Powell Barely Makes Any Changes - Market Reacts Anyway
Powell’s Jackson Hole Speech Powell gave his Jackson Hole speech on Thursday. Not much changed, but the media reported it as a big pivot and the 10 year yield increased. 10 year yield went from about 68 basis points to about 75 basis points because the Fed suggested it would let inflation ramp higher than…
The Trade that Rocked the Markets
Stocks go on roller coaster ride today helping us get out a few profitable positions. The real news of the day though was bonds and gold that suddenly got rocked thanks to the Fed. Here's what to look for now that we are back in the Vomma Zone...
Big Tech Controls The Market - No Other Stocks Count
Insanity Reins Supreme Wednesday was the craziest day in the stock market most of us have ever seen. Salesforce.com’s earnings report caused a tidal wave of buying in everything tech related. Frankly, the action made no sense. This is a bubble. Netflix’s stock rose 11.6% and Roku’s stock rose 11.2% on analyst upgrades. Analysts are…
Is The Consumer OK?
Help Coming From The Government? One of the most discussed topics in economics and investing is how much the elimination of the $600 in weekly unemployment benefits impacted the economy. Recently, Redbook same store sales growth actually improved in the latest reading. It’s now positive. On the other hand, consumer confidence in the first half…
Is This the Blow-Off Top You Were Looking For?
A touch of bullish insanity shook the market today with all-time highs extending in the SP500 and NASDAQ on the strength once again of leading tech names NFLX (up 11%), Facebook (FB up 8%), GOOGL, AMZN and others. These intraday straight-up price trends were stunning and could be the sign of a blow-off top exhaustion…
A 5 Percent Correction Always Happens When This Signal Is Triggered
Nothing Can Stop This Market S&P 500 has only been down twice this month. Nothing can stop this bull market besides the Fed which won’t be raising rates anytime soon. A full return to normalcy because of a better COVID-19 treatment or its spread dying off may cause tech stocks to crash. Since tech is…
August Consumer Confidence Falls To A 6 Year Low
6 Year Low In Consumer Confidence It’s clear the decline in jobless benefits caused consumer confidence to fall because COVID-19 cases have been sharply declining this month. Plus, the stock market has been up. It's clear the coming election didn't alter confidence. It may have caused slightly more polarization, but probably didn’t impact the overall…
Upside Market Chaos Continues!
Markets continue to be dragged higher by a few stocks that have gone parabolic. Where most of the volume has dried up in the market it has all gone to these few underlyings. Here are the 2 strategies I'm using to play this risk in the market. One gives me consistent 30% gains and the…
S&P 500 Fairly Valued Without Big Tech
Stocks Always Go Up This is a great market because no matter what the leadership is on the day, the index almost always ends higher. Last week the momentum tech stocks led the market higher. On Monday, cyclicals did the heavy lifting. S&P 500 rose 1%. It’s still in the range where if it tops…
Hedge Fund VIPs Are Ramping
Small Businesses Are Coming Back We hear a lot about how badly small businesses are doing. Tthat’s because the businesses that are near shutting down or have been forced to shut down get most of the news coverage. For example, it’s not news if a business is doing 10% worse than before the recession, but…