Archive for Tank

NVIDIA Stock Breaks Out After Price Target Hike

NVIDIA shares broke out to all-time highs following favorable analyst comments, but traders will be watching these levels. …read more

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Category: NVDA, AMD

How Does a Government Shutdown Impact Markets?

The federal government ran out of money Friday night after the Senate failed to agree to a funding proposal to keep it operating. After having already approved four short-term funding agreements this fiscal year, a fifth proved to be insurmountable. As the deadline approached on Friday, investors were unfazed, and the S&P 500 rose steadily into the close to post a 0.4 percent gain on the day.

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Stay Connected and Invested in Verizon

Verizon is the cheapest “Dog of the Dow,” with a P/E ratio of 13.31 and a dividend yield of 4.60%. …read more

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Category: VZ

Netflix Subscriber Growth Must Exceed Content Cost

Netflix is not a value stock – it’s a momentum stock given an elevated P/E ratio of 222.69 and lack of a dividend. …read more

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Category: NFLX

Stocks March Higher Despite Ongoing Risks

U.S. stocks continued to surge this week despite high valuations, weak inflation and the looming threat of a government shutdown. …read more

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Category: SPY, DIA, QQQ, IWM

Sprint Stock Breaks Down From Key Support Levels

Sprint shares broke down from key support levels on Thursday, but traders will be watching these levels over the coming sessions. …read more

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Category: S, VZ

AmEx Breakout in Jeopardy After Buyback Suspension

American Express stock is testing November’s breakout above 2014 resistance and could break down in the coming weeks. …read more

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Category: AXP

Legacy airlines are facing new competitors on transatlantic routes

By The Economist online…

Even for a global industry like aviation, Primera Air’s business model seems remarkably cosmopolitan. The Icelandic-owned budget airline is headquartered in Latvia, but mainly operates low-cost flights from Denmark and Sweden to sunny places in the Mediterranean. This summer, it will begin long-haul flights from Britain and France to America. The company bears more than a passing resemblance to Norwegian Air Shuttle, another nominally Scandinavian airline with global aspirations. More than two-thirds of Norwegian’s capacity by passenger-km now bypasses its home country, and the rapid growth of its long-haul operations are proving to be a serious challenge for legacy carriers such as British Airways. And its tentacles are spreading around the world. This autumn, the carrier will begin operating domestic Argentinian flights, 12,000km away from its home base.

Low-cost airlines are not new. Ryanair, founded in the 1980s, has grown to become Europe’s biggest and cheapest airline. But low-cost carriers like it have generally stuck to short-haul flights in their local region. That is now changing as a breed of budget outfits, including Norwegian and Primera, cast their gaze further afield.

Two ingredients have allowed airlines such as these to escape the limitations of their home markets. The first is the liberalisation of aviation regulations, notably in the form of the European Common Aviation Area (ECAA) and the EU-US Open Skies treaty. The ECAA allows, with some exceptions, any European airline to fly between any two points in the continent. The EU-US Open Skies treaty similarly allows airlines based in those blocs to fly between any American and European airport. Second, these no-frills carriers are deploying new aircraft that, for the first time, cut costs deep enough to make viable budget airfares on long routes with low demand. Primera’s transatlantic flights will start from as little as $99 one-way, thanks to the fuel-efficiency of the Airbus A321neo, a plane sized for short-haul journeys but capable of reaching mid-haul destinations.

Flights across the Atlantic were once the preserve of the high-cost legacy carriers. Five years ago, 98.5% of capacity between London and New York was provided by five legacy airlines: British Airways, Virgin Atlantic, United Airlines, American Airlines and Delta Air Lines. A network of joint-ventures—co-operation deals that allow separate carriers to behave as if they were one—effectively made the market an oligopoly of three. The only challenge came from Kuwait Airways, which had flights that stopped in Britain on route to America. This summer, however, the market share of the big three will drop below 90% thanks to the presence of Norwegian and Primera. That can only be good news for flyers. After years of fare rises, travelling across the Atlantic is becoming cheaper again, due in part to a 15% increase in the number of seats available since 2013.

Read more here: Legacy airlines are facing new competitors on transatlantic routes…read more

Category: Business and finance, Gulliver

Crypto Plays Set to Squeeze Overconfident Shorts

Bitcoin set off ‘buy’ signals on Wednesday after breaking psychological support at $10,000, dropping to a seven-week low at $9,231 and then closing back above the big round number. This price action made perfect sense from a structural standpoint, with the breakdown attracting a large supply of weak-handed short sellers hoping to capitalize on a momentum-fueled decline. The turnaround unfolded at a harmonic target, raising the odds for a bounce between $13,000 and $14,000.

Blockchain stock plays followed suit, dumping to multi-week lows and bouncing strongly into the closing bell. They are adding to gains on Thursday morning, with bitcoin lifting more than 15% overnight. Dip buyers not already positioned should watch key price levels for short-term signals that could generate windfall profits. Just keep in mind that these volatile instruments amplify the destructive impact of drawdowns, so it is important to keep position size small and place stops to limit losses. (See also: Is the Bitcoin Price Bubble Bursting?)

Bitcoin surged higher after breaking the $10,000 level, setting off a short squeeze that could gain traction in the coming days. …read more

Read more here: Crypto Plays Set to Squeeze Overconfident Shorts


Why driverless cars may mean jams tomorrow

By The Economist online….

THE most distractingly unrealistic feature of most science fiction—by some margin—is how the great soaring cities of the future never seem to struggle with traffic. Whatever dystopias lie ahead, futurists seem confident we can sort out congestion. If hope that technology will fix traffic springs eternal, history suggests something different. Transport innovation, from railways to cars, reshaped cities and drove economic advance. But it also brought crowded commutes. Now, as tech firms and carmakers aim to roll out fleets of driverless cars, it is worth asking: might this time be different? Alas, artificial intelligence (AI) is unlikely to succeed where steel rails and internal-combustion engines failed.

More’s the pity. In America alone, traffic congestion brings economic losses estimated in the hundreds of billions of dollars each year. Such costs will rise unless existing transport systems receive badly needed investment. For example, fixing New York’s beleaguered, overcrowded subway will take at least $100bn, according to one recent estimate. A driverless deus ex machina might seem to spare governments some difficult decisions.

But congestion is a near-inevitable side-effect of urban growth. Cities exist because being near to other people brings enormous advantages. Proximity allows people to find friends, mates and business partners, to discuss ideas and generate new ones, and to trade (and so to capture the benefits of specialisation). Regrettably, clumping leads to crowding: the more people an area houses, the greater the competition for its scarce resources, from seats at a hot new restaurant to space on public roadways. Each new arrival enhances a city’s magic but also adds to congestion. Cities grow until costs outstrip benefits.

New transport technologies are not useless. Mass-transit railways and highways allowed big cities to get bigger. But their congestion-easing benefits inevitably proved temporary. When the New York subway extended into northern Manhattan, it became practical to live far from the dirty, expensive, crowded downtown area, while still enjoying access to the city’s social and economic benefits. So the city’s population rose—a lot—leaving New Yorkers once more cheek by jowl. A post-war highway-building boom in America yielded explosive growth in city suburbs. Cities once again found their equilibrium, however, as the suburban land-rush led to road congestion, raising the cost of living far from employment centres. In a paper published in 2011, Gilles Duranton, of the University of Pennsylvania, and Matthew Turner, of Brown University, identified a “fundamental law of road congestion”: namely, that building more highways does not alleviate congestion. Rather, it attracts more residents, leads to more driving by existing residents and boosts transport-intensive economic activity, until roads are once again crammed.

Read more here: Why driverless cars may mean jams tomorrow…read more

Category: Business and finance, Approved, Finance and economics, FINANCE

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