The Volatility Animal Is Waking Up
Last week, I went out and said the market was on the “edge of the abyss” of volatility. Plenty of people probably thought I was freaking out - after all, plenty of tech stocks were hitting highs. But I said at the time that tech had taken no damage. I said tech needs to take…
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 Watch D.R. Horton
Texas-based D.R. Horton is the biggest homebuilder in the United States. They just turned in a stellar earnings report. Revenue is up by $1 billion, guidance suggests even better performance ahead, and all of this in a historically tight American housing market. The market… doesn’t care. The stock experienced a classic “sell the news” dip…
Magnificent Tech Is on the Edge of the Abyss
The market is volatile right now, no doubt, but it could turn into an absolute mess over the next couple of trading sessions. What’s the difference between “volatile” and a “mess?” Well… The activity we’re seeing right now is disconnected, jumbled - too fast. Every little data point, every offhand comment from a Fedhead, every…
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…
Five Indicators for Spotting a Market Bottom
A lot of rookie traders would give their left arm to be able to correctly spot and call a bottom in stocks, the better to get in position to reap maximum upside on the run back up. “Have we seen the bottom?” That’s a question on a lot of minds right now as we’re finally…
The Market Just Got Serious - Here’s What to Do About It
Hope you enjoyed all the soapy froth, blowout earnings, and all-time highs we’ve seen over the past few months… …’cos it’s very close to being over with. The Warm, Fuzzy LoveFest of 2024 is hanging by a thread. This market, beneath the surface, has been a powder keg for the past three weeks or so.…
That Average Bond Auction Sparked a Weird Reaction In Stocks Today
Despite offering some of the highest yields in recent memory, Uncle Sam is having a tougher and tougher time selling bonds right now. Demand at yesterday’s 10-year auction was abysmal, which tells me there’s not much appetite for that particular flavor of Treasury debt. Today’s 30-year Treasury auction was… “average” if you’re being charitable -…
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…
Inflation Is Back, Risk Is High… And Interest Rates Could Still Go Higher
CPI came screaming in this morning at 0.4% against expectations of 0.3%. That’s hot in anyone’s book - and you could almost hear the market cry as its hopes of a summer rate cut up and died. The S&P 500 started weak and got weaker along the way to a 0.95% loss for the day.…