Market Commentaries
Comments on current market related events, gossips and news.
To participate / posting comments, please sign up for your FREE membership.
Join us as a premium member to read the premium commentaries here.
You may be looking for the following instead:
- Real-Time Commentaries
- Weekly Commentaries on the application of STOPD in forex and index markets
Ask your trading related questions by submitting your questions. I will try to answer as many of them as possible every week either by email (for more personal matters) or open answers in the site.
All comments are posted with time stamp set to Eastern Time.
European Financial Transaction Tax Is Coming
2013 Feb 14 Thu 11:53:12 | by
As reported by Reuters, EU has a tax on trading on the table.
http://www.reuters.com/article/2013/02/14/us-eu-transactiontax-idUSBRE91D0KH20130214
Although they said the tax is only applicable to the financial instruments traded in Europe only, and that forex is not part of the plan, you never know how such thing will evolve to.
What I am saying is that if you trade European instruments, or that you have brokerage account with some European brokerages, forex or not, you have to monitor the progress of this matter closely. The tax that they are going to impose, no matter how small, will destroy the liquidity of those markets.
Warren Buffett Buying Heinz
2013 Feb 14 Thu 10:11:54 | by
News released today.
This is exactly the kind of move I have been talking about - grabbing hard asset that is expected to generate cashflow even in bad times.
Warren is preparing for the tough time ahead for sure.
Ordinary people will not be able to do the same. Buying residential realty for rental income does not qualify as hard asset unless you can get them very cheap and pay for the property in cash. In tough times, governments can chop the rent to insignificant amount and even outright striping your rights to collect rent while enforcing the mortgage payments.
Some people may think that what I said above is outrageous. But it happened in Ontario Canada back in the early 1990s when the NDP party was in power. It also happened in all communist countries. It is a matter of time that it will become the norm in the Western countries.
Update: Read this from Zerohedge, who recommended to sell Heinz? http://www.zerohedge.com/news/2013-02-14/guess-who-was-buying-hnz-stock-its-clientsWhen Does Financial Reporting Become Reading Tea Leaves?
2013 Feb 7 Thu 13:34:28 | by
Here it is,
What is the point of knowing what Mark Carney's body language is saying?
Does that really matter?
By the time he is heading Bank of England the scenario may change so much that what he thinks now no longer matters.
Maybe people glazing is just another British tradition like the royal watchers.
News from Bloomberg, http://www.bloomberg.com/news/2013-02-05/bernanke-voiced-alarm-over-credibility-of-ratings-firms.html If the 5 billion dollar penalties is enforced, it is the same as making sure the firm McGraw-Hill will close its business. F ...
Chart with key levels. Purple horizontal lines mark the 2012 range. Light purple horizontal line marks the 50% expansion. Blue lines down channel. Red lines 50% expansion of channel. Green lines measured move projection. Orange lines the origi ...
Right before US stock market was about to close on Jan 26, 2013, a huge block of Apple shares was dumped. We are not talking about 10K, 50K or even 100K block. We are talking about 800K shares of Apple got dumped at close. So what happened? Why t ...
Confirmed today, http://www.bankofengland.co.uk/publications/Documents/speeches/2013/speech631.pdf Ever since the moment we've learned that Bank of England is going to choose a new leader, it is confirmed in every trader's mind that BOE is going al ...
Bank of Japan finally joining its peers with the announcement today. http://www.boj.or.jp/en/announcements/release_2013/k130122a.pdf All the major currencies are now in non-stop printing mode. But to make printing driven inflation works, it is impo ...
My monthly update on market internals. The current snapshot of S&P 500 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2013 Jan 18 close. Reading 1. Long Term Tick16 (yellow line) touch down at neutral zone and bounced off 2 ...
Just my own little marker in my blog for what Morgan Stanley CEO says on CNBC First Call today. http://www.cnbc.com/id/100390186 "Stock market could 'still move higher' if the political uncertainty is resolved." And then justify that by ...
