Heads-up News 

Sydney Trading Session Heads Up Wednesday, November 7, 2018

Sydney opening news digest

Is Ether On The Verge Of A Massive Breakout?

Will ether rally sharply in the last few months of this year?


The Cyclicality Of Style And Location

Mean reversion is the concept that given enough time, individual asset class returns revert to their long run averages. We trace the magnitude and duration of this cyclical effect on investments on both growth vs value and domestic vs international in this KnowRisk Report.


Positive Results On Main Street But Wall Street Seems Skittish

It would be typical to expect stellar employment reports to lead to a rise in equity indexes. But, today is not typical.


3 Alternative Investments To Consider Outside The Stock Market

We are in an aging bull market for stocks and many people are worried that the great run we have enjoyed over the past decade is coming to an end. Especially, because it has been ten years since we have seen a month as volatile as October.


Netflix’s Momentum Has Run Out

The noise-trader momentum driving the stock is evaporating, the company’s mounting (and increasingly expensive) debt poses a significant near term liquidity risk, and the bull case is full of holes.


India’s Booming Economy Expected To Firm Up Gold Demand

Starting today, the five-day festival known as Diwali—literally, “a row of lights”—will be observed by millions of Hindus, Sikhs and Jains worldwide. A celebration of good triumphing over evil, the festival typically coincides with the Hindu new year.


Why Alphabet & Microsoft Will Benefit From Micro-Bubbles Bursting

I think these stocks will see a lot of capital flow to them when the second micro bubble bursts.


Democratic Takeover Of House Could Be End For Trump Defense Buildup

The most likely outcome going forward is that military budgets will flat-line for the remainder of the Trump presidency, presenting the services with painful choices about their highest priorities. Here are the possible impacts for individual weapons systems and initiatives.


Weak Debt Origination Activity In Q3 Impacted Bank of America More Than Its Peers

The weakness in global debt capital markets had a notable impact on debt origination fees earned by investment banks around the globe in Q3


A Worldwide Debt Default Is A Real Possibility

Is debt good or bad? The answer is “Yes.”
Debt is future spending pulled forward in time. It lets you buy something now for which you otherwise don’t have cash yet.


With Midterms Over, Stock Market Sentiment Seems Positive

This morning, investors appear to be optimistic a day after midterm elections in the United States. The positivity seems to be coming as one source of uncertainty is now behind the market.


PREPA’s Privatization, A Rainbow Unicorn

The Puerto Rico Electric Power Authority’s (PREPA) proposed privatization is not the magic elixir for improving the utility plagued by political meddling and corruption. Improving PREPA will depend on achieving independent governance, regardless of whether PREPA is a private or public entity.


As FAANG Stocks Get Old, The Next Technology Wave Is Called TAND

The success of FAANG companies has given them outsize influence on the markets and society. We’re taking a look at the next crop of possible long-term tech winners. We call them TANDs.


5 Dividend Aristocrats Where Analysts See Capital Gains

To become a “Dividend Aristocrat,” a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years.


European Markets Too Relaxed Regarding Roman Risk

The very future of the Eurozone and European project is at risk if Italy refuses to draft a new budget by November 13th. Rome refuse to retreat, so I see markets as overvaluing Italian debt.


3 Popular Dividends On The Verge of Collapse

It’s a pitfall that can slash your income and your nest egg overnight—and this hidden trap is particularly dangerous to your financial health right now.


Morgan Stanley Regains Top Spot In Equity Underwriting Fees For Q3

Fears of an impending global trade war and several other macroeconomic trends had a negative impact on equity capital market activity over the third quarter of 2018, with companies around the globe delaying plans of IPOs or FPOs to avoid choppy market conditions.


Goldman’s Q3 M&A Advisory Fees Crossed $900 Million Despite Reduction In Global Deal Activity

The five largest U.S investment banks reported over $2.5 billion in M&A advisory fees in Q3 2018 – a reduction of roughly 7% from the figure of $2.7 billion a year ago as well as in the previous quarter.


Here’s Why You Should Not Sell Stocks

“Stocks are plunging… what should I do?” That’s the #1 question readers are asking me .


EUR/USD Rate Outlook Hinges of Fed Forward-Guidance

EUR/USD remains bid ahead of the Federal Reserve meeting, with the exchange rate at risk for a near-term rebound amid the failed attempt to test


DJIA Bulls Push Above 26k, Bears Shy Away After Mid-Terms

Stocks are jumping today following yesterday’s mid-terms, and this extends the November recovery from the October sell-off.


NZD/USD Correction to Face Dovish RBNZ Forward-Guidance

The Reserve Bank of New Zealand (RBNZ) meeting may curb the NZD/USD correction should the central bank endorse a dovish forward-guidance for monetary policy.


GBP/USD: Cable Bulls Rush Back to the Bid, Find Fibonacci Resistance

A brutal October has led into a very bullish November, at least so far, for the British Pound. But with prices nearing a big zone


Gold Price Outlook: XAU/USD Carves Range inside Key Resistance

Gold has carved out a well-defined weekly/monthly opening-range just below key resistance. These are the targets & invalidation levels that matter on the XAU/USD charts.


NZDUSD Outlook: RBNZ May Spark Larger Short Squeeze

NZDUSD Outlook: RBNZ May Spark Larger Short Squeeze


US Dollar in Holding Pattern After Midterms, Ahead of FOMC Tomorrow

The DXY Index is working on a doji candle as attention shifts away from US midterm elections to the November FOMC meeting.


Sentiment Data Point to Higher EURUSD, GBPUSD After US Elections

Retail trader sentiment data suggest gains for both the Euro and the British Pound against the US Dollar after the US mid-term elections.


US Dollar Tests Trend-Line Support After Mid-Terms; FOMC Ahead

One major risk event is now in the rearview with yesterday’s mid-term elections, and another is on the horizon with today’s FOMC rate decision. The


Crude Oil Boosted on OPEC Jawboning, NZD Soars Ahead of RBNZ – US Market Open

Crude Oil Boosted on OPEC Jawboning, NZD Soars Ahead of RBNZ – US Market Open


Bitcoin Cash and Ripple: Boosting Market Sentiment | Webinar

The cryptocurrency market broke slightly higher over the last few days and volume picked-up. Is the recent market torpor about to be broken?


Wall street closes within a sea of green, and Trump didn’t seem so ‘blue’ after all

The stocks markets have been on fire and as far as Wall Street went, it was a sea of green despite a wave of Blue hitting the White House.



RBNZ Orr says that they will not rule out a rate cut (NZD/USD jittery)

RBNZ’s Orr is speaking in the presser and has said that they are not taking a rate cut off the table. 

Data dependent RBNZ leaves Official Cash Rat


NZD/USD Technical Analysis: Kiwi runs into 0.6800 resistance as the RBNZ leaves rates on hold

NZD/USD 4-hour chart


    Last Price: 0.6784
    Daily change: 1.1e+2 pips
    Daily change: 1.71%
    Daily Open: 0.667


Equity markets rallied strongly in Europe and the US – Westpac

Analysts at Westpac explained that equity markets rallied strongly in Europe and the US as the election results were digested. 

Key Quotes:

“The US


US elections: A fiscal divide means fiscal tightening – CIBC

Analysts at CIBC, point out the legislative inaction will not translate into a non-event for the US economy in the final two years of Donald Trump’s f


AUD/NZD: en-route towards May and June lows at 1.0657/70

AUD/NZD dropped below the 200 week moving average at 1.0762 for the first time in four months after this week’s jobs data that followed a series of mo


EUR/JPY Technical Analysis: Euro bulls challenging the 130.00 handle after 350-pip bull-run

EUR/JPY 4-hour chart

Resistance 1:    130.00 figure
Resistance 2:    131.00 figure
Resistance 3:    131.90 September 24 low

Support 1:      129.50


NZD/USD drops modestly after RBNZ, holds near 0.6800

The NZD/USD pair remained around 0.6780/90 following the decision of the Reserve Bank of New Zealand to keep rates unchanged as expected. The kiwi pea


Data dependent RBNZ leaves Official Cash Rate (OCR) at 1.75%

The RBNZ has left the Official Cash Rate (OCR) at 1.75% and says expects to keep the OCR at this level through 2019 and into 2020.
RBNZ says there are


United States Consumer Credit Change registered at $10.92B, below expectations ($16.5B) in September

United States Consumer Credit Change registered at $10.92B, below expectations ($16.5B) in September


New Zealand RBNZ Interest Rate Decision meets expectations (1.75%)

New Zealand RBNZ Interest Rate Decision meets expectations (1.75%)


Gold fails to hold to gains and retreats to $1,225

Gold rose earlier today to $1,236 and tested weekly highs but failed to break higher and pulled back, erasing all daily gains. Price dropped to $1,225


RBNZ to step up to the plate – ANZ

Analysts at ANZ Bank New Zealand Limited noted that the RBNZ is coming up.

Key Quotes:

“Despite the stronger starting point for GDP, CPI and yesterd


Market wrap: US results are in, global equities welcomed reduced US political uncertainty – ANZ

In a market wrap, analysts at ANZ Bank New Zealand Limited explained that global equities are welcoming reduced US political uncertainty. 

Key Quotes


When is the RBNZ and how might it affect NZD/USD?

RBNZ overview

The RBNZ is expected to leave the Official Cash Rate (OCR) at 1.75% at its policy meeting today, however, this meeting will garner far


Global growth outlook tilted to the downside – Wells Fargo

According to analysts at Wells Fargo, global growth may be starting to slow. The see the slowdown in China as one of the main concerns. 

Key Quotes:


EUR/USD bulls find it tough at the top, losing sight of 61.8% fibo

EUR/USD had been sliding since the markets digested the results of the midterms while the DXY drifts back some ground lost. DXY has drifted higher fro


AUD/NZD Technical Analysis: Next target at 1.0680, if RBNZ allows it

AUD/NZD Daily chart

Spot rate:                   1.0721
High:                          1.0765
Low:                           1.0715

Resistance 1:


US: Outcome of the midterm elections does not materially impact growth outlook – Westpac

According to Richard Franulovich and Sean Callow, Strategists at Westpac,  the lack of a major surprise in the mid-term US elections limited the net m


FOMC: Reserves are likely to be the focus in November – Standard Chartered

Analysts at Standard Chartered, point out that the FOMC will need to decide soon whether bank reserves remain abundant or return to scarcity. They exp


AUD/USD Technical Analysis: Aussie meets 0.7300 brick wall as the bulls are running out of steam

AUD/USD 4-hour chart

Main trend:              Bullish

Resistance 1:          0.7300 figure
Resistance 2:          0.7383 August 21 high


US: Home sales forecast lowered – Wells Fargo

Analysts at Wells Fargo, have further reduced their forecasts for home sales and new home construction following the recent string of weaker housing r


FOMC expectations: risk is for a modest dovish market interpretation – TDS

Analysts at TD Securities expect that the November FOMC meeting should pass without much market impact, as the Fed should remain on track for another


AUD/USD: has eroded the 0.7240 2018 channel, eyes now to 0.7474 9th July high

AUD/USD has rallied from 0.72 the figure and the heels of the Kiwi that came out with some very impressive jobs data yesterday. The dollar was also on


United States 30-Year Bond Auction climbed from previous 3.344% to 3.418%

United States 30-Year Bond Auction climbed from previous 3.344% to 3.418%


S&P500 Technical Analysis: US Stocks running into 2,800.00 figure

S&P500 daily chart

Main trend:               Bullish
Resistance 1:           2,800.00 figure
Resistance 2:           2,834.25 October 10 low


Trump’s Press conference Q&A: I will ‘probably’ meet NK leader early next year/ China 2025 is NOT happening, we will do a trade deal

US President Donald J Trump is holding a press conference and is now taking questions from the press following the outcome of the Mid-Term Congression


USD/JPY trims losses, consolidates around 113.30

The USD/JPY pair trimmed losses during the American session amid a recovery of the US Dollar across the board, following US election results. The pair


USD/JPY Technical Analysis: The 113.00 figure is still on the bears radar

USD/JPY 4-hour chart

Main trend:               Bullish

Resistance 1:    113.55 October 2 low
Resistance 2:    114.00 figure
Resistance 3:    114.5


Trump’s Mid-Term Election press conference fresh rolling comments: We will work together with Democrats

US President Donald J Trump is holding a press conference following the outcome of the Mid-Term Congressional Elections whereby the Democrats have tak


Morning News: November 7, 2018 Crossing Wall Street

Markets Got the Midterms Right. Now What Happens?

What the Election Results Mean for Business

Job Openings Outnumbered Unemployed Americans by More


The Dow jumps more than 250 points after Democrats take House, Republicans strengthen Senate majority | Markets Insider

Stocks rose Wednesday following the 2018 midterm elections.
Democrats captured control of the House, while Republicans expanded their Senate majority.


Square slides after 4th-quarter earnings guidance whiffs (SQ) | Markets Insider

Square reported third-quarter results after Wednesday’s closing bell that beat on both the top and bottom lines.
Shares slid 6% in after-hours tradin…


The cannabis producer Tilray is going bananas after Jeff Sessions resigns as attorney general (TLRY) | Markets Insider

Attorney General Jeff Sessions, a longtime opponent of legal marijuana, resigned Wednesday as attorney general.
The cannabis producer Tilray surged 30% on…


Samsung finally unveiled details about its foldable smartphone — here’s how it works

Samsung showed off a foldable smartphone that it created using a new type of display called “Infinity Flex.”


Goldman Sachs just handed a group of executives one of the best titles on Wall Street. Here are some of the standouts.

Of the 69 new partners at Goldman Sachs, we highlighted a few standouts from different areas across the bank.


The owner of Tinder tanks after delivering weak revenue guidance (MTCH) | Markets Insider

Match Group, the owner of Tinder, beat on both the top and bottom lines.
The dating-service provider delivered fourth-quarter revenue guidance that fell s…


Here’s what Wall Street is saying about the midterm election results | Markets Insider

‘The act of impeachment alone could create noise in markets-although we don’t see any potential decline (or bounce) as long-lasting. Why? Generally spea…


Shares of $9 billion cloud communications company Twilio stock soars 34 percent after reporting a huge beat on earnings

The $9 billion cloud communications platform Twilio saw its stock surge after it posted earnings. Here’s what Twilio reported.


Europe’s anti-monopoly chief conducted ‘very preliminary investigations’ into Apple but decided it’s ‘not a dominant company’

Apple and its investors will thus be relieved they are no longer in her searchlight.


Goldman Sachs just named a new crop of partners. Here’s a list of the bankers who joined one of the most exclusive clubs on Wall Street.

Goldman Sachs named its new partners on Wednesday. Here’s a list of the bankers who just joined one of the most prestigious clubs on Wall Street.


Uber’s board reportedly held a ‘marathon meeting’ as it grapples with its ties to Saudi Arabia

After the murder of journalist jamal Khashoggi, Saudi Arabian investments are being looked at with increased scrutiny — and it could put Uber’s IPO in jeopardy.


ANALYST: These are the next 4 states to legalize marijuana | Markets Insider

Weed stocks are rallying after Michigan legalizes marijuana for recreational use


A $2 trillion strategist warns that a trap has formed in the biggest tech stocks — and pinpoints where you should put your money instead

The tech sector has become a trap for investors trying to replicate their prior success, and a $2 trillion strategist has ideas for what you should by instead.


Dialysis stocks surge after California rejected a limit on dialysis clinic revenues in the midterm elections

Dialysis stocks are up Wednesday following the midterm election. California voters rejected Proposition 8, which would’ve limited the revenue of dialysis clinics in the state.


Papa John’s jumps after posting sales slump less than expected (PZZA) | Markets Insider

Papa John’s missed on both the top and bottom lines, but its comparable sales slump was better than feared.
The pizza chain slashed the high end of its pr…


Colorado rejects drilling restrictions, sending oil explorers soaring (APC, NBL) | Markets Insider

Colorado voters in Tuesday’s midterms rejected Proposition 112, which would have restricted oil exploration in the DJ Basin.
Oil explorers that operate in…


Weed stocks are rallying after Michigan legalizes marijuana for recreational use | Markets Insider

Voters in Tuesday’s 2018 midterm elections made Michigan the 10th US state to legalize the recreational use of marijuana.
Utah and Missouri legalized the …


How do you profit from an election outcome everyone saw coming? One expert outlines an overlooked trade that could make you a killing

The 2018 midterm elections went as expected, but Dennis DeBusschere of Evercore has a trade he says is going largely overlooked.


Michael Kors tanks after missing on sales and seeing comparable sales down in low-single digits (KORS) | Markets Insider

Michael Kors beat on profits but missed on sales.
Its same-store sales dropped  2.1%, mostly due to a decline in the European market.
The compan…


TripAdvisor shares surge more than 10% on earnings beat

TripAdvisor Inc. TRIP, +1.88% shares rallied in the extended session Wednesday after the travel site’s quarterly earnings topped Wall Street estimates


Dow, S&P 500 log best day in 3 weeks, surging after midterm elections and after ouster of AG Sessions

U.S. stocks on Wednesday registered the best day in weeks following midterm election votes that resulted in a split Congress, as expected, but removed


Roku stock plunges after earnings beat, weak profit forecast

Roku Inc. ROKU, +5.83% shares dropped more than 10% in after-hours trading Wednesday despite a quarterly earnings report that topped expectations, as


IAC stock falls after third-quarter earnings

Shares of IAC/InterActiveCorp. IAC, -6.02% were down 1.9% in after-hours trading after the company beat third-quarter revenue expectations and announc


Qualcomm stock rises following earnings beat

Qualcomm Inc. QCOM, -0.66% shares rose in the extended session Wednesday after the chipmaker topped Wall Street estimates for the quarter. Qualcomm sh


Dow jumps by more than 500 points after ouster of Attorney General Jeff Sessions

The Dow Jones Industrial Average DJIA, +2.13% surged by more than 500 points late Wednesday, with the blue-chip gauge taking a fresh leg higher after


Key House Democrat wants answers about why Sessions was forced out

Rep. Jerry Nadler, the New York Democrat who is slated to lead the House Judiciary Committee next year, said he wanted “answers” on why Attorney Gener


Jeff Sessions resigning as attorney general, Trump announces

Jeff Sessions is resigning as attorney general and will be replaced by his chief of staff Matthew Whitaker, President Donald Trump said Wednesday. The


ITG settles SEC suit for allegedly misleading dark pool subscribers

The Securities and Exchange Commission announced Wednesday that ITG Inc. ITG, +8.29% and its affiliate AlterNet Securities will pay $12 million to set


GE’s stock resumes tumble toward 9 1/2-year low

General Electric Co. GE, -2.34% investors only got a one-day reprieve, as the struggling diversified industrial company’s stock resumed its tumbled to


Coty changes distribution center plan after ‘bad’ earnings report, shares tank 21%

Coty Inc. COTY, -22.54% Chief Executive Camillo Paine said the beauty company will “modify” its distribution center consolidation plan for the rest of


Treasurys see post-midterm rally fade after ‘sloppy’ 30-year bond auction

Treasury prices shed their earlier gains, pushing yields off their sessions lows, after a 30-year bond auction drew poor demand from investors. The 10


Dow retakes perch above 26,000 for first time since early October

The Dow Jones Industrial Average DJIA, +2.13% was rallying on Wednesday, rising above a psychological level at 26,000 for the first time in about a mo


Amazon’s stock surges back above the 50-day moving average, after Alexa learns Spanish

Shares of Amazon.com Inc. AMZN, +6.86% surged 5.7% in midday trade Wednesday, enough to pace its consumer discretionary peers, after the e-commerce an


Trump blasts CNN’s Acosta at testy post-midterm news conference

President Donald Trump tore into CNN’s Jim Acosta at a White House news conference on Wednesday, calling the reporter a “rude, terrible person.” Acost


Stock market on track for best day in November as Trump touts history defying Senate win for GOP

U.S. stock benchmarks midday Wednesday were trading at intraday highs, as President Donald Trump championed the successes of GOP candidates in midterm


Citi fined by SEC over handling of U.S.-listed shares of international companies

Citigroup C, +2.37% was fined $38.7 million by the Securities and Exchange Commission over its handling of what are called “pre-released” American Dep


Etsy’s stock soars toward biggest gain in over 3 years after earnings beat

Shares of Etsy Inc. ETSY, +23.70% shot up 27% in active midday trade, putting them on track for the biggest one-day gain in over three years, after th


Voters shopped on their mobile devices while they waited in line at the polls on Election Day

A quarter of all sales on Election Day (25.1%) took place on smartphones, according to data provided by Adobe, up 28.3% from smartphone sales activity


S&P 500 finds purchase above a long-term trend line for the first time since late October

The S&P 500 index SPX, +2.12% climbed 1.2% midday Wednesday, trading above its long-term trend line for the first time in a few weeks. The S&P 500 ind


Papa John’s needs a buyer, and fast, analysts say

Papa John’s International Inc. PZZA, +5.48% is in need of a buyer, say Stifel analysts led by Chris O’Cull. The pizza delivery company, which has been


McConnell eyes infrastructure in next Congress as he warns Democrats against ‘presidential harassment’

Senate Majority Leader Mitch McConnell said Wednesday he discussed infrastructure as a potential area of compromise with House Minority Leader Nancy P


Dow surges 270 points, pops above 50-day moving average, as McConnell signals infrastructure bill still possible

The Dow Jones Industrial Average traded near session highs Wednesday morning, as investors appeared to assume a sanguine stance after midterm election


EIA reports a 7th straight weekly rise in U.S. crude supplies

U.S. oil prices turned lower Wednesday after the Energy Information Administration reported that domestic crude supplies rose by 5.8 million barrels f


Apple isn’t in settlement talks with Qualcomm, says CNBC

CNBC reported Wednesday that Apple Inc. AAPL, +3.03% isn’t holding settlement talks with Qualcomm Inc. QCOM, -0.66% regarding an ongoing dispute about


MiMedx stock plunges after receiving delisting notice from Nasdaq

Shares of MiMedx Group Inc. MDXG, -41.16% plummeted 34% to pace all Nasdaq losers in morning trade Wednesday, after the biopharmaceutical company disc


Dow rises by 250 points after midterm elections signal split Congress; Fed policy update looms

U.S. stock benchmarks opened solidly higher early Wednesday, as investors braced for a divided Congress and looked ahead to an updated policy statemen


Target upgraded as price, digital, private labels expected to drive up shares

Target Corp. TGT, +1.37% was upgraded to outperform from market perform at Cowen as analysts see the company’s price value, tech-enabled pickup option


Newell Brands shares jump 3.5% on news to sell businesses for $2.5 billion in proceeds

Newell Brands Inc.’s shares NWL, +1.10% soared 3.5% in premarket trade Wednesday, after the owner of brands including Paper Mate and Sharpie said it i


DailyFX: FOMC Preview& USD Outlook

-Subscribe to DailyFX: https://www.youtube.com/DailyFXNews?sub_confirmation=1 -Visit DailyFX: https://www.dailyfx.com Welcome to DailyFX where subscribers ge…


Cryptocurrency Sentiment May be Turning Positive | Webinar

The cryptocurrency market capitalisation expanded by around 8% over the last week and turnover picked-up. Are buyers slowly returning to the market? -Subscri…


USD JPY and AUD USD Forecast November 8, 2018

The US dollar has gone back and forth during the trading session on Wednesday in reaction to the election results, which have been erratic to say the least. …


EUR/USD and GBP/USD Forecast November 8, 2018

The Euro went back and forth rather wildly during trading on Wednesday, mainly in reaction to the midterm elections in America. Ultimately though, I think tr…


S&P 500 and NASDAQ 100 Forecast November 8, 2018

The S&P 500 rose rather significantly during the trading session on Wednesday, breaking above the 2800 level initially. Ultimately, this is a good sign that …


Bitcoin Forecast November 8, 2018

Bitcoin markets did rally a bit overnight, but most of the session on Wednesday was rather quiet although above the $6500 level. That’s an area that was prev…


WTI Crude Oil and Natural Gas Forecast November 8, 2018

The WTI Crude Oil market continues to fall lower, breaking significantly below the $62.50 level during the Wednesday session. I believe that ultimately we co…



When trading the FX markets, it is absolutely vital that you know when to cut your losses. By being able to identify when it is time to get out of a trade, y…


Vanadium stocks to watch as prices reach record highs

With vanadium supply constricting and demand expanding, John Meyer, mining analyst and partner at SP Angel, explains that there are not many plays within the…


October’s ‘market heart attack’ livens the Fed debate

Mike Ingram, chief market strategist at WH Ireland, says there’s a 75% chance of a hike from the Federal Reserve (Fed) in December and just a 10% chance this…


Cheer Up


The justification for profit is profit.


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Have a nice trading!

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