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Desloges CFA is a professional investment consultant/ blogger/ trader
with over 25 years of experience working on the buy and sell-side.
have researched and invested in traditional and alternative asset classes and
worked at Pensions Funds, International Banks and Dealers. More...
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SP500-Russel Financial Services and VIX: No Fear Priced Into the Market ?
But the most interesting factor is the correlation between the Mighty SP500 Index with the US Dollar Index (DXY). And we are into the zone where we usually at risk to see a short term market pressure as history suggest.
Louis Gave: This Is the Single Most Important Thing Happening in the Financial World Today Louis sees a massive reweighting toward Chinese assets, as well as potential major changes for the Chinese currency, the Renminbi (RMB), when the IMF decides whether or not to add the RMB to its basket of global reserve currencies in November.
Apple's China Footprint...In 10 Charts
UBS analysts Steven Milunovich and Peter Christiansen just issued a massive note on Apple in China.
The country is the primary "driver" of growth at the tech giant, UBS said. So much so, in the firm's eyes, that it holds a 12-month Buy rating on Apple with a $150 price target.
UBS Survey: Why Apple Is Winning China
Check out 10 graphics UBS compiled in the Apple report.
SP500 Financials HVol: Low HVol since Break Out ?
HVOL did reached on May 22 a low level last seen back in mid-April 2015 when we had a range trade pattern in SRFI. But what is interesting, it is that HVol is getting lower in a break out trend since May 14 with Financials, a very unusual trading behavior.
Technical Observation of the Day: Break the Resistance Trendline on Apple
On May 27, Apple Shares closed Above the Resistance Trendline then at $131.25.
Voting Machine, Weighing Machine - John P. Hussman
The greatest miscalculation in my career as an investor has been to underestimate the lengths to which the miscalculation of speculators can extend. I’ve had to correct that error twice, and even if the completion of the market cycle ultimately made the error irrelevant, the challenge was excruciating in the midst of the market cycle, at least until it was fully addressed.
Is Apple Still A No Brainer Investment?
International growth may continue to be a source of incremental gains, but one must believe that at some point smartphone saturation and slowing growth may occur.
DJ Transport and SP500: Major Divergence ?
Observe the Major Divergence since Mid-November as the ratio is making lower highs and lower lows but not the Mighty SP500. And Observe also that this ratio broke the support trendline but not the SP500:
Something Will Have to Give.
SP500 Utilities Sector Bullish % Index: Lowest of the past 5 Years ?
The main technical indicators like the moving average of the Bullish
Percentage Index of the Utilities Sector are turning back with too more
That % indicator on Utilities Stocks reached a level of 43.3% level,
the Lowest of the past 5 Years.
How to Invest When Rates Are Rising
They are many factors that move stock markets. But these days, it seems that investors are most concerned about one about all others – interest-rate hikes. He concludes that “2008 should have taught investors that dividend-paying stocks aren’t a viable alternative to safe bonds.
Cowen Increased Apple's Estimates And Price Target
Cowen’s Apple analyst, Timothy Arcuri, projects the company could sell 50 million iPhones in the June quarter which would offset continued iPad weakness (with a larger version still several months out) and some concerns he has that Apple may not sell 3 million Watches in the quarter.
SP500: Ratio % Stocks Above 50/200 DMA: At Crossroads ?
But what is interesting indeed is that this ratio is testing the Resistance Trendline that started on January 6 and SP500 Index is near a Major Trendline on a Rising Wedge. We must follow that carefully...
China ETF Volatility Index and SP500: A Warning Sign ?
Also observe that this ratio ( CBOE China ETF Volatility Index to the VIX ) is near his higher level of the past 3 years as shown by the chart below telling me that the level of speculation is quite high....
The Semiconductor Sector ( SMH ) : Outperform SP500 ?
The Semiconductor Sector start to outperform tremendously since March 26 2015 compare to the Mighty SP500... And the 21 DMA did turn upward on April 23.
5 charts that show stock buybacks are rapidly losing their luster
The most popular use of corporate cash over the past several years has been the stock buyback as corporations cite a lack of better uses for capital. As a result, those stock buybacks have boosted the value of those that aren’t gobbled up.
But the law of diminishing returns is setting in as stocks are hitting new highs, eliciting calls of a market bubble.
More Android Users Are Switching to Apple Inc.'s iPhone
Apple's management believes that the iPhone 6 and iPhone 6 Plus are attracting more Android users than previous iPhone models. "We're seeing a higher rate of switchers than we've experienced in previous iPhone cycles," Apple CEO Tim Cook said on the company's most recent earnings call.
SP500 Index Bull% Index: Divergence ?
Also observe the divergence between the % Bullish Index and the Mighty SP500; lower highs from the Index and higher highs from the SP500 since December 2014.
Buybacks and Dividends All That's Left in S&P 500, Goldman Says
Dividends and buybacks will be responsible for supporting a market where the median stock in the Standard & Poor’s 500 Index is trading at 18.2 times earnings, putting it in the 99th percentile of historical valuation, the firm said in a note to clients. Goldman Sachs forecasts that the S&P 500 will rise to 2,150 by mid-year before fading to 2,100 by the end of 2015.
China Mobile's Slower 4G Growth Could Negatively Impact Apple's iPhone June Qtr. China Mobile and China Unicom released their April subscriber numbers and China Mobile experienced much slower growth in its 4G user base than it has in recent months. Since China has been a major growth driver in Apple AAPL +0.03%’s results this could have an impact on Apple’s June quarter results.
The VIX/ Gold Correlation US Dollar and SP500: Expecting Higher Volatility Ahead ?VIX/GOLD correlation getting at the -0.60 zone on May 19 and
VIX at 12.85, indicating higher volatility ahead...
SP500 and Emerging Markets: EM in a Downtrend Channel ?
Observe the Break Out on the SP500 Index on May 15 but not on the Emerging Markets.
Also quite interesting is the behavior lately of the EEM and US Dollar Index (DXY). The EEM is outperforming when DXY is under pressure and vice versa...
Manage Portfolio Risks with Diversified ETFs
The proliferation of exchange traded funds has helped investors and advisors create low-cost and tax-efficient ways to access various market segments.
With ETFs, investors are able to diversify risk-exposure, or maximize a portfolio’s Sharpe ratio, the return per unit of risk, according to BlackRock.
Apple Is Gaming Fed Policy to Counteract Its Stagnating Stock Price
The risk of raising interest rates prematurely looms large. And there's the distinct possibility of damage to Fed credibility if they move and then soon after are forced to reverse course by easing again. I find it hard to believe that after nearly eight years of combating a stagnant economy, the Fed wants to high tail it before the job is done and has multiple expansionary economic data points on which to hang its rate-rising hat.