Futures Now Futures Now: Blog


  Sunday, 16 Aug 2015 | 4:29 PM ET

Ron Paul: China's woes give Fed cover on rates

Posted ByAmanda Diaz

China's move to devalue its currency roiled the markets last week, and stoked new fears about the health of the world's third largest economy.

However, according to former Rep. Ron Paul, the move may have given Federal Reserve Chair Janet Yellen the cover she needs to not raise rates later this year, as many market participants expect.

"She's going to be more hesitant to raise rates because she sees how fragile the global economy is," Paul told CNBC's "Futures Now" on Thursday.

"She's under the gun," he added. "I could be wrong, but I don't think they are going to raise interest rates."

According to the former Republican presidential candidate, a rapidly slowing Chinese economy adds just another headwind for an already struggling U.S. economy.

"I think there's going to be enough problems existing, whether it's the Chinese precipitating some crisis, or whether it's our economy breaking down," he said.

Read MoreSchiff: America is on a 'race to the bottom'

»Read more
  Friday, 14 Aug 2015 | 7:30 AM ET

The market's not 'bearish enough' on oil: Technician

Posted ByAmanda Diaz

The commodity crush will continue: Technician
The commodity crush will continue: Technician   

It's no secret commodities are in a free fall.

Gold, crude oil, copper and silver are all trading at or near multiyear lows, and according to one technician, there's even more pain to come.

"The commodity sector is on its way down from the bursting of the largest commodity bubble in the history of the world," Walter Zimmermann said Thursday on CNBC's "Futures Now."

But this doesn't come as a surprise to Zimmermann, who explained that a "major fire sale in commodity prices" happens every 15 years. "The next low is not due until the second half of 2016," he said.

Zimmermann noted that this cycle comes in many phases, beginning with a "stealth" phase, peaking with "manic" buying and ending with panic selling, which is what he says the market has experienced for the better part of the past year. "The more damaging the bust, the longer it takes for the commodity sector to carve out a bottom and start trending higher again," he said.

»Read more
  Wednesday, 12 Aug 2015 | 8:00 AM ET

Schiff: America is on a 'race to the bottom'

OCBC predicts a weaker CNY against the USD by year-end.
Schiff: America winning currency war   

With Tuesday's stunning announcement that the People's Bank of China would devalue the Chinese yuan about 2 percent against the U.S. dollar, China became the latest nation to join the global currency war. But according to outspoken market pundit Peter Schiff, China's too late, because the U.S. already has the inside track in the battle to debase its currency.

"America is going to win the currency war," Schiff said Tuesday on CNBC's "Futures Now." "I think we're going to win, but right now you have a dollar bubble."

The dollar bubble claims fly in the face of how the U.S. common currency has performed this year. The dollar index is up more than 7 percent year to date.

But according to the Euro Pacific Capital CEO, the Federal Reserve will hold off on raising rates as long as possible, and over time, that will cause the dollar to collapse.

Read More Fed's Powell: Nothing decided on raising rates in September

While the Fed has discussed plans to raise interest rates this year as early as September, Schiff believes that the Fed will instead implement another round of quantitative easing.

"They are going to do QE4, they're going to do QE5, they're going to do QE's indefinitely until a currency crisis ends the party and they can't do it anymore. And that crisis is going to come," Schiff said. "That is what the drug addicts on Wall Street want. They want another fix, and I think the pushers are going to provide it, unfortunately."

To be sure, Schiff has made several other bold predictions, some of which, like his accurate call on the housing crisis in 2007, have come true. Others, like his claim that gold would go to $5,000, have not.

Still, Schiff remains resolute that the dollar will soon see its day of reckoning.

Read MoreMarkets fear more to China's move

"You have all these currency speculators that have been fooled by the Fed's monetary magic," Schiff said. "[They] are betting the wrong way, and when they figure it out I think the bottom is going to drop out of the dollar."

By Schiff's reasoning, the U.S. economy is doomed.

"This economy will be in recession if the Fed raises rates, and it'll be in recession even if they don't raise rates," he said.

»Read more
  Sunday, 9 Aug 2015 | 4:03 PM ET

Why commodities are dying the death of 1,000 cuts

Into the futures: Commodity collapse continues
Into the futures: Commodity collapse continues   

Commodities are the gift that keep on not giving.

The sector is in the throes of an 'annus horribilis', having gotten wrecked over the past few years despite massive liquidity that should have boosted their value. Bullish investor after bullish investor has tried to call a bottom, in a set of calls that now appear ill-conceived and money losing.

In the past week, the S&P GSCI Commodity Index has dropped 3.4 percent in the past week, as crude oil plunged 7 percent to hit multi-month lows, and a host of metals fell alongside it.

Read MoreStocks put to the test in week ahead

That, of course, hardly marks the first big drop for the alternative investment group. That widely watched commodity index has fallen 17 percent the last three months, and a whopping 42 percent in the past two years.

»Read more
  Friday, 7 Aug 2015 | 7:30 AM ET

Stocks are a 'disaster waiting to happen': Stockman

Posted ByAmanda Diaz

We're in an era of 'epical deflation': Stockman
We're in an era of 'epochal deflation': Stockman   

David Stockman has long warned that the stock market is on the verge of a massive collapse, and the recent price action has him even more convinced than ever that the bottom is about to fall out.

"I think it's pretty obvious that the top is in," the Reagan administration's OMB director said Thursday on CNBC's "Futures Now." The S&P 500 has traded in a historically narrow range for the better part of 2015, having moved just 1 percent higher year to date. "It's just waiting for the knee-jerk bulls, robo traders and dip buyers to finally capitulate."

Stockman, whose past claims have yet to come to fruition, still believes that the excessive monetary policy from central banks around the world has created a "debt supernova," and all the signs point to "the end of the central bank enabled bubble," which could cause a worldwide recession.

»Read more
  Thursday, 6 Aug 2015 | 11:23 AM ET

Traders use Disney selloff as a chance to buy

Options Action: Magical move for Disney?
Options Action: Magical move for Disney?   

Shares of Walt Disney Co., previously the best performer in the Dow Jones industrial average year to date, plunged on Wednesday after the company reported quarterly earnings. Although earnings came in above analyst expectations, revenue fell short, prompting a drop of almost 10 percent. But some traders are using the drop as a buying opportunity and expect the stock to rebound to prior highs.

"This could make sense, because after earnings come out, the premium drops and now you can risk just 1.5 percent to make that bullish bet," CNBC contributor Mike Khouw said Wednesday on CNBC's "Fast Money."

Disney options traded at nine times their average daily volume on Wednesday. According to Khouw, Disney was one of the most active stocks on Wednesday, second only to dividends options trading in Apple.

Specifically, traders bought the September 115-strike calls for $1.50 and the January 120-strike calls for $2.85, "two of the most surprising places where we saw activity," Khouw said. Buyers of those calls see Disney gaining about 5 percent by September, or about 10 percent by January.

Read MoreWalt Disney earnings: $1.45 per share, vs expected EPS of $1.42

Disney's shares extended losses on Thursday, trading down about 4 percent at $105. The stock is up more than 13 percent year to date.

The media company's slowing revenue sparked concern for similar companies and a changing TV subscription model, dragging down shares of Time Warner, CBS and Viacom.

Read MorePay TV industry shows cracks in media earnings

However, the majority of analysts are still bullish on the stock, with an average price target of $121.54.

On Wednesday, Guggenheim Securities revised its target price on Disney to $120 from $127, but noted long-term growth potential for the company.

"We believe that investors will continue to take a longer-term view of valuing unique asset stories and see Disney as continuing to fit this category despite growing concern about the pay-TV marketplace," Guggenheim's Michael Morris wrote in a note to clients Wednesday.

»Read more

Contact Futures Now: Blog

  • Showtimes

    Watch Futures Now Tuesdays & Thursdays 1p ET exclusively on cnbc.com!

Follow Futures Now: Blog

Sponsor Links

  • CME Group brings buyers and sellers together through its CME Globex electronic trading platform and trading facilities in New York and Chicago.

  • Take your trading to the next level with a platform that lets you trade stocks, options, futures and forex all in one place with no platform or data with no trade minimums. Open an account with TD Ameritrade and get up to $600 cash.