Shipping Stocks Should Gain as Dollar Falls

I hope everyone has taken their positions yesterday as the rally should get underway today. Oil, DRYS, GMR will be moving forward today as the USD falls. You should have NXHZ.PK, NPWS.OB, GFGU and AEMC.PK on your watch list as some will start significant gains this week. Markets will be watching for a pickup in existing home sales for further signs of housing improvement. But traders also will be taking positions ahead of Wednesday’s FOMC announcement.

In the coming weeks NXHZ will be highlighting their ISP and VoIP business in the USA and displaying for the first time the real value of their subscriber base, NXHZ is more than a Cable Compnay, NPWS will be in full awareness mode with in 2 weeks and is the hottest company in the alternative energy sector. AEMC are set to go into beta testing their GetOnline business and giving more details on their one-stop film financing services. GFGU is getting ready to be introduced to the market, the people and the technology.

Numbers dominate the week, Today's list is FOMC Meeting Begins ICSC-Goldman Store Sales 7:45 AM ET Redbook 8:55 AM ET Existing Home Sales 10:00 AM ET State Street Investor Confidence Index 10:00 AM ET 4-Week Bill Auction 11:30 AM ET 2-Yr Note Auction 1:00 PM ET and this week we also see Durable Goods news and New Home Sales.

U.S. stock futures edged higher Tuesday after a pounding in the previous session, with investors looking to see if data on housing can soothe battered bulls.

Worries about the potential for an economic recovery dragged U.S. stocks to their worst one-day performance in two months on Monday, with the Dow Jones Industrial Average falling 201 points, the S&P 500 falling 28 points and the Nasdaq Composite shedding 61 points.

After the S&P 500 fell below 900 on Monday, “danger looms of a pullback towards the May low of 879,” said Kenneth Broux, an economist at Lloyds TSB Corporate Markets.

Kevin Gardiner, head of global equity strategy at HSBC Holdings, said he’s still positive on the market. He said in a note to clients:

On a six-month view we think that the risk of being out of the market is bigger than that of being in it: we are not cutting cyclical and financial weights, and we are overweight emerging markets because we think they are high beta. And the glacier of liquidity frozen in money market mutual funds looks as if it may slowly be starting to thaw.

Tuesday’s calendar will feature releases from the housing markets — National Association of Realtors’ report on May sales of existing homes and April FHFA house price data, both at 10 AM EDT — with traders looking for further signs that the key part of the economy is stabilizing.

Economists surveyed by Thomson Reuters predict existing-home sales to rise 2.8%, which would be a good sign the troubled housing market is starting to mend.

Later Tuesday, the Federal Reserve begins its two-day meeting on monetary policy. The Fed is widely expected to keep its key rate near zero, but investors are unsure how optimistic policy makers will be in their economic assessment.

Another cause for caution is the Treasury Department’s afternoon auction of $60 billion in two-year notes. Any evidence that demand for government debt is waning could give investors a scare. Treasury demand needs to stay strong for the government to finance its bailout and stimulus programs without significantly raising yields; Treasury yields affect borrowing rates for average consumers.

In overseas trading, Asian stocks fell sharply while Europe stocks were choppy. The Nikkei 225 finished 2.8% lower in Tokyo and Australia’s S&P/ASX 200 fell 3.1%. The pan-Europe Stoxx 600 fell 0.1% in late morning trade.

Oil futures fell 41 cents to $67.09 a barrel and the dollar dropped against the Japanese yen.

Comments

[User 357705:]

Strong demand for US Treasuries doesn't include the FED buying what the rest of the planet won't!

Jun 23 09:32 AM

[sceral:]

Could you elaborate on Getfugu?

Jun 25 09:41 PM

[meridian575:]

Interesting conjectures. For a comprehensive look at transportation and logistics, including shipping industries and shipping stocks, take a look at Yahoo Finance for a read:
finance.yahoo.com/news...

Oct 16 11:22 AM