Flowing With the Current-Seas
My time over in Europe has finally come to an end, and as I fly over the Atlantic Ocean heading back towards the United States, I was just thinking of some economic word play behind the word currency. I’ve also been working on a new Mastermind class and trading pattern that I’m eager to show…
Stocks Jumped Their First Hurdle - Here’s How They Can Clear the Next One
I was singing a decidedly cautious tune last week, especially compared to the week before… But then, on Friday, a very weak payroll report slammed a strong bid under stocks. Bad news is good news (again). Market players hope the sign of a softening economy will mean a more dovish Fed in the near future.…
Meditating on Ancient Banking: Part II
There’s a Lot More the Ancient Romans Can Teach Us About Modern Banking My travels in Italy are still ongoing, and I decided to come out of the countryside and head to the capital for a few days. It’s been about 10 years since I last visited Rome, and, of course, my life has changed…
“Buy the Dip” Could Become “Sell the Rip”
I’m a little concerned with the bullish trend we’ve seen shaping up lately. Lower highs are starting to creep into the equities picture. The trouble in Japan with the yen and the lack of change in policy there could be starting to spill over across financial markets; global capital is seeking refuge in the dollar.…
Meditating on Ancient Banking
I’ve been over in Italy the past couple of days, enjoying the geographical and time-difference arbitrage to the United States’ markets. It’s rather peculiar having the market closing at 10 o’clock at night instead of 4 o’clock in the afternoon, but it gives me much more freedom during my mornings, so I can’t complain.…
Last Week I Said 'Buy the Dip' - I Sure Hope You Did
We were excited for last week’s lows, and for a good reason. I told everyone to wrestle with the bear and get in the market and go shopping. We’re off those levels now, and I still think taking advantage of the selloff was the right call. I’m seeing some encouraging signs bubbling underneath the rally…
The Coming Currency Crisis
Real markets matter. They dictate everything. The bond market has a reputation for where the “smart money” plays, but it pales in comparison to the size, magnitude, and importance of the currency market. In fact, I would argue that everything that happens in financial markets is ultimately downstream from currencies. I’ve said it before,…
Why You Should Have the Courage to Buy This Dip
We're seeing mounting signs that a “low of significance” is imminent in the stock market - we’re at a critical juncture, and I’ve got the charts to prove it. We’ll look at those in a moment. I really want you to see these. There’s a really great opportunity coming to put on long positions at…
Is Time More Important Than Price?
If you’ve been around in this business long enough, I can almost guarantee that you’ve heard the saying, “The trend is your friend.” This is undoubtedly true, but I’ve taken the liberty to add a second-part to it, which goes like this, “The trend is your friend, until the trend ends.” Sounds great, right? It…
Why Bonds Are So Important to Stocks Right Now
Stocks are currently moving sideways; they’re consolidating almost entirely across the board. But if you’ve been with me for a while, you know I like to think and trade in terms of cycles, and I’m seeing signs that we could be late in the equity market cycle. That’s because we’ve seen recent outperformance in the…