A Tumultuous Quarter Ends at New Highs
Anyone hoping to see a little more volatility finally got it today… but not necessarily in the shiny bearish package they were counting on. Indeed, the S&P 500 finished the day - and the third quarter - with an all-time high close. This comes barely two months after the market made its early August correction.…
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…
It’s Been a Slow Week… But Get Ready for Volatility (Helmets On!)
I hope everyone had fun snoozing through this week’s slop-tastic sessions. Hope everyone got their beauty sleep… …because it’s about to get wild in this market. If you know where to look (and I’ll show you) you can see the signs of imminent volatility. On Wednesday, I showed you how sector rotation and an increase…
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…
This Sector Is Your Best Bet Right Now
“Inflation’s under control, it’s normal. Not a problem.” The Fed told us this through most of 2021 when inflation was in fact ballooning… but this time they really mean it. And to put a point on it, they slashed interest rates by 50 basis points. And yet… nearly all assets other than crude oil…
Defensive Posture: Dump Financials, Stock Up on Utilities and Tech
If you didn’t know any better, looking at the market this afternoon, you’d think “Hm. Quiet. No volume.” And you’d be right… but this market is going to wake up. How do I know? You can tell a lot by following the flow of cash out of one sector and into another. Go figure. Right…
The Bulls Are Pressing the Bears As Stocks Consolidate Near All-Time Highs
Stocks enjoyed a decent day as tech and semiconductors led the crowd to the upside. Gold hit new all-time highs and silver surged, which is just more confirmation that we’re on the right track to be bullish here. Interestingly, crypto benefited from a strong bid, too. Both metal and crypto miners continue to offer us…
We’re Dealing with Muted Monday Malevolence
The S&P 500 is like a plane in a holding pattern, trading mildly higher. Nothing to write home about… nothing to get excited about… right? Well, traders are digesting the 50-basis-point rate cut we got last week - and weighing the 50/50 proposition that the Fed may cut another 50 basis points at their November…
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…
The Fed Just Put All the Bulls on Notice
Triple-witching - the September event is coming hot on the heels of our 50bp rate cut. Trillions in notional value in derivatives expired today. If you were expecting fireworks… sorry, you didn’t really get them. Normally a triple-witching afternoon sees a massive jolt of volatility, but we didn’t see that today even around an hour…