Posts by Kirill Zagalsky

October 26, 2018 |

Heed the Warnings

Yuan

The last couple of weeks have seen rising stock market volatility as numerous issues weigh on markets and investor sentiment. The declines seen in Chinese markets cannot, and should not, be ignored. The Shanghai Composite is off some 25 percent since the beginning of the year, and more downside could potentially be in store. The Chinese economy has already shown some key signs of slowing, and if it does in fact slow further the effects may be felt all over the globe. Chinese officials have... Continue Reading

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October 22, 2018 |

Who Cares if the Fed is Hawkish?

The gold market is up again today, and appears to now be in consolidation mode following strong gains last week. Some sideways price action this week should not only come as no surprise, but should also be viewed as healthy. The bulls may simply be gearing up for the next major push higher. Recent price action in gold has certainly been constructive. The market has covered almost $50 per ounce in upside, and could just be getting started. The recent rally and improving technical posture... Continue Reading

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October 16, 2018 |

Time to Buckle Up

Seatbelt

The past week has seen an enormous increase in stock market volatility. In just two sessions, the Dow Jones Industrial Average shed nearly 1400 points, and the NASDAQ officially entered correction territory on Thursday. The sharp and rapid rise in interest rates has been pinned as the primary culprit for the sell-off, and things could be just getting started. Although stocks are sharply higher in early trade on Friday, the rally being seen could simply be more of a relief rally than anything else. The... Continue Reading

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October 10, 2018 |

Not So Fast…

US Yield Curve

The sharp rise in bond yields has been the topic of much discussion over the last week, and yields have a lot of room to run even higher. The movement in the bond market has not gone unnoticed by equity investors, and stocks saw some significant selling last week as a result. To be clear, it is not necessarily the rise in yields that has investors upset. Rather than focusing on a specific level in rates, investors are likely far more concerned with the speed... Continue Reading

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October 4, 2018 |

Get Ready

just the beginning

The gold market is showing some significant strength today as the metal has once again moved back over the psychologically important $1200 level. It’s no secret that the dollar index has weighed heavily on gold in recent months, but there seems to be increasing concerns that the greenback is not likely to maintain its recent strength. With the recent Fed rate hike having come and gone, and with expectations of another hike before the end of the year already factored into prices, the gold market... Continue Reading

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September 26, 2018 |

Buy the Rumor Sell the Fact?

Federal Reserve

This week, the scheduled Federal Reserve policy meeting is likely to dominate much of the financial headlines. The Fed will be meeting Tuesday and Wednesday, and is expected to hike interest rates again by another 25 bps. Investors will likely be far more focused on the central bank’s plans going forward, however. Right now, the Fed has another 25 bps hike penciled in for November. Although traders are widely expecting action again before the end of the year, there is also a possibility that the... Continue Reading

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September 18, 2018 |

Liquidity Could Be an Issue

It seems that with each passing day, more and more analysts are jumping on the bear bandwagon. There have already been numerous calls from well-respected firms highlighting the risks that the economy and stock market are facing, and some have even suggested that the next major downturn could be far more significant and longer than the last. There are numerous potential issues that could drive the next major downturn: Higher interest rates, weakening stimulus effects, geopolitics and higher inflation to name a few. Regardless of... Continue Reading

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September 12, 2018 |

Let the Coiling Continue

Coins Interest Rate Hike

The last several months have unquestionably been challenging for the gold market. Higher stocks, a stronger dollar and overall robust appetite for risk have all played a role in the metal’s lack of upside. Although it is unclear of the market has yet found a long-term bottom, recent price action would seem to suggest that a bottom is at hand, or very close. The market has been consolidating in recent days as it tries to hold the psychologically important $1200 level. The selling pressure appears... Continue Reading

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September 6, 2018 |

Back to Business

Volatility Spike

With the Labor Day Holiday weekend now in the rear-view mirror, investors will likely look to get back down to business as the month of September gets under way. With increasing trade volumes may also come an increase in market volatility. Investors appear to have gotten quite complacent in recent months as stocks have treaded water not far from previous all-time highs. This complacency, however, could lead to a significant market decline if a bearish catalyst gets the ball rolling. A primary area of concern... Continue Reading

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August 29, 2018 |

A Prime Example

a divided fed

Last week brought with it numerous geopolitical issues and the highly anticipated central bank symposium in Jackson, Hole, Wyoming that is sponsored by the Kansas City Federal Reserve and takes place each year. Central banks have been a key area of focus for investors in recent months, as many are now in the process of attempting to normalize monetary policies and reign in swollen balance sheets. The Fed’s role is so critical, in fact, that even U.S. President Donald Trump has voiced his concerns over... Continue Reading

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