WTI crude closed above $35 and is testing the next resistance at 36, which is not supposed to offer much resistance. The DOW closed up 63 points, Spooz closed up 0.3%, just above the R1 level (~2,000) and the US dollar is losing ground, settling in the low 97's. Short-term indicators are flat to fractionally bullish and depends on what crude does over the next few sessions.
(Reuters) - Wall Street rallied toward its fourth consecutive gain on Friday after employment data reduced investors' worries about a sluggish economy without bolstering fears of future interest rate hikes.
(Reuters) - A majority of Wall Street's top banks now expect the Federal Reserve to raise interest rates only two more times by the end of the year, a downgrade of earlier expectations that may presage the Fed's own revised view of its path when it meets in less than two weeks.
WASHINGTON (Reuters) - The U.S. trade deficit widened more than expected in January as a strong dollar and weak global demand helped to push exports to a more than five-and-a-half-year low, suggesting trade will continue to weigh on economic growth in the first quarter.Â Â
WASHINGTON (Reuters) - U.S. employment gains surged in February, the clearest sign yet of labor market strength that could further ease fears the economy was heading into recession and allow the Federal Reserve to gradually raise interest rates this year.
NEW YORK (Reuters) - A U.S. watchdog agency is preparing to investigate whether the Federal Reserve and other regulators are too soft on the banks they are meant to police, after a written request from Democratic lawmakers that marks the latest sign of distrust between Congress and the central bank.
NEW YORK (Reuters) - U.S. authorities have decided not to pursue criminal charges against any Citigroup Inc executives or employees involved in packaging and selling mortgage-backed securities at the heart of the 2008 financial crisis, a government report shows.
BOSTON/NEW YORK (Reuters) - T. Rowe Price Group Inc plans to vote against key directors at companies with two classes of shares in the upcoming U.S. corporate annual meeting season, as the big asset manager steps up its push against companies that give extra voting clout to insiders.
The last 3 weeks have been a near unprecedented rip higher in stocks... as markets anticipated G-20 cooperative actions (and then BoJ and ECB follow-through) creating a vicious short-squeeze bounce..
This has sent The McClellan Oscillator to its most overbought since January 2009...
What happened then?
The Group of 20 leaders from major developed and emerging economies had pledged on their meeting on Saturday short-term measures such as fiscal stimulus in order to try to keep the global economy from falling into a deep slump and promised to look at ways to tighten regulations to prevent future crisis.
Which sent stocks soaring in another major short-squeeze hope bounce...
US financials are tumbling after The Fed proposed a rule that would limit banks with $500 bln or more of assets from having net credit exposure to a "major counterparty" in excess of 15% of the lender's tier 1 capital. Bloomberg reports that The Fed's governors plan to vote today on the proposal. The implications of this are significant in that it will force some banks to unwind exposures and delever against one another (most notably with potential affect the repo market which governs much of the liquidity transmission mechanisms). Guggenheim's Jaret Seiberg warns the proposal is likely to be "stringent," though less onerous than the Dec 2011 proposal.
*FED ISSUES PROPOSAL ON BANK INTERCONNECTEDNESS IN STATEMENT
*FED TO PROPOSE BIG BANKS CAP CREDIT RISK TO EACHOTHER AT 15%
*BANKS WITH $500 BLN OF ASSETS WOULD FACE 15% LIMIT UNDER RULE
JPMorgan is tumbling...
As Bloomberg reports,
Wall Street giants such as JPMorgan Chase & Co., Goldman Sachs Group Inc. and Citigroup Inc. would face new limits on credit exposure to any other large financial company under a Federal Reserve proposal set for a vote Friday.
The rules, which would limit such exposures to 15 percent of a lender's Tier 1 capital, are meant to ensure megabanks won't take others with them if they fail. The Fed is making a second effort after abandoning a 2011 proposal that called for a cap at 10 percent. Even so, th ...
BlackRock suspended the issuance of new shares in the roughly $8 billion iShares Gold Trust, citing a surge in demand for gold. The suspension could cause the price of shares in the exchange-traded product to rise faster than the price of gold.
In last week's article I laid out a way to use options to buy the exchange-traded fund representing gold at a discount. I said last week that there was a second way to approach the same goal, and we'll look at that here. To be clear, these methods could be used to buy any stock or exchange-traded fund at a discount, not just the one representing gold.
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