Consider this the first and last time we plan on bringing up the Oil spill disaster in the Gulf of Mexico. We don’t agree that 2018 futures should be trading at a $20 premium to near term WTI spots, and we think the trend of Crude Oil will ultimately continue lower, so we haven’t given this story much attention. That said, the ramifications on unemployment and the general economy of the U.S. Gulf Coast are becoming tangible and necessary for all to understand. Take 3 1/2 minutes of your day and listen to those affected by the disaster in their “own words”, in this Bloomberg Video Report…
This week will likely begin with some relief for the Euro, on G20 plans to cut costs in Euro states, while the hangover from Friday’s U.S. Jobs data could continue into a “no news” Monday trading session. Look for pops to add to shorts early in the week, but keep stops tight leading into Jobless claims and Friday’s data.
In plain English and within the scope of Econ 101, the infamous Nouriel Roubini weighs in on the recently announced $1 Trillion EU debt purchase backstop; discounting its potential for success and identifying roadblocks that may lead to failure.
Specifically, Roubini states that despite the “money on the table”, the following three headwinds oppose a return of normalcy in the European Union’s debt markets.
With the Euro diving, Greek Bonds selling off, CDS spreads widening, and now members of the EU fearing contagion risks are growing, the importance of budget cuts in Greece coming to pass has come to center stage of the European debacle.
What will happen if the citizens of Greece defy these cuts and drag out the process until market speculators have driven the continent and it’s mutual currency to it’s breaking point?
Elliot Wave International chief market analyst Steve Hochberg applies Elliot Wave market timing theory to the current market dynamics. Indicators of sentiment including the S&P 500 put/call ratio, insider trading, and a crashing CBOE Volatility Index are cited as evidence for an eminent sell-off in riskier assets globally.
Click below to see Steve make his case on CNBC’s Squawk Box…
Nadar Naeimi, a strategist for AMR Capital Investors Limited of Australia, chimes in as he adds his two cents to the discussion on when this rally in equities will end. AMR Capital, with the help of Naeimi, manages assets for some of Australia’s largest pension funds, with total assets under management close to $90 billion.
Click below to see this crucial report!
The “bond king” of PIMCO, Bill Gross, tells Bloomberg and the world his strategy on the issue of Greek debt… “Stay away!” In the interview, Gross explains recent moves of the Absolute Return PIMCO fund, including record low holdings of Long Term U.S. debt and increased holdings of “core” European bonds, most notably Germany. Having
Marc Faber, U.S. economy "bear" and author of the recently infamous "Gloom, Boom and Doom Report", speaks his mind about the prospects for growth, debt and war in the world over the next 10 years. In the interview he actually endorses stocks as a reasonable investment in the near term, due to obsessive spending by
The United States is bubbling with populist outrage over the recession, deemed to be caused by financial institutions, and the essentially ineffective response provided by the government and monetary policy makers. The House of Representatives has voted on an amendment to the Barney Frank Financial regulation bill, which enforce a financial audit of the Federal Reserve 180 days after
Denis Gartman, of the well known "Gartman Letter", prepares investors for a shell shocked day on Wall Street as investors and traders catch up to the rest of the world by trading to levels congruent with the major U.S. equity futures that have been trading for the past 24 hours over seas… Click here