USD/JPY Hits Fresh 7-Month High

Source: ForexYard

The USD/JPY shot up to a fresh seven-month high during afternoon trading yesterday, as speculations regarding the outcome of upcoming Japanese elections caused investors to shift their funds away from the yen. Meanwhile, crude oil gave up some of its recent gains during European trading, as a decrease in Middle East violence led to a drop in supply side fears among investors. Today, the main piece of economic news is likely to be the US Unemployment Claims, set to be released at 13:30 GMT. Traders will want to note that this indicator is being released a day ahead of schedule, as US markets will be closed on Thursday.

Economic News

USD – US Unemployment Claims May Result in Dollar Gains

The US dollar was bullish against several of its main currency rivals during European trading yesterday, as uncertainties about the global economy continued to boost safe-haven currencies. The AUD/USD fell close to 50 pips during mid-day trading, eventually trading as low as 1.0363 before bouncing back to the 1.0375 level. Against the Japanese yen, the greenback shot up to a new seven-month high at 81.71 as speculations continued to mount that the opposition party will win next month’s Japanese elections. The Japanese opposition favors additional monetary stimulus, which is seen as bearish for the yen.

Today, the main piece of economic news is likely to be the US Unemployment Claims figure, scheduled to be released at 13:30 GMT. Analysts are expecting the figure to come in at around 423K, which if true, would be an improvement over last week’s surprisingly high 439K. If the figure comes in below its forecasted level, it may be taken as a sign that the US economic recovery is gaining traction, which could help the dollar extend some of its recent gains.

EUR – Euro Recovers Following French Credit Downgrade

The euro was able to stage a moderate recovery during European trading yesterday, following the downgrading of France’s credit rating earlier in the week. Expectations that the opposition party will win the upcoming Japanese elections helped the EUR/JPY advance more than 70 pips to trade as high as 104.62 during the afternoon session. Against the USD, the euro received a boost from investor optimism that Greece will soon receive a new round of bailout funds. The EUR/USD gained some 25 pips during the morning session, eventually reaching as high as 1.2810.

Today, traders will want to continue monitoring announcements out of the euro-zone with regards to the debt situations in both Greece and Spain. Any signs that either country is closer to receiving bailout packages could lead to euro gains. Tomorrow, German and French manufacturing data is expected to generate heavy market volatility. Worse than expected data could lead to fears that the EU’s biggest economies are moving closer to recession, which may result in significant euro losses.

Gold – Gold Prices High amid Hopes for US Budget Deal

Gold was able to hang onto most of its gains from earlier in the week during European trading yesterday, as hopes that US Congressional leaders will soon reach a budget deal to avert the upcoming “fiscal cliff” will soon be reached. The “fiscal cliff” is a series of automatic tax increases and spending cuts that will take place at the end of the year if a budget cannot be agreed to.

After dropping close to $4 an ounce during mid-day trading, gold was able to recover most of its losses and spent the rest of the day trading around the $1732 level.

Today, gold traders will want to continue monitoring any developments with regards to the ongoing “fiscal cliff” negotiations in the US Congress. Analysts are forecasting that gold prices may advance in the coming days if it becomes clear that a deal is closer to being reached.

Crude Oil – Rumors of Upcoming Mid-East Cease Fire Turn Oil Bearish

Rumors that Israel and Hamas were closer to signing a cease-fire agreement yesterday led to a decrease in supply side fears among investors, which resulted in the price of crude oil giving up some of its recent gains. Oil fell more than $0.80 a barrel during European trading, eventually reaching $88.26, before bouncing back to the $88.60 level.

Today, analysts are warning that oil prices could quickly turn bullish again if there is any escalation in the conflict in Israel and the Gaza Strip. Furthermore, traders will want to pay attention to the US Crude Oil Inventories report, set to be released at 15:30 GMT. If the figure comes in below the forecasted 1.0M, oil could turn bullish as a result.

Technical News

EUR/USD

In a sign that upward movement could occur in the coming days, the MACD/OsMA on the weekly chart appears close to forming a bullish cross. That being said, most other long-term technical indicators place this pair in neutral territory. Traders may want to take a wait and see approach until a clearer picture presents itself.

GBP/USD

The Bollinger Bands on the daily chart are beginning to narrow, indicating that a price shift could occur in the near future. Additionally, the MACD/OsMA on the same chart has formed a bullish cross. Opening long positions may be the smart choice for this pair.

USD/JPY

The Slow Stochastic on the weekly chart appears close to forming a bearish cross, indicating that this pair could see downward movement in the coming days. This theory is supported by the Williams Percent Range on the same chart, which has crossed into overbought territory. Opening short positions may be a wise choice for this pair.

USD/CHF

Most long-term technical indicators indicate that this pair is range trading, meaning that a definitive trend is difficult to predict at this time. Traders may want to take a wait and see approach, as a clearer picture is likely to present itself in the coming days.

The Wild Card

GBP/JPY

The Relative Strength Index on the daily chart is approaching the overbought zone, indicating that a downward correction could take place in the near future. Furthermore, the Slow Stochastic on the same chart appears to be forming a bearish cross. Forex traders will want to keep an eye on these two indicators, as they may soon point to impending bearish movement.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

 

Additional Bond Buying Stimulus Risks Adding Inflation Pressure, Weale Says

By TraderVox.com

Tradervox.com (Dublin) – According to Martin Weale, one of the Bank of England’s policy makers, the rate of inflation in UK remains a concern and additional stimulus will add to those concerns. He noted that the pressure on inflation has been exacerbated by the rising consumer-price which exceeds the central bank’s target. Weale predicted that it is very likely that the inflation will remain high in the next two years as the economy struggles to growth. He said that his analysis suggests that more BOE stimulus without corresponding improvement in productivity will add to inflation.

However, Weale’s comments are in contrast with David Miles, a fellow policy maker, who indicated that the central bank can do more if recessionary conditions persist. Such differing comments have led the market to believe there is continued division in the Monetary Policy Committee, which would result to BOE embarking on its bond buying program. The market is waiting to scrutinize BOE meeting minutes which will be released at 9:30 today.

The BOE is also expected to hold it Financial Policy Committee meeting today which is chaired by the BOE Governor Mervyn King. The last meeting held its position that the financial institutions in the country should raise capital to stave off threats facing the financial system. The Bank of England will publish the FPC statement together with the semiannual Finance Stability Report on November 29.

According to Weale’s speech to be delivered at the Manchester Economics Seminar, the Bank of England risks losing its credibility due to prolonged high inflation levels which are above the BOE target of 2 percent. Report from the UK has indicated that consumer Price growth rose by 2.7 percent in October. The central bank has also raised its short-term inflation forecast.

David Miles, a fellow policy maker, had indicated earlier in an interview that UK economy may require additional stimulus. He also added that it will depend on how the headwinds holding back growth plays out. Today’s MPC meeting minutes will show how the policy makers voted to avoid additional stimulus.

Disclaimer
Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management. 

Article provided by TraderVox.com
Tradervox.com is a Forex News Portal that provides real-time news and analysis relating to the Currency Markets.
News and analysis are produced throughout the day by our in-house staff.
Follow us on twitter: www.twitter.com/tradervox

Market Trends 21.11.12

Source: ForexYard

printprofile

Hey Everyone,

Below are some market trends for today.

Good luck!

-Dan

Gold- May see an upward correction today
Support- 1713.06
Resistance- 1734.42

Silver- May see an upward correction today
Support- 32.67
Resistance- 33.42

Crude Oil- May see an upward correction today
Support- 85.67
Resistance- 88.42

Dax 30- May see a downward correction today
Support- 7055.54
Resistance- 7273.54

EUR/USD May see an upward correction today
Support- 1.2676
Resistance- 1.2819

Read more forex news on our forex blog

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Market Review 21.11.12

Source: ForexYard

printprofile

The euro tumbled more than 60 pips against the US dollar during overnight trading, after euro-zone finance ministers failed to agree on terms to provide Greece with a new round of bailout funds. The EUR/USD traded as low as 1.2735 before bouncing back to its current rate of 1.2762.

The USD/JPY hit a fresh 7 ½ month during Asian trading amid speculations that the Bank of Japan will initiate a new round of quantitative easing next month following Japanese election. After trading as high as 82.10, the pair saw a slight downward correction and is currently stable at the 82.00 level.

After falling by more than $2 a barrel yesterday, the price of crude oil stabilized last night after it became clear that cease fire talks between Israel and Hamas had failed to produce any concrete results.

Main News for Today

US Unemployment Claims- 13:30 GMT
• Forecasted to come in at 415K, well below last week’s 439K
• A lower than expected figure could lead to dollar gains during afternoon trading

US Crude Oil Inventories- 15:30 GMT
• If the indicator comes in above the forecasted 0.8M, it may be taken as a sign that demand for oil in the US had gone down, which could turn the price of crude bearish

Read more forex news on our forex blog

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Loonie Drops Against Majors as Commodity Prices Fall

By TraderVox.com

Tradervox.com (Dublin) – The Canadian currency has declined against most majors after speculation of cease fire agreement in Middle East left the price of oil down from a one-month high reached earlier. However, the currency losses were limited as it had earlier registered its biggest gain in a month against the greenback yesterday as news of International Monetary Fund’s consideration of classifying the loonie and Aussie as reserve currencies hit the market.

According to Oanda Corp’s Head Analyst, Dean Popplewell, the slight risk-on mood in the market will have insignificant effect on the Canadian dollar and it will only have considerable boost if it moves against the crosses such as the euro. Popplewell, who is based in Toronto, added that there are too many uncertainties as we get to the year end, suggesting that the fiscal cliff in US and the situation in Middle East are some of the issues that will continue to affect the Canadian dollar.

Crude oil, which is Canada’s largest export commodity, declined by 2.2 percent in New York to $87.34, while the futures contract closed at $89.28, the highest settlement since 19th October. The decline in crude oil prices occurred after the Egyptian President Mohamed Mursi indicated that the Israeli aggression against Gaza would end yesterday.

According to David Bradley, the Director of Foreign Exchange trading at Scotia Capital Inc in Toronto, the currency remains range-bound today after yesterday’s rally. He predicted that the Canadian dollar would experience slight decline as the risk related currencies decline on reduce risk appetite ahead of US Thanksgiving holiday.

The Canadian dollar has advanced against most majors by 1.3 percent this year, while the euro has declined by 2.6 percent. The greenback has dropped by 1.4 percent in the same period as the yen dropped the greatest this year, declining by 7.8 percent.

The loonie was slightly changed against the dollar, dropping by 99.68 cents per dollar at the close of trading yesterday in Toronto. It had advanced to 99.55 cents per dollar during intraday trading yesterday, the strongest it has been since November 8.

Disclaimer
Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management. 

Article provided by TraderVox.com
Tradervox.com is a Forex News Portal that provides real-time news and analysis relating to the Currency Markets.
News and analysis are produced throughout the day by our in-house staff.
Follow us on twitter: www.twitter.com/tradervox

Fiscal Cliff Fix May Boost US Economy, Bernanke Says

By TraderVox.com

Tradervox.com (Dublin) – Ben S. Bernanke, the Federal Reserve Chairman, has indicated that an agreement on the means to reduce the long-term federal budget deficits will remove a major impediment to economic growth in the US. Speaking to the Economic Club of New York, Bernanke warned that failure to avoid the fiscal cliff will pose a substantial threat to the nation’s recovery efforts. He added that there needs to be securing and confidence in the direction being taken by the economy which will boost the economic growth and reduce the unemployment in the country.

In his remarks, Bernanke pointed out the threat of the $607 billion in automatic tax increases and spending cuts which will take effect next year unless the US Congress acts, poses the greatest impediment to the growth of the economy. The fiscal cliff, if not averted will force companies to shy away from hiring hence increasing the rate of unemployment in the country. He reiterated that a failure to reach an agreement will send the economy back to another recession.

The Federal Reserve embarked on a third round of quantitative easing measures, where it is buying $40 billion in housing debt per month to boost employment and secure the housing sector. The Fed also kept its interest rate to near zero levels as it seeks to boost the economy. Bernanke promised to do everything to support ongoing recovery in growth, jobs and to create demand for output and demand for companies’ products hence removing the uncertainty about the future sustainability of the recovery process.

After Bernanke’s speech, the ten-year benchmark yields rose to 1.67 percent from the previous reading of 1.61 percent. The Fed Chief comments suggest that an agreement on the fiscal deal will remove any impediments to economic growth in the country. The Standard & Poor’s Stock Index rose by 0.1 percent to reach 1,387.82 at the close of trading after losing 0.7 percent during the day in New York.

Disclaimer
Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management. 

Article provided by TraderVox.com
Tradervox.com is a Forex News Portal that provides real-time news and analysis relating to the Currency Markets.
News and analysis are produced throughout the day by our in-house staff.
Follow us on twitter: www.twitter.com/tradervox

The Stock Market Gets Squeezed

By MoneyMorning.com.au

Equity markets are incredibly unstable at the moment, so it won’t take very much to see them cascading down again.

The stock market rally of the past few days is simply a short squeeze (where short sellers buy back stock to cover their position) in a strong intermediate downtrend. These sorts of rallies usually last between 3-5 days before rolling over again if the downtrend is going to continue.

The S+P 500 has rallied for 3 days now, so I suspect that we’ll see a short term top in the next few days and then the selling will return.


It’s the next phase of the downtrend that can be the most vicious.

S+P 500 Daily Chart

S+P 500 Daily Chart
Click here to enlarge

Source: Slipstream Trader

That’s because the 200-day moving average has already been broken and we’re currently trying to rally back above it. If we fall again and take out the recent lows then that would be the stock market’s signal to hit the sell button.

You can see quite clearly from the above chart that the 200 day MA is usually great support in an uptrend, but if it doesn’t hold then watch out below.

The more the central bankers pump up our stock market with funny money the more unstable it becomes and the quicker it will fall when the music stops.

Since the lows of the 2009 crash we’ve seen two very steep sell-offs over a matter of days. The first was the flash crash from May 2010 and the second was the August 2011 bashing that saw the S+P 500 fall 20% in two weeks. Do you really think we won’t see any more volatility like that going forward?

If I said that the stock market could be 10% lower in the next two to four weeks most mainstream investors would roll their eyes and laugh. But the fact is the technical set up now is the most compelling that I have seen for a very long time.

This short squeeze in the S+P 500 could take us all the way to 1400-1430 but I would be a major seller there. The next leg down will be the big one, and if you haven’t either lightened the portfolio or sold the stock market short you will be panicking out of your positions like the rest of the market.

Murray Dawes
Slipstream Trader

From the Port Phillip Publishing Library

Special Report:
Retire Rich, Happy and Free From Money Worries

Daily Reckoning:
Facing Fiscal Reality: You Can’t Tax Your Way Out of a Spending Problem

Money Morning:
Buy Quality Gold Stocks That Have the ‘Right Stuff’

Pursuit of Happiness:
The Biggest Threat to Peace: A State of Warfare or Welfare?

Diggers and Drillers:
The High-Tech Commodity Driving an Investing Revolution


The Stock Market Gets Squeezed

Is This Proof That Commodity Prices are Set to Fall?

By MoneyMorning.com.au

Since I took over writing Money Morning every Wednesday I have focused on giving you an insight into my technical approach to trading markets.

But today I’d like to start by having a squiz at some interesting developments in the commodity markets.


I’ve noticed a distinct rise in articles referring to speculative commodity stockpiling in China and elsewhere.

An ANZ commodity research report from this week focused on something called ‘contango financing’ in the aluminium market. In a moment I’ll explain why you should take notice of this obscure term, and what it means for commodity markets…

According to the report:


‘The aluminium market is facing a supply shock in 2014 when prices could drop by 20% or more in a very short period. We expect around 70% of on-warrant and off-warrant stocks, or about 8 million tonnes of metal tied up in financing deals, to come to the market around the middle of 2014. The trigger will be rising interest rates, which will make contango financing unprofitable.

‘Contango financing – buying cash metal at a discount, selling forward at a premium, then using the difference to cover the cost of storage, interest and make a profit – has increased significantly since the global financial crisis. Low interest rates have caused investors to seek yields in alternative investment structures and financing metal remains a relatively low risk opportunity. However, margins can rapidly shrink as costs, primarily interest and warehouse rents, go up.

‘The metal locked away in these deals could amount to around 8 million tonnes or 15%-20% of global supply.’

This is scary stuff.

Then I read a Bloomberg article on Mike Shedlock’s economic blog, Mish’s Global Economic Trend Analysis. The article notes:


‘cotton stockpiles in China, the world’s biggest importer, are set to climb to about 9 million metric tons this season, enough to cover the country’s deficit for the next six years, according to Allenderg Cotton Co.

‘Inventories are rising as the government boosts purchases to support domestic prices and lift farmer incomes, Joe Nicosia, chief executive officer of the worlds largest cotton trader, said at a conference in Hong Kong today.’

A China Daily article from the same website focuses on the problems ahead for the Steel industry:


‘China’s steel industry is a big cause for concern in the fourth quarter due to shrinking demand and heavy losses, according to an industry official. The fears were outlined by Huang Libin, an official from the Ministry of Industry and Information Technology, in an interview with China National Radio.

‘The steel sector’s performance has been bad since the beginning of the year,” Huang said. “Their revenues are falling and demand remains weak.” The entire steel sector is now operating at a loss and struggling with problems of oversupply and a broader economic slowdown, he said. MIIT data show that 45 percent of the country’s steel companies suffered losses in the first nine months of 2012.’

It seems quite clear to me that we’re seeing distortions in many hard and soft commodity markets. Some are due to central bank meddling in interest rates, which is forcing investors to look for ingenious ways to make a buck (contango financing) and some are due to government interference (Chinese subsidies for cotton).

But the end result is the same: inventories going through the roof while growth comes off the boil.

A Leg Down Coming in Commodities

I find it hard to believe that we’re not close to another serious leg down in commodities.

I think the catalyst for such a fall will be any signs that Chinese macroeconomic data is shifting back to the downside.

So economic data such as this Thursday’s release of the HSBC flash PMI will be worth keeping a close eye on.

Murray Dawes
Slipstream Trader

From the Port Phillip Publishing Library

Special Report:
Retire Rich, Happy and Free From Money Worries

Daily Reckoning:
Facing Fiscal Reality: You Can’t Tax Your Way Out of a Spending Problem

Money Morning:
Buy Quality Gold Stocks That Have the ‘Right Stuff’

Pursuit of Happiness:
The Biggest Threat to Peace: A State of Warfare or Welfare?

Diggers and Drillers:
The High-Tech Commodity Driving an Investing Revolution


Is This Proof That Commodity Prices are Set to Fall?

Two Reasons to Steer Clear of the Chinese Stock Market

By MoneyMorning.com.au

Here are some things that we know. We know that long-term stock market returns are utterly unrelated to economic growth; instead, they are related to the price at which you buy your stake.

Buy a market when it is cheap, and history tells us you will make good long term returns; buy a market when it is expensive, and history tells us you will not.

We also know that when a market is cheap, sentiment will be such that everyone will have a reason why it will stay cheap forever, and must be avoided at all cost. The clever investor is the one who ignores the noise and looks at the price.

Beware the Bear Market Trap

This brings me to the Chinese stock market – people keep telling me how cheap it is. Brian Dennehy of fundexpert.co.uk sent me a chart this week showing how the major markets have performed since October 2007. The S&P 500 is down 10% and the FTSE 100 is down about 11%.

But the Shanghai Composite index is down a nasty 62%. The Chinese stock market doesn’t look that good over a 20-year period either: the MSCI China Index started at 100 on December 31 1992; it is now at 59.

It is a story borne out if you look at short-term fund performance too. The best performers in the US stock market are up between 18 and 20% over the past year, while even the very best performer in the Chinese stock market – First State Greater China Growth – is up only just over 4%. Its runner-up, Baillie Gifford Greater China, is down 2%.

Dennehy points out that the Chinese stock market bears many of the hallmarks of a bear market hitting bottom. There is a consensus growing against it among foreigners – note Barron’s ‘Falling Star’ cover from July this year, explaining why low Chinese growth is bad news for stocks – and among locals.

The number of new trading accounts being opened has fallen to 2008 levels, and trading volumes on both main markets (Shanghai and Shenzhen) dropped by 30% in the first half of this year.

Next up is the fact that its price/earnings ratio, “depending on who you believe”, is either at or near a record low, somewhere between ten and 12 times and much where it was in 1995. Chinese stocks used to trade at a massive premium to those in the rest of Asia; now they trade on a discount.

Dennehy isn’t alone in his enthusiasm. The idea that Chinese equities are historically cheap is gaining momentum: even Asia-based stock guru and über bear Marc Faber told me a few weeks ago that at these prices, China is due a major bounce.

Given that I am usually keen to push you into cheap equities (it is the only way to survive this kind of very low interest rate environment) you might now expect me to suggest that you start buying shares. But while I wouldn’t be at all surprised to see China’s stock market rally nicely from these levels, it just doesn’t make sense as a long-term hold. Why? Two reasons.

Why You Should Avoid the Chinese Stock Market

First, it isn’t cheap enough. Very few valuation methods have ever shown themselves to be of any use in predicting where stock markets might go. The cyclically adjusted p/e ratio (Cape), however, does. And on Cape, China still looks expensive: cheap would be under 11 times, and China is on more like 16 times.

But the real argument against anyone but stock traders investing in the Chinese stock market isn’t really anything to do with the current price or with the various theories about how equities should or could be valued, or about the noise surrounding the political changes and economic slowdown.

Instead, as CLSA’s Russell Napier pointed out to me this week, it is about something more fundamental – the usual measures don’t hold good because the things listed on Chinese stock exchanges aren’t proper equities.

An equity is a real share in an asset that you hope represents growth in the productive part of an economy – and a share that entitles you to all the rights that come with owning that asset.

But if you buy into a market such as China’s where the vast majority of shares are state-owned (about 80% of the market), that is not really what you are getting.

As one long-term China bear noted this week, ‘what is a Chinese bank but a branch of the Ministry of Finance which makes non-performing loans to state-owned companies, some of which are funded with equity sold to foreigners?’ Quite.

Own Chinese stocks and you just don’t have the same kind of effective ownership as the word ‘equity’ suggests you should, something that surely makes most of our theories on valuation more or less irrelevant.

It is also worth noting that state control matters more than usual at the moment. Why? Inequality, the corruption that causes inequality, and the new focus on both in China.

In the West, if governments want corporates to distribute more of their profits to labour (which they surely do) they have to beg, legislate or take the money in taxes and redistribute it themselves.

In China, the government (old and probably new too) can work to smooth things a little with a firm endorsement of fast-rising wages, something it can directly deliver via its ownership of the corporate sector regardless of whether the small pool of private shareholders agree with the policy or not.

That – obviously – suggests a state-sponsored squeeze on profit margins, says Napier. The other obvious risk to bear in mind is that the Chinese government probably doesn’t want to own most of the market forever, so we can surely expect it to sell parts of the various stakes it holds whenever prices rise.

As I’ve written before, in turbulent times you need to invest as far away from anything controlled by government as you can. Stocks owned by the state and listed in a command economy are too close to government for comfort.

Merryn Somerset Webb
Contributing Editor, Money Morning

Publisher’s Note: This article originally appeared in MoneyWeek

From the Archives…

Retirees and the Fed Face Off
16-11-2012 – Kris Sayce

Attention Investors: This Market is Worse Than it Looks
15-11-2012 – Kris Sayce

Avoid the Slaughter: Watch This Key Stock Market Pointer
14-11-2012 – Murray Dawes

Why Lithium is Another ‘Rare’ Element on China’s Radar
13-11-2012 – Dr. Alex Cowie

Who Says Gold Doesn’t Pay ‘Interest’?
12-11-2012 – Dr. Alex Cowie


Two Reasons to Steer Clear of the Chinese Stock Market

USDCAD is facing channel support

USDCAD is facing the support of the lower line of the price channel on 4-hour chart, a clear break below the channel support will suggest that the trend from 0.9632 (Sep 14 low) has completed at 1.0055 already, then deeper decline to test 0.9874 key support could be seen. On the upside, as long as the channel support holds, the fall from 1.0055 could be treated as consolidation of the uptrend, and another rise towards 1.0100 is still possible after consolidation.

usdcad

Daily Forex Forecast