The GBP/CAD currency pair, which expresses the value of the British pound sterling in terms of the Canadian dollar, has managed to continue to fend off long-term lows over the past few years. However, in spite of Brexit (the U.K.’s decision to leave the European Union, which was announced on 23 June 2016), GBP/CAD has in fact managed to continue to trade above the lows of 2010 to 2013.

The long-term monthly candlestick chart below illustrates price action from as early as January 1975. Two levels are highlighted: 1.60 and 1.50. GBP has managed to safely avoid the 1.50 handle since the announcement of Brexit, although current prices above the 1.70 handle are still a far cry from the highs above 2.00 in the latter half of 2015 (and early part of 2016).

GBP/CAD Historical Price Action(Source: TradingView. The same applies to all subsequent candlestick charts presented hereafter.)

If we focus on more recent years, since 2000, we can see that GBP/CAD has fallen from highs above 2.50 down to levels under 1.50, and yet in spite of this the 10-year yield spread (the blue line, in the chart below) is currently back to where it used to be at its high. Yet clearly prices are still languishing far below the highs above 2.50 (found in 2002, 2003 and 2004).

GBP/CAD vs. 10-year Yield SpreadThe 10-year yield spread rose fairly consistently from the year 2000 into mid-2008, yet GBP/CAD continued to trade through this period. The 2008/09 Great Recession saw markets continuing to prefer CAD over GBP, all the way into the exchange rate’s long-term lows under 1.50 (in 2010). Currently, the 10-year yield spread is once again negative (albeit above more recent lows in 2018).

The bond market’s 10-year yield spread is negative 35 basis points (pictured above, on the far-right y-axis). This compares

Advanced Micro Devices  (AMD) – Get Report and Xilinx  (XLNX) – Get Report were on the move Friday as a possible acquisition was in the works.

Shares of Xilinx were up almost 17% at one point Friday on news that AMD was working toward a $30 billion takeout of the company. For its part, AMD stock had fallen about 4% on the news.

The news is coming in fast and furious, with TheStreet’s own Jim Cramer suggesting that Xilinx may not be interested in a buyout.

All of this comes after Nvidia’s  (NVDA) – Get Report recent announcement that it will acquire Arm Inc. in a $40 billion deal. Clearly both Nvidia and AMD are looking to spread their dominance and grow through M&A.

What do the charts make of the news? Let’s look.

Nvidia and AMD are holdings in Jim Cramer’s Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells NVDA or AMD? Learn more now.

Trading AMD

Daily chart of AMD stock.

Daily chart of AMD stock.

On Thursday, AMD stock was rallying into resistance near $87.50. To see Friday’s rejection isn’t all that surprising, although how it acts from here will be interesting.

For instance, a slightly deeper dip puts it into the 20-day and 50-day moving averages. If bulls are really in control, they will buy the dip into this zone and put a retest of $87.50 back in play.

If shares can push through $88, it puts a retest of the high at $94.28 in play, along with the 261.8% extension at $95.71. Above that and $100 is in play, followed by the three-times range extension at $104.31.

Should the 20-day and 50-day moving averages fail as support, the $75 area could be

This previous article described a profitable trading strategy with the stocks of the Technology Select Sector SPDR ETF (XLK), and this article described a strategy with the consumer staples stocks (XLP) of the S&P 500. Similarly, the healthcare stocks of the S&P 500 can be profitably traded to provide good returns.

Emulating the Healthcare Select Sector SPDR ETF

The analysis was performed on the on-line portfolio simulation platform Portfolio 123.

Since historic holdings of the Healthcare Select Sector SPDR ETF (XLV) are not published, a custom universe was constructed from the S&P 500 healthcare stocks of FactSet’s Revere Business Industry Classifications System.

The rule to set up the custom universe “S&P 500 (HEALTH)” in Portfolio 123 is: RBICS(HEALTHCARE).

The current holdings (61 stocks) of S&P 500 (HEALTH) are almost identical to the current holdings of XLV (63 stocks).

Backtesting of S&P 500 (HEALTH) universe

A backtest from 1/2/2009 to 9/23/2020 with all the cap-weighted stocks in the custom universe shows a 99% correlation with the performance of benchmark XLV and identical total returns of 364% over this period. A management fee of 0.3% was taken into account in the simulation, a bit higher than the 0.13% fee that the managers of XLV currently apply. In Figure 1 below, the red graph depicts the performance of the custom universe and the blue graph (mostly hidden) depicts the performance of XLV.

From the beginning of 2000, the custom universe shows 82% correlation with the performance of benchmark XLV and a total return of 355% versus 348% for XLV.

One can, therefore, expect that the custom universe S&P 500 (HEALTH) should reasonably accurately reflect the performance of the cap-weighted holdings of XLV, and stocks selected by the model should not differ much from what would have been selected from a universe of the

Nasdaq Inc. is in talks with Texas Gov. Greg Abbott about potentially relocating the exchange’s electronic trading systems from New Jersey to Dallas-Fort Worth, according to two sources familiar with the discussions.

Other trading exchanges also could be involved in the discussions, both sources said.

Nasdaq is planning a visit to Texas to meet with the governor, according to one of the sources. Leaders of the exchange have had “a great dialogue” with Abbott, the source said.

The exchange, which lists about 176 Texas companies and has 87 employees in the state, is intrigued by an opportunity touted by Abbott to power its electronic infrastructure with renewable energy from wind farms in the state, according to one of the sources. Nasdaq is the trading platform for many of the nation’s environmentally conscious companies.

When Facebook invested $1 billion in building its massive data center at AllianceTexas north of Fort Worth, it struck a deal to buy its electricity from a 17,000-acre wind farm under construction at the time. Facebook, which trades on Nasdaq, is now planning to add to its 150-acre campus, which opened in 2017.

Dallas-Fort Worth isn’t alone in wooing the stock exchanges. Officials in Virginia, North Carolina and Illinois have also had discussions with Nasdaq, one of the sources said.

In a statement to The Dallas Morning News, Nasdaq vice president of communications Joe Christinat said: “We are assessing all options, but our No. 1 priority is protecting the U.S. capital markets and its investors.”

A spokesman for the New York Stock Exchange’s parent company, the Intercontinental Exchange, couldn’t be immediately reached for comment.

A potential tax on financial transactions in New Jersey, where Nasdaq and other exchanges house the data systems that power Wall Street’s daily trades, is what’s driving the talks.

NYSE, Nasdaq and

(Bloomberg) — The financial-services industry stepped up its battle against a proposed tax on high-speed trading in New Jersey, calling the idea bad for individual investors.

a person standing in front of a store: NEW YORK, NY - JULY 30: People are reflected in the window of the Nasdaq MarketSite in Times Square on July 30, 2018 in New York City. As technology stocks continued their slide on Monday, the Nasdaq Composite dropped 1.1 percent in afternoon trading with shares of Facebook, Netflix, Amazon and Google-parent Alphabet all declining. (Photo by Spencer Platt/Getty Images)

© Photographer: Spencer Platt/Getty Images North America
NEW YORK, NY – JULY 30: People are reflected in the window of the Nasdaq MarketSite in Times Square on July 30, 2018 in New York City. As technology stocks continued their slide on Monday, the Nasdaq Composite dropped 1.1 percent in afternoon trading with shares of Facebook, Netflix, Amazon and Google-parent Alphabet all declining. (Photo by Spencer Platt/Getty Images)

The tax would hurt pension funds and people who invest in financial markets for savings, according to letters from more than two dozen industry trade groups including the Securities Industry and Financial Markets Association and the Financial Services Institute. The plan “would effectively represent a sales tax on investors,” the groups said in the letters to lawmakers.


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The trade groups, which say they collectively represent 200,000 workers in the industry, said the tax could result in a revenue decline for the state. Firms would be more likely to turn to alternate trading platforms or leave the state if the measure is enacted, they said.

Read more: Trading powerhouses join exchanges in fighting N.J. tax plan

Powerhouses of finance including stock exchanges and major market-makers have joined to oppose the measure. The New York Stock Exchange and firms including Nasdaq Inc., Citadel Securities and Virtu Financial Inc. already threatened to leave New Jersey. Nasdaq plans to temporarily move some operations to Chicago this month as a dry run in case it decides to relocate permanently.

The tax on stocks, options, futures and swaps trading would go into effect for the 2022 budget year if approved, and could drum up $10 billion for the state. Governor Phil