The World Trade Organization (WTO) has revised downward global trade growth for 2016 from 3.9% to 2.8%. This is the same rate of growth for 2015 and it is the fifth year in a row, that it has remained below 3%. The slowdown in China and the volatility in world markets, continue to depress growth on a broad level.
The present divide among officials in the United States Federal Reserve Bank (Fed) between those that think interest rates should be raised immediately and others that prefer to wait, is creating more market volatility by increasing uncertainty among investors. The central bank has already reduced the planned number of rate increases from four to two in 2016.
Investors and economists are growing increasingly concerned that the ECB (European Central Bank) might have gone too far with negative interest rates, bond buying and other methods of quantitative easing.
The United States (U.S.) Treasury Department is moving to implement long delayed rules forcing banks and other financial institutions, to discover the identities of the numerous shell companies that have been set up to avoid taxation. The leak of the Panama Papers scandal is providing fresh impetus for this action.
The release of these documents deemed the largest in history, have already forced the resignation of the Prime Minister of Iceland. Many former and current leaders have been implicated including those from Russia, the Ukraine and the United Kingdom. Numerous international corporations are also involved.
One of the first casualties of new rules being imposed by the U.S. Treasury Department to hamper corporate inversions, is the giant $160 billion USD pharmaceutical merger of American based Pfizer with Allergen. It would have been the largest health sector deal ever.
Pfizer will need to pay a $400 million USD termination fee as part of the disengagement. Shares in Allergen plunged 22%, as a result of the failed merger plans.
At the beginning of the week investors were looking at the Dow Jones Industrials to hit 18,000 once again. Instead the main exchange headed south and ended the week in the low 17,600 range, despite a triple digit increase on Friday morning.
As of 2013, Germany is the third largest exporter and third largest importer in the world, producing the largest trade surplus globally as a national economy.
The retreat in the American markets are largely the result of ominous warnings that quarter two corporate earnings of US companies overall, will continue to be dismal.
Factory orders in Germany fell to a six month low in the month of February at 1.2%, as a result of lower foreign demand and reduced bulk order purchases domestically.
Argentina will rejoin the global debt markets next week. The more than $12 billion USD (United States Dollar) that is expected to be raised, will help balance the domestic budget of the country as well as pay off the last of the holdout creditors.
The Congress in Brazil is moving ever closer to impeaching embattled President Dilma Rousseff. A legislative committee is recommending that lawmakers vote in favor of her trial to be held in the Senate. If she does not gain more support in Congress soon, she could be out of power as soon as May of this year. Her appointment of her predecessor and mentor as her chief adviser, so he could avoid prosecution, has hurt her credibility enormously.
4th President of South Africa, in office since 2009.
There was another round of impeachment proceedings against South African President Zuma this week. The scandal is a result of the president using the equivalent of $16 million USD in public funds on his private residence. He survived this round, but will face increasing calls for his ouster.
The controversial agreement to return Syrian refugees from Greece to Turkey resumed on Friday, after some legal difficulties earlier in the week.
On Thursday the USD sank to a 17 month low against the yen. The American dollar has dropped in valuation nearly 10% against the currency of Japan, with 3% of that occurring in the last week alone. The rapid decline is causing concern among Japanese officials, concerned about deflationary pressures within their domestic economy.
There was good economic news from China this week. The services sector reported better than expected results for March. It was the strongest expansion of business activity data in 11 months. Of course, it comes on the heels of disappointing manufacturing activity released last week.
North Korean Unha-3 space launch vehicle at Sohae Satellite Launching Station
It has been determined by the South Korean government, that North Korea is now capable of mounting a nuclear warhead on its medium range missiles. This would make sites vulnerable to attack not only in South Korea but, China, Japan and Russia.
The Reserve Bank of India has cut the repo rate by 25 basis points to 6.5%. It is now at the lowest level in more than five years.
Australia on the other hand, left interest rates at a record low 2%. There is evidence of growth in the domestic economy, despite a stronger currency.
The governor of the American territory of Puerto Rico has now signed an emergency bill, allowing his administration to halt debt payments until January 2017. The $72 billion USD in loans owed has become unmanageable, unless there is a major financial restructuring or a bailout from the United States Congress. Creditors insist the action is illegal.
In business news Chinese based Alibaba, now claims to be the largest retail company in the world as measured by gross merchandise volume. If proven to be true, this would surpass the total figure reported by the giant American retailer Walmart. That chain reported yearly results at $482.1 billion USD.
Crude prices which had declined somewhat during the week, still rallied on Friday on the hopes that an agreement can be reached with major oil producers. Both Kuwait and Russia have given hopeful comments about an output cut, despite warnings of an impasse made by both Iran and Saudi Arabia.
On Friday morning, American West Texas Intermediate (WTI) oil surged over 6% back to above $39.00 USD and international priced Brent up over 5% at above $41.00 USD again.
The Investment Newsletter had 5 target fills to report this week, and 0 stocks early targets.
Tenaga Nacional (TNABY) was recommended long on 06/22/15 for $13.56. There was a Short Term Target Fill at $14.92 on 04/04/16. The $1.36 increase in the share price provided investors a return of 10.03%.
Famous Dave (DAVE) was recommended short on 03/23/16 for $6.34, with a buy fill on 03/30/16. There was a Short Term Target Fill at $5.76 on 04/07/16. The $0.58 decline in the price of the stock provided a 10.07% return for investors.
Famous Dave (DAVE) was recommended short on 03/23/16 for $6.34, with a buy fill on 03/30/16. There was a Medium Term Target Fill at $5.51 on 04/07/16. The $0.83 decline in the share price, providing a 15.06% return for investors.
Dillard’s (DDS) was recommended short on 03/07/16 for $84.64. There was a Short Term Target Fill at $76.94 on 04/07/16. The $7.70 decline in the share price, provided a 10.01% return for investors.
Dillard’s (DDS) was recommended short on 03/07/16 for $84.64. There was a Medium Term Target Fill at $73.60 on 04/08/16. The $11.04 decline in the share price, provided a 15.00% return for investors.
It is recognized that the sale price upon reading the post, may be somewhat different from when the recommendation to sell was actually made. It is up to the investor to determine the ideal time, to close the position.
Stock Fills For The Previous Weeks
April 01, 2016 ——- 0 Target Fills
Mar 25, 2016 ——– 2 Target Fills
Mar 18, 2016 ———0 Target Fills & 2 Early Target Fills
Mar 11, 2016 ——– 2 Target Fills & 3 Early Target Fills
Mar 04, 2016 ———1 Target Fill & 2 Early Target Fills
Feb 26, 2016———- 2 Target Fills
Feb 19, 2016———- 0 Target Fills & 2 Early Target Fills
Feb 12, 2016 ———05 Target Fills
Feb 05, 2016 ———05 Target Fills & 4 Early Target Fills
Jan 29, 2016 ———01 Target Fills & 2 Early Target Fills
Jan 22, 2016——— 08 Target Fills
Jan 15, 2016 ———09 Target Fills
Jan 07, 2016 ——– 10 Target Fills
Dec 31, 2015 ——–1 Target Fill
Dec 24, 2015 ——–0 Target Fills
Dec 18, 2015 ——–4 Target Fills
Dec 11, 2015 ——–2 Target Fills
Dec 04, 2015 ——–4 Target Fills
Nov 27, 2015 ——- 1 Target Fill
Nov 20, 2015 ——- 6 Target Fills
Nov 13, 2015 ——–6 Target Fills
Nov 06, 2015———5 Target Fills
Oct 30, 2015——— 2 Target Fills
Oct 23, 2015 ——– 2 Target Fills
Oct 16, 2015 ——– 2 Target Fills
Oct 09, 2015 ——- 1 Target Fill
Oct 02, 2015 ——–5 Target Fills
Sept 25, 2015 ——-1 Target Fill
Sept 18, 2015 —— 2 Target Fills
Sept 11, 2015 —— 1 Target Fill
Sept 04, 2015—— 2 Target Fills
August 28, 2015 6 Target Fills
August 21, 2015 – 2 Target Fills
August 14, 2015 –-1 Target Fill
August 07,2015 —2 Target Fills
July 31, 2015 ——1 Target Fill
July 24, 2015 ——1 Target Fill
July 17, 2015——-3 Target Fills
July 10, 2015—— 1 Target Fill
July 03, 2015—— 0 Target Fills
June 26, 2015—– 3 Target Fills
June 19, 2015 —- 2 Target Fills
June 12, 2015—–2 Target Fills
June 05, 2015—–4 Target Fills
May 29, 2015 —- 5 Target Fills
May 22, 2015—– 2 Target Fills
May 15, 2015 —–2 Target Fills
May 08, 2015 —–1 Target Fill
May 01, 2015 —- 3 Target Fills
April 24, 2015—- 2 Target Fills
April 17, 2015 —-5 Target Fills
April 10, 2015 —-3 Target Fills
@ 2014 The Day Trading Academy. All rights reserved. This work is based on SEC filings, interviews, corporate press releases, and extensive research done across investment articles, current events, and investment expertise. It may contain errors, and you shouldn’t make any financial decision based solely on what you read here. It’s your money and your responsibility. As with any investment, there is no guarantee against potential loss. Members should be aware that investment markets have inherent risks and there can be no guarantee of future profits. Likewise, past performance does not assure future results. This publication’s sole intended purpose is to provide investment-related information as well as education and opinions to subscribers and the recommendations and analysis presented to members is for the exclusive use of members.