Author Archive: Jeremy Parkinson
Covenant-Lite Loan Issuance Hits New Record
Institutions in search of yield are gobbling up loans with little protection, at riskier and riskier spreads. Record-breaking chart from LeveragedLoan.Com. The share of outstanding leveraged loans that are covenant-lite crept to another record high in February, reaching 75.8%, according to LCD and the S&P/LSTA Loan Index. At the end of February, the amount of U.S. […]
Moving Averages: Month-End Preview – Thursday, March 29
Here is an advance preview of the monthly moving averages we track after the close of the last business day of the month. At this point, before the close on the last day of the month, all three S&P 500 strategies are signaling “invested” — unchanged from last month’s triple “invested” signal. Three out of […]
Fibonacci Confluence Levels On Netflix
As I mentioned in yesterday’s post of the FAANGs, volatility is on the rise for all of them, including Netflix (NFLX). The weekly chart below shows the confluence levels of two sets of Fibonacci retracements…around 273, 235, 210 and 174. These levels also intersect with the lines parallel to the median of the Andrew’s Pitchfork channel, and the median, itself. A drop and hold below the first […]
“Tech Wreck,” ‘Techlash,” “Techmageddon’ – Whatever You Call It, Wall Street Is Terrified Of It
Back in the 1990s, critics of the dot-com bubble used to point out that the global economy depended on the US stock market and the US stock market depended on, like, ten Internet stocks with negative aggregate earnings. The resulting inverted financial pyramid was, the critics claimed, very easy to tip over. They were right […]
What’s Next For Stock Markets In 2018?
Are Bonds signalling that Risk-on Continues for Stock markets in 2018? This is the question we will cover in this article to assess if the market is still in a Risk-On phase in 2018 or if the tide has turned. Financial Media outlets are full of stories about how Tariffs and trade war is impacting the stock […]
How To Trade The UK GDP With GBP/USD
The final read of UK GDP for Q4 2017 is closely watched and may provide a trading opportunity. The Market Impact tool lays out the bullish and the bearish scenarios for trading the event. Buying GBP/USD scenario Tradable Positive Trigger: +0,85 deviation [BUY Pair] Key Resistance Level: 1.4150 If it comes out at higher than expected […]
Stock Buybacks Outperform CAPEX Spending
In the past few years stock buybacks have been increasingly criticized by investors who believe the stock market and economy are in a bubble. The main evidence they bring to the table is that companies bought back a record amount of their own shares before the financial crisis in 2008. The market fell about 55% in 2008, […]
China/Asia Economic Implosion On The Horizon? – Part III
Thank you for following our multi-part research (Part I, Part II) into the possibility of a China/Asia market collapse and our hypothetical analysis of what that event might consist of and how it may play out. So far, we have discussed the Chinese housing market rotation as well as the recent trends within the past 7+ […]
WTI Crude Oil And Natural Gas Forecast – Thursday, March 29
WTI Crude Oil The WTI Crude Oil market has been noisy during training on Wednesday, dropping as low as $64 before bouncing. By the end of the day, we formed a bit of a hammer, so it looks as if the buyers are willing to step in and pick up these dips, and I think […]
China Cracks Down On Jaywalkers With AI, Facial Recognition, & Automated Fines
As we pointed out earlier this week, China’s lack of data protection laws and its determination to overtake the US as the world-leader in AI technology poses a serious threat to US technological hegemony. As Russian President Vladimir Putin once said, whoever dominates the AI race could one day rule the world. Well, another advantage that China has […]
