Day: September 6, 2020

Return Of The Cold Currency War
Currencies

Return Of The Cold Currency War

WHICH MAJOR COUNTRIES ARE MOST LIKELY TO ENGAGE IN A COLD CURRENCY WAR? Before diving into the 'how', we first explore the 'who' and the 'why' - in particular, which countries will be under more pressure to stem domestic currency strength in the coming months. In theory, exporting nations - especially those more proportionately reliant on trade growth in any future economic recovery - will be particularly wary of the challenges posed by a stronger currency to domestic exporters. Moreover, with most countries facing severe deflationary risks, an overly strong currency will be unwanted by almost all central banks in the next 3-6 months as it will only push them further away from their inflation targets. We construct an FX Strength Aversion Index to rank which G10 countries cannot tolerate ...
Mnuchin expects Congress will extend government funding into December
Business news

Mnuchin expects Congress will extend government funding into December

U.S. Treasury Secretary Steven Mnuchin speaks to reporters in the U.S. Capitol in Washington, U.S. July 29, 2020. A developing plan to avoid a government shutdown at the end of the month would likely fund federal operations into December, Treasury Secretary Steven Mnuchin said Sunday. While Mnuchin told "Fox News Sunday" that Republicans and Democrats have not reached a final agreement on spending legislation, he said he hoped Congress can start to move forward with a bill "by the end of the week." Funding will lapse after Sept. 30 if lawmakers fail to approve an appropriations package. "For now, the most important thing is to make sure at the end of the month we don't shut down the government and we get something past the election," the Treasury secretary told Fox. Congress retur...
How To Build Morning Trading Watchlist
Online Trading

How To Build Morning Trading Watchlist

Failing to prepare is preparing to fail . . . Building a watchlist of tickers that you’re interested in trading for the day is an essential part of a profitable trading process. A watchlist is simply a short-list of stocks that meet or might meet your criteria for a profitable trading setup.  While your daily watchlist should evolve throughout the trading day, before the market even opens, you should have a healthy list of tickers on to watch for emerging setups.  There are roughly 13,000 issues that trade on the US exchanges,  The Trading Idea Generation Process You might be a reasonably skilled trader with a book of profitable trading setups. But, if you wake up at 9:15 AM and attempt to blindly trade the open with no preparation, at the very least, you’re missing...
Peter Schiff: ‘I was wrong about Bitcoin’
Crypto News

Peter Schiff: ‘I was wrong about Bitcoin’

Gold bug Peter Schiff, who has often spoken out against Bitcoin, may be admitting that there’s at least some flaw in his predictions after acknowledging the coin did not “collapse” as gold rose to a new all-time high last month. In a Twitter exchange with Tyler Winklevoss, which began Sept. 6, Schiff traded words with the Gemini co-founder regarding Bitcoin’s rise to a yearly high of $12,000 on Aug. 17 and its dip under $10,000 just last week. While Winklevoss predicted the digital asset’s baseline for all future dips would be $10,000, Schiff was decidedly more bearish, stating Bitcoin (BTC) could be consolidating before a crash. “The more the 10K support level is tested, the weaker it gets,” said Schiff. “Markets rarely give investors that many chances to buy the bottom.” However, Twit...
Trade Setup: Nifty may weaken some more; 11,430 level is key
Stock News

Trade Setup: Nifty may weaken some more; 11,430 level is key

Friday’s session on Dalal Street saw stock indices resume their downtrend along with global peers, as they opened with a gap-down and ended with deep cuts. The market saw a gap-down start but held the opening lows. The index saw some recovery, but then gave up those as it encountered renewed selling pressure and went on to breach the morning lows. Nifty50 didn’t make any attempt to recover after that and ended with a cut of 193 points, or 1.68 per cent. There may be some mild incremental weakness now as we step into a new session. US markets ended negative on Friday. However, they closed significantly off their lows. This means we can expect the domestic market to attempt and gain some stability and try a mild technical pullback. However, Nifty has failed to break out of the double top for...
Weekly Preview: Stocks To Watch (LULU, PTON, WORK, ZS)
Stock News

Weekly Preview: Stocks To Watch (LULU, PTON, WORK, ZS)

Three consecutive days of profit-taking within the market’s biggest winners sent Wall Street lower again on Friday, prompting some skeptics to assert that the anticipated long-overdue selloff has finally arrived. But those who are are in the bulls' camp were encouraged by the late reversal that lifted all three major averages off session lows. While there’s still a perceived disconnect between Wall Street and Main Street, there continues to be positive signs of an economic recovery evidenced by better-then-expected August jobs report. The U.S. economy regained 1.4 million jobs in August, according to data from the Labor Department. This is better than the 1.2 million jobs economists were expecting. As it stands, the unemployment rate is now at 8.4%, down from 10.2%. But it wasn’t a...
DeFi ain’t just about tokens, quality use-cases to overcome challenges
Crypto News

DeFi ain’t just about tokens, quality use-cases to overcome challenges

Blockchain technology is disrupting every sector of the global economy with its limitless opportunities and innovative products. Decentralized finance is one of the sectors that has been trying to shake the traditional financial ecosystem. The multitude of DeFi applications emerging all over the fintech space has provided solutions, such as lending, staking, exchange of derivatives, among others. The current craze is justified, as DeFi attempts to build an alternative to the rigid banking systems. Also, government regulation (or lack thereof) and a flawed financial infrastructure have allowed DeFi projects to blossom. However, the concept of DeFi has also faced several hurdles, such as liquidity issues and everyday usability, which have prevented it from moving into the mainstream finan...
U.S. considers blacklisting China’s largest chipmaker as tech tensions escalate
Business news

U.S. considers blacklisting China’s largest chipmaker as tech tensions escalate

Integrated circuits on a circuit board. The semiconductor industry has been in focus during the U.S.-China trade war. filonmar | E+ | Getty Images The Trump administration is considering imposing export restrictions on Semiconductor Manufacturing International Corporation, China's largest manufacturer of semiconductors, according to a Defense Department spokesperson.  The Department of Defense is in discussions over whether SMIC should be added to the Commerce Department's entity list, which essentially restricts those companies from receiving specific goods made in the U.S.  "DoD is currently working with the interagency in assessing available information to determine if SMIC's actions warrant adding them to the Department of Commerce's Entity List," a Defense...
What Happens to Options During a Stock Split?
Online Trading

What Happens to Options During a Stock Split?

If you have noticed that the number of option contracts you own on a stock that has recently split has changed, don’t panic. When a stock splits, due to a corporate action, several components of an option contract can change to make you whole. Recently both Apple and Tesla announced stock splits which have altered the number of option contracts that are owned by investors. The adjustment calculation that is used by exchanges will depend on the type of stock split that takes place. There are several reasons why a company determines splits its stock, but before we discuss these reasons and the calculations that are used to make option investors whole, we will briefly discuss some options basics. What is an Option Contract? There are two types of options, call options and put options....
The week that was in 10 stocks: Voda Idea, Adani Green among top gainers
Stock News

The week that was in 10 stocks: Voda Idea, Adani Green among top gainers

NEW DELHI: Traders booked profits last week as key equity indices lost over two and a half per cent, mainly pressured by rising border tension between India and China and weak global cues. Besides, muted macroeconomic data i.e., PMI data fell for the sixth month in a row and GDP data contracted by nearly 24 per cent further dented the sentiment. Amid all, the SC verdict on AGR dues and better than expected auto sales numbers eased some pressure in the middle. Amongst the sectors, telecom was among the few gainers that ended with gains of 1.5 per cent. Other sectoral indices witnessed selling pressure where banks, PSU stocks and realty were the top losers and ended significantly lower by 5-7 per cent. “In the absence of any major event, investors will continue to take cues from the glob...