Online Course Notes For Financial Markets – Anthony B. Sanders
For those technical analysis lovers, the S&P 500 index has entered the dreaded death cross. Meaning that the S&P 500 index has fallen below the 50 and 200 days moving averages.
However, the Hindenburg Omen is NOT flashing red.
Analysts forecasts for S&P 500 profit growth in 2019 is pretty Hindenburg-ie.
We are in Castle De’ath. But The Fed, China, Brexit or any of the current uncertainties can send the S&P 500 index flying over the moat into golden cross territory.
Its a wonderful day in the financial markets. …. NOT. In fact, financial markets are breaking bad.
Where to begin?
U.S. equities extended a sell-off and the pound tumbled as traders took a grim view of the outlook for global growth and trade after UK Prime Minister Theresa May delayed a crucial Brexit vote.
Meanwhile, the Great Britain Pound got pounded.
And the 5Y – 3Y Treasury curve inverted.
And the US Breakeven 5 Year Inflation Rate is collapsing.
Yes, financial markets are breaking bad.
As Paris continues to burn after French Prime Minister Macrony tried to raise fuel taxes in an attempt to curb greenhouse gas emissions,
the cryptocurrency market continues to see its bubble continue to burst.
(Bloomberg) — The plunge in the cryptocurrency market is weighing on the software-development community that spawned over 1,000 digital coins amid dreams of independence from traditional financial systems and instant wealth.
ETCDEV, the startup that led development on Ethereum Classic, which is among the top 20 coins with a market capitalization of about $400 million, announced this week that it’s shuttering operations due to a funding crunch. ConsenSys, one of the largest crypto-related software startups based in New York, said it’s planning a reorganization.
Many of the companies are suffering because they kept a portion of their funds in digital assets, whether in tokens they sold through initial coin offerings or in Bitcoin and Ether, which served as the preferred means of exchange in the crypto world. As prices collapsed this year by more than 90 percent in some cases, and their so-called digital wallets thinned out, many developers found they couldn’t raise additional funding.
So, are Paris and cryptocurrencies burning? Yes!
The Smart Money Flow Index, measuring the movement of the Dow in two time periods: the first 30 minutes and the last hour, has just declined AGAIN.
The Smart Money Flow Index, like the DJIA, has been around for decades. But it has just fallen to the lowet level since 1995.
Is the asset bubble starting to burst? Or is it just one lone indicator getting sick?
True, Brexit sounds like a Kellogg’s or Post cereral product, but it is the attempt by Great Britain to escape the clutches of the European Union insidious trade deals, among other things. But Britain’s “Great Escape” appears to be on the verge of collapse.
Hedge funds are turning ever more bearish on the euro as a combination of weakening economic data and ongoing political tensions with Italy damp sentiment. Net short speculative positions reached the largest since March 2017, according to the latest data from the Commodity Futures Trading Commission. Figures Friday showed the region’s composite PMI indicator fell to the lowest in four years, while Italy’s populist government continues to debatea deficit target which would be acceptable to the European Commission.
To be sure, some sort of Brexit deal will be hammered out, but probably similar to the 1626 purchase of Manhattan Island for the equivalent of $24 worth of beads and trinkets. That is, Great Britain will sell out for virtually nothing.
Below is a picture of UK Prime Minister Theresa May in a decorative hat on the left striking a “deal” with the armed EU delegation from Brussels.
The global financial markets are shakin’ all over.
Brexit, Britain’s attempt to regain self-control from the European Elites, seems to be melting away.
And with Europe and Jeremy Corbin singing “Ding dong the Brexit is dead,” Eurodollar trades have scaled back their bets on a December rate increase from The Fed.
Of course, things are shakin’ all over!
