Stocks & Equities

Goldman Sachs is responsible for a massive chunk of the 'Trump rally'

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Posted by Business Insider

on Wednesday, 07 December 2016 09:46

The stock market has gone on quite a tear since the election of Donald Trump. In fact, the colloquial name for the recent surge in the market is the "Trump rally."

One company has stood above the rest during this "Trump rally," however.

As noted by market legend Art Cashin, the director of floor operations at UBS and long-time trading veteran, Goldman Sachs, one of the 30 stocks making up the Dow Jones Industrial Average index, has been responsible for a huge amount of the increase in that index. From Cashin's daily commentary on Wednesday (emphasis added):

"The Dow closed up 35 points and almost 23 of those points came from Goldman Sachs (GS). In fact, our good friend and fellow trading veteran, Jim Brown, at Option Investor, points out that GS has rallied $57 since the election. That means that GS has provided 441 of the 1363 points that the Dow has rallied. In case your calculator batteries are dead, that's about one third of the rally, all due to Goldman."

In fact, the recent jump for Goldman has put the stock at an all-time high.

Investors seem to be betting that the deregulation of the financial industry - Trump and his new Treasury Secretary Steven Mnuchin have talked about rolling back the Dodd-Frank Act passed after the financial crisis - and rising interest rates in the bond market could be a boon for Goldman.

Trump was sometimes critical of the bank prior to the election, even featuring Goldman CEO Lloyd Blankfein in an ad highlighting people that the candidate claimed did not have America's interests in mind. Blankfein came out after the ad in support of Hillary Clinton.

Trump has hired a number of Goldman Sachs alums in powerful administration positions, including Mnuchin, who was a Goldman banker for 17 years.


...also: Bank of Canada holds, says 'economic slack remains'


Stocks & Equities

Relief Rally Coming in Gold and Gold Stocks

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Posted by Jordan Roy-Byrne - The Daily Gold

on Monday, 05 December 2016 08:55

Last week we wrote that Gold was broken but noted the oversold condition in the precious metals sector as well as the relative strength in the gold stocks. At one moment last week, the gold stocks were trading above where they were in mid-November when Gold was trading some $60/oz higher. In other words, Gold plummeted $60/oz and made a new low yet the gold stocks did not. It took a bit longer than we expected but Gold and gold mining stocks may have started their rebound at the end of last week.

Gold formed a bit of a bullish hammer last week as it managed to close the week well off its low of $1162/oz. Note that Gold managed to rebound from support around $1155-$1160/oz, which is the strongest support between $1080 to $1180/oz. Gold was already oversold when it broke below $1200/oz. The likelihood of a rebound was increasing after Gold lost $1180/oz. Going forward, the rebound targets are $1210/oz, $1230/oz and $1250/oz. We think Gold will test its 40-month moving average at $1230/oz.

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As we noted, the gold stocks have held up very well in recent weeks considering Gold’s continued decline. Most of the recent daily candles signal accumulation and Friday’s gain could be the start of a sustained rebound. The strongest confluence of resistance is at GDX $23.50 and GDXJ $39. These are the conservative, realistic targets. There is also a chance miners could rally a bit farther towards very strong resistance near GDX $26 and GDXJ $42.50.



Stocks & Equities

The Financial Markets After the US Election

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Posted by Mathieu D'Anjou, Desjardins Online Brokerage

on Friday, 02 December 2016 15:21

bond yields

After the British backed the Brexit option at the start of the summer, U.S. voters in turn confounded forecasters by choosing Donald Trump as their next president in early November. Most observers initially expected that scenario to trigger a big surge in concern that would hurt risky assets. In the end, the surge in anxiety lasted just a few hours on the evening of the election, and investors quickly focused on the fact that the president-elect’s campaign promises could result in stronger growth and higher inflation in the United States. The outcome was a quick jump in stock markets, bond yields and the U.S. dollar. Investors must now ask themselves whether these moves are justified and if recent market trends will continue.

Although the dust has settled a bit after the election, we must first recognize that much uncertainty remains about what policies the future Trump administration will actually implement. The president-elect is still in the process of putting together his team and only takes power on January 20. He seems determined to quickly announce a series of measures, but it could take several months before they start to impact the economy. There is however some consensus among elected Republicans on...

CLICK HERE for the full analysis


Stocks & Equities

Embrace Low-Cap Biotech for High Gains

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Posted by Eden Rahim via Streetwise Reports

on Friday, 02 December 2016 10:27

Eden Rahim of Toronto-based Next Edge Capital has had his share of multibagger and grand-slam successes, and is one of the few mutual fund managers who feels comfortable investing in micro-cap biotech names side-by-side with billion-dollar biotech stocks. In this interview with The Life Sciences ReportRahim describes a group of micro-, small- and mid-cap biotech names possessing powerful growth drivers that could perform even when the overall market is not so hot.


The Life Sciences Report: After China's shares began selling off in early January, investors all over the globe began dumping shares of everything, especially healthcare and biotech. You have managed biotech portfolios since 1994, and you put on hedges so your downside is limited. How did you do during the downturn? Did it take you by surprise?

Eden Rahim: Admittedly, I did not see the intensity of the selling that began in January, compared to when stocks began to slide last August. I was nervous at that time and wrote options against 11 of the fund's largest holdings. I also had a few hundred IBB (iShares Nasdaq Biotechnology Fund [IBB:NASDAQ]) and XLV (Health Care SPDR (ETF) [XLV:NYSE.Arca]) puts on the portfolio. When the market took that first leg down of 30%, the portfolio weathered the storm really well. 

Traditionally, January and February have been a favorable season for biotech, so coming into this year I had small hedges in place, and my cash was only around 10% versus close to 20% back in August. This downturn really came as a surprise. 

TLSR: What precipitated the selloff?



Stocks & Equities

Trump’s Presidency- Stock Market Crash or Start of New Mega-Trends

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Posted by Sol Palha - Tactical Investor

on Tuesday, 29 November 2016 06:47

A little and a little, collected together, becomes a great deal; the heap in the barn consists of single grains, and drop and drop make the inundation.Saadi

solTrump’s win proves that mainstream Media is in trouble; it is going to be all downhill from here except for the ones that parted ways and tried to provide accurate coverage of what was going on. The crowd will turn increasingly to social media and outlets that focus on facts as opposed to fiction. Mainstream media is in for a painful ride as the crowd is not going to forgive them so easily for their transgressions; the only exceptions being the ones that portrayed an accurate image of what was taking place. Many pollsters might have to look for new jobs, and as we just stated, we feel that social media is going to be the biggest winner. Perhaps this is why Google has its eye on Twitter and has decided to donate its search engine business and in doing so take a $1 trillion business write off.  

Google is working with a financial adviser to consider a potential bid for Twitter Inc., as the social-media company continues to explore a sale, according to a person familiar with the arrangement.In tapping Lazard Ltd., Google hasn’t indicated it will definitely make an offer for Twitter. However, the move suggests that Google is evaluating the option, pitting the search giant against other potential bidders including Walt Disney Co. and Salesforce.com Inc. Full Story

No matter how mainstream media tries to spin it, they blew it; it was Brexit on steroids. Trumps win highlights the power of social media and how terribly controlled traditional media outlets are. They misfired on Brexit and grossly over exaggerated Clinton’s lead. It was a stunning defeat and the fact that mainstream media was so far off the mark will now serve as the bedrock to propel social media to levels never seen before. Expect a whole new range of social media apps and sites to emerge that are going to put many newspapers out of business. As the masses grow increasingly suspicious of mainstream media, we believe that social media will be able to provide valuable insights into the mass mindset.   

Being politically correct is now a dead concept



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