InvestMacro Forex News

By Mitchell Clark, B. Comm.

Looking for volatility? Stick with 3D (three-dimensional) printer stocks. While most continue to exude upward price momentum, valuations are off the charts and the action can only be described as “gut-wrenching.”

Stratasys Ltd. (SSYS) is a company we looked at back in November. Based out of Eden Prairie, Minnesota, Stratasys is one of the leading manufacturers of 3D printers. (See “In Spite of Hype, New Tech Sector Not a Fad.”)

The company’s share price is up six-fold since October of 2011, but it recently experienced its first blip in expectations. The stock dropped $15.00 a share, or about 11.5%, after reporting a 2014 earnings outlook slightly below existing consensus.

Still, this is very much a growth story, and it’s likely the company will continue to be a hot commodity on the stock market. Revenues for 2014 are expected to grow by a minimum of 25% organically.

But like many enterprises in high-growth mode, Stratasys is investing heavily in its business, hiring new sales people and spending on marketing. Combined with higher costs for research and development, total operating expenses this year are expected to rise considerably. The Street sold the position on the day of the announcement, exacerbated by the company’s extremely high valuation.

Almost twice as large as Stratasys is Rock Hill, South Carolina-based 3D Systems Corporation (DDD). This company has been on a tear, up by more than 100% on the stock market since this time last year.

The Street expects 3D Systems to grow its sales by 45% this year and another 30% next year. Earnings aren’t forecast to grow as quickly as sales for the same reason as Stratasys: these companies are investing heavily in future operations.

The ExOne Company (XONE) is a position I’ve looked at several times before in these pages. After a major price retrenchment in September of last year, the stock’s been fighting higher, slowly coming closer to its all-time record high.

This company is expected to become profitable this year on a 68% gain in sales over 2012. 2014 total sales are currently expected to grow another 51%, with a Wall Street median price target of $72.00 per share.

In terms of extreme investor enthusiasm, the valuation prize goes to one company—voxeljet AG (VJET), which is a German 3D printer manufacturer that listed on the NYSE last October. Selling 6.5 million shares at $13.00 each, the stock opened around $23.00, and then proceeded to hit $70.00 before retrenching to $35.00.

Its stock price currently sits just above $40.00. Total sales this fiscal year are expected to grow by more than 50% to approximately $24.5 million. With a market capitalization of more than $400 million on the expectation of break-even earnings results, this valuation is extreme.

But in hot markets, extreme valuations are nothing new. The marketplace always wants to own the fastest-growing companies, and price momentum feeds off of itself.

When interest rates are low and liquidity is strong, momentum trades can pay off nicely. The stock market and how you’re positioned is all relative. Being profitable is most important.

3D printer stocks are likely to continue their price momentum this year, and they will be one of the top speculative sectors for the next several years.

This article Top Stocks for Speculative Investors in 2014 was originally posted at Profit Confidential

By Michael Lombardi, MBA

I see more negativity towards gold bullion these days than ever before. And the more pessimism I hear and see, the more bullish I get on the precious metal.

After a bull market in gold bullion that lasted 12 straight years, 2013 was the correction year for gold bullion. It was the year that “separated the men from boys,” the investors from the speculators, when it came to gold bullion.

Consumer demand for gold coins continues to accelerate, and central banks around the world continue to be net buyers of the precious metal. Even small countries are getting in on the action. In 2013, Turkey imported 150% more gold bullion than it did in 2012! Turkey imported 302.3 tons of gold bullion in 2013, compared to 120.78 tons in 2012. (Source: Hurriyet Daily, January 3, 2014.)

The mainstream argument against gold bullion is that since there’s economic growth now, you don’t really need the precious metal…there’s no “crisis,” uncertainty, or inflation to send gold bullion prices higher. I don’t buy this argument for a New York minute.

The global economy is in a very fragile state. Major economic hubs are facing issues. China, India, Australia, the eurozone, and the U.S. economy show bleak economic performance. Just look at how bad the U.S. December jobs numbers were. (See “Pathetic December Jobs Numbers Proof 2014 to Be Challenging Year.”)

The third-biggest economy in the world, Japan, after years of money printing, reported an account deficit of 592 billion yen in November 2013—the country’s imports were more than its exports, as imports were up 230% over the same period a year ago. (Source: Ministry of Finance Japan, January 13, 2014.)

Through money printing and the lowering of the value of the yen, the Japanese central bank wanted to increase the country’s exports. It backfired…just like I believe artificially low interest rates and trillions of dollars in new money created here in the U.S. will backfire.

Many small world countries are in trouble. In Denmark, consumer debt has increased to 321% of the disposable income. This means that for every dollar earned, Danish consumers owe $3.21. In Sweden, debt compared to disposable income is around 180%—for every dollar earned, Swedish consumers owe $1.80. (Source: Bloomberg, January 14, 2014.) And Canada’s consumer debt level is at a record high.

On the monetary side, we have too much new money printed, too much debt among consumers. Economically, we are entering a period of slow growth for world economies (which will likely result in more money printing). Fundamentally, we have consumers and central banks retching up their gold buying.

The stocks of senior gold producing companies with lost cost production and proven reserves are selling at bargain basement prices. I believe we will one day look back at 2013 and say, “Boy, were gold stocks ever a bargain back then.”

This article If Gold’s a Bad Investment, Why Is This Country Buying 150% More of It?  was originally posted at Profit Confidential

By HY Markets Forex Blog

WTI dropped on Thursday, declining from the gains seen in the previous session after the Energy Information Administration (EIA) reported the US stockpiles data. However, the European benchmark Brent crude was seen lower, after Iran finalized an agreement with the Western powers over its nuclear program.

The North American West Texas Intermediate (WTI) crude dropped 0.34% lower at $94.04 a barrel at the time of writing, while Brent edged 0.58% lower at $105.66 a barrel at the same time.

WTI – US Stockpiles

The US Energy Information Administration (EIA) released the stockpiles data on Wednesday, showing a drop of 7.66 million barrels to 350.2 million during the week ending January 10.

Distillate supplies, including heating oil and diesel, slid 1.02 million barrels, reports from the EIA confirmed. Analysts forecasted supplies would increase by 1.25 million.

Reports from the American Petroleum Institute revealed that US weekly crude stocks declined by 4.14 million.

WTI – Iran Deal

Over the weekend, Western powers including the US, China, Russia, France, Germany and the UK finalized a six-month deal with Iran, over the country’s nuclear program; which will be implemented from January 20. As part of the deal, the Persian nation will scale back its nuclear developments, while the US will ease economic sanctions.

“Iran will also continue to take steps throughout the six months to live up to its commitments, such as rendering the entire stockpile of its 20% enriched uranium unusable for further enrichment,” Secretary of State , John Kerry said.

Iran have only been producing approximately 1 million barrel a day, the lowest in nearly 30 years; due to the sanctions imposed on the country.

WTI – Libya

Libya’s production has risen to 650,000 barrels per day (bdp) from 210,000 barrels a day in December, after the country’s largest oil fields, El Sharara restarted and production reached 300,000 barrels per day. However, production in the country is still below July’s level of 1.2 million barrels.

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The post WTI Slides From Previous Gains on US Stockpiles Data appeared first on | HY Markets Official blog.

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By HY Markets Forex Blog

Gold traded slightly high on Thursday, halting the two-day decline from the highest level in a month on speculation that the Federal Reserve (Fed) could continue to reduce its asset purchases at its next meeting on January 28-29.

Gold Futures rose 0.40% higher to $1,243.30 per ounce at the time of writing, while the silver futures gained 0.48% standing at $20.22 per ounce at the same time.

In December, the Federal Reserve (Fed) decided to reduce its monthly bond purchases to $75 billion from $85 billion. Market participants are focusing on the next Fed meeting scheduled for January 28-29 for more hints.

The US dollar index dropped 0.06% lower to 80.981 points at the time of writing.

Assets in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, came in at 789.56 tones lower on Wednesday.

Gold – World Bank

The World Bank raised its global growth forecast on Tuesday, increasing its forecast to 3.2% this year, 3.4% by 2015 and 3.5% the year after.

The US gross domestic product (GDP) is forecasted to increase by 2.8%, while Japan and the eurozone will expand by 1.4% and 1.1% respectively.

Gold – US Data

The New York Manufacturing Index advanced 12.51 higher in January, rising above analysts forecast of 3.50 and compared to the previous reading of 2.22.

The US producer prices edged 0.4% higher on a month-to-month basis in December, rising from 0.1% recorded in the previous month.

The central bank’s Beige Book business survey, revealed the US economy continuous to grow at a moderate pace across most of the country.

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The post Gold Holds Two-Day Fall on Fed Stimulus Speculation appeared first on | HY Markets Official blog.

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Article By RoboForex.com

Analysis for January 16^th, 2014

EUR/USD

After rebounding from level of 38.2% several times, Eurodollar started moving downwards. Right now, price is being corrected, but may start new descending movement in the nearest future. Main target for bears is several fibo-levels near 1.3490.

As we can see at H1 chart, target area is formed by three fibo-levels. If pair rebounds from them, price may start new correction. According to analysis of temporary fibo-zones, lower targets levels may be reached within next 24 hours.

USD/CHF

Franc is also being corrected; earlier price rebounded from correctional level of 38.2%. In the near term, bulls are expected to start new ascending movement and break previous maximums. Their target is several fibo-levels near 0.9180.

After making fast ascending movement, bulls decided to slow down a little bit. According to analysis of temporary fibo-zones, upper levels by the end of this week. If later pair rebounds from them, market may start new correction.

RoboForex Analytical Department

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

By WallStreetDaily.com

I recently sat down with Harry Dent, the Founder of Dent Research, to discuss his new book, Demographic Cliff: How to Survive and Prosper During the Great Deflation of 2014-2019.

As the title suggests, Harry predicts that a bout of deflation will hit this year. And he expects it to lead to an even bigger crash than what we saw in 2008.

A bold claim, for sure. Yet when I asked him to back it up, he unloaded an endless stream of eye-opening – and frankly, terrifying – stats.

Here’s one of the worst…

According to Harry, four cycles he tracks closely haven’t all been in a downtrend “anytime in the last century – except for 1930-1934.” Yet they’re all about to turn south this year.

He also revealed one sector that’s “never going to be the same,” and what this “zero-return investment” means for your financial future.

Oh, and you won’t want to miss what he has to say about how China’s “Ghost Cities” are creating the “greatest bubble in history.”

Click on the image below to hear the interview in its entirety.

Ahead of the tape,

Louis Basenese

The post The Rise of the “Ghost Cities” Should Scare You to Death appeared first on Wall Street Daily.

Article By WallStreetDaily.com

Original Article: The Rise of the “Ghost Cities” Should Scare You to Death

Article By RoboForex.com

Analysis for January 16^th, 2014

AUD/USD

Yesterday, Australian Dollar continued moving downwards and I moved stop on my sell order into the black. Super Trends have already formed “bearish cross”. Possibly, price may reach the 0/8 level and then enter “oversold zone” during the day. Main target is at the -2/8 level.

Pair is moving in lower part of H1 chart. Most likely, price will continue falling down during the day. If later instrument breaks the -2/8 level, lines at the chart will be redrawn.

EUR/JPY

Pair rebounded from the 2/8 level and started growing up again; right now, price is already moving above H4 Super Trends and may try to break the 4/8 level. If later price stays above this level, market will continue moving upwards.

At H1 chart, price is moving above the 5/8 level. If bulls are able to rebound from Super Trend, pair may start new ascending movement. Short-term target is at the 8/8 level.

SILVER

Silver left “overbought zone” and couldn’t break the 6/8 level so far. In addition to that, price formed bearish Wolfe Wave, which means that bears may continue pushing price downwards. First of all, they have to break daily Super Trend.

The lines at the H4 and H1 charts are completely the same. Super Trends are very close to each other, so they may form “bearish cross” in the nearest future. I’ll move stop on my sell order into the black as soon as instrument breaks local minimum.

RoboForex Analytical Department

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Article by Investazor.com

With the dollar on appreciating in front of its counterparts, the price of Gold started to plunge. Bearish signals started to appear on XAUUSD’s chart from yesterday.

Support: 1234.04, 1212.72, 1178.81;

Resistance: 1255.00, Trend Line;

On 14^th of July the price has broken the latest op move trend line which is the first bearish signal. During the past hours, bulls try to send the price higher, but it seems that they didn’t have enough strength and now bears are pushing down. If the 24 periods RSI will break it trend line then it will be another bearish signal.

The drop could become more probable if the price will fall under the local support from 1234.04. The price target for a downside move will be the next support from 1212.17. On the other hand if bulls will take over again we may expect for the 1255.00 resistance to be retested only if the local 1243.50 high will be broken.

The post GOLD Signaling a Short Term Drop appeared first on investazor.com.

By HY Markets Forex Blog

Forex trading resulted in the U.S. dollar recently declining to its lowest point relative to the yen in four weeks.

On Monday, Jan. 13, the USD/JPY fell to as little as 102.86, according to Bloomberg. This represented the lowest price for the currency pair since Dec. 18. The USD/JPY finished the day at 103, which represented a 1.1 percent decline for the session.

The movements in the value of the currency pair have largely been attributed to speculation surrounding the future use of quantitative easing by the Federal Reserve, the media outlet reported.

USD/JPY impacted by retail sales concerns

The pace with which the central bank reduces its transactions will largely depend on the strength of economic data that is released further down the line, and many were worried that the latest retail sales figures – scheduled for release on Jan. 14 – would indicate a deceleration in such activity, according to the news source. Economists contributing to a Bloomberg poll provided a median prediction that the rate of growth in retail sales would fall to 0.1 percent in December, compared to 0.7 percent rate of expansion in November.

Fed timeline for reducing QE

The Fed announced in December that starting in January 2014, it would lower its regimen of monthly bond purchases to $75 billion. This compares to the $85 billion that it had been buying every month since late in 2012.

The global asset markets scrutinized the statements released by the financial institution for much of last year, after Ben Bernanke, chairman of the Fed, announced in June that the pace of QE could potentially be reduced as early as 2013.

He also indicated that these bond purchases could be stopped entirely in 2014. After he revealed this possibility, the value of various securities experienced significant fluctuations, with many assets suffering sharp losses.

Now, those who trade forex are watching the economic reports that are released in an effort to get a closer glimpse of what timeline the Fed will harness for gradually reducing QE and then stopping this stimulus altogether.

U.S. jobs data

Another report that was seen as having an impact on the speculation surrounding the future easing of QE – and therefore the value of the USD/JPY – was the monthly jobs data that was released by the U.S. Department of Labor earlier in January, according to Reuters. Figures provided by this government agency revealed that in December, payrolls rose by 74,000.

The actual number of positions fell far short of the amount predicted by analysts, who had forecast that 196,000 jobs would be created, and the lackluster nature of this information helped to cast doubts on how quickly the Fed will be able to reduce its current purchases of bonds, the media outlet reported.

There are concerns that if more lackluster economic data is released, the financial institution might have to maintain its current regimen of QE or alternatively, reduce it very slowly, according to The Wall Street Journal.

“Even if the economic data in the U.S. is strong, I don’t think the Fed will raise rates for a long time,” Laurent Desbois, who works for Fjord Capital Management Inc., told the media outlet. The market expert often owns positions that would indicate an expectation that the U.S. dollar will decline in value. “I just don’t see the U.S. dollar rallying this year.”

Many experts optimistic about dollar

While Desbois does not seem to have an optimistic view of where the greenback will go in 2013, Andrew Wilkinson, who works for Interactive Brokers LLC as its chief market analyst, told Bloomberg that he is bullish about the currency.

“There are some occasional weak data-points, but the growth in the U.S. economy is far from being in doubt,” Wilkinson told the media outlet. “In the longer run, we’ll see dollar-yen trade at 110. There’s nothing changing in the overall picture, just that too many people have gotten on one side of the boat.”

Individuals involved in forex trading might benefit from knowing that Wilkinson is certainly not the only market expert who is optimistic about where the greenback will go in the future, as Paresh Upadhyaya, who works for Pioneer Investments in Boston as director of currency strategy, told The Wall Street Journal that he is still bullish about the U.S. dollar.

He told the media outlet that he may purchase the USD/JPY as a result of the recent decline in the currency pair. The market expert also emphasized that the various factors that have served to push the greenback higher in value are still there.

Individuals who are involved in forex trading, including transactions that involve the USD/JPY, might benefit from knowing about the key nature that Fed tapering speculation plays in the market. They might also be wise to keep an eye out for any economic data that could potentially impact the pace with which bond purchases are gradually reduced.

The post Forex Trading Causes USD/JPY to Reach 4-Week Low appeared first on | HY Markets Official blog.

Article provided by HY Markets Forex Blog

USDCAD remains in uptrend from 1.0588, the fall from 1.0991 could be treated as consolidation of the uptrend. Support is now located at the bottom of the price channel on 4-hour chart. As long as the channel support holds, the uptrend could be expected to resume, and next target would be at 1.1100 area. On the downside, a clear break below the channel support will indicate that the upward movement from 1.0588 had completed at 1.0991 already, then the pair will find support around 1.0700.

Daily Forex Analysis