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RKTP Capital Management is independently owned with over 14 + yrs experience in the derivative & securities industry, knowledge of the Foreign Exchange & Precious metal markets , along with trading in Capital markets. This combination of experience and ownership cultivates an environment... More
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  • Fed Chatter To End With 'Tapering'???

    How much chatter can the markets absorb??

    In recent days and in fact weeks..."to taper or not" has been the topic for the FED. Yesterday was another example of how markets are "sensitive" to chatter from the FED.

    Instead of the famous quote from Shakespeare's 'Hamlet' "to be or not to be" ...that has been squashed by "to taper or not "???

    With top economists, analysts, traders, investors, news media....why all the "hype"? In my view, this theme is effective for the FED to distract the current U.S. economy and it's "stagnating growth". The cards are revealed...we all know the FED has no other option but to "continue injection stimulus or purchase more bonds"...regardless of the terminology..."digital printing presses will continue".

    The question remains....can the FED play this game on distracting by "playing the taper card" and how long will this game continue before the "table calls the bluff"??

    In Canada, newly appointed Stephen Poluz either can play along...or take the lead...and not allow his decisions to be swayed by the Fed's "unstable policies". Poluz has an economy that has expanded it's "free trade" ties with other nations...and can the Canadian economy diversify it's current exports to the U.S. @ 85 to 90 percent and have a mix involving it's current agreements with China, Europe, Latin America & South America.

    Overall, the "chatter" will remain and what theme can we expect for 2014??

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Aug 06 11:10 AM | Link | Comment!
  • Yellen Or Summers To Replace Bernanke??

    Yellen or Summers to replace Bernanke???

    Since last week, market speculation via traders, analysts, economists..even U.S. senators are all speculating about possible Bernanke replacement.

    Truly..does it matter????

    The issue at hand is not, whether it should be a male instead of a female to represent the Fed as some are indicating or that Summers was the main reason for the creation of the "Financial crash in 2008". The topic should be...will the newly appointed "Fed Chairman" if it happens..implement a "new solution" instead of the "stimulus injection" process that is causing a future "debt bubble burst".

    We all know that the FED's 'cards are displayed', there is no other option but to just continue with the 'digital printing'. In fact, Japan, U.K. and the ECB has continued this process. The FED has been a major influence for other central banks to continue this option. A new direction is required and if the U.S. is considering to take the 'lead' they will need to provide confidence to investors and the markets that they 'can control their current bubble'. Also, can the USD remain the reserve currency if the situation has not changed??

    The question is....will that be the FED's agenda..or continue with 'status quo'.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Jul 29 11:18 AM | Link | Comment!
  • Chinese Riddle???

    The dollar is higher against the majors but down a bit against the CAD and AUD, possibly on recoveries in oil and some metals. Sentiment seems fairly pro-risk but a bit schizo since equity markets in Asia tanked but European bourses and US equity index futures are higher. We have a ton of data and fresh news this week.

    It will be easy to get distracted.

    The 10-year Treasury yield hit a new high of 2.74% late Friday, closing down around 2.72% and quoted at 2.71% this morning (NYSE:FT), although we also see 2.69%.

    Fear of a Chinese hard landing is returning but not at panic levels yet.

    Peripheral European sovereign debt worries are shrugged off on some improvement in conditions in Greece and Portugal.

    The Fed remains in the spotlight, with the minutes of the June meeting due for release on Wednesday, when Bernanke speaks in Boston about policy, but will not be attending the Jackson Hole shindig that starts on Friday.

    The euro is recovering correctively this morning to 1.2960 so far around 7:30 am ET after hitting the ropes on Friday on US payrolls, a low of 1.2803, nearly to the lowest low from May 17 at 1.2793. Those old lows have some real juice sometimes. We had to expect a pullback after such a big drop. We get linear regression resistance at 1.2950.

    Notice that position adjustments seems to have outweighed the hard news, which otherwise would seem to be euro-negative. First, over the weekend, ECB VP Noyer tried to downplay Draghi's "forward guidance." The mandate remains the same, he said, referring to inflation.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Jul 09 10:08 AM | Link | Comment!
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