Previewing the NFP Data for September

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At the end of the trading week, as it is accustomed in the first Friday of each new month, the Non-Farm Payrolls data will show the state of the U.S. labor market. Since the February-April lockdowns and the subsequent job losses, the U.S. added millions of jobs each month that followed.  However, the labor market still shows signs of weakness. Most of the ones that came back to work were employees on temporary leave. Hence,…

Biggest Short Equity Exposure in a Decade

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As the world eyes the U.S. election entering its final stage, the stock market indices continue to trade with a bid tone. Nasdaq 100, Dow Jones or the S&P 500 trade close to their highs, albeit many players took some “chips” off the table.  For instance, the Nasdaq 100 index corrected from 12,500 to 10,750 in September, in what appears to be a profit-taking from the March-April bounce. In other words, bulls take some profit…

Macro-Factors to Move Financial Markets in the Months Ahead

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The trading year will likely be over after the U.S. elections in November, as investors will prepare for the end of the year holidays. However, there is a long road until then, with macro-events that could easily shift the world’s balance of powers. The currency market is always the first one to react to such events. It all starts with this week – tomorrow is the first presidential debate ahead of the much-awaited event at…

Easy Come Easy Go – How Silver Lost Momentum

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The price of silver is one of the 2020 protagonists in terms of its volatility. It rose over 300% in the months following the March panic, only to give back more than half of its gains recently.  Silver is one precious metal known for its increased volatility when compared with gold. For this reason, many investors prefer trading silver than gold, especially if the trading strategy is one based on scalping or swing trading. Throughout…

The Comeback of the USD – Will It Last?

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In times of economic and financial crisis, investors seek refuge in safe-haven assets. They buy gold, silver, Bitcoin, etc., in the hope that their alternative investments offer protection to the portfolio.  In the long run, they may get the diversification benefits they look after. But in the short run, the focus should not be on alternatives – but on what the alternatives compare with. More precisely, the USD. USD Shows Why It Is In No…

Globalization – The End of an Era?

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The coronavirus pandemic may bring the start of the end for globalization as we know it. For the second time since 1870, globalization takes a step back due to exogenous factors.  One was the interwar war era between 1914 and 1945. The world was literally split between countries that produced for countries at war. Those not involved in the two conflicts were the ones experiencing one of the biggest growth rates of the century. The…

Buying the Dip

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During strong stock market rallies, most retail investors often feel left outside. The reason for such a feeling comes from either booking profits earlier, or because they have sold their stake at the first small correction.  Therefore, strong market rallies are often the most hated market moves. Despite what a higher stock market implies (i.e., the wealth effect), investors that do not participate in the rally wait for their opportunity to go long. However where…

Nike Jumps At All Time Highs After Strong Earnings

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This week Nike, the U.S. athletics giant, revealed its Q1 2020 earnings. It took the market by surprise as the new Nike, the digital one, delivered much more than expected.  The market expected $9.11 billion in revenue, but Nike delivered $10.59 billion. Moreover, it reported double EPS as expected – $0.95 when compared to $0.47. At the same time, inventory remained relatively stable at $6.7 billion when compared to $6 billion expected. While the company…

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