Archive for Stock Market News

Custom Global Market Indexes May Be Sounding Alarms

By TheTechnicalTraders.com

Over the past 4+ months, we’ve been working away trying to keep our readers aware of the risks and concerns that were originating out of some foreign markets and how that might relate to the US markets.  We remember a point in time back in June or July 2017 when we, suddenly, started receiving emails and calls from moderately large Indian, Indonesian and other foreign development companies asking to schedule time for an “introduction call”.  It is not unusual for us to receive cold calls from development firms looking for new projects, but at one point we were getting 2 to 3 calls a week.

The point behind what we are sharing is that sometimes the signs are right in front of you if you are paying attention to the messages.  In this case, a number of things had recently transpired – the biggest of which was the recent US Presidential elections as well as a renewed US equities market and increased volatility in certain currency markets.  We also believe the currency controls in India (near November 2016), as well as the Chinese cash restrictions imposed shortly before this, were also factors that played into the current outcome. Our opinion is that these dynamic factors in the global economy, as well as the fact that many government reporting/news agencies are slow to catch onto a dramatic shift in market sentiment, resulting in a latent and somewhat aggressive price rotation in the global markets.

Which brings us to January/February 2018 – when the US and Global markets tanked, unexpectedly, by nearly -13.5%.  While many analysts throughout the globe were concerned this rotation could be the start of a much deeper and potentially catastrophic global market collapse, our proprietary predictive price modeling systems and analysis systems kept telling us the US markets climb out of this rut and attempt to rally to new highs.  In some ways, we took a lot of flack from others calling for this type of market rally when everyone else was calling for a breakdown in price.  Still, look at where the US markets are now in comparison to all of those short-sellers that were convinced the markets were going to tank?

Right now, there is a very interesting dynamic at play that may not last forever – and most of the industry analysts are starting to catch onto what we’ve been talking about for months.  That fact is that capital is very fluid and will migrate to the healthiest and most suitable investment environment possible when the environment where this capital currently resides is unfavorable or deteriorating.  As we learned in the movie “Wall Street” – “Greed, for lack of a better word, is good” (Gordon Gekko: 1987 “Wall Street”).  In our interpretation, Greed is the essence of the survival of capital in different market environments.  Greed and Fear are two very similar emotions and they both, at times, are very good to have in measured levels.  Both of these emotions drive capital into and out of markets as a natural occurrence of the global markets.

This dynamic, the capital migration that has been taking place for approximately 12+ months, may come to an end at some point in the near future and we have to be prepared for it.  If we think about this scenario, what would cause this capital migration to subside or end and change dynamics?  We can think of two scenarios that would be likely to play out to result in this transition :

  1. Emerging markets stabilize, forming near-term bottoms and establishing some optimism regarding opportunities for upside price advances. This, in our opinion, may be enough of a catalyst for capital to move back into these markets in an attempt to capture returns with diminished risk factors – resulting in GREED outweighing FEAR.
  2. Something decreases the US and major global market standing in terms of currency strengths and global market dominance. In this case, we believe some massive credit or debt risk factor would have to occur that greatly decreases the capabilities of the mature global markets (US, UK, Canada, Japan & Europe).  Should something like this happen, where the biggest and most stable markets on the planet are diminished, then capital may aggressively move away from these markets and into any other market that may appear to benefit from these diminished expectations.

Until either of these things happen, we believe continued pricing pressure will exist in China/Asia, the BRICs markets and, to some degrees, in the European Union markets.

 

TAKE A LOOK AT OUR PREVIOUS FORECAST ON MARCH 28TH

This chart clearly shows where prices were expected to move, which was sharply lower through spring and this summer. See complete 5 part series on global indexes

 

Now, let’s start off by checking this Weekly chart of our China/Asia custom index and where it is today.  One can clearly see the pennant/flag formation (the Green lines) that originated in early 2018.  This pennant formation recently broke out to the downside and has already fallen nearly half way to our downside target which is incredible.

The current downside move aligns with a 38.2% retracement from the highs and we believe this move could be just starting.  In other words, we believe a full 50%, or more, a pullback from these highs could be in the works if the data originating from China/Asia recently is correct.  The entire region of China and SE Asia is open to interpretation and legal issues with little certainty about anything.

 

This next Weekly BRICs chart shows a similar pattern.  A sideways pennant formation originating in early 2018 that broke out to the downside.  A clear breach of price support and a more than -38.2% price drop so far.  Our Blue price support line, originating from 2016/2017 lows, shows us that critical support is currently about -11% lower than the current price.  You can see from our drawn arrows that we believe this level will create price support and price will rotate well into the end of 2018 before breakout out of this new pennant formation and moving dramatically lower.  Right now, time will tell how this plays out 5+ months into the future, but at this time, unless the global market dynamics change dramatically, this is what we believe is the most likely future outcome.

Lastly, this is the Weekly European Custom Index that shows, yet again, a somewhat similar pattern without the recent price breakdown.  Originating in early 2018, a deep price rotation has created a very clear price rotational cycle.  This rotation is forming a very clear pennant formation, again, and we believe the final outcome, at this point, will be a breakdown of price in the European markets as the Brexit and other regional economic and political issues continue to play out.  As a word of warning, our last Red arrow (drawn on this chart) does not point to a target price level – it is just indicating that we believe a breakdown in price is the likely outcome.

If we were to add a simple Elliot Wave count to this in an attempt to isolate potential future moves, our estimate (with limited data) would be that we are in the midst of a Wave D correction.  In other words, this is a corrective price trend “in an uptrend”.  The move lower, as we are predicting, may not drop below the 50% retracement levels shown on this chart before finding support and attempting to start a new upside price move.

 

Pay attention to the global market news and the news of certainty or uncertainty originating from the global economies.  Capital is “Greed and Fear and work every day”.  Capital will always attempt to exit hostile or dangerous economic environments and find a more suitable environment for growth and stability.  As the continued global market turmoil continues to unfold, understand that Trillions of dollars will be sourcing the safest and best returns on the planet.  As these dynamics play out, there are tremendous opportunities for traders and investors to follow the cash and ride the waves.  There may, certainly, be some wild rotations and waves as this capital moves around, but the longer term trends that should establish as this capital moves around should be substantial.  Get ready for some excellent trading opportunities over the next 12 to 24 months.

Our exclusive member service provides detailed market research, daily market video analysis, detailed trading signals and much more to assist you in developing better skills and greater success in your trading.  One of our most recent trades is already up over 12%, we already took some partial profits, and we believe much higher share prices is just around the corner. We urge you to visit TheTechnicalTraders.com to learn how we can assist you in finding new success.

53 years experience in researching and trading makes analyzing the complex and ever-changing financial markets a natural process. We have a simple and highly effective way to provide our customers with the most convenient, accurate, and timely market forecasts available today. Our stock and ETF trading alerts are readily available through our exclusive membership service via email and SMS text. Our newsletter, Technical Trading Mastery book, and 3 Hour Trading Video Course are designed for both traders and investors. Also, some of our strategies have been fully automated for the ultimate trading experience.

Get our advanced research and market reporting, Daily market videos, detailed trading signals and join the hundreds of other traders that follow our research every day and profit.

Chris Vermeulen
Technical Traders Ltd.

By TheTechnicalTraders.com

Healthcare Tech Company Receives US Patent

By The Life Science Report

Source: Streetwise Reports   07/19/2018

The U.S Patent and Trademark Office has granted the allowance to a technology company whose platform allows healthcare organizations to buy, sell and trade equipment and supplies.

H-Source Holdings Ltd. (HSI:TSX.V; HSCHF:OTCQB) recently announced it has received allowance by the U.S Patent and Trademark Office (USPTO) for U.S. Patent Application No. 12/772,019.

“We are pleased the USPTO has allowed our patent, “Perishable medical product management systems, perishable medical product management methods, and perishable medical product resale methods.” Intellectual property (IP) has been a focus for us from the beginning. Combined with our granted patent in Japan and additional pending applications, we are committed to growing our IP portfolio. Our current allowed and granted patents not only support our existing platform but will also provide us new opportunities to innovate and offer breakthrough healthcare solutions,” explained Murray Walden, president of H-Source.

H-Source Holdings Ltd. is a technology company operating within the healthcare industry with offices in Seattle and Spokane, Wash.

Want to read more Life Sciences Report articles/interviews like this? Sign up at www.streetwisereports.com/get-news for our free e-newsletter, and you’ll learn when new articles have been published. To see recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Jake Richardson compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: H-Source Holdings. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of H-Source Holdings, a company mentioned in this article.

( Companies Mentioned: HSI:TSX.V; HSCHF:OTCQB,
)

Sharp & Softbank lead winners in the WEEKLY TOP GAINERS/LOSERS

By IFCMarkets

Top Gainers – The World Market

1. Sharp Corp – stocks of the corporation engaged in the production of electronics rose after the cancellation of the additional issue in the amount of 226 billion yen in early July. Now its shares have increased together with the American high-tech companies, as well as amid the weakening of the yen.

2. SoftBank Corp – stock prices of the Japanese telecommunication and media corporation rose amid the purchase of Yahoo Japan Corp for $2 billion.

market sentiment ratio long short positions

 Top Losers – The World Market

1. Asaleo Care Ltd – stock prices of the Australian company engaged in the production of hygiene products collapsed after the publication of weak earnings reports for the 2nd quarter of 2018.

2. Hertz Global Holdings – stocks of the international car rental company fell, as investors fear that it will be difficult for the company to compete with car sharing companies. Morgan Stanley Bank lowered recommendations for Hertz. The company will publish its earnings report for the second quarter of 2018 only on August 6.

market sentiment ratio long short positions

 Top Gainers – Foreign Exchange Market (Forex)

1. USDJPY – the growth of the Japanese yen on the chart indicates its weakening against the US dollar. This occurs due to the difference in monetary policy. The Bank of Japan continues the issue and redemption of assets and maintains the rate at the level of minus 0.1%. The US Fed has already raised its rate to plus 2% and plans to continue the rate hike. On Thursday, the trade balance for June will be released in Japan, and inflation – on Friday. These data may affect the exchange rate of the yen.

market sentiment ratio long short positions

 Top Losers – Foreign Exchange Market (Forex)

1. EURMXN, EURZAR – the decline of this chart means the strengthening of the Mexican peso and the South African rand against the euro. The single currency demonstrates a moderate weakening amid investors’ fears that the terms for the withdrawal of the UK from the EU may be less profitable for the European Union than it was expected. On Friday, the current account balance of the Eurozone will be published, which may affect the dynamics of the euro. The Mexican peso is strengthening amid positive statements by the new president of Mexico, a candidate from the coalition of leftist forces Lopez Obrador, who won the July 1 elections. In addition, investors believe that amid the trade war with China, the US will not demand a rough revision of the trade agreement with Mexico and Canada. The South African rand strengthened ahead of the meeting of the Reserve Bank of South Africa, which will be held on July 19, 2018.

2. USDMXN – the decline of this chart means the strengthening of the Mexican peso amid the US dollar.

market sentiment ratio long short positions

Market Analysis provided by IFCMarkets

Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

Longer-Term Charts Show Incredible Potential

By TheTechnicalTraders.com

Our weekend analysis of the markets continues to amaze our research team simply because we see so many other researchers continue to miss the signals.  We’ve been calling this market bottom since the middle of February 2018 and we have stuck to our analysis even though we’ve taken some flack from others about it.  Now, with earnings nearly upon us and the markets poised to either breakout higher or rotate lower, our longer-term analysis shows the markets are in pretty good shape for a continued upside rally.

This week, there are 214 companies reporting earnings data.  Next week, there are 781 companies reporting earnings data.  The following week, another 1003 companies release earnings data.  Combined, we are going to have 1998 companies releasing Q2 earnings data and each of these, to some extent, could drive the markets higher or lower as this data is digested.

US Real Disposable Income has increased from $12,570 (December 2016) to $13,009 (May 2018) (source : https://fred.stlouisfed.org).  Gross Private Domestic Investment has risen from $3,126.18 (Q4 2016) to $3,379.11 (Q1 2018) (source : https://fred.stlouisfed.org).  Personal Income has risen from $16,027.03 (December 2016) to $17,005.4 (May 2018) (source : https://fred.stlouisfed.org).

Think about those core factors of the US economy as well as the facts that US companies have been able to rebuild and restructure – often running leaner and meaner than years ago.  Of course, US corporate debt levels have risen in tandem with these personal income levels.  US corporate debt levels have risen nearly 20% in 2017 alone.  Yet, we continue to believe the overall health of the US economic is much stronger than many people believe, and we continue to believe a huge influx of foreign capital is driving the US equities markets to higher values in the face of any isolated economic concerns.  The fact is that the US equity markets are really the only location on the planet where protection from currency devaluation and localized economic/equity deflation concerns can be thwarted (at the moment).

Onto the charts…

MONTHLY SP500 CHART

This Monthly ES chart may be a little complicated to understand when you first look at it but pay attention to our analysis of this data and it will become easier to understand.

The two support channels (Yellow and Blue) are critical to understand price support.  These longer-term price support levels are key to understanding how and when this current upswing in price may end (if it ends).  Right now, these support levels are telling us that price has established a low rotation point and advanced higher setting up these support channels as key price levels should it break lower.  As long as these support channels hold, price should continue to push higher.

Additionally, pay attention to out proprietary Tesla Vibrational Arc (circles) on this chart.  They are showing us that price has recently exited the inner (25%) arc and is currently rallying outside of this price level.  In theory, as long as the support channels hold and price attempts to move towards the next Tesla Arc, we can expect price to advance towards $2950 or $3080 throughout the end of this year.  The current level, near $2800, can be seen as an “inflection point” where the outer RED arc crossed our Pitch Fan level.  This would indicate that any move above $2800 would likely prompt a bigger upside move towards $2950 or higher.

Lastly, the Pitch Fans are drawn from 2016 low points and are used to attempt to identify and highlight price support and resistance levels.  In this case, we are using them to identify “crossing points” where these fan levels cross our Tesla Arcs and other drawn lines to see where price may be targeting in the future.  Just above the current price, we see a Red and Grey Pitch Fan level that is acting like resistance near $2850.  Understand that these levels, once breached, will likely propel the ES price much higher.

 

MONTHLY NASDAQ CHART

The Monthly NQ chart below shows similar price action to the ES chart – yet we see a more defined uptrend in place.  As we’ve been warning, we believe the NQ will stall/rotate near the $7400 level for at least the next few weeks (3~5+ weeks) before attempting a further upside move into the end of 2018 and possibly longer.  Right now, the NQ has rallied to all-time highs this month and is sitting very close to our $7400 target level.  We can see from this chart we have two upward sloping price support channels (Yellow and Light Blue) that provide us with a very clear understanding of where price support is located.  The current, Yellow, level is more recent and will likely be broken if the NQ stalls as we expect.

The Std. Deviation channel (the Dashed lines) on this chart shows that price has been rotating near the upper levels of this price channel and that price is attempting a breakout upside move currently.  Notice the Tesla Vibrational Arc that is sitting very near to the $7375 level?  This arc will likely result in some lower price rotation in the NQ over the next 3+ weeks with the potential that we could see a rotation to near $7100 or lower before another upside move sets up.  Generally, when the price exits the upper Std Deviation channel and coincides with one of our Tesla Arcs, one of two things will likely happen; a. price will stall and rotate lower a bit before breaking out of this congestion or, b. price will blow right past this arc level in a massive price breach.

Right now, we believe our earlier estimate that price will consolidate and stall near $7400 is the correct interpretation.

 

MONTHLY TRAN (TRANSPORTATION INDEX) CHART

This Monthly TRAN (Transportation Index) chart below provides one of the clearest pictures yet of the true underlying market dynamics (in our opinion).  Feb 2018 highs are still in place – they are still the critical component from a technical basis for any further upside price moves.  Support channels, both the Green and Blue solid lines) are indicating that price is currently within these support channels and has not broken lower (yet).  The Std. Deviation channels (the Dashed lines) are showing us that price is currently sitting near the lower Std. Dev levels (near dual support).

Additionally, the Tesla Vibrational Arc (the Purple arc near the current bars) is showing us that price has recently broken through the previous arc (the Light Blue arc near the Jan/Feb 2018 highs : 1.382%) and is struggling to break out of this new Purple Arc (1.50%).  What this means to us is that price is “coiling near support and will likely make an explosive move – one way or the other”.

Now, take into consideration the Red Resistance Channel Line that created a Pennant/Flag formation recently.  We’ve seen price, over the most recent 3+ bars, rotate above this Red Resistance level and rotate back into it.  Now, with the Month of July, we see price struggling near these lows, yet very near to the support channels and Std. Deviation channels, as well as very near to the Purple Tesla Arc.  Knowing that we have nearly 2000 earnings data points hitting the markets over the next 3 weeks and the correlation of support/upside breakout analysis that we’ve identified in the ES and NQ markets, only one analysis can be made for the Transportation Index….

As long as the $10,100 support level holds and the ES/NQ do not break their immediate (YELLOW) support channels, the Transportation Index is setting up to be one of the best buy opportunities (with low risk) that we’ve seen in a very long time.  Yes, there is downside risk should the markets break lower – we understand that.  The fact that all of these longer-term charts are aligning with the potential that earning could drive the market to fresh highs, the Transportation Index appears to be one of the most opportunistic setups we’ve seen so far.

 

Now, are you ready for these next few weeks with earnings about to hit the markets?  Are you prepared to take advantage of these setup and potential moves?  Do you understand what we are attempting to illustrate to you and how these types of setups can dramatically improve your trading success?

Want to know how we can help you even more than just showing you these nice charts?  Then visit www.TheTechnicalTraders.com to learn how we can help you stay aware and ahead of these markets moves and how our team of researchers can help you find greater success.

The markets are going to move over the next 2~5+ months and our analysis has already shown us that the markets want to continue to “melt higher”.  The only concern we have, at this point, is if some external news/crisis event disrupts the price advance and breaks support.  If not, then this market should rally from these support levels and attempt new/fresh highs within the next 20~45+ days.  Don’t miss it.

53 years experience in researching and trading makes analyzing the complex and ever-changing financial markets a natural process. We have a simple and highly effective way to provide our customers with the most convenient, accurate, and timely market forecasts available today. Our stock and ETF trading alerts are readily available through our exclusive membership service via email and SMS text. Our newsletter, Technical Trading Mastery book, and 3 Hour Trading Video Course are designed for both traders and investors. Also, some of our strategies have been fully automated for the ultimate trading experience.

Get our advanced research and market reporting, Daily market videos, detailed trading signals and join the hundreds of other traders that follow our research every day and profit.

Chris Vermeulen
TheTechnicalTraders.com
Technical Traders Ltd.

Fed Chairman’s statement caused an increase in markets

By IFCMarkets

On Tuesday, US stocks continued rising.

The Dow Jones index closed higher for the 4th day in a row, and the Nasdaq 100 updated the historical high due to the steady growth of Facebook, Alphabet and Amazon.com stocks.

Yesterday’s increase in both the US stock market and the dollar exchange rate was contributed by the positive speech of Fed Chairman Jerome Powell in the US Senate Banking Committee. In his opinion, the US economy will continue to grow steadily in case of maintaining low inflation and unemployment rate. Market participants believe that before the end of 2018, the US regulator will increase the rate twice and 3 more times in 2019. Note that the Fed rate is now 2% and is below the inflation level, which was 2.3% in annual terms in June. The next Fed meeting will take place on August 1. A good earnings report by the Johnson & Johnson Corporation became a significant positive factor for the stock market. Its shares rose by 3.5%. At the moment, the aggregate profit of the companies included in the S&P 500 index, which have already reported their earnings (approximately 40) for the 2nd quarter grew by nearly 21.2%. This is better than the forecasts for the beginning of the reporting period, assuming a 20% increase in profit. The report of Goldman Sachs Bank was weak, but its shares showed an insignificant 0.2% decrease during yesterday’s trades. This morning, futures on US stock indices are traded in the red. Investors are waiting for the publication of earnings reports of another large bank – Morgan Stanley, as well as American Express payment system, eBay online store and a number of other companies. In addition, data on the real estate market for June will come out today at 14:30 CET in the US. At 16:00 CET, another speech by Fed Chairman Jerome Powell is expected and at 20:00 CET – the publication of the Fed’s economic review “Beige Book”.

stock

 

Yesterday, European stock indices rose following US stock indices and they still continue to rise.

Investors expect a retention of high volumes of European goods exports to the United States after the statement of Fed Chairman that the US economy will continue its stable development.

An additional positive factor for European exporters is the emerging weakening of the euro against the US dollar under the influence of the Fed rate hike. On Tuesday, good earnings reports and news from a number of companies contributed to the increase in European stock indices: Thyssenkrupp (+9%), Mediaset (+ 3.5%), Schibsted (+ 12.6%), Getinge (+ 10%). This morning, the overall market increase continues in Europe, as stocks of a number of European high-tech companies have significantly increased in the US trading system NASDAQ. In particular, Ericsson and ASML stock prices jumped by 9% and 5%, respectively. In the morning, good quarterly indicators of the Novartis pharmaceutical company (+ 2.9%) were published. Banking indices fell amid weak earnings reports by the large Danish bank Danske Bank (-9.6%). Today, no significant economic statistics is expected in the Eurozone.

Nikkei continued its growth for the 4th day in a row and updated the monthly high.

This was contributed by the continued weakening of the yen, which is trying to overcome a new psychological high of 113 yen per dollar. The weak yen increases the competitiveness of Japanese exporters and their shares have risen today: Toyota Motor and Mazda Motor stocks increased by 1.4%, Subaru Corp – by 1.2%, TDK Corp – by 1% and Advantest – by 1.5%. Early tomorrow morning, trade balance for June will be published in Japan. This may affect the dynamics of local financial markets.

BRENT continues to decline and has already updated a 3-month low.

Last week, OPEC and non-OPEC producers increased oil production by 1 million barrels per day, which provoked a decrease in its prices. An additional negative factor was the publication of the weekly report by the American Petroleum Institute, which notes an unexpected increase in oil and fuel reserves in the US. Official data on reserves will be released today at 16:30 CET.

Market Analysis provided by IFCMarkets

Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

Cannabis Firm Targets Sexual Health and Wellness

By The Life Science Report

Source: Ron Struthers for Streetwise Reports   07/17/2018

California, with nearly 40 million residents, offers a cannabis market as large as the whole of Canada, says Ron Struthers, editor of Struthers Resource Stock Report. He believes that companies that have a road into California will gain early traction, and he profiles one such firm.

The marijuana market has been very good to us with extraordinary gains in many stocks. The Canadian Marijuana Index has been flat and commented the U.S. index was much better and that is easy to see on this chart of the U.S. index.

If there is one word I would use to describe the difference between the Canadian and U.S. indexes, it would be “California.” Recreational marijuana has become legal in a number of states but California is the largest and represents about the same size as the whole Canadian market. Canada is still a few months from the legal date but California is well into it since January 1, 2018.

A report from the cannabis industry research firm BDS Analytics estimates sales of cannabis in California to hit $3.7 billion by the end of 2018 alone, and predict that number will increase to $5.1 billion in 2019 as more dispensaries come online. California is the world’s sixth largest economy with a population close to 40 million, compared to 36 million in all of Canada.

The recreational industry has started off slow in California and really not a surprise, it is not like flicking a switch on the day it becomes legal. The bottleneck seems to be the slow pace that municipalities are issuing licenses. The only numbers I have seen were through February where dispensaries sold $339 million. However you must also consider the huge size of California’s medical marijuana that has been in effect for 20 years. A recent Forbes article puts that at $2.75 billion, far above any other state.

I believe companies that have a road into California will gain early traction, like RISE Life Science highlighted below.

I believe I have found a unique player in the field with a competitive advantage, and the best part is that investors have not discovered it yet. I met with management in early June and went over all its business plans. I believe the company has exceptional marketing qualities that will set it above the competition and its unique products and approach will enhance its success.

RISE Life Science Corp. (RLSC:CSE), Recent Price $0.32
52 week trading range $0.13–$0.74
Shares Outstanding: 56.5 million approx.; Management/insiders: 23%

RISE is a consumer products company building high-quality cannabis derived products for the health and wellness category. RISE is not a licensed producer, which is an important distinction that underscores its unique approach. The company has adopted an operational methodology that enables it to create high-quality products while avoiding the high capex cost often associated with operating within this market. In fact, it does so with the lowest capital cost spend of any organization that I have reviewed in the space. By operating with a reduced capex cost baseline while developing and commercializing consumer products positions the company to enjoy wide profit margins. RISE does this with the intent of building a brand presence backed by a strong suite of products that can be introduced on a global scale.

RISE consumer products are based on patent-pending formulations and processes that produce specific targeted effects for both the medical and adult-use sectors. A key area of focus for RISE is the development of formulations to address sexual health and wellness for both adult men and women. To be positioned well within the most active marketplaces, the company has initially offered products based on separate formulations developed with distinct CBD-based components to the California market and will follow on with other U.S. jurisdictions. These solutions will also be presented to the Canadian market when regulatory conditions take effect.

The company will only sell THC-based products under license to third parties in the United States until federal law pertaining to cannabis is changed. The primary manufacturing and marketing focus will instead be on CBD products derived from the highest-quality CBD hemp certified as “U.S. Farm Bill compliant,” enabling the company to stay completely aligned with U.S. federal law. This class of product may be sold in most U.S. states and in many countries around the world, and means that the company is not adversely affected in any way by the U.S. Department of Justice.

Products and Distribution

RISE will produce a diverse product line. A key differentiator of its sexual enhancement products will be a focus on women and couples. By utilizing U.S. Farm Bill Hemp for its cannabinoid sources, products can be sold in all 50 states and in over 20 countries internationally.

RISE has deployed a direct sales team in California to sign top-tier dispensaries, augmented by a personalized support program for customers and patients to be delivered at the store level. RISE expects to create a network of 200+ premium store locations in California within the next 12 months.

In addition, RISE has completed a previously announced acquisition of 100% of Life Bloom Organics LLC, a California-based company that produces and markets organic oral sprays containing CBD (cannabidiol), and 100% of Cultivate Kind, one of the top marketing and branding agencies for the cannabis industry in the United States.

Cultivate Kind

The acquisition of Cultivate Kind brings a deep understanding of retail marketing and enables RISE to build and manage a sales and distribution channel for all of its products in California, the largest and most sophisticated cannabis consumer market in the world. It combines brand development services, go-to-market strategies, PR and promotion, retail marketing and assisted sales, but also provides best-in-class production resources—raw material sources, formulators, lab facilities, packaging and fulfillment—to form a true ecosystem to bring brands from concept to point of sale.

Life Bloom Organics

Life Bloom Organics is based in Malibu, Calif. The company formulates, manufactures and sells a range of cannabis products that deliver effective pain relief without any psycho activity. Its product line currently includes two SKUs (stock keeping units): wellness formula and sleep formula. Both products are nanotized CBD oral sprays made with proprietary formulas. Life Bloom’s proprietary process of nanotizing CBD allows for 95% absorbency in the bloodstream, making it an effective aid for chronic pain, jet lag and insomnia.

Life Bloom products utilize organic, non-GMO (genetically modified organism) hemp (sourced from Kentucky through the Department of Agriculture Hemp program) and are compliant with Section 7606 of the 2014 Farm Bill. Life Bloom products are currently available at chiropractic offices, natural health food markets, specialty retailers and medical marijuana dispensaries across California, as well as sold online via the brand’s e-commerce website.

This gives RISE an added advantage to commercialize sexual health and wellness formulations in other jurisdictions around the globe. Life Bloom brings a strong chemistry-based product development and nano-emulsification expertise that will benefit the development of all RISE products.

Marquee Brand – Karezza

Karezza represents RISE’s premier sexual health and wellness brand and is inspired by ancient Tantric sexual pleasure practices. The first suite of these sexual health supplements includes three oral sprays, “In the Moment,” “Women’s Daily,” and “Men’s Daily,” which support the performance of sexual body systems. The product suite will be sold at retail stores across California starting next week and will also soon be available via the brand’s e-commerce website, karezza.love. The line will be expanded to include sublingual, quick-absorb tablets and a topical lubrication for enhanced erogenous sexual experience. Each Karezza product contains full-spectrum CBD from organic, U.S. Farm Bill hemp and an FDA-compliant synergistic blend of herbs, adaptogens and essential oils formulated from botanical traditions to enhance sexual experience. This first suite of Karezza products is non-psychoactive.

THC Brands – coming soon

To expand the product line and enter into the THC-based market where regulatory conditions permit, RISE also plans to import iconic Jamaican cultivars to develop additional formulations that will be used in a future product line currently under development.

Beverages – coming soon

RISE is also working on multiple manufacturing and product partnerships for a launch of beverages in 2019. Prospective products include CBD and THC-infused zero alcohol wine, beer, sparkling and regular water products. Beverages like zero alcohol wine with Karezza inspired infused formulations would complement the Karezza suite of sexual arousal products.

The RISE Report on Cannabis and Sexual Health and Wellness

Another aspect that will enhance product development, sales and the company’s visibility is their launch of a longitudinal study to investigate sexual function and health concerns, and, how cannabis products designed for sexual enhancement and health affect sexual behaviors and performance. This is a first-of-its-kind study in such depth on sexual behavior and Cannabis. Data and key observations derived from the study will be published via the RISE Report on Cannabis and Sexual Health and Wellness (The RISE Report).

The study will be significant in its long-term open-ended focus, overall scope and the value of the data it is designed to capture. It will uncover key behavioral trends that will inform RISE of the best possible product development decisions to meet the needs of its customers and help RISE to maintain a competitive advantage in the marketplace. Importantly, it will also put RISE in the middle of the conversation with an expanding consumer community.

Dr. Regina Nelson, a behavioral scientist and one of America’s leading cannabis educators, will lead the study. Dr. Nelson is supported in these efforts by Dr. Christopher J. Smith, a social science expert, and Dr. Jon Ross, a healthcare and public policy expert.

“As cannabis evolves into widespread medical and mainstream commercial use, the benefits of cannabis products and their relation to sexual health are particularly important to every stakeholder, from public health officials to companies making cannabis-based products, and especially for the general consumer,” commented Dr. Nelson, study designer and principal researcher. “To date, no scholarly investigation of the physiological connection between cannabis and sexual health has ever been undertaken at this scale. This study presents the opportunity to expand our collective knowledge, increase our understanding and create a critically important data set regarding sexual behavior, health and wellness.”

The study and key facts:

  • This is a long-term observational study collecting quantitative and qualitative data, exploring cannabis usage as an aid for sexual performance and collection of experiential data related to the use of RISE sexual health and wellness products.
  • No gender bias: The company will look at specific differences in effect across genders, as its study will extend beyond heterosexual participants.
  • Real user experiences: In addition to clinical and statistical data, the RISE study will collect consumer stories and experiences.

The study will focus on many critical areas in need of review:

  • Emotional and physical satisfaction with and without a partnered sexual relationship;Satisfaction with sexual health and function;
  • The importance of sex, sexual function and health to quality of life;
  • How introducing novel cannabis products designed for sexual enhancement and health affect sexual experiences.

Research will range beyond smoking and vaping and include other important forms of consumption such as oral sprays, oils, sublingual tablets, concentrates, edibles and topical solutions. Given the topic and increasing privacy concerns, the company is protecting personally identifiable information. The study is designed to generate rich profile data and outcomes directly related to cannabis product use. It is expected to initially enroll approximately 200 participants during its beta test phase that started earlier this year, with the official study launch tentatively scheduled for September of 2018. As the study continues to expand over time, the long-term goal is to engage with thousands of participants.

Management

Anton Mattadeen, CEO, has over 30 years of experience as an entrepreneur, inventor, technology and communications professional for global companies like IBM and Sony. For the past several years he has been developing strategic initiatives in the cannabis market with a specific focus on the creation of mainstream consumer products.

Chris Dollard, COO, has over 30 years of leadership experience in operations, IT and communications with companies such as Deloitte, Accenture, IBM and Best Buy/Future Shop. He led the factory build out of one of the first wave Licensed Producer applications in 2013. Since then he has been developing mass consumer products using infused cannabis and botanicals.

Dr. Regina Nelson, who is leading the cannabis and sexual behavior study is a published author of several books and earned her PhD in ethical and creative leadership at Union Institute and University. Her doctoral studies concentrate on the issue of medical cannabis. In 2012, Dr. Nelson published her first peer-reviewed article, “Framing Integral Leadership within the Medical Cannabis Community.” She has gone on to publish and present in 20 peer-reviewed forums, including events hosted by the International Leadership Association, the International Cannabinoid Research Society and the Integral European Conference. In addition to her role as chief executive officer of Integral Education and Consulting LLC, she is also a founding officer of the eCS Therapy Center, a 501C3 organization building awareness of the endocannabinoid system (eCS) and championing community-based education via the Plant a Seed for Cannabis Education Tour.

Financial

Last financial statements as of February 28, 2018, reveal $435,000 in cash. They also reveal liabilities on the balance sheet (most of which are in a subsidiary and not the operating business). The significant liability, which is approaching $3 million, and which is composed of both principal and interest pertaining to the previous operating entity Luminor Medical, has been spun off into the company’s recently formed, wholly owned subsidiary, Scout Assessment Corp. (Scout Corp.). All revenue related to the company’s Scout DS® diabetes screening device, including current contracts and future contracts will flow through Scout Corp. The debt is secured through a general security agreement against Scout Corp. The security interest against the former Luminor (now RISE Life Science) has been discharged. The liabilities are tied to funding and sales of the legacy business and its technology and should it not proceed, will become a zero-value divesture.

Since then, RISE has closed two funding tranches of previously announced, non-brokered private placement through the issuance of an aggregate of 12,192,565 units at a price of $0.30 cents per unit for gross proceeds of $3,657,170. Each unit is composed of one common share of the company and one-half of one common share purchase warrant. Each warrant entitles the holder thereof to purchase one common share for a period of 24 months from the date of closing at a price of $0.45 cents per common share.

RISE is well funded for its product launch.

Summary

“Wellness” has become one of the leading consumer trends, with categories from physical fitness to alternative medicine and emotional self-care growing exponentially in consumer awareness, priority, and sales.

RISE is focusing CBD product lines for sexual health and wellness where there is very limited competitive products. You have probably heard the phrase ‘Sex sells’ and this makes RISE unique in the sector and a chance to distinguish itself and its brand. The curiosity alone will attract a lot of sales.

I believe the company’s product focus on women and couples is also an advantage. It helps to empower women as it is something for them as well as their significant others. Their sexual health and wellness study (RISE Report) will also be a unique marketing tool as the study results will be published in scientific, cannabis related journals and universities. This will also enhance the credibility of its product line. The company has also launched RISE Mag, a digital magazine publication which will bring awareness to the company and its particular market sector.

RISE will begin its first product launch using CBD hemp certified as “U.S. Farm Bill compliant” enabling the company to stay completely aligned with U.S. federal law. This will differentiate RISE from many other marijuana products and importantly allows it to sell across the U.S. as well as numerous countries internationally.

The acquisition of Life Bloom will immediately expand RISE’s portfolio of CBD products, along with allowing access to Life Bloom’s existing channels of distribution and production in the U.S.

The acquisition of Cultivate Kind will further enhance RISE’s marketing and distribution in the U.S. The acquisitions will also bring immediate, best-in-class product production expertise to RISE. Nothing speaks like successful experience, so it’s important to note that Cultivate Kind recently brought Life Bloom Organics to market with great success in California.

The acquisition adds decades of experience and makes RISE an integrated company. This makes for very good odds for successful products and strong, growing revenues for RISE.

RISE products are expected to be available in California retail locations by the end of July and will be offered through dispensaries initially, followed by health food retailers and natural wellness boutiques.

I believe this is an important message by their COO, Chris Dollard, in the last press release: “Addressing sexual health and wellness is a deeply personal decision that requires both excellent communication protocols and discretion. We want the retail experience to be comfortable, enlightening, and above all—fun. Communicating the right information in the right way is a key process for us and the main reason why we are so selective about our retail partnerships.”

I have a few observations on the stock chart. It has seen its first life on news of the acquisition of RISE by the predecessor company, Lumimor Medial. Since then the stock pulled back some in January and has built a very good base between CA$0.27 and CA$0.37. Also notice the low volume that signifies the company/stock is not well known in the investment community so is under-owned and inexpensive compare to many in the field with a market cap of only CA$18 million. There is some mild resistance around CA$0.45 and a break above that would be a strong signal of a new uptrend.

I participated in the $0.30 recent financing and currently own 50,000 shares.

For 27 years, Ron Struthers, founder and editor of Struthers’ Resource Stock Report and Playstocks.net, has consistently beat the comparable benchmarks selecting stocks in the precious metals, oil and gas, clean-tech and disruptive technology sectors. In 2017, 35 stocks in the precious metals sector saw an average gain of 62% and energy clean-tech an average gain of 65%. In disruptive technology, 16 picks saw an average gain of 55%. Past performance is no guarantee of future gains. Struthers leverages his vast network of contacts, approaches investments from a value perspective seeking several 100% gain potential and uses technical analysis to aid in buy and sell levels.

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Disclosure:
1) Ron Struthers: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: RISE Life Science. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: RISE Life Science is an advertiser on playstocks.net. I determined which companies would be included in this article based on my research and understanding of the sector.
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c. Copyright 2018, Struther’s Resource Stock Report

All forecasts and recommendations are based on opinion. Markets change direction with consensus beliefs, which may change at any time and without notice. The author/publisher of this publication has taken every precaution to provide the most accurate information possible. The information & data were obtained from sources believed to be reliable, but because the information & data source are beyond the author’s control, no representation or guarantee is made that it is complete or accurate. The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. Because of the ever-changing nature of information & statistics the author/publisher strongly encourages the reader to communicate directly with the company and/or with their personal investment adviser to obtain up to date information. Past results are not necessarily indicative of future results. Any statements non-factual in nature constitute only current opinions, which are subject to change. The author/publisher may or may not have a position in the securities and/or options relating thereto, & may make purchases and/or sales of these securities relating thereto from time to time in the open market or otherwise. Neither the information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein. The author/publisher of this letter is not a qualified financial adviser & is not acting as such in this publication.

( Companies Mentioned: RLSC:CSE,
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Multi-asset portfolio favoured as global markets hang in the balance

By George Prior

Investors must move towards diversifying their portfolio in light of tenuous U.S.-China relations, a Brexit deal that stands on the edge of a knife, and a looming shift in global markets, says the world’s largest independent financial advisory organization.

The investment advice comes as the VIX index – also known as the ‘fear-gauge’ – indicates that stock market sentiment on the S&P500 has improved slightly, though investors remain torn and uncertain, according to Tom Elliott, deVere Group’s International Investment Strategist.

Mr Elliott outlines two possible scenarios moving forward, one bullish and one bearish, in relation to global stock markets.

Explaining the bearish case, Tom states: “A lot of disruption that be inflicted on the global economy and capital markets should a full trade war develop between the U.S. and the rest of the world.”

He continues: “As a result, complex supply chains will be broken, with input prices increasing while access to overseas markets is decreasing.Manufacturing plants will have to be relocated, which would require companies to allocate capital for the cost of closing old plants and opening new ones. U.S. tariff barriers on Chinese imports have already contributed to weakness in Chinese stocks in recent months, this could yet happen to other Asian and European suppliers to U.S. companies.

“The 23 per cent fall in the Chinese CSI300 index – which tracks the country’s 300 biggest companies – perhaps gives a glimpse of what Western stock markets can expect should this future come to pass.”

Still, the deVere investment strategist notes that it’s not necessarily doom and gloom, as there is a flip side to this story.

Mr Elliott adds: “On the plus side, the U.S. economy appears to be in an enviable position of relatively strong GDP growth, with estimates forecasting a 2.8 per cent growth margin this year. Increased revenues are driving corporate profit growth and not cost-cutting tactics – another strong indicator. In addition, the market data company FactSet is predicting an average S&P500 second quarter earnings growth to be in the region of 20 per cent year-on-year.”

“Much of the acceleration has been due to Trump’s tax cuts, and the return of U.S. companies to America’s jurisdiction, which has translated into higher wages in tight labour market conditions.”

Meanwhile, Brexit’s tenuous stance doesn’t dispel the atmosphere of uncertainty and volatility, says Mr Elliott.

“The soft Brexit stance by cabinet ministers contained numerous contradictions within it, in order to appease the demands of hard-line Brexitiers.

“For instance, the British government is proposing   unlimited access to the EU market for British goods with no hard borders, whilst at the same time asking to be able to do trade deals with countries like the U.S. How, for example, will the E.U be then able to stop American imports arriving, tariff-free, into France or the Republic of Ireland?

Mr Elliott goes on to say that a soft Brexit is the most likely outcome, but recent Cabinet resignations from May’s government might add more fuel to a kindling fire.

He states: “A soft Brexit that excludes the ability for a free trade deal with the U.S. is the most likely, with Sterling taking a boost as a consequence.

“However, the resignation of cabinet ministers Boris Johnson and David Davis could cause enough trouble to render any deal with the EU untenable. The clock to March’s no-deal Brexit is ticking.”

As such, mitigating risk through a protective, all-encompassing, multi-asset fund is a safer bet that offers some protection against any market upsets – not least because it will contain a mixture of negative or low-correlated assets.

Tom Elliott affirms that such funds should be at the heart of any investment portfolio.

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

Stoxx Europe 50 Analysis – Reporting season of European companies continues

By IFCMarkets

Reporting season of European companies continues

Corporate earnings reports season for the 2nd quarter of 2018 continues in the Eurozone. According to forecasts, the aggregate profit of companies from the Stoxx Europe 50 list will increase by 8%. Will EU50 prices rise?

Market participants hope that Donald Trump’s demands will be limited by the increase of European countries’ spending on NATO defense to 2% of GDP and will not touch the issues of mutual trade. In other words, there will be no increase in import duties for European goods following the example of the US-China trade war. Such an opinion may be a positive factor for quotations of companies from the EU. Let us also note that the EU50 dividend yield is 3.6% and it is traded with P/E (capitalization/earnings ratio) of 14.9. This is noticeably better than similar indicators of the US stock index S&P 500: dividend yield 2.4% and P/E 22.2.

EU50

On the daily timeframe, EU50: D1 approached the upper boundary of the falling channel. It should be overcome before opening a buy position. A number of technical analysis indicators formed buy signals. The further price increase is possible in case of the publication of positive reports by the European companies.

  • The Parabolic indicator gives a bullish signal.
  • The Bollinger bands have widened, which indicates high volatility. They are titled upward.
  • The RSI indicator is above 50. It has formed a positive divergence.
  • The MACD indicator gives a bullish signal.

The bullish momentum may develop in case EU50 exceeds the last fractal high at 3480. This level may serve as an entry point. The initial stop loss may be placed below the last fractal low and the Parabolic signal at 3375. After opening the pending order, we shall move the stop to the next fractal low following the Bollinger and Parabolic signals. Thus, we are changing the potential profit/loss to the breakeven point. More risk-averse traders may switch to the 4-hour chart after the trade and place there a stop loss moving it in the direction of the trade. If the price meets the stop level (3375) without reaching the order (3480), we recommend to close the position: the market sustains internal changes that were not taken into account.

Summary of technical analysis

Position Buy
Buy stop Above 3480
Stop loss Below 3375

Market Analysis provided by IFCMarkets

Emerging Markets could be starting a relief rally

By TheTechnicalTraders.com

Over the past 4+ months, many emerging markets have come under pressure as the global markets were roiled by the sudden and relatively deep market retracement in early February.  For many, this downward price trend has been frightening and somewhat disastrous.  Recently, though, something new appears to be on the horizon that may be the early signs of renewed life for many Latin American, South American and Indian markets – early signs of support and a potential bottom formation in the works.

Our researchers have been following the recent moves in these emerging market ETF for Brazil, Latin America, and India with great interest because we believe in finding opportunities when many others may not be looking for them.  We believe these early warning stages of a market bottom could be an excellent time to “forward think” any possible price recovery that may occur in the near future and to prepare for any success opportunities that may arise.  Heck, we are traders and if the opportunity exists for a decent profit with little risk, we’ll investigate it.

Let’s get started with this Daily chart of the BRZU (Brazil Bull 3x ETF).  We can see from this chart the extended downtrend channel that has existed for nearly 4 months.  Near the bottom right side, pay close attention to the horizontal price channel that is setting up – this could be an excellent bottom rotation channel resulting in an upside breakout eventually.  With only 3 to 7 days to go before the upper price channel may be challenged and a clear double bottom formation near $16, any downside rotation below $17.50~18 would be an excellent buying opportunity range with $16 being our protective stop level.  Assuming this channel continues as price reaches this apex, at some point price will either rotate higher or continue to channel lower (below the $16 level).  So, buying near the lower range of this horizontal price channel may be a great opportunity for an upside move.

Additionally, the GAP between $26 and $28 is a clear upside target.  We would hope this move would be quick and simple, buy below $18 with a target above $26.  A quick $9 profit per share (50%+) and we could manage the remainder of our trade by moving our stop to $23 or $24 to protect against any unwanted losses.

Yet, in order for this trade to really have any teeth, we would need to see some correlation across multiple emerging market ETF.  Then we could really say that we may be seeing some type of bottom rotation starting to form.  Let’s look for more correlative signals.

 

This next chart is a Daily INDL (India Bull 3x ETF) and it is showing a similar pattern that has recently broken above the downward sloping price channel.  This is a good sign that price may be attempting a rotational upside move in the near future.  Yet, upon closer inspection, we can see that a double top is setting up $80 that may unsettle this move.  Additionally, the range of the price channel is rather deep – $68 to $80.  That $12 range may include a bit more RISK than we want to consider at the moment.  Certainly, this trade looks like it may have some potential, but there are still concerns that this trend may be a false flag type of move.

We would like to see more pronounced and defined “higher low” rotations in the process of creating this double top formation.  Currently, we have a few moderate higher low setups, but the deeper low near the end of June is concerning.  Ideally, we would wait for a low price move below $72~74 and watch for price rotation back to the upside as a better sign that price is “technically conforming to Fibonacci price rotation theory”.

Still, this pattern is setting up as resistance near $80 with a clear sign that a bottom could be forming in INDL at the moment.  Our opinion is to watch it and wait for a better setup before taking a position.  We believe we can identify a better entry point by waiting for price to show us it is ready to move higher instead of presuming this rotation WILL move higher.

 

Lastly, let’s take a look at this LBJ (Latin America Bull 3x ETF) Daily chart.  We find this chart very interesting for one simple reason – the big “U” shaped bottom formation near $17.50 and the clear upside price swing that is taking place right now.  You can clearly see the RED price channel slopes that are key to understanding price resistance and the more aggressive downward slope that was breached in mid-June.  Yes, should this ETF rally back to near $30 from this level, we would be looking at a 50%+ increase in value.  Yet, again, we have to learn to be patient and wait for the price to show us that it is preparing for an upward swing higher.

As of right now, we have “higher highs”, which is a great sign that the trend has changed to the upside.  Yet, we also have a clear GAP between $23.50 and $25.50 that could become immediate resistance.  We also don’t have any “low price rotation points” that we can use as a technical confirmation of price trend and price rotation.  In other words, we have what may be an impulse move higher with no real confirmation of longer-term upside potential.

We would caution investors from jumping into this trade at this time and urge them to wait for better confirmation – likely after the breach of the price GAP is filled and price rotates back below, or near to, $20.  Short and simple, this is a very interesting bottom formation in the works that has not qualified as a solid uptrend yet.  There are still too many unanswered concerns to allocate capital towards this trade.

 

While all of this is interesting and possibly a bit early in terms of bottom formation expectations, we believe the correlation across these multiple markets shows enough evidence of a potential emerging market bottom in select markets as it relates to these under performing Latin American and Indian markets.  Obviously, we still have to be cautious of any downside rotation that could be dangerous – these percent ranges still show quite a bit of risk.  But the upside potential for a perfectly timed entry may be just around the corner.

Want to learn more about what we do and how we help traders find success in the markets?  Visit www.TheTechnicalTraders.com to learn how our research team, with more than 50 combined years of trading experience, can assist you in finding tremendous trading opportunities each month as well as provide you with detailed market research, Daily market videos and much more.  Our job is to help you find and execute successful trades in the future and to help you stay aware of future market moves.

Visit www.TheTechnicalTraders.com/FreeMarketResearch to see how our research team has been ahead of these turns in the global markets for the past 8+ months.  We have an incredibly deep research library of posts available to all members/visitors at the link above.  We are certain you will find value in our work and our abilities to accurately predict the markets.  We’ve been calling for upside price moves in the US Equities markets since the middle of February when everyone was warning about a collapse.  We called the downtrend in China months before it happened and we recently called the downward rotation in Crude 4 days before it happened.

By TheTechnicalTraders.com

Quarterly earnings report is the main driver of the stock market

By IFCMarkets

On Friday, US stock prices rose slightly

A slight increase allowed the S&P 500 index to update a 5-month high.

Investors believe that the US wins in the trade war with China. Stock prices of the American industrial companies Boeing, Caterpillar and 3M increased. Nevertheless, the growth of stock indices on Friday was moderate due to neutral earnings reports by the largest US banks. Citigroup stocks fell by 2.2%, and JPMorgan Chase – by 0.6%. According to the results of the second quarter, investors expect a 20% increase in the aggregate profit of the companies from the S&P 500 list. This is a very high indicator. The earnings report should be very good, so that prices continue to rise. The S&P 500 is only 2.5% below its historical high and may correct down, if the data disappoint market participants. In general, everyone is waiting for earnings reports and on Friday, the volume of trades in the US turned out to be the lowest in the current year. Data on retail sales for June will come out today at 14:30 CET in the US.

stock

European stock indices rose following the US stock indices.

The euro closed with a slight increase and regained its entire decline at the beginning of trades.

The decrease in the consumer confidence indicator by the University of Michigan in the United States contributed to the strengthening of the European currency. The Eurozone trade balance for May will be published today at 11:00 CET. The outlook is positive. Good corporate news contributed to the price increase of European companies on Friday. In particular, British recruitment company Hays published a forecast of its financial results and its stocks increased by 8.6%.

Nikkei continued its growth for the third consecutive day.

This was contributed by the continued weakening of the yen, which was firmly fixed above the level of 112 yen per dollar. Nikkei added 3.7% over the week, which became the maximum growth for 4 months. This was mainly contributed by the good news from Fast Retailing and SoftBank Group.

Copper prices stopped their decline and are close to the annual low.

China consumes the half of the world’s copper production. Today, its GDP for the second quarter was published. It grew by 6.7% in annual terms, which is slightly less than the increase of 6.8% in the first quarter. According to U.S. Commodity Futures Trading Commission (CFTC), the number of contracts on the sale of copper reached the high since December 2016. Their closure may provoke a correction of copper prices upward.

Market Analysis provided by IFCMarkets

Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.