Americas Petrogas was identified as a Momentum Trade using Incredible Charts screen #48894.
![Americas Petrogas [BOE]](https://i0.wp.com/www.incrediblecharts.com/images/2012/2012-03-01-boe-ca.png?w=1140&ssl=1)
Narrow consolidation is bullish and Thursday’s long tail/hammer candlestick indicates good support at $4.00.
Five Largest Banks ‘Should Be Broken Up’: Fed’s Fisher – CNBC
The five biggest banks in the United States are too powerful and should be broken up, Dallas Fed President Richard Fisher said on Wednesday.
The financial crisis has left the five biggest banks even more powerful than before, he said at an event in Mexico City……
“After the crisis, the five largest banks had a higher concentration of deposits than they did before the crisis,” he said. “I am of the belief personally that the power of the five largest banks is too concentrated.”
via Five Largest Banks ‘Should Be Broken Up’: Fed’s Fisher – US Business News – CNBC.
Heard on the Street: China Shifts Out of Dollars, World Doesn’t End – WSJ.com
In the 12 months to June 2011, dollar purchases accounted for just 15% of additions to China’s reserves.
That confirms hints from Beijing and Europe over the past year that China has ramped up purchases of European debt
via Heard on the Street: China Shifts Out of Dollars, World Doesn’t End – WSJ.com.
Forex: Aussie Dollar, Canadian Loonie and South African Rand
The Aussie and Canadian Dollar mirror the CRB Commodities Index, testing resistance at their long-term highs. The Aussie encountered resistance at $1.08. Breakout would confirm a primary up-trend — already signaled by 63-day Twiggs Momentum above zero.
* Target calculation: 1.08 + ( 1.08 – 0.96 ) = 1.20
Canada’s Loonie is similarly testing resistance at $1.01. Breakout would offer a target of $1.06*.
* Target calculation: 1.01 + ( 1.01 – 0.96 ) = 1.06
The South African Rand is fairing slightly better, with the Aussie testing medium-term support at R8.00. Failure would warn of a correction to the long-term rising trendline at R7.50.
* Target calculation: 8.00 – ( 8.50 – 8.00 ) = 7.50
Forex: Europe and Japan
The Euro is in a primary down-trend despite the latest rally, headed for a test of the descending trendline. Expect retracement to test support at $1.32; breach of $1.30 would warn of another test of primary support (at $1.26).
* Target calculation: 1.32 – ( 1.42 – 1.32 ) = 1.22
Pound Sterling broke its descending trendline several weeks ago and is headed for a test of resistance at $1.62. Upward breakout is unlikely at present, but recovery of 63-day Twiggs Momentum above zero would be a bullish sign.
The US Dollar is retracing to test the new support level after breaking long-term resistance at 80 Japanese Yen. Recovery of 63-day Twiggs Momentum above zero, after a long-term bullish divergence, indicates a primary up-trend. Expect a test of the 2011 high at ¥85.
* Target calculation: 80 + ( 80 – 75 ) = 85
Contrarian view: ECRI’s Lakshman Achuthan says economy is slowing
ECRI’s Lakshman Achuthan says the economy is slowing:
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EconoMonitor : Note from Athens: Feeling on the Ground Has Palpably Changed
Despite the clear sense of despair and anger in Greece, politicians and members of the public continue to think that the alternative—default and EZ exit—would be even worse.
……Among the increasingly popular fringe left- and right-wing parties, the only party actually advocating a EZ exit is the communist party, or KKE. The KKE will have just over 10% of the vote in the election in April according to most estimates and refuses to cooperate with any other parties in a coalition. For now, the rest of the political establishment advocates doing whatever it takes to remain in the EZ.
….. most Greeks express desperation to stay in the EZ. This is reflected in recent opinion polls: according to a poll conducted in February for Skai TV and Kathimerini, 70% of respondents said a EZ exit and return to the drachma would make Greece’s situation worse and 61% said they viewed the euro favourably.
via EconoMonitor : RGE Analysts » Note from Athens: Feeling on the Ground Has Palpably Changed.
ECB Allots €529.5 Billion in Long-Term Refinancing Operation – WSJ.com
LONDON—The European Central Bank said it handed out €529.5 billion $712.7 billion in cheap, three-year loans to 800 lenders, the central bank’s latest effort to arrest a financial crisis now entering its third year. Wednesday’s loans were on top of the €489 billion of similar loans the ECB dispensed to 523 banks in late December. The ECB’s goal is both to avoid an escalating crisis as banks struggle to pay off maturing debts and to mitigate a sharp pullback in bank lending to customers across ailing European economies……about two-thirds of the loans went to banks in three euro-zone countries — two in the “periphery,” likely Spain and Italy, and one in the “core,” likely France or Germany.
via ECB Allots €529.5 Billion in Long-Term Refinancing Operation – WSJ.com.
Momentum trades: Northern Graphite Corporation [NGC]
NGC turned up in my Momentum Stock Scan, but bearish divergence on 21-day Twiggs Money Flow warns of short/medium-term selling pressure.
But respect of the bottom trend channel (at $1.80) and recovery above $2.00 would mean all’s forgiven and we can expect another advance.
Equipment Demand Hasn’t Dropped Out, Just Taking a Breather – WSJ
New orders for durable goods fell 4.0% in January. And bookings for nondefense capital goods excluding aircraft — a measure of future business spending on equipment — dropped 4.5%. Although the declines were larger than expected, they shouldn’t raise alarm bells. That’s because much of the weakness traces to special factors.
The first is the end of a tax credit that allowed 100% deduction for equipment bought last year. Not surprisingly, businesses front-loaded their purchases early in 2011.
The second reason is a quirk in the very volatile orders series: New bookings tend to fall in the first month of a quarter, then rebound in the second or third months. The pattern is especially acute in the first quarter.
via Equipment Demand Hasn’t Dropped Out, Just Taking a Breather – Real Time Economics – WSJ.
Comment:~ Accelerated tax write-offs stimulate new capital investment by the private sector, as companies bring forward or initiate expenditure in order to take advantage of the tax deduction. But there is bound to be a (partial) offset when the accelerated write-offs are removed.