Trader Article

According to the CFTC Commitments of Traders report for the week ended August 14, gold and silver futures surprisingly recorded NET SHORTS, as traders expected prices to weaken further. NET SHORT for for the former was 3 688 contracts, compared with NET LENGTH of 12 688 contracts in the prior week. Silver futures recorded NET […]
The post CFTC Commitments of Traders: Gold and Silver Turned to Net Shorts appeared first on Action Forex.Read More →

This week will see an even lighter last week, with central bank input due from the U.S. FOMC and the RBA.Read More →

The forex markets turned into consolidative mode last week as Dollar and Yen lost momentum. Turkish currency crisis hit a climax on Monday but worries eased after the government’s measures were well taken by investors. The fear of extra sanctions by the US on Turkey caused some jitters. But the muted reactions towards the S&P […]
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Kofi Annan, former UN secretary general, dies at 80 Reuters Kofi Annan was awarded the Nobel peace prize for his humanitarian work jointly with the UN in 2001. GENEVA—Kofi Annan, one of the world’s most celebrated diplomats and a charismatic symbol of the United Nations who rose through its ranks to become the first black African secretary general, has died. He was 80 years old.
His foundation announced his death in a tweet on Saturday, saying that he died after a short, unspecified illness.
“Wherever there was suffering or need, he reached out and touched many people with his deep compassion and empathy,” the foundation said in its statement.
Annan spent virtually his entire career as an administrator at the U.N. His aristocratic style, cool-tempered elegance and political savvy helped guide his ascent to become its seventh secretary general, the first from within. He served two terms from Jan. 1, 1997, to Dec. 31, 2006. Nearly midway through his time at the top, he and the U.N. we..Read More →

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Stock-market investors weather Turkey storm, but should watch the dollar As if global trade spats weren’t exciting enough, August has defied its sleepy reputation to bring investors a taste of an old-fashioned currency crisis in Turkey.
The underlying worry is that other countries that, like Turkey, heavily rely on external financing in currencies other than their own are vulnerable to a continued rise in the U.S. dollar could begin to face trouble, causing problems for financial institutions that hold that foreign-denominated debt.
“I think we’re far from that right now, but I think it weighs on investors’ minds,” said Michael Arone, chief investment strategist at State Street Global Advisors, in a phone interview.
Indeed, Wall Street analysts and economists don’t seem overly afraid that Turkey’s woes will morph into a global crisis that will threaten U.S. economic growth or corporate earnings — the Dow on Friday posted its highest close since February — but that doesn’t mean geopo..Read More →

Opinion: If turmoil spreads in Europe, expect heavy flows into U.S. stocks There’s been no shortage of crises. Trade wars and the collapse of the Turkish lira. One market’s crisis is another’s opportunity, and Europe’s shaky currency union could send U.S. stocks soaring … eventually.
In a world of contagion, how could European currency turmoil possibly send U.S. stocks higher?
And when might this happen?
Safe haven Imagine living in Europe right now. The Turkish lira just lost about 25% in a matter of days, Brexit continues to loom, but the biggest problem might be Italy. And, yes, your bank may or may not be invested in Turkey.
Would you rather own euros or the dollar? Would you rather own European stocks denominated in euros, or dollar-based blue-chips?
The smart European money is probably leaving the region, and it’s got to be going somewhere.
U.S. stocks are probably overpriced, but when forced to pick a poison, the U.S. looks much less dangerous and is therefore more appeal..Read More →

Opinion: Ignore Trump and Musk — here’s how to find companies whose CEOs think long term Whether you’re a fan of Tesla CEO Elon Musk or you think he’s just a nutjob, you owe him some gratitude as an investor.
That’s because he’s spotlighting an issue that regularly costs long-term investors a lot money: the tyranny of quarterly earnings reports.
The problem here is that quarterly reports enable investors and traders who like to impose their short-term thinking on CEOs to earn a quick buck — by pressuring CEOs to maximize near-term profits. This can hurt investors who are in it for the long haul.
Read: SEC studying frequency of corporate reporting after Trump tweet
Heaven forbid a CEO sacrifices near-term earnings to fund some cockamamie “visionary” plan that just might change an entire sector. The truth is, though, long-term thinking can be an investor’s best friend, as Warren Buffett loves to point out. The obsession with quarterly earnings reports gets in the way.
“They are..Read More →

Why real-estate investors should still steer clear of Turkey even as the lira rebounds The devaluation of the Turkish lira USDTRY, +3.2826% may make real estate in cities like Istanbul and Ankara seem like a bargain for foreign investors, but scooping up property in Turkey could still be a fool’s errand even as the currency stabilizes.
Concerns about Turkish President Recep Tayyip Erdogan’s leadership and the country’s worsening relationship with the U.S. and the European Union sent the Turkish lira EURTRY, +3.8916% reeling to historically low values at the start of the week.
Amid these dramatic fluctuations, some pointed to Turkish real estate as a major buying opportunity. Foreign investment in Turkish real estate has surged in recent years.
Developers sought to capitalize on renewed interest in Istanbul and the improved tourism industry in the country, particularly along the Black Sea. The number of tourists visiting Turkey increased 31% year-over-year during the first five month..Read More →

Opinion: Why gold has performed so poorly even though stock markets are volatile What’s it going to take for gold market timers to become so pessimistic that a contrarian buy signal is finally triggered?
The answer remains just as elusive today as it was a month ago, the last time I asked this question. All we know for sure is that gold’s GCZ8, +0.66% plunge over the last couple of weeks is not enough. That’s because the gold timing community remains less bearish today than on the occasion of previous major lows — despite a plunging gold price.
Consider the average recommended gold market exposure level among a subset of short-term gold market timers (as measured by the Hulbert Gold Newsletter Sentiment Index, or HGNSI). This average currently stands at minus 18.2%. As I have indicated in past columns, previous lows have been accompanied by HGNSI readings at least as low as minus 30%.
To be sure, an HGNSI reading of minus 18.2% is lower than the 0% reading that prevailed a month ago..Read More →