Tag Archives: Google

High Yield Bond Market Pressure in 2016

High yield bonds (funded by multiple rounds of QE) will definitely put pressure on the global financial system this year. I believe over $1 trillion of QE went into energy related bonds (in US and Europe), and nobody had thought of $30 oil plus strong US Dollar. Euro and Rupee/INR will be at risk from a stubbornly strong US Dollar. Zero debt companies with substantial earnings in USD like Google, Infosys, McDonalds maybe the safest places in market in 2016. Stay long on USD. Energy and Materials stocks should be handled only by advanced traders. There maybe many sharp corrections and short-covering rallies.

The bond market is going to get ugly if there isn't a rebound soon Continue reading High Yield Bond Market Pressure in 2016

Google Stock Update – 19July2015

https://www.google.com/images/srpr/logo11w.png

We have been long on Google stock for a long time, and the stock has consistently rewarded our buying at lower level. Google was the super-star of the past week, going up 26% like a rocket launched into space, rising from $532 on Monday to $672 on Friday, a gain of $140 of 26.3% in the week, with most of it coming on Friday. It feels like a very strong short-squeeze because investors rarely bid up stock prices so rapidly. Therefore, whether this sharp vertical move will sustain or get sold will be determined by global market mood in the coming days. Google has shown the ability to hold large gains in the past, and it has also lost large gains rapidly many times because of profit booking. Based on Momentum indicators, this vertical rise is most likely to be sold into, and we should see correction in the coming days. Investors must consider booking some profits in Google stock. Its a windfall gain, and some profits must be taken home. Fresh stock buying in Google at current level is not advisable. Let it stabilize first.  Nasdaq also has run up rapidly from 4900 to 5200, so there may be a 100 point correction this coming week to 5100, before an upmove can resume. Traders can book profits on Nasdaq Futures, and consider buying 80-100 points lower.

US Markets Review -17July2015

US markets opened on a positive note as the week began amid news that Greece and its international creditors have reached an agreement on a new bailout for the debt-laden country. The US markets maintained strength despite the retail sales falling by 0.3% in June versus expectations of a 0.3% increase. On the US economy front, the Producer price index rose by 0.4% in June following a 0.5% increase in May and expectations of a 0.3% increase. The Industrial production increased by 0.3% in June after edging falling 0.2% in May. The markets ended the week on a positive note owing to the news that the Greek parliament voted to approve the tough austerity measures. Upbeat earnings news from some influential companies also aided the investor sentiment. The initial jobless claims fell to 281,000 versus expectations of a level of 285,000. Nasdaq hit a new high on the back of stellar upmove by Google during this week.