Stocks Crater - Volatile Friday The stock market cratered Friday morning. Unlike Thursday, the market didn’t recover as the S P 500 fell 2.33%. Nasdaq fell 3.05% after outperforming Thursday. Russell 2000 fell 1.98%. I have forgotten to mention one reason the Russell 2000 has been falling rapidly in
Stocks Move Violently - Huge Reversal On Thursday The S P 500 crashed Thursday morning. It bottomed at 2,624 at 11:30 AM which was a 2.83% decline. It rallied in the afternoon to close down only 0.15%. Many of the bulls may feel like that’s a sign of a reversal. But I think it’s a sign
MBA Mortgage Applications - Weak Construction Spending Growth Before getting into MBA Mortgage Applications, let's review construction spending growth. Construction spending growth missed estimates and decelerated sharply on a year over year basis. Private residential spending growth fell sharply. O
Stocks Decline - Yield Curve Panic Sends Stocks Cratering Many investors have been following the yield curve all year. For the first time in this cycle, it appears the stock market recognized the flattening curve. Personally, I find it interesting how indicators evolve. When everyone follows an indi
Economy - No Need To Panic It’s very important to avoid being emotionally affected by the stock market tape. If you are moved by it, don’t trade based on those emotions. Stocks swing wildly while the economy shifts slowly. There are only extreme, quick moves in the economy in times of panic during t
First Yield Curve Inversion - Trade Related Rally On Monday The S P 500 rallied 1.09% on news that China and America agreed to a 90 day negotiating window where tariffs won’t be raised. Initially, the futures market rallied heavily, but during normal trading hours it wasn’t a spectacular day. This i
Inflation Misses Estimates PCE inflation is going to decelerate. It will face tough comparisons in the next few months. These include slowing global growth and housing price growth. Also, commodity prices are falling. The Bloomberg CRB commodity ETF is down 5.56% year to date. Headline PCE inflation
Yield Curve - Friday Ends Strong Week This was an amazing week for stocks. The S P 500 increased 4.85%. That’s greater than the entire year to date increase which is 3.24%. Stocks rallied 0.82% on Friday because of hopes that America and China will make a trade deal. It’s dangerous for stocks to ral
Regional Fed Indexes - Stocks Fall Slightly When the S P 500 was down, the headlines blamed worries about tariffs. When stocks were up, the Fed got the credit as their Minutes were released Thursday. Clearly, this is the wrong way to look at the market because the tariff news won’t come out until Fr
