenue and variable subscription fees composed 22%
  • InvenSense (INVN) Q4 eps 12c/$99.3m vs. est. 12c/$97.1m
  • Verisk Analytics (VRSK) files to offer $675m of common stock
  • Lattice Semiconductor (LSCC) Q1 eps 3c in line on better revs; sees Q2 revs ~$120m, plus/minus 3% on non-GAAP basis
  • Integrated Device (IDTI) announces $300M repurchase plan
  • AOL downgraded to Sell from Neutral at Goldman
  • Apple's (AAPL) iPad shipments are expected to be down 20% in 2015, reports DigiTimes due to increased demand for large-size smartphones
  • RetailMeNot (SALE) Q1 EPS 20c/$60.4M vs. est. 14c/$58.69M; sees Q2 revenue $55M-$58M vs. est. $58.89M

 

The content of this post was created by the Hammerstone Group. The Hammerstone Institutional Forum, a chat-based platform for traders, provides subscribers with up-to-the-minute breaking news headlines and instant analysis that drive the market. For more information please visit www.thehammerstone.com. For more information on the stocks mentioned in the Hammerstone Recap, please contact Brian Ducey at brian@thehammerstone.com.

 

This article is from The Hammerstone Group and is being posted with The Hammerstone Group’s permission. The views expressed in this article are solely those of the author and/or The Hammerstone Group and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

 
2015-05-05 09:27:53

Posted by
Jamie Lissette
Trading Analyst
Hammerstone Group
Contributor
Stocks

The Hammerstone Report

U.S. equity futures point to a lower open Tuesday, the first time in three sessions, ahead of data and more earnings (ADM, DIS, EMR, K, and Sprint among names reporting this morning) and as Asia shares fell sharply overnight. The Nikkei Index remained closed, but the Shanghai Index plunged 181 points, or over 4% to settle at 4,298 on worries over margin trading (see below), and the Hang Seng Index fell 368 points (1.31%) to 27,755. Europe is currently modestly higher, shaking off the weakness in Asia; while Australia’s central bank cut rates to a record low of 2% (why not join the party?). The move lower early follows two days of gains for the major indices, with the S&P 500 ending just a few points shy of its record close set on April 24 yesterday. Oil prices advanced, while most metals declined and the U.S. dollar traded higher against most other major currencies.

Stocks continued their upward momentum on Monday, following gains in Asia and Europe overnight, but the S&P 500 failed to hold earlier highs that took the index a fraction short of its all-time high, as financials, utilities and healthcare stocks paced the gains. Treasury prices fell after rising during morning action, with the 10-year rising 3 bps to 2.14%.

World News

  • The Reserve Bank of Australia cut its policy interest rate by a quarter percentage point Tuesday, putting the benchmark at 2%, its lowest ever. Many market participants had expected the move
  • The European Commission said that the impasse over Greece’s fiscal crisis is strangling the economy, a forecast that will make it harder to meet bailout goals as talks to ease its liquidity squeeze drag on. – Bloomberg
  • The forecasts from the European Commission said the scars of the region's debt crisis--high unemployment, high government and corporate debt burdens, banking system problems and weak investment spending--will likely weigh on the region's growth for years to come. However said the GDP in the 19-nation Eurozone should grow at 1.5%, up from their previous forecast in February of 1.3% and raised its forecast for Germany to 1.9% from 1.5%.
  • Late Monday, Huatai Securities and Tebon Securities raised margin requirement for margin trading and short selling to control risks, Shanghai Securities News reports, without citing anyone – Bloomberg
  • China needs to continue to ease monetary policy to boost investment and coordinate with fiscal policy, according to a commentary published on China Securities Journal’s front page – Bloomberg

 

The content of this post was created by the Hammerstone Group. The Hammerstone Institutional Forum, a chat-based platform for traders, provides subscribers with up-to-the-minute breaking news headlines and instant analysis that drive the market. For more information please visit www.thehammerstone.com. For more information on the stocks mentioned in the Hammerstone Recap, please contact Brian Ducey at brian@thehammerstone.com.

 

This article is from The Hammerstone Group and is being posted with The Hammerstone Group’s permission. The views expressed in this article are solely those of the author and/or The Hammerstone Group and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

 

 

2015-05-05 01:33:46

Posted by
Darren Chu, CFA
Founder
Tradable Patterns
Contributor
Technical Analysis

Natural Gas (NG) Breaks Downchannel Resistance on Daily Chart

Natural Gas (NG) inched higher yesterday, cementing the break above descending wedge resistance (on the weekly chart), and breaking just above downchannel resistance (on the daily chart).  It is now just below ascending wedge resistance (on the 4hr chart).  Given its strong week long climb, consolidation can be expected today as seen by the tiring weekly, daily and 4hr RSI and Stochastics.  I'll continue eyeing for any pullback to near 2.65 before considering going long.

 

Natural Gas (CME NG Jun15) Weekly/Daily/4hr/Hourly

 

Tradable Patterns was launched to demonstrate that the patterns recurring in liquid futures, spot FX and equity CFD markets can be traded consistently profitably. Tradable Patterns’ daily newsletter (blog) provides technical analysis on a subset of ten to twelve CME/ICE/Eurex futures (commodities, equity indices, interest rates), spot FX and US equity markets, which it considers worth monitoring for the day/week for trend reversal or continuation. For less experienced traders, tutorials and workshops are offered online and throughout Southeast Asia.

 

This article is from Tradable Patterns and is being posted with Tradable Patterns’ permission. The views expressed in this article are solely those of the author and/or Tradable Patterns and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

 

2015-05-05 01:32:29

Posted by
Darren Chu, CFA
Founder
Tradable Patterns
Contributor
Technical Analysis

AUDUSD Near 50% Fib Retrace of April Rally Ahead of RBA Rate Decision

The AUDUSD formed a daily Doji yesterday after 3 days of downward pressure on profittaking.  The AUDUSD is now testing upchannel support (on the daily chart) and nearing another upchannel support (on the weekly chart).  With the RBA decision on the cash rate due out shortly at 1230am EST, there could be substantial volatility on any major surprises.  Although the weekly and 4hr RSI, Stochastics and MACD are mostly rising, the daily Stochastics is notably sloping down, and the daily MACD is about to negatively crossover.  I'll be flat going into the RBA announcement especially given the mixed technical profile.  Interestingly, the AUDUSD is just above the 50% Fib retrace of the April rally.

 

AUDUSD Weekly/Daily/4hr/Hourly

 

Tradable Patterns was launched to demonstrate that the patterns recurring in liquid futures, spot FX and equity CFD markets can be traded consistently profitably. Tradable Patterns’ daily newsletter (blog) provides technical analysis on a subset of ten to twelve CME/ICE/Eurex futures (commodities, equity indices, interest rates), spot FX and US equity markets, which it considers worth monitoring for the day/week for trend reversal or continuation. For less experienced traders, tutorials and workshops are offered online and throughout Southeast Asia.

 

This article is from Tradable Patterns and is being posted with Tradable Patterns’ permission. The views expressed in this article are solely those of the author and/or Tradable Patterns and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

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