Big Companies Announce Disappoinments

Posted on January 20, 2012 by Alexander

Earnings at 2 big companies Google and Capital One disappointed today. JP Morgan Chase announced disappointing earning this week.

Despite these big drops earnings season has seen lots of positive trending with companies beating earnings. The markets are moving upward in unison with this trend.

Big bellwether Microsoft was up big today with earnings surprising on the upside. Video games are still being bought.

This should be good news for the US economy and US Dollar we’ll see.

Want more see LA Times

”

NEW YORK— IBM and Microsoft drove the Dow Jones industrial average higher Friday after the tech giants reported stronger earnings than analysts expected.

Microsoft said sales of Xbox games and Office software helped push revenue up in the last quarter of 2011. IBM credited better sales of software and services and raised its earnings outlook for the year. Microsoft rose 5 percent and IBM rose 4 percent.

The Dow rose 96.50 points to close at 12,720.48. That’s a gain of 0.8 percent. Without the huge gains in IBM and Microsoft, the Dow would have risen just 24 points.

The S&P 500 index inched up 0.88 to 1,315.38. Both the Dow and S&P ended the week with gains of more than 2 percent.

Plenty of things are going right, said Frank Fantozzi, CEO of Planned Financial Services, an independent wealth manager in Cleveland. Applications for unemployment benefits dropped last week to the lowest level in nearly four years. Housing sales are steadily rising. And most companies are reporting better profits.

”

The nominal gains in the market aren’t keeping up with inflation for most investors. So trading in forex using Fap Turbo is a necessary strategy to protect your buying power.

 

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China Drop Drags Down Oil Prices – Americans Rejoice

Posted on January 20, 2012 by Alexander

Anytime oil prices dip it’s good news for Americans. With prices expected to rise to over $4 per gallon this year it’s nice to get some relief.

China had much lower manufacturing numbers than expected which sent oil prices down 1.9%. It’s gotta be sustained though or else prices at the gas pump won’t reflect it.

It’s usually at 1 – 2 week lag from oil prices dropping to prices at the pump dropping.

A good gauge of where oil price are is at Oil-Price.net. They show the Brent Crude number which is what the world values oil in not WTI that many Americans use.

This has been a problem since the WTI was still low but gas prices were stubbornly high. The Brent Crude number is the reason. 2/3 of the world’s oil trades on the Brent Crude number.

These Chinese numbers may continue the downward pressure on the Yuan. Adjust your forex strategy accordingly.

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China Continues Push For Yuan Settlements

Posted on January 19, 2012 by Alexander

The Chinese are continuing the charge to get their currency the Yuan or Renminbi as its called locally, to be used to pay for international trading debts.

This could pose a threat or at least change to the US dollar as the world’s reserve currency. I’m not saying it’ll happen this year.

But the decline in the dollar’s value is self-evident. And continues without fail. So preparing now in your long-term holdings is good. Get long term investments out of dollar denominated assets.

For the short-term there are many trading opportunities.

Here’s more from Euro Money:

”

China faces a new currency challenge as the prospect of a slowdown in its economy heightens, which is likely to result in a renewed push towards the internationalization of the renminbi.

Talk of the renminbi usurping the dollar as the world’s reserve currency has been replaced by concerns that China is struggling to contain capital flight.

The latest figures from the People’s Bank of China provide confirmation that foreign investors were pulling money out of China in the final quarter of 2011.

Data from the Chinese central bank show that there was a Rmb27.9 billion ($4.4 billion) reduction in the renminbi positions of financial institutions accumulated from foreign exchange purchases in November, after a fall of Rmb24.9 billion in September.

With foreign investors repatriating capital at the fastest pace for 11 years, the renminbi has been under sustained pressure. This has ensured continued dollar sales from China’s vast foreign exchange stockpiles to keep the currency stable.

“With the trade deficit narrowing, foreign capital being withdrawn, and the dollar enjoying healthy demand, the PBOC is facing an incredibly difficult task to thwart the pressure for currency depreciation,” says Michael Derks, chief FX strategist at FxPro.

”

Full story at Euro Money.

China’s experiencing a slow down and pressure on its currency. But as the US continues to abuse its place as the world’s reserve currency by wild and reckless overspending the calls for a new reserve currency will only grow to deafening levels soon.

More stories at FAP Turbo blog.

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Spanish Bond Success Bolsters Euro

Posted on January 19, 2012 by Alexander

Investors saw the success of the Spanish bond auction as good news and buoyed the Euro in response. The Spaniards sold $6.61 billion which was higher than expected.

There’s way more to be played out in the slow grinding downward of both the Euro and the US dollar but today saw an uptick.

As you know being a trader you don’t need something going up just a trend you can capitalize on either way.

Here’s more from Reuters:

“* Euro rises to two-week high versus dollar and yen

* Stop-losses lurking above, scope for further short squeeze

* Spain bond sale adds to optimism

By Neal Armstrong

LONDON, Jan 19 (Reuters) – The euro rose on Thursday,

supported by a solid response to a Spanish debt auction with an

improvement in risk appetite spurring investors to unwind

bearish positions, although brief rallies are unlikely to break

the single currency’s downtrend.

Spain sold 6.61 billion euros of government bonds on

Thursday, more than its announced target, in an auction which

analysts said went well, supported by domestic banks and a

pickup in appetite for riskier assets.

That ensured the euro retained support after hitting

two-week highs versus the dollar and the yen in earlier trade.

Hopes the IMF could boost its resources to help countries

deal with the euro zone debt crisis and some optimism over talks

to avoid a chaotic Greek default were adding to the positive

tone.

“We think the ongoing short squeeze we’ve seen in the euro

this week can continue. The newsflow we are seeing is reasonably

encouraging for risk with the IMF headlines yesterday and hopes

growing over the Greek restructuring talks,” said Tom Levinson,

currency strategist at ING.

Talks between Greece and its creditors are proceeding, but

much more progress is needed before a bond swap to reduce the

country’s towering debt pile is reached, three sources close to

the talks said.

”

Investors appetite for risk doesn’t seem to be percolating up. Trade with caution but there are profits to be made. FAP Turbo forex trading software can help with this.

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Shriveling Bonuses, Pay Frightens Wall Street’s “Stars” Away

Posted on January 18, 2012 by Alexander

It’s no secret Wall Street has been insulated and insanely bloated over the years. It’s been insulated from the normal economic turmoil and downturns which affect main street small businesses and middle America.

But maybe no more. The outcry in the public as personified in Occupy Wall Street seems to be heard. At least fat cat Wall Street firms don’t want the nasty public relations nightmare backlash “business as usual” would bring.

So they’re caving. Here’s the unbelievable story (sob for them):

“(Reuters) – As Wall Street banks sharply cut costs, many of the industry’s star bankers and traders are leaving their shrinking pay packages and firms behind.

Wall Street banks have outlined plans to cut thousands of jobs since mid-2011 because of lackluster business and decreasing profitability, and compensation consultants estimate that banker bonuses for 2011 fell about 30 percent, on average.

Goldman Sachs Group Inc (GS.N), for instance, cut compensation 21 percent to $12.2 billion, or $367,057 per employee from $430,700 per employee in 2010. The bank plans to take further steps to reduce costs this year.

The slash and burn approach may be turning off some senior bankers and traders, who are known to take umbrage at major cuts to their own salaries or to their divisions’ share of the bonus pool in difficult years, recruiters say.

Many are now heading for the exits.

“Some senior employees are getting shown the door as part of broad cost-cutting measures and others are simply walking out the door on their own, presumably to try to find better opportunities,” said Gregory Cresci, an executive recruiter at Odyssey Search Partners who works with Wall Street clients.

The exodus of senior bankers and traders has been most prominent at Goldman Sachs in recent months.

Recent high-level departures from Goldman include David Heller and Edward Eisler, co-heads of Goldman’s securities business, as well as Ed Forst, co-head of its investment management division.

Milton Berlinksi, a top private equity banker, Kevin Kennedy, head of Goldman’s Latin America group, and Jeff Resnick, the head of commodities, were among other prominent Goldman bankers whose departures were announced late last year….”

Full story at Reuters.

It’s becoming more clear in this dog eat dog world. You gotta protect yourself and what better way than with a software advantage like Fap Turbo.

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