TheoTrade’s Tale of the Tape: Another Inflationary Match Lit
As the market settles into the Fed’s new round of monetary stimulus, I’ve been warning that a return of inflation cannot be ruled out in the near future. Last week, I noted how the energy sector (XLE) perked up and claimed the one-week leadership position in the sector performance rankings. But this week, there’s another…
Making Sense of China’s Reawakening
One of the biggest headlines in markets this week was what transpired with the Chinese equity market. We’ve seen stimulus after stimulus over the past couple of years on behalf of both the People’s Bank of China and the Chinese government, so what makes this round so special? The spoiler is that there isn’t anything…
TheoTrade’s Tale of the Tape: The Fed Is Playing With Inflationary Fire
The Fed finally went ahead and cut rates by 50 basis points last week, officially signaling that we’ve entered a new round of monetary easing. We knew this was coming, and that the market discounts future events. Remember that interest rates, at their core, are simply the cost of money. I’ve had some concerns with…
It’s Time to Pay Attention to Crypto Again
If you ever follow any of my live sessions here at TheoTrade, you’ve probably heard me poke some innocent fun at the crypto crowd. Let me assure you that it’s with the sincerest intentions - I don’t enjoy seeing people getting caught on the downside in market manias. But at the end of the day,…
TheoTrade’s Tale of the Tape: Tech’s Rebound Gives Bulls a Breather
Markets closed out last week near the highs, courtesy of the tech sector. This is the exact type of leadership we need to see if this bull market is going to continue. To be clear, one-week leadership isn’t as significant as 30-day or even year-to-date leadership. So even with tech’s solid rebound and the plethora…
Market Musings from TheoTrade's Live Event
After a year of being with the TheoTrade team, I finally got the opportunity to meet Don and the rest of the team. It’s always great to put a name to a face, especially when you’re talking to people on a daily basis. Not to mention, I’ve had the chance to meet many TheoTrade members,…
TheoTrade’s Tale of the Tape: Risk-Off Signals Are Flashing All Over
Hello TheoTrader, Markets went out at the lows last week, and made sure that we didn’t fall asleep at the wheel over the holiday weekend. What matters now (and what concerns me most) when it comes to stocks is what’s happening at an internal level. Over the past few weeks, I’ve shared some of…
The Yield Curve Has Steepened Again - Now What?
Well, one of the most significant macroeconomic developments in the past couple of years just unfolded. I’m talking about the “re-steepening” of the yield curve. A couple of years back, there was a fair bit of hysteria in the market when the curve inverted. That is, the 10-year Treasury yield began offering less return than…
Why I’m Zeroed in on Tech Right Now
Now that we’ve got Nvidia’s earnings out of the way, our focus needs to be on a broader rebound in the tech sector, and specifically on the Nasdaq. This will be key especially in terms of the sustainability of this bull market in stocks. This is the Sector Bullseye newsletter, after all. And if you…
TheoTrade’s Tale of the Tape: Real Estate Roars Back
Bears are still stuck playing defense in this market following the volatility earlier this month. But on Friday, Fed Chair Powell came out and confirmed what we already knew: Rate cuts are coming in September. To be clear, markets have already priced in these cuts. That’s why we’ve been seeing sectors associated with monetary…