Month: June 2012

In trading on Tuesday, precious metals shares were relative leaders, up on the day by about 1.5%. Leading the group were shares of Seabridge Gold (SA), up about 4.3% and shares of Gold Reserve (GRZ) up about 4.1% on the day.

Luxury goods maker Michael Kors (KORS) announced that it earned $43.6 million, or 22 cents per share in the last fiscal quarter versus a profit of $17.4 million, or 10 cents per share in the same period last year. Excluding one-time items, the company earned 21 cents per share.

By Zac, CountingPips

The Evolution of American Currency in 20 Pictures – (BootStrapper)

HSBC Starts Yuan Bond Fund for U.S. as Dim Sum Market Expands – (Bloomberg)

“Europe’s biggest bank, has started a fixed income fund for U.S. investors that will invest in bonds sold in China’s currency in Hong Kong.”

CHF: Systemic risk and the EU debt crisis – (Trading Floor)

Time to rethink the SNB’s currency floor and EUR/CHF long trades?

Hong Kong vows to stick with dollar peg after ex-cbanker’s comments – (Reuters)

The story of India’s falling forex reserves – (LiveMint)

Sudan: Forex Bureaus in Sudan Hike Exchange Rate to Curb Black Market – (AllAfrica)

Stocks sold off as the most recent effort by European leaders to fix its crisis failed to give investors confidence. European leaders committed to lend Spain $125 billion to shore up its banking system, but an early US rally faded as investors saw the effort as merely temporary.

McDonald’s (MCD) today had its estimates and price target reduced by Credit Suisse (CS) due to lower realized sales. A $104 price target was issued with an outperform rating.

In trading on Monday, cigarettes & tobacco shares were relative leaders, up on the day by about 1.1%. Leading the group were shares of Star Scientific (CIGX), up about 2.6% and shares of Universal VA (UVV) up about 2.4% on the day.

As the saying goes, there are many possible reasons for an insider to sell a stock, but only one reason to buy — they expect to make money. So let’s look at two noteworthy recent insider buys.

Spanish Prime Minister Mariano Rajoy welcomes euro zone finance ministers’ agreement to lend Spain up to 100 billion euros. Deborah Lutterbeck reports

By CountingPips.com

The latest Commitments of Traders (COT) report, released on Friday by the Commodity Futures Trading Commission (CFTC), showed that large futures speculators boosted their overall US dollar long positions last week for a fifth consecutive week and euro short positions once again increased to a new record high.

Non-commercial futures traders, including hedge funds and large speculators, increased their total US dollar long positions to $39.65 billion on June 5th from a total long position of $37.5 billion on May 29th, according to the CFTC COT data and calculations by Reuters which calculates the dollar positions against the euro, British pound, Japanese yen, Australian dollar, Canadian dollar and the Swiss franc.

Individual Currencies:

EuroFX: Currency speculator sentiment decreased for the euro currency once again last week as euro net short positions or bets against the currency rose to a new record high for a fourth consecutive week. Euro short positions increased to 214,418 contracts on June 5th from the previous week’s total of 203,415 net short contracts on May 29th. This is the fourth straight week of a new record level and a fifth straight week of decline overall.

The COT report is published every Friday by the Commodity Futures Trading Commission (CFTC) and shows futures positions as of the previous Tuesday. It can be a useful tool for traders to gauge investor sentiment and to look for potential changes in the direction of a currency or commodity. Each currency contract is a quote for that currency directly against the U.S. dollar, where as a net short amount of contracts means that more speculators are betting that currency to fall against the dollar and net long position expect that currency to rise versus the dollar. The graphs overlay the forex spot closing price of each Tuesday when COT trader positions are reported for each corresponding spot currency pair.

GBP: British pound sterling positions decreased last week for a fourth straight week after peaking at the highest level in over a year on May 8th. British pound positions have now fallen back over to the short side and saw a total of 2,867 net short contracts on June 5th following a total of 1,475 net long contracts registered on May 29th. This is the first time pound sterling contracts have been on the short side since April 17th when positions totaled 13,051 short contracts.

JPY: Japanese yen speculative contracts improved last week for an eighth consecutive week and rose over to a total of long contracts for the first time since February. Yen positions totaled 12,073 net long contracts reported on June 5th following a total of 11,330 net short contracts on May 29th. Japanese positions have benefited from the surge in risk aversion in the markets and the JPY is now at its best level since February 20th when contracts equaled 17,257 long positions.

CHF: Swiss franc speculator positions decreased after improving slightly the previous week. Speculator positions for the Swiss currency futures registered a total of 33,648 net short contracts on June 5th following a total of 30,596 net short contracts as of May 29th.

CAD: Canadian dollar positions declined sharply last week and for a fifth consecutive week after reaching the highest level of the year on May 1st. Canadian dollar positions declined to a total of 14,906 net long contracts as of June 5th following a total of 34,085 long contracts that were reported for May 29th. Canadian dollar contract are now at the lowest level since February 13th when positions equaled a total of 9,566 long contracts.

AUD: The Australian dollar positions dropped sharply for a fifth consecutive week and brought Aussie positions further negative after crossing over to the short side on May 22nd. Aussie positions dropped to a total net amount of 51,172 short contracts on June 5th after falling to 35,527 net short contracts as of May 29th. AUD speculative positions are at the lowest level since at least 2009 as the reserve Bank of Australia has cut interest rates and growth out of China, which fuels Aussie strength, has cooled.

NZD: New Zealand dollar futures speculator positions slightly declined and fell for a seventh straight week. NZD contracts decreased to a total of 5,530 net short contracts as of June 5th following a total of 5,208 net short contracts on May 29th. The kiwi contracts have now been on the short side for three consecutive weeks.

MXN: Mexican peso speculative contracts decreased after improving slightly the previous week. Peso positions fell to a total of 30,396 net short speculative positions as of June 5th following a total of 12,995 short contracts that were reported for May 29th. Mexican peso contracts are now at their lowest level since November 28th 2011 when positions equaled 36,240 short contracts.

COT Currency Data Summary as of June 5, 2012
Large Speculators Net Positions vs. the US Dollar

EUR -214418
GBP -2867
JPY +12073
CHF -33648
CAD +14906
AUD -51172
NZD -5530
MXN -30396

The world’s first solar transcontinental flight landed early this week. Swiss aviator Bertrand Piccard flew the one manned aircraft from Spain to Morocco in 20 hours. The plane is powered by 12000 solar cells embedded on the tremendous wing span (just under 200 feet) and glides as much as it flies with it’s solar powered propellers. Reaching speeds of up to 74 mph, the plane cruises at around 35, weighing little more than your average car. Costing roughly $10mil, solar powered flight is still not the best solution to lowering fuel consumption, braving rough weather or making your meeting across the pond, but we’re flying in the right direction.