Weak Housing Market & Weak Home Depot Earnings
Weak Housing Market - Small Caps Underperform On Tuesday, the stock market took a slight breather as the S&P 500 fell 8 basis points, the Nasdaq fell 7 basis points, and the Russell 2000 fell 0.71%. The VIX rose for the 2nd straight day as it increased 2.15% to 15.17. Maybe the spike on Monday was…
Stock Prices & Economy Don’t Compute
Stock Prices - What Is Priced In? The biggest question investors need to answer is “what is priced in?” The current market is particularly perplexing because of the extreme rally despite the global economic weakness. The S&P 500 has been above its 10 day moving average for 35 days. That's the longest streak in over…
American Stocks Hardly React To Positive Trade News
American Stocks - Very Slight Monday Rally The stock market rallied in the morning and sold off throughout the day. S&P 500 only closed up 0.12%. Nasdaq was up 0.36% and Russell 2000 fell 8 basis points. The initial rally was caused by the increased potential for a trade deal. President Trump stated America wouldn’t increase…
Shanghai Composite Roars 5.6% On Positive Trade News
Shanghai Composite - Global Recession Here? With the slowdown in America, Europe, and China, it’s no surprise the global economy could be in a recession. The World Trade Organization’s outlook for Q1 is 96.3 which is in the ‘below trend category.’ That’s the worst reading since March 2010. OECD categorizes the periods from 2011 to 2012…
Weak Business Investment In December
Weak Business Investment - Another Rally To New 2019 Highs After falling slightly, the market regained its extreme momentum on Friday. S&P 500 was up 0.64%, Nasdaq was up 0.91%, and Russell 2000 was up 0.92%. VIX was down 6.57% to 13.51 making it an even better time to buy protection from this unsustainable rally. …
Housing Data Is Mixed, But Expect A Strong Spring Season
Housing Data - Strong Market Index We will reviews the 3 housing market reports from this week. Two were great and one wasn’t. Good news is February is looking good because of the decline in mortgage rates. Bad news is the January existing home sales report, which measures the majority of home sales, was weak. …
Global Assets - 98% Are Up Year To Date
Global Assets - Stocks Fell Slightly On Thursday Finally, investors had enough of the bad data and weak earnings estimates on Thursday. S&P 500 fell 0.35%, Nasdaq fell 0.39%, and Russell 2000 fell 0.39%. Best 2 sectors were the utilities and consumer staples as they increased 0.75% and 0.28%. Consumer staples sector will be hit hard…
Industrials Soar Despite Weak Industrial Production & Philly Fed Index
Industrials - Weak January Industrial Production The two most important hard data reports of the past few weeks were the December retail sales report and the January industrial production report. They were both bad. A dovish Fed can’t stop stocks from falling in my opinion because the economy is still weak and earnings growth is still…
Trade Deal Outline in Place
Trade Deal - Stocks Creep Higher Before getting into details about the potential trade deal, let's review the stock market. The stock market crept higher on Wednesday as it increased 0.18%. S&P 500 is now up 11.08% year to date. A question traders are asking is whether the market can maintain this momentum until it breaks the…
Fed States It Is Ending Balance Unwind In Its January Minutes
Fed To End Balance Sheet Reduction In 2019 The Fed released its Minutes from its January meeting on Wednesday. Even though it’s very likely the it won’t raise or cut rates this whole year. There were still many interesting tidbits worth considering. A headline from this report was Fed plans to end its balance sheet…