Feb 22, 2017 - Market Update

Short recap

Asian markets on positive note

EU to open higher

BoJ planning to be more transparent with announcing specific dates for bond buying operations (likely to avoid recent surprise moves)

Kuroda: ready to easy more

US Treasury Secretary Mnuchin-IMF Lagarde: IMF to evaluate FX levels and police FX policies

Fed Mester – at full employment, prices raising but don’t want to surprise the markets

US VP Pence delivered the marketing message of support for EU and NATO this weekend

But week earlier Chief Strategist Bannon had a different view

Spain is really firing at all cylinders with 2016 exports of EUR 255 bln from EUR 160 bln in 2009

Proof that the reforms they did earlier with weaker EUR work well for them

DAX to push higher behind 12 000 mark on strong data

US stocks with strong momentum but getting overvalued

Usually stocks grow with rising bond yields until 10 yr US Trys hit the levels around 3.9%

So there is still room but since US election we’ve got too high to fast

Daimler planning to build a plant near Moscow to produce Mercedes-Benz cars

It is a first major investment after announcing sanctions

Verizon agreed with Yahoo on lower takeover offer due to cyber attacks on Yahoo

EUR weakness not USD strength

Daily pivot: 1.0558

1^st daily support: 1.0502

2^nd daily support: 1.0468

3^rd daily support: 1.0412

76.4% Fibo: 1.0455, the level 1.0450/60 next strong support range

Low from 1997 at 1.0416

Then the lows of 1.0340 only

Gold weakness seen more against EUR than USD

XAUEUR printing new highs

Brent crude getting tighter as we get closer to potential squeeze

As calendar spreads for upcoming expiries rose substantially

What in turn can make the storing of oil outside US a losing trade

10 yr US Trys yields lower on softer PMI data yesterday but erased the loses later on

Currently at 2.45%, still below important resistance at 2.51/52%

GE-FR spread hitting 78 bps again on Le Pen

Data

GE: Ifo Business Climate Survey – to confirm the overall strength of GE economy, no big surprises expected

US: Existing Home Sales – set to surprise on positive side

FOMC Minutes – markets still not taking the Mar 15 meeting seriously despite Yellen’s testimony from last week

Minutes can shed a bit more light on whether Fed is eyeing to raise rates in March

Fed Powell speaking today, as he is a possible successor of Yellen

It is worth to watch him as he may provide additional clues on March hike amid strong figures from US

Good luck Champs!

Mr Hawk

DISCLAIMER: This material was created for informational purposes only and represents the Land of Trading team’s view of the past and current economic and capital market environment. It is not an investment advice and should not be viewed that way at all, and the creators of this material cannot be held liable for any potential losses resulting from trading, where despite this disclaimer someone would consider this material as an investment advice. All rights reserved ©2016. Contact: landoftradingATgmailDOTcom

Read More

Oct 18, 2016 - Q3 Earnings - Week 2

Q3 Earnings - Week 2

Would you happen to have the feeling that the academics at Fed will not raise the rates in Dec and then the markets will lose any confidence it still may have, the investors and economy will get it the same way and everything will go down the hole ending up with a new full blown recession...?

…or is it just me?

Okay, let’s focus on earnings and try to figure out what will pretty high valuations and steadily declining earnings over the last few quarters will do to stock market in the above mentioned scenario.

This Week

Goldman Sachs Group Inc – a nice jump in bond trading helped to surprise the market

Wednesday

Genuine Parts Co – estimated EPS 1.28, +3.5% Y/Y; Revenue 4 022 mln

Halliburton Co – estimated EPS -0.07, -121.9% Y/Y; Revenue 3 901 mln

American Express Co – estimated EPS 0.96, -22.5% Y/Y; Revenue 7 697 mln

China Life Insurance Co Ltd (CN) – estimated EPS 0.05, -44.1% Y/Y; Revenue … mln

Morgan Stanley – estimated EPS 0.63, +84.6% Y/Y; Revenue 8 149 mln

US Bancorp – estimated EPS 0.83, +4.3% Y/Y; Revenue 5 347 mln

Abbott Laboratories – estimated EPS 0.58, +8.0% Y/Y; Revenue 5 287 mln

Valeant Pharmaceuticals Int – estimated EPS 1.77, -35.5% Y/Y; Revenue 2 519 mln

eBay Inc – estimated EPS 0.44, +2.3% Y/Y; Revenue 2 186 mln

Thursday

Walgreens Boots Aliance Inc – estimated EPS 0.99, +12.5% Y/Y; Revenue 29 084 mln

Schlumberger Ltd – estimated EPS 0.22, -71.4% Y/Y; Revenue 7 105 mln

Bank of New York Mellon – estimated EPS 0.81, +9.3% Y/Y; Revenue 3 862 mln

China Construction Bank Corp – estimated EPS 0.23, -4.2% Y/Y; Revenue … mln

E*TRADE Financial Corp – estimated EPS 0.39, +17.6% Y/Y; Revenue 472 mln

Travelers Cos – estimated EPS 2.33, -20.6% Y/Y; Revenue 6 870 mln

American Airlines Group – estimated EPS 1.69, -39.0% Y/Y; Revenue 10 534 mln

Union Pacific Corp – estimated EPS 1.40, -6.5% Y/Y; Revenue 5 163 mln

Vinci SA (FR) – estimated EPS 2.41, +5.3% Y/Y; Revenue 20 184 mln

Microsoft Inc – estimated EPS 0.68, +1.8% Y/Y; Revenue 21 698 mln

China Mobile Ltd (CN) – estimated EPS 1.48, …% Y/Y; Revenue 189 366 mln

Rogers Communications Inc (CA) – estimated EPS 0.87, -4.1% Y/Y; Revenue 3 448 mln

Verizon Communications Inc – estimated EPS 0.99, -5.1% Y/Y; Revenue 31 128 mln

Friday

Daimler AG (GE) – estimated EPS 2.23, +3.1% Y/Y; Revenue 38 372 mln

Kia Motors Corp (KR) – estimated EPS 1 566.06, +15.4% Y/Y; Revenue 12 643 981 mln

McDonald's Corp – estimated EPS .49, +6.1% Y/Y; Revenue 6 285 mln

Whirlpool Corp – estimated EPS 3.88, +12.4% Y/Y; Revenue 5 340 mln

General Electric Co – estimated EPS 0.30, +4.1% Y/Y; Revenue 29 645 mln

Honeywell International Inc – estimated EPS 1.62, +1.4% Y/Y; Revenue 9 840 mln

SAP SE (GE) – estimated EPS 0.95, -2.7% Y/Y; Revenue 5 301 mln

Good luck Champs!

Mr Hawk

DISCLAIMER: This material was created for informational purposes only and represents the Land of Trading team’s view of the past and current economic and capital market environment. It is not an investment advice and should not be viewed that way at all, and the creators of this material cannot be held liable for any potential losses resulting from trading, where despite this disclaimer someone would consider this material as an investment advice. All rights reserved ©2016. Contact: landoftradingATgmail.com

Read More