Trend Analysis

I am convinced that the primary effect of extraordinary monetary policy measures such as QE revolves around the [inappropriate] re-pricing of risk assets. The table below gives my assessment of the transformation this flood of liquidity has wrought on risk asset classes. ASSET CLASS WHAT WAS…. HAS NOW BECOME Certificate of Deposit A safe savings instrument A waste of time Treasuries, Bunds, OATS A safe savings instrument Certificate of Deposit JGB’s A safe savings instrument A waste of time Peripheral EU Sovereign Debt Highly risky instruments, with large default premiums Fully OMT-backstopped debt with attractive yields High Grade Corporates Low risk investment with attractive yield that allowed corporations to fund growth investment Ridiculously cheap method for corporations to fund stock buy-backs at peak valuations Junk Bonds Risky instruments, with moderate default premiums High Grade Corporates Dividend Stocks Risk instruments that paid you to own them High Grade Corporates Equities Risk instruments with large potential gains or losses The only way to make money Sustainable? I doubt it.

Fellow Slopers, In a post earlier this week (“Shorting Japanese Hockey Stick”), our host noted how Japanese stocks have been going nuts since Abenomics was unleashed (quantitative easing about 4x as large as we’ve had in the US). In this post, we’ll talk a look at the current hedging costs of a handful of the [...]

What’s the trend been lately? Let’s put on our biggest thinking caps and try to figure that one out: I think “Relentlessly Up” would describe it succinctly. May 1 was the only day that was sorta-kinda a down day. The bears – of which I am one – look pretty much like clueless, stubborn idiots. [...]

Symmetrical triangle in the pair ?

On the monthly chart the recent pullback looks like a backtest of the trendline and now the uptrend has resumed with a very strong candle this week and the chart looks very bullish. There is a 50% move from 5 to 7.5 (ie Gann resistance) and a 5 wave count though so lets see if the stock can maintain the break of 7.50

beans had another good day and we have a clear buy signal confirmation on the weekly chart.ignition off a triple bottom

Exchange traded funds that follow master limited partnerships, or MLPs, have been a popular draw for investors looking for attractive yields and an alternative energy sector play. Nevertheless, MLP ETFs come with their own quirks. The Alerian MLP ETF (NYSEArca: AMLP), which comes with a 5.71%...

This post may draw the ire of precious metals trumpeters on Slope (ahem – “Kooks” – editor), but silver looks exceedingly vulnerable to me here, at least in the intermediate term.  It has already slipped off the small volume pole that was holding it around $22.50 and is now solidly in a volume hole.  I [...]

Data released today (Friday) shows that inflation dropped last month in the Canadian Core CPI and CPI, as shown on the graphs below. I don’t think that Canada has to worry about the BOC raising interest rates any time soon. The USD/CAD forex pair is well above parity, as shown on the Weekly chart below. With Bollinger Bands widening, we may well see prices push above near-term [...]

The charts that matter are probably the channel charts that have been posted as of late