Archive for 2010

Bank Holiday but No Forex Trading Break

The LFB submits: Play: Latest Global Video Charting The reaction to better than expected U.S. Employment data on Friday was for equity trade to move higher, commodities to lose ground, and interest rate markets to be bought. In reality the NFP numbers offered a poor picture of the overall U.S. jobs markets, and as such [...]

One Week, Four Interest Rates Meetings

ForexChaser submits: The prior week of trading saw some pretty impressing moves, with the main financial indexes making 180-degree turns. The Nasdaq 100 index gained 4.4%, the Russel 2000 rose 4.2%, the S&P 500 added 3.7%, while the Dollar Index lost 0.9% and the 10-year Treasuries fell 1.0% (Futures quotes) Most of these moves came [...]

Stocks, Commodities, Forex: Key Market Drivers, September 6 – 10, 2010

Cliff Wachtel submits: As we noted last week, expectations had gotten so low that markets were ready to bounce on little justification. That’s what they did. PRIOR WEEK: Reaction Rally On Dubious Justification Complete Story »

The Clear and Present Regulatory Danger Facing ETFs

Martin Fluck submits: We may not have long to wait for the collapse in the exchange-traded fund bubble. The ETF industry ran out of control long ago, but regulators can no longer ignore the retail money faddishly pouring into these funds, and how it is distorting market prices. Stuffed with exotic derivatives and super-concentrated bets [...]

USCI: Commodities and Academics in One ETF

Tom Lydon submits: The ETF industry’s newest commodity offering combines brains and natural resources, but it’s worth closer examination before you dive in. SummerHaven Investment Managment LLC partnered with a Yale professor to create the computer-driven investment strategy on which the U.S. Commodity Index Fund (NYSEArca: USCI) is based. Ian Salisbury for The Wall Street [...]

Water ETFs for a Global Crisis

Tom Lydon submits: Never mind the financial crisis; the world has a water crisis. Many countries – both emerging and developed – face shortages and lack of adequate access to clean, potable water. And therein likes the ETF opportunity. The World Health Organization (WHO) reports that up to half of civilization has one of six [...]

New ETN Allocates Capital Between Equities and Existing Volatility Product

optionMONSTER submits: By Chris McKhann The line-up of volatility products available to retail traders continues to expand, as Barclays has rolled out its S&P VEQTOR ETN (VQT). As the first dynamic volatility fund, VQT will be very interesting to follow. It is comprised of a long S&P 500 position, a long VXX Short Term VIX [...]

Five Criteria to Select High Dividend Equity ETFs

Hao Jin submits: In an environment where the 10-year Treasury yield is less than 3 percent, dividend stocks with long track records of consistent, growing payouts to shareholders are becoming quite attractive. However, the dividend payments of any single company might be cut or even disappear (just ask BP shareholders). ETFs offer a more stable [...]

3 Semiconductor ETFs in Focus as Intel Slashes Outlook

Jarred Cummans submits: In a period of economic instability, like we have seen for the majority of this year, consumer spending is usually low. The low buying power that consumers hold during uncertain times wreaks havoc on a slew of companies whose profit relies on the consumer’s willingness to buy. So it came as a [...]

This Is the Bank of Japan’s Intervention Window (If It Really Wanted It)

Marc Chandler submits: The market has been rightly skeptical of the efficacy of possible BOJ intervention. Part of the argument is that it would be fighting the tide and market forces. However, the better than expected US employment data has spurred a sharp drop in the yen. If Japanese officials really wanted to intervene, this [...]