WHAT a week. At the start, official denial reigned as to the very suggestion that the recovery was built on froth. By its end, growth numbers showed a slide in exports and economic expansion over-reliant on consumption and house-building, and the Bank of England was putting the property market and the consumer on a diet.
The Bank axed that part of its Funding for Lending Scheme (FLS) aimed at bolstering consumer and mortgage lending; henceforth, FLS would be targeted solely at supplying cheap funds for banks to lend on to businesses.
This is a particularly interesting development, for two reasons. One, until a few days ago the very notion of a housing-market bubble was dismissed out of hand. David Cameron would suggest that anyone who thought house prices were boiling over ought to get out of London, go to Sutton Coldfield or Market Deeping or someplace and tell the locals all about this property bubble. Hah! See what sort of response they would get!
Now, Mark Carney and his Bank of England colleagues seem to believe that a bubble is indeed being puffed up.
Two, while FLS (which falls within the Banks bailiwick) is getting out of the mortgage-subsidy business, the Help to Buy package of mortgage funding and guarantees (which is a Treasury scheme) will continue.
I hope you all had a great long weekend especially the veterans who served for our Country. Today my time was limited and I am just getting back for the day and its 4:15 The one trade I took before leaving the trading room around 10:00 was on the NQ and good for +4+6+15trading 3 contracts that is +$125.00 for the day. Took the kids for their Flu shots today so it was a very interesting day for me In any event, I did grab the 1st 2 trades on the 6E which were both winners as well. Looking back through the 6E day, there were 7-8 winners and no losers. Of course we only take the 1st 2 valid trades but that market had a very nice day. We also had 2 CL winners. Again we will be teaching these 2 mark at the Live class next month but just trading those 2 mark today, you could have been up +$705.00not a bad day at all
Belgium’s business confidence improved strongly in November, after declining in the previous month, survey results from the National Bank of Belgium showed on Friday.
The business confidence indicator rose to -4.3 from -7.7 in October. Economists had expected the score to climb to -7.
Among different business sectors, confidence improved in manufacturing and construction industries. Sentiment deteriorated in the business services sector.
The confidence indicator for manufacturing rose to -5.2 from -10.4, largely driven by a much brighter assessment of total order books and the level of stocks.
Better demand projections pushed the construction confidence index to -9.2 from -10.3.
Confidence in the business services sector declined, after improving in the past three months. The index fell to 6 from 7.3. The deterioration was attributable to a downward revision of the forecasts for general market demand and company activity.
Sentiment in the trade sector stabilized in November, after five months of improvement. The index score slightly slipped to -8.8 from -8.9.
Thanks to hydraulic fracking, America is now awash in cheap oil. And thats great news for everyone except oil companies and their investors. For them, low oil prices are a real problem. And prices may go lower yet.
But there are winners in the oil patch regardless of the price of oil.
Heres what will happen and what you should do if oil stays cheap or gets cheaper.
First, the background: The United States is now producing more oil domestically (more than 7.6 million barrels per day) than its importing. Were a net exporter of oil for the first time in 50 years. The International Energy Agency (IEA) expects U.S. production to surpass Russia and Saudi Arabia by 2017.
As our supply continues to go up, prices go down. West Texas Intermediate (WTI) light sweet crude, the benchmark for U.S. oil prices, is trading below $95 a barrel, down 11% in just six weeks.
Prices are nearing the point where they wont support more drilling. If they go much lower, you could see producers shutting down oil rigs amid a wave of consolidation.
The Permian Basin of Texas is estimated to contain 50 billion barrels of oil, second only to Saudi Arabias Ghawar field.
Another great morning trading the Power Trading System. Ended up with 4 winners on the NQ and 1 really nice ES winner that I will show on the chart below. All in the first 45 minutes of the open. Again, if you are interested in our course and learning how to trade at the Live class training event in Jacksonville Florida next month, we have 2 seats left before it is Sold Out. Have a great weekend and we will see you on Tuesday!!
Here are todays trades:
NQ 11-8 +4 BE BE = +20 +4 BE BE = +20 +4 BE BE = +20 +4+6+13 = +115 +175.00 Trading the NQ
ES 11-7 BE See this trade on chart as well as the one below +4+4+12 = +175.00
+250.00 Trading the ES
Eurozone investor confidence increased strongly in November, surpassing economists’ expectations, to hit a two-and-a-half year high, a monthly survey by the think tank Sentix showed on Monday.
The investor confidence index rose for the fourth consecutive month to 9.3 from October’s 6.1. Economists were looking for a modest increase to 6.5.
The latest score is the highest since May 2011 and the strongest among rest of the world, the research group said. Investors assessed the current economic situation better than last month, the survey said.
The current situation index climbed to -3.3 from -8.5, while the expectations index rose to 22.8 from 21.8.
German investor confidence hit a record high of 30.2 in November, Sentix said, the score being the highest since the series began in 2009. In October, the score was 28.3. An improvement in investor expectations drove the index higher, the group said.
Previous Story Next Story More Economic News-Europe
- German Factory Sector Growth Faster-than-expected
- Romania’s Retail Sales Decline Modestly In September