The euro plunged to new session lows against the US dollar on Thursday, following a string of disappointing economic data released out of the Euro zone, which only reinforced the view that economic recovery in the region remains frail. EUR/USD tumbled to a session low at 1.3633 at 10:50 GMT, also the pair’s lowest point since October 21st, after which consolidation followed at 1.3642, falling 0.68% for the day. Support was likely to be received at psychological level of 1.3600, while resistance was to be encountered at current session high, 1.3738. Eurostat reported earlier on trading Thursday that the preliminary annual consumer price index in the Euro zone, evaluated in consonance with the harmonized methodology, climbed 0.7% in October, marking the slowest pace since November 2009, after in September the index rose 1.1%. Inflation rate diminished in Germany and Spain, with the annual CPI in these countries rising only 0.1% in October. This data puts more pressure upon the European Central Bank (ECB) to increase the money supply and support economic activity. The ECB has said there was a “subdued outlook” for price growth in the currency bloc, while the October data marked the ninth consecutive month, during which the inflation rate has been below bank’s 2% objective. While region’s economy has exited the 18-month recessionary period and survey results improved, the central bank projects a “gradual” recovery. Lower inflation also suggests a weak domestic demand in the common currency bloc. The inflation data “should increase market speculation that the ECB changes […]

Reasearchers at Oregon Health & Science University’s Knight Cancer Institute stopped a double blind study of a new drug for prostate cancer. Patients in the placebo group were switched to the real drug, Enzalutamide, because the results were so impressive. Enzalutamide is hormone-based pill which causes very few side effects. Look out Dendreon. (OHSU develops promising prostate cancer drug). Read this with a glass of wine and think about how to invest in an upcoming shortage. Ideas? (Drink it while you can, as study points to looming wine shortage.) To the rescue of troubled HealthCare.gov: Google, Oracle and Red Hat. Experts at these companies are used to fixing big problems. (Google, Oracle, Red Hat experts to help fix Obamacare website.) Meanwhile, the G.O.P. unveils its own health-care website, Emergencyroom.com. Only number to remember: 911. (That’s a joke.) Can you learn anything from big trading loses? James Altucher thinks you can because he did (12 or 13 Things I Learned About Life From Daytrading Millions of Dollars). Joshua Brown argues that Karl Marx had it wrong when he said that religion was the opiate of the masses. No, no, portfolio gains are. Larry Fink, CEO of BlackRock, the world’s largest money manager, admits there are ‘Bubble-Like Markets Again.’ Blames the Federal Reserve for contributing. Ambrose Evans-Pritchard writes, “If we ever need more QE it should go straight into the veins of the economy by direct deficit financing of big investment projects (fiscal dominance) and damn the torpedoes, and the taboos. Just print money to build houses for the poor, and solve two problems at once…” (Ambrose Evans-Pritchard.) Optimism, complacency and the S&P reaching new highs. “Strategas explains: Investors […]

This video on the tension between Germany and the rest of the European Union is by David McWilliams at Punk Economics. H/tip Zero Hedge.  David McWilliams explains the “wedge” of unreality between the so-called “markets” and the reality of economic progress.

The Chart of the Day is Lorillard Inc (LO).  I found the stock near the top of the New High List when I sorted it for frequency.  Not only did the stock gain 34.54% last year but it also paid a 4.34% dividend. Since the Trend Spotter issued a buy signal on 9/6 the stock is up 16.99%. It is the third largest manufacturer of cigarettes in the United States. LO is the oldest continuously operating tobacco company in the U.S. Newport, its flagship brand, is a menthol-flavored premium cigarette brand and the top selling menthol and second largest selling cigarette in the U.S. The product line has five additional brand families marketed under the Kent, True, Maverick, Old Gold and Max brand names. These six brands include 44 different product offerings which vary in price, taste, flavor, length and packaging. Barchart’s Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report. Barchart technical indicators:   96% Barchart technical buy signals Trend Spotter buy signal Above its 20, 50 and 100 day moving averages 17 new highs and up 14.74% in the last month Relative Strength Index 82.93% Barchart computes a technical support level at 50.48 Recently traded t 51.37 with a 50 day moving average of 45.52 Fundamental […]

Tony Abbott’s election as the new Australian Prime Minister in September comes as the 13th biggest economy enters its 22nd consecutive year of growth. The defeated Labor Government, with the help of the Reserve Bank of Australia, diverted the economy from succumbing to the global financial crisis in their six years of power. This is with thanks largely due to the profitable mining industry fuelled by consumption in the emerging Chinese market. The repeated lack of leader confidence indicated volatile relations within the Labor party ranks, despite visible national economic progression during their time in power. The conservative, Liberal-National Party leader has outlined post-Labor economic policies that will see drastic changes made in regards to spending and taxation. Their goal is to pay off the 27 percent of the GDP ‘’mountain of debt’’ left by the Labor Government in order to reach their target of a budget surplus by 2016/2017. Questioned by David Koch on the Australian TV show Sunrise before the election, as to how Abbott intends on reaching a budget surplus in four years without raising taxes, his answer was to implement ‘’sensible expenditure restraint.’’ He promised to protect Australia’s triple A credit rating by enforcing stringent government controls on spending. With his election speech declaration that “Australia is under new management and … once more open for business,” it is being made very clear that Australian economic growth is being pursued ahead of prior global humanitarian and environmental commitments. Cutting aid for homeland improvement According to Forbes, […]